News

MARKETING: Money spent on star employees is a great marketing investment

Kamron Karington persuades Mr. "X" to reveal the amazingly simple mega-marketing secret behind In-N-Out Burger's success!

November 10, 2003

Summarize withChatGPTGrokPerplexityClaude

Kamron Karingtonis a marketing specialist and former owner of two pizzerias. He is the author of "The Black Book: Your Guide to Creating Staggering Profits In Your Pizza Business."

This month we're taking a slight deviation from traditional marketing and exploring a non-traditional marketing approach. Employees.

Now, before you think I've taken leave of my sanity, let me explain. A couple of months ago I was visiting a friend in Stockton California. And every day--we go somewhere different for lunch. One of the places we always go is In-N-Out Burger. They are legendary out here in the West. They're a 175-store, family-owned chain. Anyway, as we're heading up to order--I tell my friend Bob how one time I actually tipped a kid five bucks at In-N-Out because he was so amazing. I mean, I had never experienced customer service, hustle, and a big smile like I did that one particular day. Then Bob and I get to talking about how efficiently the place is running. Everybody hustling. Orders coming out quick.

Kamron Karington

Now, contrast that with your typical "burger" experience. Manager running around like a chicken with its head cut off. Employees drooling on the counter trying to figure out how to work the cash register. And, of course--your order is wrong. It quickly dawned on me that I had NEVER had a rotten experience at In-N-Out Burger. And. It also dawned on me--that was the reason I always wanted to go there over the "other" place (fill in the blank).

So I sat there enjoying my meal and I watched as employees scrambled about like bees in a hive--taking orders, cooking burgers, making shakes. And when they completed a task--they'd grab a bar-towel and wipe the counter, or grab a broom and sweep.

IWas Completely Dumbfounded and Amazed!

Now, the interesting thing about In-N-Out Burger is--they don't advertise much at all. An occasional billboard maybe. And that's it! And they are packed! I mean these guys are busy! I decided right then and there--in the middle of my burger and diet Coke, to find out how they managed to get their hands on these fantastic employees.

Think about this for a minute. McDonalds has to advertise like crazy. And In-N-Out advertises hardly at all! Now, where I'm going with this is--is it possible that you could "wow" your customers so much with customer service that you could actually cut back on your advertising? (La Nova Pizza in Buffalo New York is one of the busiest pizzerias in the world. They don't do much advertising. But they do treat their customers like royalty.)

So, I called In-N-Out corporate to see if they would give me some insights as to how they manage to get all these great people working for them. I figured it must be some complicated interview process. Maybe they tested your DNA or something looking for super-human burger makers. But, when I managed to get a hold of them--they wouldn't reveal a thing.

"Company Secrets"

This, of course heightened my suspicion that I must be on to the holy grail of hiring--and it also heightened my resolve to find out their secrets (which I did). Late one night I snuck up on their corporate headquarters and scaled the fence. I snuck past the guard and found an unlocked door. And low and behold--right there in the first file cabinet I looked in ... just kidding--I didn't break in. What I did do though, was I called an old boyfriend of my sister (that's a long story). He had been an In-N-Out manager for some time. And under the promise of not revealing his identity--he agreed to spill his guts and tell me everything. We'll call him "Mr. X."

Here are the juicy details ...

First thing they do when opening a new store is hang a banner on it saying: "Now Hiring--Starting at $8.00 an hour". (Of course the hourly rate changes over time--but they always pay more than everyone else.) What this does is absolutely flood them with applications. Then guess what? They are now in a position to "choose" the cream of the crop. What's the absolute, number-one thing they look for in an applicant? (dat da da dum) a smiling face! Mr. "X" also tells me that a smiling face almost always translates into a positive attitude, and when you combine that with a clean-cut look (no side-burns, tattoos, 17 facial piercings, etc.) you've got a winner. He also tells me "even if they're not the 'sharpest tool in the shed,' they'll still hire someone who smiles and shows a high energy level, over someone who doesn't (even if the latter has experience).

"Hmmmmn? What other secrets can you tell me," I asked?

"Well," he said, "the place runs like the military." There are policies and procedures galore. Training is ongoing, and there's a "checklist" for just about everything. They encourage employees to bring in friends to apply (you know--birds of a feather, flock together). Employees can also advance as quickly as they want to. Once they've mastered one task--they can move up the ladder. Pay raises follow.

So--bottom line. Most people I talk to would love to be able to devote more time to marketing. But, they constantly have to deal with employee issues. You have just learned the simple secret of a very successful business. They pay better than everyone else. This enables them to choose the best. They hire only smiling, friendly, clean-cut people. And, they don't even have to market! The experience is so good--people just naturally keep coming back!

How do we use this information? If you currently spend $1,500 a month on advertising to keep replacing lost customers--could you simply hire "star" employees? And then - maybe cut back on your advertising--because you aren't losing as many customers?

Would your life improve because you had friendlier, more dependable, employees?

Moral of the story: If you are constantly wishing you could use a bullwhip on your employees. And, you are constantly forking out big dollars to keep the phones ringing. Maybe you can test--diverting some of your marketing dollars into higher pay for some really outstanding employees. And that would solve two problems with the same dollars spent. The best things are always simple.

Pay more.

Hire smiling faces.

Clean-cut appearance.

Chances are--what works for In-N-Out Burger will work for you. Try it!

More advice from Kamron Karington ...

* MARKETING: Enough with pizza chain 'slickness,' flaunt your 'mom-and-popness'
* MARKETING: Nothing in the pizza business generates real cash like marketing
* MARKETING: Before you open, know your USP
* MARKETING: 'Lazy' customers will turn 'a 180' on the 30/60/90 plan
* MARKETING: How to make your advertising 2,400% more profitable
* MARKETING: Upselling is both an art and a mind game