Hacker News new | ask | show | jobs
by hemloc_io 1866 days ago
I've always wondered how local/regional chains, In-n-Out/Dicks, tend to be as cheap as national ones while usually having better food and paying much better than national chains.

Usually they are also in higher COL areas as well so I'd assume they pay more in Tax/Rent etc.

3 comments

Don't know about all small businesses that provide quality employment and a quality product at low price while remaining in business, but In n Out is famously family owned by an extremely religious family with no desire to grow fast, take over their industry, or go public to turn investors into multibillionaires. They don't even have investors. Perfectly happy to just be ordinary millionaires and share the value of the company with their employees.

Rents might be high in Southern California, but the bulk of their rapid expansion was in the 70s and 80s when land was still reasonably cheap and they may actually own many of their own buildings.

Maybe they do, but I checked the ones in my county and the sites are owned by East Coast REITs. I'm sure they are able to negotiate reasonable long-term leases, of course.
They are privately held. I think it's safe to assume the owners are taking a smaller profit in order to maintain quality and treat their employees well.
Lack of advertising, far smaller menu, and motivated workers. I really wish Americans would stop choosing objectively worse food (McDonalds) over In-n-Out...

That being said, it's long been time for In-n-Out to stop using American cheese and switch to Cheddar, but that's a whole industry problem...

> I really wish Americans would stop choosing objectively worse food (McDonalds) over In-n-Out

Most Americans don't have that option, sadly.

> it's long been time for In-n-Out to stop using American cheese and switch to Cheddar

Please no—American cheese melts better. Or you need to have heavily processed cheddar to melt as nicely, and then there's not much of a difference.