The Fast Food Revolution in America - Case Study Example

A burger Joint which revolutionised the American lifestyle and started the fast food culture, In-N-Out burger has had 3 generations of managers and has survived a race constituting competitors' who're spread out globally. Unlike Mc Donald's and Carl's Jr who rely heavily on technology and advertising to fuel their business, the In N out Burger chain stands out in its techniques and relies on simple business principles to sustain and fuel its growth. What's the secret behind the phenomenal success of this joint which was started humbly by the newly-wed couple Harry and Esther Snyder Stacy Perman does considerable justice and throws some light on the simple tricks of the trade which are essential to the core functioning of any business and yet so often ignored. The chain which originally started off at Baldwin Park has now assumed cult status and generates revenues in millions. Adored by celebrities and the masses alike, the fat, juicy perfect burgers find their way into celebrations and have satisfied hungers for decades now. In N out, that's what Hamburgers all about- [Stacy Perman, In-N-Out Burger] This is the radio jingle which most Californians would probably remember more accurately than the national anthem. Quality can add wonders to even the most basic advertising. The delicious burgers churned out by the chain can speak more than any advertisements. Started off in an Era of Post War development, the chain finds its humble beginnings in the dreams of the young couple Harry and Esther, both from the Military background. After they met at a common workplace, Harry and Esther not only found companionship but also the perfect business partners in each other. While Esther was grounded, gentle and calm, Harry was the Maverick, going by his guts to reach out to new avenues. She managed the accounts, while Harry took care of everything including Quality and the logistics. The synders found a partner and the much needed funds to fuel their business in Charles Noddin who invested a sum of $5000.However the business relations between the two associates soured and they decided to split ways soon afterwards when Harry insisted on keeping the price low and bettering quality while Charles wanted to take the practical and commonly followed route of increasing profits through cost cutting and price increase. Harry was stubborn in his ways and detested listening to others when he thought he was right-hence the store remained independent hence forth under his regime. The chain under the synders thrived on a system which ran on 3 simple words-Quality, cleanliness and Service. Harry was determined to bring in the best in all 3. And hence the buns were baked fresh everyday; the store personals always had a smile to share, and the open kitchen was visibly spic and span. And that's how the burgers found themselves staying on par, if not surging ahead of the competition. While the competition was busy franchising, In N out maintained a strict decree in maintaining it as a family owned business. This helped the chain maintain quality. And when it came to quality, Harry had got his formula right-He insisted on using only the best bits of the tomatoes and discarding the rest. He selected the best quality beef himself, and got in touch with suppliers frequently to maintain the best standards. There had to be perfection in every step that constituted the making of a Burger. This was the sole secret to the beginnings of the enormous success his creation was to become. As freshness and quality became the Mantras, only the freshest meat, potatoes and buns found their way into the kitchens. The chain diverted advertising funds towards increasing quality. This in turn led to increasing word of mouth publicity which worked better than churning out print and television ads. The Synders were not shy of exploring- and hence they found lifelong friends, business rivals and advisers in the Karchers, who were to own the entrepreneurial success-Jr carl's. Both the synders and the Karchers believed in creating their own luck through hard work and enterprise. This was one of the basic business principles they were to rely upon in business. Harry was specific about his expansion plans. Firstly, he would never initiate a new venture unless he had a manager who'd worked his way up from the scratch and was through in his knowledge of operating procedures. Secondly, he was also particular about location and would place his store where supplies could come by easily. He would place his drive-ins strategically in heavily trafficked areas. Post the interstate road project, which placed miles of roads for the fast food drive-ins to tap, Harry came up with the innovative idea of the "double drive through", which speedened the queues and ensured faster access to service. His third policy in business expansion was to never open a store on credit. He would open up his stores in rural suburbs which were more affordable than the busy central areas. This shrewd strategy was to prove the biggest advantage as he was to save on rental and had no debts to pay off with each expansion. The In N out strategy was contrary to Mac donald's beliefs of expansion through franchising which was the commonly followed practise then. In spite of Mac donald's phenomenal growth, the synders remained firm in their belief-they would never sacrifice quality for money; and they were of the view that expansion through foreign funds would mean losing control. The next move by the synders was the investment in a drag strip which proved to be a success, and further established In-N-Out's association with the roads. The fries, the burgers and the races proved to be perfect combo. "I'm not sure if it was the atmosphere or what, but they tasted better there than anywhere," recalled Valerie Althouse, an In-N-Out fan and a racer. Amidst all the success, the Synders had two sons, Guy and Rich. Though they both grew up in relative luxury, their parents exposed them to the business early. They were made to work in the kitchens to expose them to the nitty gritties before they could take on the helm of affairs. At the time of Harry's death due to lung cancer, the younger son, was closer to dad and also displayed business acumen unlike the elder child Guy, who was more of the rebellious type with interests in drag racing and merry making. This led to Harry naming his younger son as the president and heir to the fortune as opposed to the elder child. This move proved an advantage for the chain. Rich not only proved to be a shrewd businessman, he was also a visionary who saw potential for large scale expansion for In-N-Out. Though he was slightly insecure due to lack of a college degree, he made up for it by connecting with people around easily. He was also prepared to work hard and learn on the job. So the company had a new man of 25 years at its helm Read More