“Lean” Burgers: Pop-ups, Viral Marketing, and the Supply Chain

Paris — the city of light, love, and… burgers? When one thinks of the French capital, many iconic images come to mind, from the Eiffel Tower, Champs de Elysee, and Louvre, to the thousands of artisan cafes that dot the metropolis. You may even think of the verdant jardins or gothic Métropolitain arches. In August of 2024, however, many Parisians thought not of their own world-renowned landmarks, but of a famous California fast food chain synonymous with Los Angeles.

On August 14th, 2024, hundreds of Parisians lined up in the 16th arrondissement to swap baguettes for buns, and get a taste of In-n-Out, which decided to launch a pop-up location for one day only. Excitement abounded as eager foodies finally had the opportunity to try one of the most well-known and celebrated burgers around without having to travel across the world. Patience was tested as the line slowly crept forward, filled with chatter about animal fries and double-doubles. In the end, many who showed up and waited their turn were left empty-handed, as the pop-up sold out in merely two hours. What followed was a social media storm; the victors who emerged with full stomachs and smiles on their faces exalting the delicious foreign cuisine they were able to get their hands on, those left waiting around bemoaning the poor planning that rendered them hungry and disappointed, with wallets unfortunately fuller than themselves.

In-n-Out’s purposeful stockout goes against every principle of creating an effective supply chain. Even the most ardent proponents of lean strategies would see the pitfalls of a poorly stocked pop-up, and the substantial missed revenue by meeting only a fraction of the demand for the product on offer. There was absolutely no question of demand, even before dozens of Parisians began lining up in the early hours of the morning to enjoy California fresh à la française. In-n-Out was well aware of the massive interest in their cuisine, and chose to not have enough supply on hand to meet that demand. What, from a supply chain perspective, appears to be a missed revenue opportunity was never envisioned as a revenue opportunity to begin with. In-n-Out could have easily engaged in some price-gouging, with no shortage of customers willing to pay a premium for their product, but instead the prices marked in Euros closely resembled the famously affordable prices beloved in California. This venture was not about making money, it was about making headlines.

Pop-ups around the world defy universally accepted supply chain logic to serve other purposes, namely creating increased brand interest and identification with viral online marketing. These organic marketing campaigns, catalyzed by customers on the ground at the short-lived locations and various social and traditional media outlets reporting on the aftermath, generate numbers of clicks and levels of attention worth far beyond the losses likely incurred, or profits unrealized, through inventory shortages. It would cost significantly more for companies such as In-n-Out to amplify their marketing budgets enough to receive similar attention through traditional advertisements or influencer sponsorships as they do for these viral pop-up events. Pop-ups are calculated marketing decisions meant to increase eyeballs rather than short-term profits, often improving to some extent the long-term outlook of the bottom line by fostering greater brand interest. The intention is not to make money now, so an adequate supply chain is not created to meet the expected demand. It’s a rather radical rejection of traditional business practices, but undeniably effective.

The scope of pop-ups goes well-beyond the value burger industry. Grand View Research anticipates retail pop-ups will hit a $50 billion global market size by 2025. These pop-ups encompass various entertainment-related sectors, seasonal ventures, and interactive marketing promotions, in which fans of a brand can feel closer than ever before to their favorite movies, video games, and fashion labels. This ties in to the role social media plays in new forms of marketing, with sponsored content and paid influencers proliferating on platforms including Instagram, which is increasingly blurring the line between social media and e-commerce. As internet interactions further shape spending habits, the brick-and-mortar manifestations of online brands in the form of pop-ups will only increase. The pop-up sector will continue to evolve as both internet retailers and traditional storefronts vie to utilize the flash business to bolster their popularities.

Pop-ups also raise questions about supplier relationships, and the In-n-Out case offers a particularly fascinating example. Well-known for its regional restrictions, relative to other American fast food joints, In-n-Out momentarily expanding across the Atlantic stands in stark contrast to its core business principles. Heralded for its well-developed internal supply chain, as the burger company refuses to expand beyond driving distance of its distribution centers in Los Angeles and Dallas, In-n-Out values quality control over the potential revenue opportunities provided by franchising. The burger chain isn’t just exotic to Parisians, as American East Coasters relish the chance to try the burgers when making a trip to the West Coast. If even a company such as In-n-Out, staunch in its stance of local, carefully-managed distribution sees the value of pop-ups, what impact will that have on suppliers around the world? Will pop-ups eventually become too costly of a proposition for companies, if suppliers decide to prioritize sustainable, larger-scale bulk orders from more reliable customers over one-off relationships with pop-ups? With cultivating strong and mutually beneficial supplier relationships being a top priority for procurement professionals, the potential impact of pop-ups in the purchasing space, and conflict they could create, is worth monitoring in the future.

In Paris, however, the only conflict came from the stomachs of disgruntled diners who wished they got in line earlier. We’ll see if In-n-Out returns to France in the near future, or raises supply chain questions for us elsewhere in their next pop-up.

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