In-N-Out Burger: Stressing Team Member Retention

By Stacy Perman

If you live in California or Arizona, you know In-N-Out Burger. Otherwise, the 232-restaurant chain may ring a bell only because of Paris Hilton. She was famously on her way to satisfy an In-N-Out urge when she was charged with DUI in 2006. Foodies may be aware that star chefs Daniel Boulud and Thomas Keller are big fans. But even devotees may not know that the company, founded in 1948, has resisted both franchising and going public, and beats Burger King (BKC) and rivals McDonald's (MCD) on per-store sales. BusinessWeek writer Stacy Perman brings the secretive company to light with In-N-Out Burger: A Behind-the-Counter Look at the Fast-Food Chain That Breaks All the Rules. This excerpt tracks how Rich Snyder, son of founders Esther and Harry Snyder, expanded the chain, focusing closely on the quality of the food—and the staff—before he was killed in a plane crash in 1993.

Rich Snyder was 24 when he became president of In-N-Out Burger after his father, Harry, died in 1976. He shared Harry's belief that running a successful fast-food business wasn't about cutting corners or using the right equipment. What it boiled down to was the people on the front lines.

Where the two differed, however, was that Harry had hoped his "associates," as he and Esther insisted on calling employees, would work hard, save money, and leave. Rich had another idea: "Why let good people move on when you can use them to help your company grow?" Rich also wanted to establish a much bigger footprint for In-N-Out Burger.

Read the rest of the article at: http://www.businessweek.com/magazine/content/09_16/b4127068288029.htm