#244 Harry Snyder InNOut Burger

In "In-N-Out Burger: A Behind-the-Counter Look at the Fast-Food Chain That Breaks All the Rules," Stacey Perman explores the unique business philosophy of In-N-Out's co-founders, Harry and Esther Snyder. Despite the fast-food industry's trend towards franchising and cost-cutting, the Snyders maintained a steadfast focus on quality, simplicity, and customer satisfaction, refusing to compromise for short-term profits. In-N-Out's growth was driven by rewarding dedicated employees and ensuring control over every aspect of the business, from hand-peeled potatoes to fresh, never-frozen patties. This approach fostered a cult-like customer loyalty, with the Snyders' vision of a family-owned, independent chain remaining unchanged since 1948. Their story exemplifies the power of prioritizing product excellence and customer experience over rapid expansion and financial gain.

• A diverse crowd gathered for the opening of an In-N-Out Burger location.
• The crowd included people from various professions and lifestyles.
• Despite long waits, people were eager to attend the opening.
• The opening lacked the usual fanfare of a grand opening, with only a simple sign announcing the business was open.
• In-N-Out's opening was driven by its dedicated fan base, not by traditional advertising.

"Almost immediately, a boisterous crowd appeared, requiring the presence of police to direct traffic and help with crowd control." "There weren't any prizes offered, furry mascots or any other marketing gimmicks." "The carnival atmosphere was created entirely by In-N-Out's rabid fans."

These quotes describe the scene at the opening of an In-N-Out Burger location, highlighting the lack of traditional marketing and the strong fan-driven turnout.

• In-N-Out has developed a positive "cheerful cult" of fans.
• Fans are so passionate that they share their love for the brand with others.
• The book "In-N-Out Burger: A Behind-the-Counter Look at the Fast-Food Chain That Breaks All the Rules" by Stacey Perman explores this phenomenon.

"Some of the best businesses in history could be described as cheerful cults." "You bring so much joy to somebody's life that they tell others about it compulsively."

These quotes explain the concept of a business creating a positive cult-like following by bringing joy to customers, leading them to share their experiences with others. In-N-Out is used as an example of such a business.

• Richard Burton, an early Stripe employee, developed a mental model for identifying businesses with potential.
• He describes his experience at Stripe and how it shaped his understanding of potential.
• Burton's model involves an "alien founder," a team of "Jedi," and a cult-like following on a mission.

"Stripe gave me a mental model for potential: an alien founder assembles a group of Jedi to start a cult and go on a mission together."

The quote outlines Burton's mental model for potential, which consists of a unique founder, a talented team, and a dedicated following, all working towards a common goal.

• In-N-Out's success is attributed to its simplicity and focus on quality.
• The menu has remained largely unchanged since its founding.
• The chain has resisted industry trends and remained family-owned and independent.
• In-N-Out's approach is described as "the antichain" due to its unique business practices.

"Keep it real simple. Do one thing and do it the best you can." "The family-owned, fiercely independent chain has remained virtually unchanged since its inception in 1948."

These quotes emphasize In-N-Out's business philosophy of simplicity and excellence, as well as its commitment to staying family-owned and independent.

• In-N-Out has maintained traditional methods of food preparation.
• The company has a reputation for quality and freshness.
• In-N-Out has a loyal customer base that values the brand's consistency.

"There's no heat lamps, no freezers or microwaves. There's no bags of flash-frozen fries on site, either."

The quote highlights In-N-Out's commitment to traditional food preparation methods and its avoidance of modern fast-food practices.

• Word of mouth is a powerful form of advertising for cult-like brands.
• Brands like Tesla, Trader Joe's, and Apple have achieved significant growth through word of mouth.
• The key to maintaining a cult-like following is to keep promises made to customers.

"Word of mouth is the most effective advertising of all. I have been known to say that there's no better business to run than a cult."

This quote underscores the importance of word of mouth for businesses with a cult-like following and the effectiveness of this organic form of advertising.

• Harry Snyder, co-founder of In-N-Out, was influenced by his father's values but chose to create a different path for himself.
• Harry's work ethic and care for his employees were central to In-N-Out's philosophy.
• The Snyders' philosophy was to provide high-quality food, excellent service, and maintain family ownership.

"Harry Snyder was an uncomplicated man with sharp instincts." "Serve the freshest, highest quality burgers and fries, treat your employees well and your customers even better."

These quotes provide insight into Harry Snyder's character and the foundational philosophy of In-N-Out Burger, emphasizing quality, service, and family ownership.

• Harry's father was financially irresponsible, often running out of money.
• He borrowed money without repaying, leading to a negative reputation.
• The family frequently moved due to unpaid rent, indicating a lack of stability.
• Harry's father's financial behavior forced Harry to develop a strong work ethic.

"The old man always ran out of money, was how Harry described his father's financial acumen, or lack thereof." "So not only was he not good with money, he didn't work that much, but then he would also essentially borrow money and then just leave town."

Harry's father's inability to manage finances and tendency to borrow and flee left a lasting impression on Harry, influencing him to take a different path in life.

