In N out Burger Case Study

IN N OUT Burger Case Study

MGMT-491-01

Strategic Management

In-N-Out Burger

Background

        In-n-Out burger is company that we think of as fast, fresh, convenient, and high quality food worth every dollar. This is exactly what Harry and Esther Snyder wanted to come from their new burger stop. In 1948, the first In-N-Out was opened in Baldwin Park, with the idea and concept of bringing their customers a quality burger with being as convenient. Harry had “the recognized the potential of having a restaurant that allowed drivers to make orders over a two-way intercom system (Brower 2016).” In doing so, he implemented this idea is now known as creating the first Drive-thru experience for his customers. This was the turning point for the fast food industry with this new Drive-thru experience, and it went back to his main fundamentals for the new burger joint of bringing his customers with the freshest and highest quality food experience while having the convenience of never stepping foot out of your car. Now fast forward a couple decades and the company is now rated one of the best fast food restaurants out there as well as being desired by many for its quality food and quick and easy service. Now the question is “how did such a company get to this caliber?” This can be bettered understood by not only understanding the purpose of why the restaurant was even created but understanding the core values, internal and external aspects of the company as a whole. The purpose of this paper is to give an insight of what exactly makes In-N-Out so successful as well as understanding what obstacles they have to go to maintain such high standards. While I will give a well thought-out and subjective recommendations for the future growth of the company for future growth.        

Mission

        In-N-Out mission statement is as stated “Providing the freshest, highest quality foods and services for a profit and a spotless, sparkling environment whereby the customer is our most important asset. Providing a team oriented atmosphere whereby goal setting and communication exist and to provide excellent training and development for all of our associates. Assisting all.”(History 2016) This has been the main purpose and goal of Harry and Esther Snyder when the opened the very first In-N-Out, and have in main aspects have accomplished these very values for their company. In-N-Out has accomplished these values by opening up many food distributing centers is various states so that they can bring each and every customer with the highest quality food possible. Such centers in California contribute to bring each In-N-Out the freshest vegetables for their burgers, while over the recent years they opened new centers throughout Texas to bring the freshest and healthiest meat products for their customers. They always felt in order to provide their customers with the overall best food experience it not only needs to start with the food that they serve but the people that make the food. This is exactly why In-N-Out has been rated as the best fast food restaurant to work for because of how much the company does to insure each employee is treated with the highest standards. In-N-Out first off starts each of its employees off at $11.00 an hour with added benefits such as 401k and health packages (Lutz 2013). They even give their employees trips to Disneyland during a companywide get together to show their appreciation. With each one of these aspects of providing highest quality food as well as giving the employee the highest experience in return they will get an overall satisfactory restaurant experience.

Goals and Objective

        The company has always had to drive to giving its internal and external investors with the highest quality food experience and has done so throughout the years. Over the years In-N-Out felt that in order to fully give back and show how much they care for the surrounding communities they wanted to find a way to achieve such goals. In achieving such goals, they founded two non-profit foundation the In-N-Out Burger Foundation which serves the purpose of bring awareness and supporting children and the Slave 2 Nothing foundation to find ways to free individuals who are enslaved but any person or substance. They believe as a company with such success and high standards for their customers and employees they should only in return give back. Their foundation for child abuse started in the 2010 has received an annual amount of $1 million in donations a year to help prevent and support child abuse in our country, and the Slave 2 Nothing foundation which was founded in 2014 has been making a great success in bringing awareness to slave trafficking not only in other countries but in our very own country. (History 2016)

Organization

        When the company started to grow enormously they executives of the company decided they needed to set up an organization strategy that worked perfectly around their ideology of high quality and experience. They set up their company around the Lawrence Kohlberg ethical reasoning, which specifically falls under stage 6 of this reasoning. Stage 6 of the reasoning states that “the company makes a clear effort to define principles and moral values that reflect their value system, rather than simply reflecting the ideals (Sufferly 2013).” This can be seen in how Harry Snyder’s goal of keeping the company within the family, because he had felt if they decided to franchise the company they would lose core values that make up In-N-Out what it is today. In-N-Out set up a code of ethics which stresses the importance of “associates bringing their questions, comments, and concerns to the attention of the company (Sufferly 2013).” This ethical standpoint was set up for the reason as an open-door policy because they want their employees to give back input in how they can overall better the companies service because who better to know what needs improvement then the people keeping the company running day-to-day. In-N-Out has always wanted to maintain private in how specifically their company is ran because they’ve always wanted the main of the focus to be on its services rather its internal operations.

Corporate Governance System

        Since the company is family ran it doesn’t have an official setup for its governance system like how many publicly owned companies would have setup. “They ensure a climate of trust and "candor" for new and existing employees. The workplace is a fun, while still being highly organized and professional and giving excellent service (Sufferly 2013).” In doing so have been able to maintain its ideology in doing so have a small corporate structure. Many of the executive level positions are ran by family members because Harry always wanted the company’s secrets to success to be kept within the family and In-N-Out has always been known for that as we all know about their secret/special sauce that makes an In-N-Out burger so amazing. Currently In-N-Out is currently run by Lynsi Snyder-Ellingson, granddaughter of Harry and Esther Snyder, and she is continuing the family legacy of keeping it within the family as well as continuing her grandparent’s legacy and ideology.