This video is sponsored by Brilliant. The first 200 to use the link in the description
get 20% off the annual subscription. Anyone whose ever been to In-N-Out knows to
expect, no matter where you are, the same, consistent burger, smiling cashier, and long
lines. Residents of Portland, Oregon were known to
drive four hours each way to the nearest restaurant in Grants Pass, and before there were any in Phoenix, locals
supposedly flew to Ontario, California, had lunch, and promptly flew back. And yet, despite seemingly unlimited demand,
In-N-Out is one of the smallest major fast-food chains in the world, with only 347 locations. There are over twice as many Whataburgers,
almost four times as many Five Guys, and forty times as many McDonalds, just in the U.S. Since it began in 1948, it’s only opened
an average of five restaurants a year – two less than Subway opened in a single day, at
its peak. In other words, In-N-Out deliberately leaves
money on the table, refusing to expand even where huge profits are guaranteed. Why? Profitable, high-margin industries are often,
kind-of… boring. How do you make money selling toothbrushes? Uh, well, you… sell them! Plastic handles with bristles on the end,
as it turns out, don’t cost very much to make, and therefore, have healthy margins. Someone, of course, will try to turn them
into a subscription, make them out of aluminum, oooh, and call it the Youthbrush, but most
of us don’t have a passion for consumer dental products, so the business model is
simple: You hand me a couple of dollars, I’ll give you a rod with some bristles. Things get interesting when companies have
to get creative. When competition is high, or consumer willingness
to spend money low, they have to find some other way to make a profit. For restaurants, it’s all about selling
drinks. With printers, the money’s really in the
ink. And Costco’s low prices? Those are offset by annual membership fees. Selling millions of french fries for a few
cents each isn’t a bad business for McDonald’s, but it’s found something even better: real
estate. While the company only owns and operates 15%
of its restaurants and the rest are franchised, it owns almost all of their buildings and
the land beneath them. Franchisees pay about 8-15% of their revenue
as rent to McDonald’s, who makes money whether they’re profitable or not, and that’s
on top of the normal franchise royalty. After going on a huge shopping spree during
the 2008 recession, McDonald’s now owns more than $30 billion worth of real estate. Not only is its business diversified but much
of that income is tax-deductible. In other words, McDonald’s is actually more
real estate investor than fast-food franchise. Likewise, if you think of In-N-Out only as
a burger chain, it doesn’t make much sense. Why not open more locations? Why not change and perfect the recipes, or
add new menu items? But, if In-N-Out is really about serving a
predictable, familiar experience more than the food itself, opening new locations and
trying new things are huge risks. In-N-Out’s secret ingredient, the thing
it’s really selling is: consistency. Nearly every location has the same, familiar
layout, drive-thru lane, and iconic crossed palm-trees, a reference to the founder’s
favorite movie. Unlike other fast-food restaurants, the interior
is clean, well-lit, and easy on the eyes. Most importantly, the menu is dead simple:
hamburger, cheeseburger, french fries, three flavors of shakes, and the two hamburger patty,
two slices of cheese, double-double. That’s it. To drink, there’s milk, hot cocoa, coffee,
classic and diet Coke, root beer, Dr. Pepper, 7Up, lemonade, and iced tea. Even with a few, secret variations, like grilled
cheese, animal fries, and the Neapolitan milkshake, there’s nowhere near the selection of, say,
a Dairy Queen or McDonald’s, which have about twice as many drinks alone as everything
at In-N-Out. Its menu changes not seasonally, or annually,
but, maybe once a generation. In 1958, bottled sodas became fountain drinks,
Milkshakes were added in ’75, Dr. Pepper, 21-years later, Lemonade, in 2003, and hot
chocolate fifteen years after that. When a fourth beverage size was proposed,
a fight reportedly broke out inside the company. And, in 2018, it closed all 37 locations in
Texas for a full 48-hours when it found buns that didn’t meet its quality standards. The downside of this consistency is that it
can’t respond to changes in the industry. In 2015, McDonald’s was able to turn around
declining sales with its all-day breakfast. And, caught off guard by Chipotle’s success,
many chains have tried capturing that market by introducing more healthy alternatives. On the other hand, by keeping things simple,
In-N-Out can carefully optimize every ingredient in its business formula. Inevitably, new items mean longer lines, confused
employees, and added complexity. The McCafé Coffee, for example, required
each store buy a $15-20,000 espresso machine and train employees on how to use it. At In-N-Out, there are five levels of employees:
Level 1, the janitor and counter handout, 2, for the drive-thru, 3 and 4 who make french
fries, 5, who is allowed to assemble burgers, and 6, the only person authorized to man the
