#244 Harry Snyder (In-N-Out Burger)

182 snips

May 3, 2022

Discover the captivating journey of a family business that created a cult following without traditional advertising. Delve into the dynamics of joyful communities in entrepreneurship and how word-of-mouth can elevate brands to legendary status. Learn about Harry Snyder's philosophy on quality and customer service at In-N-Out Burger, and how a minimalist menu fosters excellence. Explore the legacy of fresh, hand-crafted ingredients that sets this brand apart from the convenience-driven fast food landscape.

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ANECDOTE

In-N-Out's Organic Grand Opening

In-N-Out's Baldwin Park opening drew massive crowds organically, with people waiting for hours.
There were no marketing gimmicks, just a small "We are open" sign, demonstrating the power of word-of-mouth.

INSIGHT

Cheerful Cults

Some of the most successful businesses operate like "cheerful cults," inspiring passionate customer loyalty.
This isn't about negative cults, but creating products/services that bring so much joy people share them compulsively.

INSIGHT

Aliens, Jedis, and Cults

Richard Burton's mental model for high-potential projects involves an "alien" founder (visionary), a team of "Jedis" (experts), and a "cult" following.
Stripe, Bitcoin, Tesla, and Apple exemplify this model.

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Zero to One

Notes on Startups, or How to Build the Future

Peter Thiel

In 'Zero to One,' Peter Thiel argues that true innovation comes from creating something entirely new, going from 'zero to one,' rather than incrementally improving existing ideas. He emphasizes the importance of vertical progress through technology and the benefits of monopoly in driving innovation. Thiel also discusses the need for long-term planning, the importance of finding the right co-founders, and the power law in startup success. The book challenges conventional wisdom and encourages readers to think critically and aim big to build the future[2][3][5].

The Everything Store

Jeff Bezos and the Age of Amazon

Brad Stone

The Everything Store is a revealing and definitive biography of Amazon.com and its driven founder, Jeff Bezos. The book chronicles Amazon's journey from its humble beginnings as a mail-order book seller to its transformation into a global retail and technology giant. Brad Stone enjoyed unprecedented access to current and former Amazon employees and Bezos family members, providing a detailed, fly-on-the-wall account of life at Amazon. The book highlights Bezos's relentless pursuit of new markets, his innovative ventures such as the Kindle and cloud computing, and how he transformed retail in a manner comparable to Henry Ford's impact on manufacturing.

Insanely simple

The Obsession That Drives Apple's Success

Ken Segall

In 'Insanely Simple,' Ken Segall delves into the culture and strategies that made Apple a leader in innovation. The book highlights Steve Jobs' relentless pursuit of simplicity, which was a key factor in Apple's success. Segall shares personal anecdotes and stories from his time working with Jobs, contrasting Apple's approach with that of other companies like Dell and Intel. He emphasizes the importance of small groups of smart people, minimal bureaucracy, and the power of simplicity in achieving clarity and efficiency. The book provides valuable insights into how simplicity can be a driving force for success in any organization.

Les Schwab

Pride in Performance - Keep it Going!

Les Schwab

In this book, Les Schwab shares his life story, from his challenging childhood during the Great Depression to his success in building Les Schwab Tire Centers. The book highlights his business philosophy, which includes empowering and rewarding employees, maintaining a long-term focus, absolute transparency, a win-win culture, continuous innovation, and prioritizing front-line employees. Schwab's memoir also emphasizes his personal mantra, 'Life is hard. Keep it going!' which reflects his determination and resilience in the face of challenges.

Nuts!: Southwest Airlines' Crazy Recipe for Business and Personal Success

Jackie Freiberg

Kevin Freiberg

Nuts!: Southwest Airlines' Crazy Recipe for Business and Personal Success delves into the unconventional strategies behind Southwest Airlines' success. The book highlights the airline's innovative approach to business, focusing on simplicity, efficiency, and a strong corporate culture. It provides insights into how Southwest's leadership style and employee empowerment have made it one of the most admired companies in the aviation industry.

Sol Price

Retail Revolutionary and Social Innovator

Robert E. Price

This book details the life and legacy of Sol Price, who transformed the retail industry with innovative concepts such as warehouse shopping and membership-based pricing. Starting with his early life and his transition from a successful lawyer to a retail entrepreneur, the book chronicles the establishment of FedMart in 1954 and later the Price Club, which influenced retail giants like Walmart, Kmart, and Costco. It highlights Sol Price's emphasis on ethical business practices, fair employee treatment, and customer-centric policies, as well as his innovative strategies such as self-service shopping, consolidation of merchandise, and low-margin pricing. The book also explores his impact on the retail landscape and his later contributions to gentrification of dilapidated areas[2][4][5].

Authentic

Paul Van Doren

Authentic is a candid memoir that shares Paul Van Doren's remarkable life story and the evolution of Vans into a beloved brand. The book explores his personal journey, business lessons, and the challenges faced by Vans over six decades, emphasizing the importance of valuing people over profits. It offers insights into entrepreneurship, innovation, and perseverance.

In-N-Out Burger

Stacy Perman

Stacy Perman's book provides an unauthorized history of In-N-Out Burger, detailing its evolution from a small family business to a cultural icon. It explores the company's commitment to quality, customer service, and its refusal to franchise, despite its immense popularity. The book also delves into the personal struggles and triumphs of the Snyder family, who have maintained control over the company throughout its history.

