Cy Soliman holds a burger outside of In-N-Out.
The yellow arrow and palm trees may not be as globally recognizable as McDonald's golden arches, but California-based burger chain In-N-Out Burger has still managed to amass a cult following with its "animal-style" fries and double-double burgers.
Founded in 1948 by Harry and Esther Snyder as a single drive-through hamburger stand in Baldwin Park, California, the company has grown to just over 400 locations and is estimated to be the ninth largest burger chain in the U.S. by sales. It brings in an estimated $2.1 billion a year, according to food service consulting firm Technomic.
"It's pretty outstanding what they're able to do with such a small footprint of locations," says Kevin Schimpf a director of industry research at Technomic. He adds that the chain has the highest sales per store in the burger segment.
The company, known for its fresh-to-order burgers, has a presence in just eight states mostly on the west coast. Due to its commitment to never freezing ingredients, each restaurant must remain within a day's drive of one of its supply centers.
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Yet it's managed to keep prices low. Despite inflation, the price of a basic burger at In-N-Out has only increased by 25% since 2020 — the lowest increase amongst nine burger joints studied by Technomic.
Today, the company that has remained private and never franchised, is run by Harry and Esther's granddaughter, Lynsi Snyder. She became one of the world's youngest billionaires when she took over the company in 2017 at 35, according to Forbes.
Starting wages for employees are above industry average, and managers can make well into the six figures. In-N-Out landed a top 10 spot on Glassdoor's inaugural Best-Led Companies list earlier this year.
Money Report
While the company's business strategy might be "counterintuitive to the American business ethos," In-N-Out has seemingly figured out how to balance profit without cutting corners, says Stacy Perman, author of "In-N-Out Burger: A Behind-the-Counter Look at the Fast-Food Chain That Breaks All the Rules."
"I think they've defined success in their own way. Perhaps that's their biggest legacy," Perman says.
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