grill, which requires at least 3-6 months of training. Not only does this ensure well-trained cooks,
but it also turns fast-food into a proper, well-paid profession. Level one employees are generally paid more
than minimum wage, and managers make an average of $160,000 a year, with some making well
over a quarter of a million dollars overseeing a single location. It’s not hard to see why they stay with
the company for an average of 14 years. Almost all current and ex-In-N-Out employees
say the same thing: it’s a stressful, chaotic, and, yet, highly desirable job. Everyone, full and part-time, receives 401k
plans, dental and vision coverage, and paid vacation days. Even more impressive, it does all that despite
having some of the lowest prices in the industry. A hamburger, fries, and milkshake costs just
$6.85, about half the price of the same order at Shake Shack. Any other company would, without hesitation,
export this formula of highly-skilled employees, a simple menu, and consistent quality, across
the country, and then, when that worked, across the globe. The fact that it hasn’t is, more than anything
else, a reflection of its values, set 70 years ago in Baldwin Park, California by husband
and wife founders Esther and Harry Snyder. It was the first place ever to use a two-way
speaker system, allowing drivers to place orders while in line. They would eventually open 18 more locations,
but, strictly, only when they could afford to buy the property outright, never on a loan. Principled, thoughtful founders like the Snyders
aren’t all that hard to find, but rarely does the second generation inherit those same
values. Only about a third of family businesses survive
the second generation and another 50% don’t last until the third. In-N-Out is one of the few chains that has
stayed true to its beginnings, despite going through several traumatic changes. When Harry died in 1967, his son Rich took
over, who then died in a plane crash in ’93, after which his brother Guy replaced him,
only to die six years later. Esther then returned to manage the company. Finally, in the riskiest move of all, after
she died in 2006, presidency was given to someone outside the family, Mark Taylor, until
Guy’s daughter, Lynsi, reached the age of 30, when she inherited 50% of the business,
and then almost full control in 2017 at age 35. In-N-Out has seen six different leaders, been
heavily pressured by outsiders to franchise the business, and watched the industry it
helped create change dramatically, and yet, today, 70-years later, any of its very first
customers would feel right at home in any of its 300 locations. It’s current president is the highest-rated
female CEO in the U.S. by employees. And while the company continues growing – entering
Texas in 2011, Oregon in 2015, and soon Colorado – it does so very carefully. Lynsi, still in her 30’s, doesn’t expect
to expand east of Texas in her lifetime, and never in every U.S. state. With so few locations, every grand opening
is a major event – with free, organic marketing and much fanfare. Lines are so long that the company hires off-duty
police officers to manage traffic and flies-in “All-Star” employees – experienced workers
who manage the chaos in long 10-hour shifts. The biggest bottleneck is distribution. Buns are baked daily, milkshakes 100% dairy,
and there are no freezers or microwaves. That means ingredients have to be prepared
at distribution centers – currently in Baldwin Park; Lathrop, California; Dallas; Phoenix,
Draper, Utah; and Colorado Springs. From there, they need to be delivered within
a single days drive to each of their stores – which limits new locations to a roughly
500-mile radius from each distribution center. Whether you’re a fan of Shake Shack, Whataburger,
Five Guys, or McDonald’s, you have to admit there’s something special about In-N-Out. While McDonald’s will always make more money,
serve more customers, and be more widely known, In-N-Out has arguably done something even
harder: keep a legacy alive while staying true to its original ideals over 70-years
and through six generations of leadership. The lesson is: whether in business, life,
or learning, the hardest part is often just keeping a good thing going. Enrolling in a class is easy, but remembering
to actually go and retaining the knowledge, much harder – and that’s exactly how Brilliant
is designed to help you. Brilliant teaches you math, science, and computer
science with engaging pictures and puzzles, then helps you check your actual understanding. In other words, you don’t just memorize
formulas, you actually see how and why something works. With Daily Challenges, you can solve quick
problems, even on the go with their mobile app. They’re adding new courses all the time,
on Computer Science, Differential Equations, Scientific Thinking, and Geometry Fundamentals,
for example. You can use the link in the description to
start learning for free, and the first 200 people will get 20% off the annual premium
subscription, so you can view all Daily Challenges and unlock dozens of problem-solving courses. Thanks to Brilliant and to you for watching
this video.
