Re:In-N-Out managers earn triple the industry average
by snarf21 on Tuesday January 23, 2018 @09:12AM
(#16213648)
This is exactly the answer. It has to do with how many people want to take a cut and how big that cut is. Public companies are required to focus on shareholders. We need more companies to become B Corps so that can be tempered with sustainability, the environment, workers, etc.
In-n-Out does not do franchises, which allows some long-term focus. They can take more risk, they can cross-subsidize underperforming locations, they can take a long-term view of their employees and see them as value creators, not expense generators. Things like careers and promotions are possible, where successful In-n-Out managers are moved up the chain or trusted with new location launches.
A new McDonalds'/Burger King/Taco Bell/Carl's Jr would usually be owned by some local dentist or a retired couple that poured their life's savings into the franchise, and need immediate cashflow. Any increase in expenses forces them to readjust the business model and drives down the ROI. There's also zero potential for promotion - that same dentist or retired couple are unlikely to be in the business of owning 100 franchises of the same kind and have a long-term view for growing their expansive empire.