• Harry began working at a young age due to his father's shortcomings.
• He took on various jobs to support his family, demonstrating a high level of responsibility.
• Despite the Great Depression, Harry found ways to earn money.
• His academic performance was average, but he excelled in practical skills.

"That's when Harry starts working, and I think that's where he gets this fierce work ethic that never leaves him." "During Harry's teenage years, he took every job he could."

Harry's response to his father's laziness was to cultivate a strong work ethic, taking on multiple jobs to ensure his family's financial stability.

• Harry valued common sense, resourcefulness, and work ethic over formal education.
• He dropped out of college to work full-time, driven by a need to support himself.
• Harry's approach to business was influenced by his desire to build up his associates, not just employ them.

"Rather, harry excelled in the areas of common sense and resourcefulness." "He decided to build the people that worked for him."

Harry's practical skills and focus on developing his associates' potential were central to his business philosophy.

• Harry met his future wife Esther, who shared his work ethic and grew up during the Great Depression.
• Esther valued education despite societal expectations for women at the time.
• The couple complemented each other, with Harry being street-smart and Esther being book-smart.

"In 1947, while dropping off his sandwiches, harry met the restaurant's 27 year old manager. Her name was Esther Johnson." "Esther was a gifted student, and she possessed a sharp brain disguised by a shy demeanor."

Harry and Esther's partnership was rooted in mutual respect, hard work, and a shared understanding of the importance of education and self-reliance.

• Harry and Esther capitalized on the post-WWII car boom and the need for quick meals.
• They pioneered the drive-thru concept, which was a novel idea at the time.
• Harry's focus on controlling his business led to innovations like the two-way speaker system.

"Harry Snyder's dream was a modest one. He was going to start his own little food business, a hamburger stand." "Harry invented that. That blew my mind."

Harry's vision for In-N-Out was to create a business that offered convenience and quality, leveraging the technological advancements of the time.

• Harry sought advice from Carl Karcher, a fast-food pioneer, to learn from his success.
• The Snyders and the Karchers shared similar backgrounds and work ethics, leading to a lifelong friendship.
• Harry believed in creating his own opportunities and learning from others.

"Short on experience, but long on common sense. Harry sought advice from Carl Karcher." "I've always said that competition just makes you stronger."

Harry's willingness to seek guidance and build relationships with others in the industry was a testament to his humility and strategic thinking.

• Harry emphasized the importance of quality ingredients and customer service.
• He rejected any advice that would compromise product quality.
• Harry and Esther's business philosophy centered on making customers feel special and valued.

"Harry's philosophy was to stress fresh ingredients and high quality." "They were very particular about their people smiling."

Harry's insistence on quality and customer satisfaction laid the foundation for In-N-Out's success and reputation.

• Harry recognized the importance of investing in technology to gain a competitive edge.
• The drive-thru speaker system was a significant technological innovation at the time.
• Harry's adoption of new technologies helped differentiate In-N-Out from other fast-food restaurants.

"He invented the drive through speaker." "Invest in technology. The savings compound gives you an advantage over your slower moving competitors."

Harry's foresight in utilizing technology played a crucial role in the efficiency and popularity of In-N-Out's drive-thru service.

• Drive-ins in Southern California had distinctive designs to attract customers.
• In-N-Out, founded by the Snyders, was small with no indoor seating or car hops.
• Harry Snyder, an amateur electronics enthusiast, invented a two-way speaker box system for ordering, eliminating the need for car hops.
• This innovation led to the name "In-N-Out" as customers would drive in, order, and pick up food at the other end without leaving their cars.

"You got one that's the shape of a giant sombrero that sells tacos, one that's giant root beer bottles, stuff like that. Okay. And says, then in n out arrived. The Snyder's burger shack was tiny. It had no indoor seating, and there was little room for a full fledged drive in." "He dispensed with the car hops altogether and replaced them with an invention of his own, a single two way speaker box made out of a few off the shelf electronical components that was connected to the eatery's kitchen."

The quotes describe the unique challenges In-N-Out faced due to its small size and how Harry Snyder's innovation in ordering systems set the stage for the fast-food chain's distinctive service model.

• Harry Snyder focused on simplicity in his business approach.
• He believed in defining a business by what it is, not by what it lacks.
• The craving for simplicity is a human desire, often overshadowed by the tendency to overcomplicate.
• In-N-Out's menu was kept simple, making decision-making easier for customers.
• The philosophy is that doing one thing well is better than overcomplicating with too many options.

"I love, and I come across this example from time to time. But I like businesses that are defined by what they are, not by what they lack." "Never underestimate the degree to which people crave clarity and respond positively to it."

These quotes highlight the importance of simplicity and clarity in business, emphasizing that customers appreciate straightforwardness and focus, which In-N-Out has successfully implemented.

• Harry Snyder's drive-through speakerphone system initially confused customers in 1948.
• The Snyders had to educate customers on how to use the new system.
• Harry did not patent his drive-through invention.
• In the early days, Harry and Esther Snyder ran In-N-Out without employees, working long hours and reinvesting all profits back into the business.
• Their work ethic and dedication were key to In-N-Out's early success and growth.

