Thursday, November 3, 2011
In N Out's expansion to the East
Recently the famous burger restaurant In n Out has been expanding from its roots in California. The most recent move In n Out has made when they put a meat production plant in the Dallas/ Fort Worth area. Fallowing the production of the meat plant, In n Out is planing on opening a total of eight new stores in the Dallas area. Although there is more to it than In n Out just trying to move to Dallas. With the meat plant constructed in Dallas, it allows In n Out to expand to 13 other states. The reason it took In N Out a long time to expand this far was because the fixed costs of shipping the meat this far east was very high. They looked at their trade offs and realized that spending the money to put a new meat plant would be better for making profit. The marginal revenue of building new stores would also be very high with their production of restaurants in Dallas. With their expansion they are trying to create more supply of restaurants because the demand for In n Out is very high. When they first opened in Dallas, there was lines that were four hour lines just for a burger. With this high demand for their burgers, In n Out would be crazy not to continue expand and to raise the supply of their restaurants.