Iconic California hamburger franchise is opening a new corporate office in Franklin, TN. The new 100,000-square-foot office is the latest wake-up call to the anti-business government from Sacramento.
In-N-Out joins Carl’s Jr and CKE Restaurants which moved to Nashville, TN from Anaheim, CA in 2016.
Over the last few years, states like Texas, Arizona, Tennessee, and Florida have been the landing point for a variety of formerly California companies including Hewlett-Packard, Stitch Fix, Tesla, Greendot, Daily Wire, Joe Rogan Podcast, Norton Life Lock, Pabst Brewing, and Oracle, to name a few.
The reason? California’s high tax burden on companies and individuals, and what many business owners call hostile anti-business state laws exacerbated during Covid-19.
In-N-Out majority owner Lynsi Snyder sold her home in Bradbury, California which was located a short distance from the company’s original hamburger stand started by her grandparents.
In-N-Out’s motivation for moving its corporate headquarters to Tennessee is most likely the result of the company tired of challenging the government of California and its declaration of vaccine mandates and closing of businesses during the pandemic. In 2021, In-N-Out refused to comply with state mandates and shut down several stores in the San Francisco area rather than kowtow to non-legislative mandates.
California continues to remain lowly ranked in the friendly business climate index. A July 2022 MSNBC report places California as 29 of 50 states. Tennessee is ranked 6. California also has a personal income tax (in addition to federal income tax) as high as 13.3% as compared to 0% in Tennessee.
Don’t expect your local California franchise to suddenly be shuddered. The franchise has no plans to close stores in California. In-N-Out expects its first stores to open in Tennessee during 2026.
