My wife and I were returning from a weekend trip a couple of days ago and we pulled off the freeway to get a soda at In-N-Out Burger. For those of you who have not been to California, Arizona or Nevada lately, In-N-Out Burger is a main staple in our neck of the woods. It is also a great case study in the value of service.

For a company that rarely advertises (although some SoCal residents might remember the In-N-Out jingle stating it’s “what a hamburger’s…all about”), doesn’t print coupons, doesn’t have specials, carries a menu of less than five food items, and has primarily limited its expansion to locations in only one state over 59 years, it might seem surprising that almost every location is crowded at almost any hour. Ask the average Californian what makes In-N-Out better than other fast food burger chains, and he/she might launch into a word-of-mouth sales pitch about quality and service.

Certainly their fresh potatoes, lettuce and tomatoes, natural lemonade, and other ingredients make a positive impact on their quality, but what makes their service so much better? You’d have to experience it to truly understand. Instead of walking into a dreary restaurant featuring an unhappy staff of clock-watchers, the In-N-Out team is full of smiles, friendliness and warm greetings. When the drive-through line gets too long, a service representative walks out to your car to take your order in person. When a new location is opened, the all-stars from other locations travel to hire and train the right people.

These employees are certainly higher paid than their counterparts at competing chains (starting at two dollars higher than the California minimum wage of $7.50 per hour, with many managers making close to six figures per year) and better trained than other service representatives in their industry. It shows. The additional 20-30% in earnings equates to an exponential improvement in customer experience, and their $1.85 hamburgers don’t reflect much of a change in price.

So is that the secret to success? Absolutely. Be extremely careful about who you recruit, hire the best people, train them well, and reward them for perpetuating the right culture. After all, what is a company other than a collection of people? Sure, intellectual property, products and services are important, but none of those things are possible without first recruiting the right people. I invite you to visit one of their locations the next time you are out here…you might learn something from a spirited 17 year old cashier that can help you realize what your business is all about.