In-N-Out is finally opening in Houston and you guys have NO IDEA how long we waited for this
as an in n out associate, i can say it’s a pretty awesome company to work for 😎
I don't know whats the big deal about in n out. I live near one and dont find anything special about it. Not worth waiting in a long line for it either
Literally half the time I try to order a mccafe coffee that stupidly expensive machine is broken and the drones are completely helpless.
I live in Colorado and they just got approved for a contract here.
Laughs in San Diegan
west coast white castle
There’s 3 in n outs within a 10 mile radius, guess I’m lucky
Don't believe the hype.
You know what has gotten more popular… A&W they were close to shutting down then they are popping up everywhere. I've never heard of Whataburger and in and out
Tim Hortons is on every corner they just got beyond meat burgers
There's an in and out a mile away from me sooooooooo.
No there already is one.
WOAAAH.
the one at 3:11 is the Hercules branch in California
How much did they pay yourself
Does in and out taste like a cookout?
They have good food but its nothing special
Its not 'impressive' that in and out offer health coverage and paid vacation days.
Literally every single full time employee in the UK gets 28 days paid holiday every year. Every company does it.
Why is there random stock footage of the united kingdom at 7.03
In-N-Out is the best! They should be in Disneyland.
Am I the only one that doesn’t like in and out like at all
In-n-out is so overrated. Went around LA and was disappointed twice. Dry food, cheese on the animal style fries was hard and cold. Fuck off
Yeah I was listening to a podcast from 2014 yesterday and they spoke about In-N-Out in Texas. He said “you can get in but good luck getting out”
Weird how it was recommended like that lmao, someone was listening.
The name implies that they just chuck food at you fast so they can get as much money from as much people as possible.
They lost me by not having any mayo in their stores…
Only downside is I have to go to chick-fil-a for breakfast, because the in-n-out nextdoor is closed in the AM. CA is awesome.
Two fewer
I read the title and laughed because there’s one 15 minutes away from me.
Fuck California there are IN n OUTs in Texas , plus we aren't governed by socialist assholes .
And here i am complaining i have to drive 17 mins to get to the one by us 😂
No I don’t want this in my city grabage burger you can get a nice juicy burger in Texas
its gonna open in Saudi Arabia
Me living in Texas and in n out is only 5-10 min away
cries in east coast
:laughs in texas:
I understand tradition and everything, but please do better on those fries. They're terrible!
Did I just become an In-N-Out fan boy without ever eating one of their sandwiches or even seeing a restaurant before? Yes I did😎👍 Mad RESPECT to In-N-Out from N⭐C
Rolce-Royce of burgers.
I live across the street from an in n out 🤷🏽♂️ always buying a shake to:))
BET!
It's special because they have morals, high integrity, and the love of God. It's a Christian company with Christian Values! Long Live In-N-Out
whataburger is too strong
I live in California, and whoa I didn't even know that they didn't expand like whoa
There are 2 in my city (las Vegas
they're building two where i live in texas?
Come to Equestria and try a HayBurger! 😀
I would rather have cook out than in and out anyday… cook out for life east coast
Anyone else proud to be an American for 5 minutes after watching this video?
in n out is pretty hyped up imho had it 5 times but didnt really see the hype, the animal fries are wack.
i live near an in and out
We have In N Out and it's not as busy as Whataburger, Sonic, or McDonalds. The reason why is only the Awful CA people eat there. Texas people hate it.
The way you narrate the story makes it way more interesting and fun! I am always waiting for the next video you release. And I also appreciate your honesty with the products you advertise.
When your state has In N Out AND Whataburger
8:05 so Lindsey was 35 in 2007 but still in her 30s in 2019?