"Harry's new speakerphone drive through format got off to something of a troubled start in 1948. Most customers were bewildered by the invention that in time became as standard and familiar as fast food itself." "During the very early years, the Snyders made great personal sacrifices. The company funneled every cent they made back into the business."

These quotes illustrate the initial difficulties faced by the Snyders in introducing a new technology to the public and their commitment to the business, which involved personal sacrifices and a strong work ethic.

• Harry Snyder was known for his meticulous attention to detail and hands-on management style.
• He believed in doing much of the work himself and was involved in all aspects of the business.
• Harry's focus on quality and cleanliness was relentless, and he established long-lasting relationships with suppliers based on trust and high standards.
• The Snyders' commitment to their customers was evident in their refusal to cut corners on quality for profits.

"Harry was a micromanager. Before the term existed, he was a rigorous taskmaster." "A frugal man in most respects, Harry was prolificate when it came to purchasing the freshest, highest grade of meat, potatoes, and produce."

These quotes depict Harry Snyder's management style, which involved close oversight of the business and a refusal to compromise on the quality of ingredients, demonstrating a deep commitment to customer satisfaction.

• Harry Snyder paid his employees above minimum wage and offered them free hamburgers per shift.
• He valued quality in his employees and believed in compensating them well.
• Harry's reluctance to expand quickly was due to his concern for maintaining quality.
• The decision to open new stores was motivated by the desire to provide opportunities for dedicated employees, not by the pursuit of wealth.

"Harry paid a dollar an hour plus one free hamburger per shift." "If in n Out expanded, it was vulnerable to dilution of quality."

These quotes show Harry Snyder's approach to employee compensation and his cautious attitude towards expansion, prioritizing quality and employee welfare over rapid growth and profits.

• Harry focused on maintaining quality over expansion and cost-cutting.
• Charles had different ideas, wanting to expand and increase prices.
• Harry's independence and aversion to following trends led to the partnership's dissolution.
• The experience reinforced Harry's commitment to keeping In-N-Out independent.

Charles had very different ideas about the future direction of In n Out. As it expanded, Harry insisted on maintaining a quality product at a reasonable price, while Charles wanted to increase prices and cut costs.

This quote highlights the core disagreement between Harry and his partner Charles, which is reflective of Harry's dedication to quality over profit maximization.

• Harry placed In-N-Out stores next to freeways, catering to car-reliant customers.
• He avoided debt by using cash to open new restaurants.
• Harry's simple principles and focus on quality built a cult-like following.

Harry focused on putting his drive through right next to off ramps of the fast expanding freeway system.

This quote explains Harry's strategic choice for store locations, which leveraged the growing infrastructure to attract customers.

• Harry's approach was compared to Herb Kelleher's strategy with Southwest Airlines.
• Both leaders focused on simplicity and quality over expansion and diversification.
• They rejected industry norms, which contributed to their long-term profitability.

Southwest is the only airline to ever achieve profitability for, like, 40 straight years.

This quote illustrates the success of Southwest Airlines under Herb Kelleher, drawing a parallel to Harry's business strategy.

• Harry resisted industry trends like processed and frozen foods.
• He hired In-N-Out's first butcher and focused on fresh ingredients.
• His commitment to quality and customer focus was counter to competitors' cost-saving measures.

Harry Snyder was having none of it.

This succinct quote encapsulates Harry's complete rejection of the fast food industry's prevailing trends, emphasizing his commitment to quality.

• In-N-Out's marketing was simple and relied on word-of-mouth.
• Competitors invested in mascots and fantasy, but Harry let the product quality speak for itself.
• This simplicity and focus on quality engendered deep customer loyalty.

The story of In n Out remained static. The message was hamburgers and fries, and it was broadcast by its customers.

This quote describes how In-N-Out's marketing strategy was straightforward and driven by satisfied customers, contrasting with competitors' more elaborate campaigns.

• Franchising was considered a "dirty word" at In-N-Out, reflecting its unique culture.
• Harry maintained ownership of all stores and the land beneath them.
• In-N-Out's slow growth was a conscious choice to preserve its business model and values.

Inside the company, franchising was a dirty word.

This quote reflects the strong cultural stance within In-N-Out against franchising, which was integral to the company's identity.

• Harry faced the challenge of passing on the company without losing its culture.
• After Harry's death, the company remained in the family through several generations.
• Harry's funeral demonstrated the impact he had on many lives.

Successful family businesses are often erected through the sheer will and force of a specific individual.

This quote underlines the importance of the founder's vision and determination in the success and continuity of a family business, exemplified by Harry's leadership.

• The podcast host encourages reading the book "Nuts!" for more insights on simplicity in business.
• The host also provides context on the processed food industry's rise during Harry's time.
• Harry's story is used to inspire listeners to focus on product quality and simplicity.

And he said, make every detail perfect and limit the number of details to perfect.

This quote, attributed to Jack Dorsey, encapsulates the philosophy of focusing on a few things and executing them perfectly, a principle that guided Harry's approach to business.