In-N-Out CEO Flees California for Tax-Friendly Tennessee 

In a move that speaks volumes about California’s broken tax-and-regulatory climate, the CEO of the iconic In-N-Out Burger chain is relocating her family and much of the company’s executive operations from the Golden State to Tennessee. 

Lynsi Snyder, the billionaire granddaughter of In-N-Out’s founders, didn’t mince words. “There’s a lot of great things about California, but raising a family is not easy here, doing business is not easy here.” And she is right.  

California ranks among the worst states for business for a multitude of reasons. They have the highest top income tax rate in the country at 14.4%, crushing regulations, and high labor costs. Leftover COVID-era restrictions have strained the business climate, with Cal/OSHA’s COVID-19 Prevention Non-Emergency Regulations not ending until February of this year. However, employers are still required to track and retain detailed records of employee COVID-19 cases for at least two years after the case occurred, creating more administrative overhead. 

Most notably for In-N-Out, California imposes a $20 minimum wage on fast food chains, a move that has triggered job cuts, hiring freezes, and automation. The law, which took effect in April last year under AB 1228, placed California at the top of U.S. minimum wages for chain restaurants. A National Bureau of Economic Research report estimated the policy cost 18,000 fast‑food jobs, translating to a 3.2% employment drop from September 2023 through September 2024. Franchise owners blamed the hike in labor costs for the closure of a McDonald’s in San Francisco and a 55‑year‑old Arby’s in Los Angeles. The fast-food industry in California is quickly automating and jacking up prices to cope with the destructive policy.  

Tennessee, by contrast, has a much more favorable business climate with no state income tax, in-migration, and more predictable regulations. Even though In-N-Out’s restaurants will remain open in California, the relocation of the CEO and company leadership to Franklin, Tennessee is a clear signal that California’s hostile policies have consequences. In-N-Out will consolidate operations and close its Irvine office by 2030, with its new co-headquarters slated to open in Tennessee next year.  

The accelerating trend of fiscally responsible states achieving success will continue to highlight the need for reform. CNBC ranked Tennessee third in its “America’s Top States for Business” list in 2024, partly due to generous property tax abatements and strong right-to-work laws that serve as a signal to business owners that they can thrive in the state. With a similar pro-growth attitude, California could reclaim its position as the nation’s premier place to live and do business. The potential is there; it just needs the political will to unlock it. 

California’s high violent crime rate may also have contributed to In-N-Out’s departure. The closure of an Oakland In-N-Out in March 2024, the first time the chain ever closed a location, was directly attributed to the “ongoing crime problem” by the company’s COO. In fact, Oakland was the most dangerous city in the United States a year prior in 2023, with 3,640 violent crimes per 100,000 residents. Despite the former location’s profitability, it is impossible to run a safe business when gunshots go through the store on multiple occasions. 

Snyder’s decision to move headquarters should serve as a wake-up call to California policymakers. It’s just the latest in a long trend of successful individuals and businesses fleeing high-tax states in favor of low-tax havens. From Tesla’s shift to Texas, Oracle’s move to Nashville, and countless small businesses finding new homes in low- and no-income-tax states, the message is clear: taxes and red tape drive people away.