Monday, January 25, 2010

Customer-Centricity Inside and Out: at In-n-Out

I was lost in a moment of blissful high-calorie delight. I realized that there was nothing that I could complain about as I worked my way through a "Double-Double". It got me thinking about the fantastic business that the operators of In-n-Out have created.

The burger joint creates a simply phenomenal experience for its customers on the inside and out. It does so with leadership--in its quality product and in its exceptional operational focus--to align the concept with what customers want.  And importantly, the franchise doesn't try to be all things to all people.

In-n-Out leads with what is inside (the food) because the concept utilizes high quality ingredients that are fresh and never frozen. This is a huge differentiator for the restaurant in a sea of reheated fast-food vendors. Its potatoes for fries are cut right in the store every hour, the hamburger is ground in store every day.

High standards extend outside, where employees go out into the drive-through line to take orders from customers at their cars. Doing so speeds up customer turns. Faster service leads to quicker eating and this leads to happier customers.

The company knows which customers it is looking to serve and serves them well. Building on its proposition to offer a high-quality quick-serve meal, the menu’s focus is limited. A potential disadvantage then flips into a unique advantage.  The basic ingredients can be combined into pretty much anything you can imagine, even if its not listed on the menu. The franchise has embraced this flexibility with a ‘secret menu’. In all, customers can take a pleasure in the food and don’t have put up with low service or long waits.

In-n-Out also makes a conscious choice to keep certain customers outside. The limited, burger-centric menu does not include low-calorie or any vegan/vegetarian options on the menu (a big deal in California). Adding grilled chicken, tofu veggie burgers or salads might be answers to reach more customers, but the company has decided against it. One potential reason could be the avoidance higher complexity operations that would conflict with speed of service.  In-n-Out keeps focused, with the target customer in mind and a winning formula.

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