California suffered a major loss this month, though Governor Gavin Newsom seems too clueless—or too distracted by national ambitions—to recognize the significance. That Newsom sees himself as presidential material boggles the mind, given California’s undeniable decline under his leadership and his ineffectual record during two terms as San Francisco’s mayor.
And for those aghast by the married tech CEO of Astronomy smooching his “chief people officer” on the Coldplay kiss-cam, wait until they discover that Newsom once admitted to an affair with the wife of a close friend and political aide. Hard to imagine folks in Peoria embracing Newsom’s ethics and values.
Fortunately, California still has a few principled and inspiring leaders. One of them is Lynsi Snyder, billionaire heiress to In-N-Out Burger and the company’s president. I’ve long admired Snyder from afar—not because of her wealth, but because of the tragic and redemptive arc of her life.
Snyder’s father, who inherited the company from her grandfather, died of heart failure at 48 after years of drug addiction. Her uncle, another In-N-Out president, died in a plane crash after visiting her at school. Snyder herself battled substance abuse and survived multiple bad marriages before embracing faith and turning her life around. She plays bass in a company rock band that raises money to fight substance abuse and human trafficking.
A Move for Employees
Snyder recently disclosed plans to move to Tennessee, where In-N-Out will establish dual headquarters to support its expansion. She didn’t hide the reason:
“There’s a lot of really great things about California, but raising a family is not easy here. Doing business is not easy here,” Snyder, a mother of four, told podcast host Allie Beth Stuckey.
That honesty sparked online backlash. With a reported net worth of $7.3 billion, critics scoffed at the idea that Snyder found California “difficult.” Others speculated her real motivation was to escape state and inheritance taxes, which Tennessee doesn’t have. Some even called for a boycott of In-N-Out.
In response, Snyder made it clear: the move is for her employees, not herself.
“Moving into Tennessee provides our In-N-Out associates wonderful opportunities to buy a home, raise a family, and be part of our expansion,” she said. “It’s tough here in California… But I love our associates, and I want to offer them this.”
I’m usually cynical when CEOs wax poetic about their “associates”, but In-N-Out’s commitment to its employees is genuine. The company pays store managers upward of $240,000 a year—promoted from within after learning every station, from grill to register. Their initial training can take six months.
I once attended a storytelling event where a young In-N-Out employee described how the company covered her husband’s medical bills and full salary until he died from cancer. They provided emotional and financial support beyond what most would expect. There wasn’t a dry eye in the audience.
Standing for Principle, Not PR
In-N-Out’s integrity extends beyond HR. When San Francisco mandated restaurants check customer vaccination status during Covid, the company refused to act as government enforcers. Instead, they closed their high-traffic Wharf location and other Bay area restaurants. Their public statement was unusually candid—free from PR varnish:
On Thursday, October 14, the San Francisco Department of Public Health closed our restaurant at 333 Jefferson Street because In-N-Out Burger Associates (employees) were not preventing the entry of Customers who were not carrying proper vaccination documentation. Our store properly and clearly posted signage to communicate local vaccination requirements.
After closing our restaurant, local regulators informed us that our restaurant Associates must actively intervene by demanding proof of vaccination and photo identification from every Customer, then act as enforcement personnel by barring entry for any Customers without the proper documentation.
As a Company, In-N-Out Burger strongly believes in the highest form of customer service and to us that means serving all Customers who visit us and making all Customers feel welcome. We refuse to become the vaccination police for any government. It is unreasonable, invasive, and unsafe to force our restaurant Associates to segregate Customers into those who may be served and those who may not, whether based on the documentation they carry, or any other reason.
We fiercely disagree with any government dictate that forces a private company to discriminate against customers who choose to patronize their business. This is clear governmental overreach and is intrusive, improper, and offensive.
Impressively, In-N-Out far outperforms its fast-food industry peers. According to a 2017 Forbes story, sales of a typical In-N-Out restaurant were nearly double that of a McDonald’s. The company’s profit margin was an estimated 20 percent, compared to 16 percent at rival Shake Shack and 10.5 percent at Chipotle.
Chipotle’s profit margins have since increased to 13.6%, presumably a feat achieved by Brian Niccol, who joined one year after Forbes published its story. Notably, Niccol appears to have increased Chipotle’s profit margins by simply raising prices. A Chicago resident recently found a 2015 receipt from Chipotle showing he spent $21.45 before tax on two chicken bowls and one chicken burrito with guacamole. That same order today costs $30.80 – an increase of 44%.
Chipotle once tried boosting its margins by cutting its portions, but customers noticed and were outraged, with one even filing a lawsuit.
“It’s All About Me”
After being named CEO of Chipotle in 2018, Niccol moved Chipotle’s HQ from Denver to tony Newport Beach, where he lives—forcing hundreds of employees to uproot themselves to one of the most expensive real estate markets in the country.
As CEO of Starbucks, Niccol hardly behaves like someone committed to the company. Although he stands to become among America’s most highly paid CEOs if he can boost Starbucks’ depressed sales and stock price, he refused to move to Seattle where Starbucks is headquartered. Instead, the company pays for a remote office near his Newport Beach home, as well as an assistant. Niccol hopscotches to Seattle and elsewhere across the country in Starbucks’ Gulfstream jet.
In another example of his narcissism, Niccol recently mandated that corporate employees return to Starbucks’ Seattle office four days a week because “we do our best work when we’re together.” Niccol prefers pumping iron in Newport Beach with Chipotle CEO and longtime pal Scott Boatwright—who told Fortune that he was running Chipotle while Niccol schmoozed with Wall Street and the media.
Differing Principles
In-N-Out shuts stores over principle. Starbucks closes stores because of union drives. In-N-Out promotes from within and pays six figures to managers. Starbucks offers its frontline employees 2% raises. In-N-Out sees employees as part of a mission. Niccol sees them as a cost center.
Wall Street is catching on. With analysts downgrading Starbucks and labor tensions rising even in the Deep South, Niccol’s “growth” strategy looks increasingly hollow.
Running a successful and highly profitable fast-food empire demands empathy, humility, and moral courage. Snyder has it. Niccol doesn’t – and I doubt he ever will.
Good luck to any Starbucks investor who holds on to the company’s stock.
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Redemption for Starkman Approved: For years, I’ve been railing about GM CEO Mary Barra—her financial engineering, lack of vision, and the media’s misplaced media adoration. Wall Street has finally caught on.