Page 53 - Forbes Magazine-October 31, 2018

FORBES LYNSI SNYDER IN-N-OUT BURGER

driver. (It’s in the blood: Lynsi also drag races competitive- orado—once it finishes building a new regional headquar-
ly.) They divorced in 2014, followed by her fourth marriage. ters and a patty-making facility there, likely by 2020. New
“The things that I’ve been through forced me to be stronger,” Mexico may be next, a few years after Colorado, Snyder says,
she says. “When you persevere, you end up developing more since the new supply center is nearby. Snyder still abides by
strength.” the long-standing In-N-Out rule that all new restaurants fall
within a day’s drive from the nearest warehouse, so meat and
AN IN-N-OUT RESTAURANT IS a time capsule. The red-and- other ingredients stay fresh.
white color scheme hasn’t changed since the 1950s, and the “I don’t see us stretched across the whole U.S. I don’t see
chrome tables and vinyl chairs are poodle-skirt-era throw- us in every state. Take Texas—draw a line up and just stick to
backs. Palm trees are a frequent motif—printed on the com-
pany’s plates, painted onto restaurant walls—a nod both to
In-N-Out’s California roots and to Grandpa Snyder’s favorite “I GET CALLS ALL THE TIME
movie, It’s a Mad, Mad, Mad, Mad World, from 1963. Bible
verse numbers have ap- ON IN-N-OUT,” SAYS DAMON
BATTLE OF THE BURGERS
peared on burger wrappers CHANDIK, A PIPER JAFFRAY
and cups since 1985, and
Snyder has added two more: INVESTMENT BANKER. “IT
Proverbs 24:16 (for those WOULD BE THE HOTTEST
unfamiliar: “ ... the wicked
shall fall into mischief”) to IPO OUT THERE.”
the fries container and Luke
6:35 (“But love ye your ene- the left. That’s in my lifetime,” Snyder says. “I like that we’re
mies, and do good”) to cof- sought after when someone’s coming into town. I like that
fee cups. we’re unique. That we’re not on every corner. You put us in
WENDY’S
Baconator Over the past 30 years, every state and it takes away some of its luster.”
the price of the Double- No matter where In-N-Out goes, it has to deal with
“Carnivores rejoice!”
Double hasn’t even kept competitors with entrenched positions. In Texas it faces
INTRODUCED: 2007 up with inflation. In 1989 68-year-old Whataburger. The $2-billion-in-revenue com-
$6.36 950 CALORIES
the sandwich cost $2.15, or pany has 674 locations in the Lone Star State—In-N-Out
25 million about $4.40 in current dol- has just 36 there—after opening 116 more in Texas since
lars. It costs $3.85 today.
In-N-Out came in. “Certainly we’d love for them to go
Number sold in its first two A combo meal (Double- somewhere else.
months on the menu. BATTLE OF THE BURGERS
Double, fries, drink) goes But they’re wel-
Its popularity gave birth for $7.30, compared with come to compete,”
to the Son of a Baconator $10.94 for Shake Shack’s says Preston Atkin-
in 2012 and Baconator standard double-burger son, Whataburger’s
Fries in 2015. patty and fries. CEO. “They’re doing
So how does In-N-Out something different
maintain its margins? To than we are. In-N-
start, the limited menu Out has got a lim-
means reduced costs for raw ingredients. The company also ited menu.” But In-
saves money by buying wholesale and grinding the beef in- N-Out is betting
house. By doing its own sourcing and distribution, it likely IN-N-OUT BURGER that its small num-
saves 3% to 5% in food costs a year. It cuts out an estimated Double-Double ber of offerings
6% to 10% of total costs by owning most of its properties— “No additives, fillers or and higher- quality
many bought years ago—and not paying rent. In-N-Out preservatives” food will help win
picks its locations carefully, clustering them near one anoth- over Whataburger
INTRODUCED: 1963
er and close to highways to lower delivery costs while also $3.49 670 CALORIES customers. It has
avoiding pricey urban cores. It has just one location within launched a highway
the city limits of Los Angeles and one in San Francisco, while 37 billboard campaign
many Shake Shacks are smack in the center of town. Years In-N-Out has owned the outside Dallas—
While much has stayed the same at In-N-Out, Snyder has “Double-Double” trademark. where Whataburger
made some changes. She moved the company into Texas for Go “protein style” and has 20% of its
the first time in 2011 and into Oregon four years later. Last swap out the bun for stores—with the
November, In-N-Out announced it would expand to Col- lettuce leaves. tag line “No Micro-

80 | FORBES OCTOBER 31, 2018