Why In-N-Out burger won't expand to the EastCoast

In-N-Out burger has been holding pop-up restaurants around theworld, but the burger chain will not expand to the EastCoast.Flickr/punctuatedIn-N-Out, the cult favorite burger joint ofthe West Coast, has been teasing the East Coast with rumors ofexpansion for years.

The fast-food retailer has slowly expanded eastward over its65-year lifetime to Nevada, Arizona, Utah, and more recently Texas.The company has also been holding "pop-up shops" around theworld, where burgers tend to sell out within minutes.

All signs seemingly point to a plan for expansion.

But four major factors make it highly unlikely that EastCoasters will get to experience the joy of an In-N-Out in theirneighborhood anytime soon.

Quality control: There are no freezers or microwaves inIn-N-Out restaurants because the company has a strict policy ofserving its food fresh. Therefore, all locations must be close tothe company's distribution facilities, which are in Baldwin Park,California, and Dallas.

"At In-N-Out Burger, we make all of our hamburger pattiesourselves and deliver them fresh to all of our restaurants with ourown delivery vehicles," In-N-Out vice president of planning anddevelopment Carl Van Fleet told Business Insider. "Nothing is everfrozen. Our new restaurant locations are limited by the distance wecan travel from our patty-making facilities and distributioncenters."

In-N-Out owner Lynsi Torres says the burger chain's quality iswhat sets it apart from competitors.

"We're not changing things like many other companies do,"she told the Orange County Register in a February 2013interview. "That's kept us unique; it's kept the customers feelinglike we're not a sellout."

Exclusivity: Everything has more appeal when it's notavailable to everyone, and the exclusivity of In-N-Out is what hashelped the restaurant gain such a rabid following offans.

In response to pleading from a local politician for an In-N-Outto open in Denver, Van Fleet made it clear the company was notplanning to expand farther east.

"You continue to give us the biggest compliment possible withyour efforts to interest us in Colorado," he wrote in a letterobtained by The Denver Post. "That said, at this time, we'restill not looking to add a sixth state and we're just focusing ourgrowth efforts in the five states where we currently operate."

Competition: The East Coast has numerous burger joints thatwould offer tough competition for In-N-Out, including Shake Shackand Five Guys.

No franchising: In-N-Out is a family-owned company thatdoesn't believe in franchising. A large-scale expansion withoutfranchising would require a massive amount of up-front capital fromthe company.

"In-N-Out remains privately owned and the Snyder family has noplans to take the company public or franchise any units," thecompany reaffirms on its website.

Recall that marketing is all about the customer, and that everydecision, process, interaction, etc. should be made with thecustomer in mind.

Read the above article(s) and answer these questions:

1. Is the limited menu a strengthor a weakness?
2. What are pros and cons oftheir decisions to “stay small?”
3. What role does a systemizedapproach play in their operations?
4. What does this systemizationmean to the customer?
5. Share any other comments youhave regarding the business, the brand, etc.

Answer rating: 100% (QA)

Is the limited menu a strength or a weakness No a limited menu according to me is a strength rather than a weakness A limited menu gives the organizat... View the full answer