Leadership Lessons from a Hamburger Stand

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What can a fast-food chain teach us about treating employees right?

In-N-Out burger is a Southern California-based fast-food chain that is known for two things: (1) arguably the best hamburgers in the industry; (2) treating its employees well, including the highest wages in the industry. What can other employers learn from In-N-Out? What are the lessons that extend beyond the workplace?

Most discussions of In-N-Out focus primarily on the wages — clearly higher than any other fast-food restaurant, but it’s more than that. The company also offers healthcare and other benefits, and, most importantly, demonstrates that they care about their employees and their career progress. Managers, for instance, make 6-figure salaries. So, treating employees right is an important company value.

But In-N-Out requires a return on their investment — employees must show a commitment to the company’s values of great customer service and a high-quality product. Like all top-performing companies, In-N-Out is very careful in selecting the best-qualified employees who will adhere to company values. The result? Dedicated employees who work hard, focused on quality and service, and want to stay with the company. This all benefits In-N-Out in terms of high performance and low turnover.

So, what are the leadership lessons learned from In-N-Out?

Value Your People. First and foremost, show care and consideration for the people around you. For In-N-Out it’s about providing good customer service, and treating employees fairly and as the valuable assets they are.

Stick to Your Core Values. In-N-Out is committed to service and quality, and they know what they are good at — making outstanding burgers, fries, and shakes. They’ve never expanded their basic menu, and they are committed to fresh ingredients. Coupled with the concern for employees, this formula works.

You Can Do Good and Still Do Well. While most fast-food chains exploit employees with low wages and no benefits, and cut corners on food quality, In-N-Out does the opposite, and they do very well. There are a number of highly profitable companies, Costco, Timberland, are other examples, who treat employees well, offer quality, and still do well financially.