I wish they had one on the east cost. I would drop few million to put on in NYC.
I can bet 90% watching this are from California
Haha, I live in DFW, Texas.
We have In-N-Out AND Whataburger!
Youtube: <reccomends this video>
Me: Cries in South African.
I live in Texas and Have 2 in n outs near me 😎
Cuz it’s trash
This is why I love In N Out. I grew up in SoCal and ate there all the time in high school and in my 20s. Funny thing is, in the city I live in, in NorCal, we actually have an In N Out and it is right next to a McDeath and the lines for In N Out are always out on the street..everyone loves In N Out for their small menu and customer service…and you are In N Out.. Yup, my sister worked at In N Out in City of Industry while going to college in the early 1990s and at that time, made $10.50 an hour and worked her way up to being a cook..
In Texas there in every 4 major metropolis
I live in dallas texas and we have a few in n out
I live close to Lathrop…see the In N Out warehouse all the time..
I live in Texas so im good
My town in Oregon got an In-n-out in 2015. The burgers are good. Fries suck. Often too crowded due to the hype. Not a fan tbh. I get why people are though.
I live in Draper Utah, about 5 minutes walking distance from In N Out
First time hearing In-N-Out
so they choose quality over quantity
You’re really doing a great job ! Thank’s
Why TF is McDonald's able to deduct from taxes, when they are a multinational national company which makes hundreds of millions each year?
Yeah i watched this while in in-n-out
IN-N-OUT IS FUCKING TRASHHHHH
Whataburger’s better. Change My Mind.
There’s about 8 in-n-outs within 10 miles of my house, so I’m good
so sad, I miss in n out, New England is missing out
You definately did your work and were mostly correct, but you where pretty off about the levels. There where quite a few things wrong but i'll just point out a few. We dont have janitors, any and every level is expected to keep the store clean. Level 7 is also not a manager. It's the next step to being one, but not yet. After level 7 you have a hierarchy of managers, and its usually only the store manager who makes up to six figures.
"Why In-n-out isnt coming to a city near you"
*laughs in Inland Empire
Why In-N-Out isn’t coming to a city near you
Arizona: Laughs in bipolar 100 degree weather
Man, the closest in n out near me is around the block lol
Fuck you there’s one at kaiser station
I like In-N-Out the way it is.
We've got one right around the corner and I don't understand what the big deal is. I mean the burgers are nice enough but the fries are absolute s*** because they don't know how to cook fresh potatoes. And the shakes aren't much better , real ice cream or not.. completely overhyped.
I met an employee off shift at a party once, he’s totally happy working there and actually wants to pursue a career as manager. THIS IS HOW YOU DO BUSINESS. People and Product first. Quality, integrity, and intelligence.
They literally just made one in my city
In-N-Out is overrated… it’s a decent burger for a decent price, fries suck, milkshake is okay. I’d rather go to a different burger joint
Cause it fucking sucks thats why, overhyped trash.
Glad to live in Phoenix
Why In-N-Out isn’t Coming to a City Near You
Me: WELL YEAH BECAUSE I LIVE IN A HELL HOLE ALSO KNOWN AS THE PHILIPPINES
I love In-N-Out
There’s 4 in a 30 mile radius. One just 3 miles away. It’s fine every 3-4 months. You guys aren’t missing much.
Am I the only one surprised to hear McDonalds is a franchise?? No wonder theres major differences in quality depending on where its located. I'll actually drive out of my way to go to a further one because quality is so much better.
& McDonald's etc acts like they can't pay their employees better
I live in Texas and in and out is my favorite cheeseburger
Living in Illinois is hard. Leaving California was harder. In-N-Out, I miss you…
Bro, your add segues are so good.
your videos suck too much to donate to.
kicking you in the nuts NOT to be a douchbvag…. THAT I'd pay to do!
Go fcuk yourself, PM……. 💩💩💩
I knew a few classmates that drove 3.5 hours both ways one night across mountain roads to get In-N-Out and be back for class the next day. All because they had a craving for In-N-Out.
Hehe i have 2 in n outs near me haha losers
"Why In-N-Out isn't coming to a City Near You"
laughs in hollywood