Wednesday, February 17, 2010

In-N-Out is a Typical Chain Resturant

Recently, In-N-Out infiltrated northern Utah, where I currently reside. It's been a big hit. However, I'm always surprised by the quasi-religious devotion that the company engenders. Its food is decent and, having grown up in California, I've partaken of it many times. On the other hand, it isn't the best out there.


With the company's continued expansion, I think it's important to remember one`` thing: In-N-Out is a chain. Like all chains, it does some things well, but it also does some things very poorly. Generally speaking, it promotes a particular world view that, while perhaps more salient than that of McDonalds et al., is no less generic.

More specifically, In-N-Out, as a chain, works against local communities in a number of ways. Most obviously, it siphons profits back to its California headquarters. Though it reportedly pays its employees well and ranks high in customer satisfaction, the bottom line is that the people getting the richest are concentrated in one central location. In my case, that location also happens to be hundreds of miles away.

In addition, the company competes with and undercuts more unique businesses that are based in the community. Someone will probably read this and complain that if those businesses can't compete they deserve to go under, but what options are available to them when confronted with the billions of dollars and virtually unlimited resources of a huge company? Without any real advertising budget or marketing strategists, it might take years for a local burger joint to achieve profitability. If In-N-Out decides to open a store nearby, they're immediately out of time to win over new customers. Entrepreneurial vigor obviously wilts and with it creativity and diversity. Because of the chain's clout and name recognition, then, consumers don't really have a chance to make informed decisions.

There are lots of reasons that In-N-Out, like all chains, is destructive to local communities, but the point here is that it isn't extraordinarily cool, unique, or better than other companies that are frequently lampooned as "evil corporations" in popular culture. It surely siphons less profits back to its corporate headquartes than McDonalds, but it still does it.

Of course, some people would argue that In-N-Out is a family run business, not a franchise, and that that somehow makes it better. And it's true, the company certainly isn't as big (or as bent on world domination) as other companies. Yet, aren't most huge companies "family run" at some point. Wal-Mart, for example, was started by the Walton family. McDonald's began with two brothers. For In-N-Out's turn, it's not actually owned by the original family anyway, so how exactly is it a family company?

Other devotees maintain that the company embodies admirable values. They cite things like the Bible verses on the food packaging, or the good treatment of employees. To these claims I would say that there is no doubt that In-N-Out is less bad than bigger (and less personal) chains. However, it's also less good than many local businesses, which may espouse the same values.

What is so surprising about this debate, however, is how thoroughly people believe in the image that In-N-Out is selling. Much like
Apple Computers (which I use and love), In-N-Out has marketed an ethos of coolness, underdog values, and small-time business. Increasingly, however, the image is simply the result of slick corporate packaging. Compared to local businesses, the company merely puts a facade on a bloated profit-machine. They've essentially duped the consumer into thinking they're better than other chains, when in reality, they're the same.

Ultimately, people have a right to eat what they want. Also, I'll probably eat at In-N-Out again at some point in my life (after all, I don't dislike their food). I'm not arguing that the chain is evil, but rather that it isn't particuarly helpful to non-So Cal towns. Basically, I can't imagine that there is any community anywhere that has an In-N-Out but also doesn't have something better. The Provo/Orem area has quite a few better burger joints (here, here, here, here, here). And, not only do they have better food, but the money they make stays in the community. Though In-N-Out markets itself as hip and small, it's really just pushing these kinds of places out of business.

4 comments:

  1. I think you make a great point here, Jim! I have never understood all the craziness about it. I personally don't think the food is that great - although, I do like their milkshakes. I especially don't like the idea of them running out other better burger joints AND sending our money to California.

    Thanks for the burger joint suggestions!

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  2. I 100% agree with you. I hate IN and Out for that reason. Go to Coneys...it's so far superior to anything In and Out can churn

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  3. Jim, I'm still loving your blog! Although I love In-N-Out, I would have to say I agree that "corporate" hardly ever beats "local". I've never been to the Purple Turtle, but the other four places I love! I also feel I am somewhat of a "locavore"... meaning I like supporting local stores, restaurants, etc. Reminds me, check out the iPhone app called "locavore"... seems pretty cool. Maybe you could do a review on the idea of a "locavore"?

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