Becoming Trader Joe

Mark Smeby

Joe Coulombe

Patty Civalleri

The sugar king of Havana

John Paul Rathbone

The Sugar King of Havana is a captivating portrait of Julio Lobo, the King of Sugar in prerevolutionary Cuba. Lobo's extraordinary life includes surviving assassination attempts, courting Hollywood stars, and dominating the world sugar market. The book explores his eventual decline after declining Che Guevara's offer to become Minister of Sugar, leading to his exile. It offers a richly detailed look at Cuba's past and a hopeful glimpse into its future.

Aliens, Jedi, and Cults

A mental model for potential

Richard Burton

What I learned from reading In-N-Out Burger: A Behind-the-Counter Look at the Fast-Food Chain That Breaks All the Rules by Stacy Perman.

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[2:03] This is an absorbing case study on how a family business came to be at the center of its own cheerful cult.

[2:42] Aliens, Jedi, & Cults: A Mental Model for Potential

[5:05] 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.

[5:28] The developers raving about Stripe formed the cult.

[6:37] If you are searching for a project with potential, watch out for the alien founder, Jedi team, and cult following of people on a messianic mission.

[7:58] A few years ago I started notice that people were getting Tesla tattoos. It is very hard to ever short something where people are tattooing the brand on their body. — Josh Wolfe

[8:38] Becoming Trader Joe: How I Did Business My Way and Still Beat the Big Guys (Founders #188) 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. Trader Joe's became a cult of the overeducated and underpaid, partly because we deliberately tried to make it a cult once we got a handle on what we were actually doing, and partly because we kept the implicit promises with our clientele.

[9:12] List of David Ogilvy podcasts:

Ogilvy on Advertising (Founders #82)

Confessions of an Advertising Man (Founders #89)

The King of Madison Avenue: David Ogilvy and the Making of Modern Advertising(Founders #169)

The Unpublished David Ogilvy (Founders #189)

[9:17] Word of mouth is the most effective advertising of all. In and Out has that, Tesla has that, Stripe has that, Bitcoin has that, Trader Joe's has that, Apple has that.

[10:35] Conspiracy: Peter Thiel, Hulk Hogan, Gawker, and the Anatomy of Intrigue and Zero to One: Notes on Startups, or How to Build the Future (Founders #31) The best startups might be considered slightly less extreme kinds of cults. The biggest difference is that cults tend to be fanatically wrong about something important. People at a successful startup are fanatically right about something those outside it have missed.

[11:33] In and Out was fanatically right about something that companies like McDonald’s, Wendy's and others, missed.

[11:43] The most important sentence in the book: "Keep it real simple. Do one thing and do it the best you can.”

[12:55] The family owned, fiercely independent chain has remained virtually unchanged since its inception in 1948.

[14:53] It is known as the anti-chain with the cult-like mystique. The anti-chain is a perfect way to describe In and Out’s approach to building their business.

[19:48] Harry's drive and tenacity were propelled by the uncertainty of watching his parents labor to provide for his family. Harry grew into a disciplined fellow with a strong sense of responsibility.

[27:50] The Everything Store: Jeff Bezos and the Age of Amazon (Founders #179)

[28:15] Sol Price: Retail Revolutionary & Social Innovator (Founders #107)

[28:55] I have always said that competition just makes you stronger. You shouldn't be afraid of the competition. They make you stay on top of your game. They keep you on your toes.

[29:23] You don't ever cut corners when it comes to the quality of your product.

[30:23] There is no cult-like following for shitty products.

[33:21] This dude is obsessed with simplicity.

[33:44] Insanely Simple: The Obsession That Drives Apple's Success Never underestimate the degree to which people crave clarity and respond positively to it.

[36:26] If he was alive today and you could ask him for advice I think he would just say do it yourself.

[37:18] This is an important distinction —and I think also how you get to a cult-like following—he's not interesting in being the biggest, he's interested in being the best.

[38:34] If you’re efficient, you’re doing it the wrong way. The right way is the hard way. The show was successful because I micromanaged it—every word, every line, every take, every edit, every casting. That’s my way of life.

[39:47] He refused to sacrifice quality for the sake of profits.

[40:05] From the start, In-N-Out ran a customer-driven shop.

[41:00] Authentic: A Memoir by the Founder of Vans (Founders #216)

[44:07] He believed in paying for quality and that included wages.

[44:31] Why would you skimp on the level of quality people you work with? That's insane to me — it just makes no sense at all.

[44:48] Les Schwab Pride In Performance: Keep It Going!

[45:42] Embrace hard work, ignore fads, identify what's important to you, and repeat it for decades.

[46:39] The Sugar King of Havana: The Rise and Fall of Julio Lobo, Cuba's Last Tycoon(Founders #237)

[50:00] Catering to the car-reliant customer, Harry focused on putting his drive-throughs right next to off-ramps of the fast-expanding freeway system. The growing Southern California freeway network became a significant factor in In-N-Out's own rising popularity.

[50:45] He's got a handful of really simple principles he refuses to deviate from. He focuses on quality and does that for decade after decade, He's giving us somewhat of a blueprint to build a cult-like following. People respond to this because you've put their interest ahead of your own.

[51:56] Nuts!: Southwest Airlines' Crazy Recipe for Business and Personal Success(Founders #56)

[56:50] You don't build a cult following by trying to wring more money out of cheaper products.

[58:19] I'm focused on the customer. I'm focused on quality. My competitors are focused on a spreadsheet.

[59:56] Limit the number of details to perfect and make every detail perfect. That is exactly what Harry Snyder did.

[1:00:41] From his perspective, In-N-Out was simply a different creature than its competitors.

[1:01:07] He was very much about problem solving before it became a problem.

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