IN-N-OUT

So Simple it just might work

In-N-Out Burger has been renowned nationwide the best fast food burger. Starting up in 1948 the fast food joint has remained family owned to this day. Here is there mission statement. “Since 1948, we have maintained a simple philosophy – serve only the highest quality product, prepare it in a clean and sparkling environment, and serve it in a warm and friendly manner. We have built a reputation for fresh, made-to-order foods prepared and served by friendly, well-trained Associates.” Is this statement accurate though? Well customer reviews, and dozens of online top fast food burger lists would prove that they do.

The one thing I think that sets In-N-Out apart from the rest of the top fast food chains is what they offer. Their menu consists of only hamburgers, cheeseburgers, fries, a grilled cheese, which is just the regular burger without the meat, and then of course soda and shakes. Thats it, thats all they sell. There complete menu has only a little over 8 items. When we look at other fast food chains like Mcdonalds, Burger king, and Wendy's theres dozens of items. Mcdonalds itself has over 48 individual menu items! How does this help them achieve there goal of "the highest quality product"?

 From an accounting perspective when you look at the potential costs that would effect a firm being able to serve the highest quality products it makes sense why Mcdonalds and other joints falls short of the having the best food. When you look at Mcdonalds they have chicken sandwiches, chicken nuggets ( if you can call that chicken), Fish, and then frozen beef. Why then is the average price of a double burger at Mcdonalds $4.69 and a double burger at In-N-Out $3.40? In-N-Out has kept themselves simple proving their "Simple Philosophy". They do not have to break the cost of all of those other menu items like chicken, fish, and whatever those nuggets are. They only have to focus on good beef. They have focused on segmenting to the customers that want a good burger. Since that remains their focus they can spend all their time and capital into affording the best and highest quality ingredients so that they can have that mission statement. Doing so has made them famous nationwide and gaining the title of the best burger. It looks like their mission statement is doing them justice.