In-N-Out's Unique Distribution

Something that was discussed in one of our earlier blogs is that In-N-Out only has stores 500 miles away from their two distribution centers, the farthest being 685 in Centerville Utah. This fact is actually very important to In-N-Out's future. 

In-N-Out prides itself on having never frozen patties and that is part of the reason the distribution centers cannot be very far away from the restaurants. According to D Magazine in Dallas the process from the meat being on the cow to being served is about 5 days. The McDonalds website openly states that their patties are flash frozen 2 to 3 weeks before being served. But what is unique about In-N-Out patties is that they are not actually made at the distribution centers or the restaurants. Business Insider points out there are separate patty making facilities that then send the patties to the individual stores every day. Some customers are not happy with this fact but if they are never frozen then what is the harm?

The two distribution centers in Dallas, TX and Baldwin Park, CA support 304 In-N-Outs. The distribution center in California supports 251 stores while the other center supports 53. This seems like a lot of restaurants for one center to support but it is still less than McDonalds whose facilities provide to 250 to 700 stores according to University of San Francisco. Because the distribution center closest to Texas can support so many more store in the 500-mile radius, it leaves room for In-N-Out to expand. Should they? This is the question our group has been struggling with from day one. If they were to expand could their never frozen beef situation still work out? Would they lose that mystique? But if they don’t, they would utilize the power of the distribution centers?

The article Attack of the Double Double by Nancy Luna in D Magazine is actually very interesting and gives good insight into In-N-Outs distribution strategy.

http://www.dmagazine.com/publications/d-magazine/2011/march/how-in-n-out-burger-will-change-dallas-fast-food