In confronting California’s escalating minimum wage hikes, Lynsi Snyder, the driving force behind In-N-Out Burger, has firmly declared her opposition to the industry’s inclination towards inflating prices.
In a revealing conversation with NBC’s Savannah Sellers, she expressed her determination, stating, “I was sitting in meetings going toe-to-toe saying we can’t raise the prices that much. We can’t.”
Climbing from the Ground Up
Rather than a narrative of entitlement, Snyder’s story at In-N-Out is marked by her gradual rise from entry-level positions to the presidency by age 27.
Her path demonstrates her deep commitment to grasping the intricacies of the company’s operations. Reflecting on her experiences, Snyder pointed out, “I think that there is a stigma that can come with being the owner’s kid.”
Standing Firm on Price Integrity
At a time when many fast food restaurants are quick to shift rising operational costs onto their customers Snyder sets herself apart with a steadfast refusal to impose substantial menu price increases.
Her stance, particularly in wake of the minimum wage increase to $20 per hour in California, shows that she feels a duty to keep dining affordable.
Price Surges at Fast Food Giants
The New York Post reports that at a Burger King in Los Angeles, customers recently faced a shock when the price of a Double Texas Whopper jumped nearly 12%, going from $15.09 to $16.89 in just a few days.
The cost of the store’s Big Fish sandwich also increased an astonishing 53%, a $4 increase that pushed its price from $7.49 all the way up to $11.49. This dramatic rise in prices is a clear sign of the times in the fast-food industry.
The Wider Economic Impact of Price Stability
As competitors increase their prices, In-N-Out’s relative stability provides a consumer-friendly alternative that can impact the wider market.
Economists suggest that maintaining lower prices not only attracts more customers but also sets a competitive standard that might encourage restraint among other chains (via Faster Capital).
Community Engagement and Brand Loyalty
In-N-Out’s commitment to affordable pricing extends to its community engagement efforts.
By sponsoring local events and supporting charitable causes, the brand reinforces its connection with customers, fostering deep loyalty that transcends mere transactional relationships.
A Minimal Price Adjustment Amidst Rising Costs
In the midst of competitors significantly raising their prices, one of Snyder’s Los Angeles-based In-N-Out locations made a modest adjustment, raising its burger prices by just 25 cents and adding merely a nickel to the cost of drinks.
Customer Shawn Fields shared with The New York Post, “It’s such a nominal increase.” He further commented, “It seems like a reasonable amount.”
Exploring In-N-Out’s Supply Chain Resilience
To maintain low price adjustments, In-N-Out has invested heavily in supply chain optimization.
This includes long-term partnerships with suppliers and innovations in logistics to handle rising costs without passing them on to customers. Their approach emphasizes sustainability and efficiency.
Choosing Tradition Over Tech Trends
Faced with the dilemma of tradition versus technology, Snyder has chosen to uphold the former, especially in her stance against the implementation of mobile ordering at In-N-Out.
“No to mobile ordering because that impacts the service experience,” she explained.
Employee Training and Retention Strategies
In-N-Out is renowned for its employee training programs and above-average industry pay (via Business Insider).
This focus on staff well-being contributes to lower turnover rates and a more consistent customer experience, which are crucial for maintaining quality as they resist widespread tech adoption.
In-N-Out’s Environmental Commitment
Sustainability is another pillar of In-N-Out’s operations. The company has implemented measures to reduce waste and promote recycling across its locations.
This environmental consciousness is part of why the brand continues to earn public trust and customer loyalty.
The Stance Against Mobile Ordering
For nearly ten years, In-N-Out has maintained a firm stance against mobile ordering, a policy that came to the forefront when the then-emerging DoorDash attempted to deliver its meals.
Back in 2015, the burger chain initiated legal action against the delivery service, as reported by TMZ, asserting a lack of trust in third-party services to meet its stringent standards for handling and delivering food.
Tech Integration Without Losing Touch
Despite rejecting mobile ordering, In-N-Out has not completely shied away from technology.
They’ve implemented tech upgrades that enhance kitchen efficiency and order accuracy (via SF Gate), proving that technology can be used to support service quality rather than diminish it.
A Contrast in Fast Food Trends
Just a month before Snyder made her thoughts on mobile ordering known, Chick-Fil-A was making waves with the opening of a new ‘grab and go‘ spot in New York City.
This fresh take on fast food did away with the usual setup of cashiers, tables, and chairs. Instead, customers had to order ahead on their phones and swing by just to pick up their food, with no option to sit and eat inside.
A Look into In-N-Out’s Marketing Strategies
Unlike many competitors, In-N-Out maintains a unique marketing approach that relies heavily on word-of-mouth and minimal traditional advertising.
This strategy keeps their marketing costs low and supports their commitment to not raising prices unnecessarily.
Embracing Authentic Leadership
Reflecting on her early leadership days, Snyder recalls adopting a formal business attire to establish her authority.
“In the earlier days, I actually wore pant suits, and I did that because I felt like I was supposed to,” she said.
Valuing Roots Over Convenience
Snyder remains a stalwart advocate for In-N-Out’s founding principles, despite the temptations of operational efficiency through advancements in tech.
“There are a lot of things that could be cheaper, easier, but that’s not the system we go through,” she asserts.
Celebrating Over 70 Years of Tradition
2024 marks the 75th anniversary of In-N-Out.
This milestone is celebrated through a series of customer appreciation events and limited-time offers that highlight the brand’s long-standing tradition and commitment to quality without compromising on modern expectations.
A Considered Approach to Expansion
Expressing her vision for In-N-Out, Snyder prioritizes maintaining the brand’s distinct appeal over aggressive nationwide expansion.
She notes, “I don’t see us stretched across the whole U.S.,” suggesting a strategic choice to preserve the chain’s exclusivity and identity.
Future Vision: Innovative Store Designs
Looking forward, In-N-Out is exploring innovative store designs that could integrate more efficiently into urban environments.
These concepts aim to maintain the speed and convenience of fast-food while enhancing the customer dining experience.
In-N-Out’s Approach to Digital Feedback
While resisting the trend towards mobile ordering, In-N-Out actively engages with customers through digital feedback mechanisms.
This allows the company to gather insights and respond to customer needs without changing the fundamental ordering process.
In-N-Out’s Commitment to Family Values
Snyder is no stranger to getting calls and messages pushing her to either sell In-N-Out or launch it into the public market with an IPO.
Yet, her answer has always been a clear and firm no. She holds dear the fact that In-N-Out is a family-run, private business and doesn’t shy away from weaving her faith into its fabric, something that’s visibly echoed in the Bible verses you’ll find on the packaging. “We’re a family company, we’re a private company, and this is who we are. I’m unashamed of my faith,” Snyder says.
Lynsi Snyder’s Leadership Philosophy
Snyder’s leadership extends beyond business decisions. She actively mentors young entrepreneurs, emphasizing the importance of ethics and personal integrity in business.
Her approach reflects a blend of traditional values and modern leadership practices.
The Next Generation of In-N-Out Leadership
As In-N-Out looks to the future, plans for nurturing the next generation of leadership include extensive training in the company’s foundational values combined with exposure to innovative business practices.
This strategy ensures the brand’s enduring legacy and adherence to its core principles.
