1. R E S E A R C H R E P O R T :
P o t e n t i a l D e m a n d f o r I n - n - O u t B u r g e r i n T o r o n t o
Prepared by: Annie O’Brien
Geoff Gingerich
Harluvleen Boparai
Natalia Kolodenko
Rasheed Gbajabiamila
Sara Anderson
Taylor Lush
Date: December 1, 2014

2. 2
Table
of
Contents
Executive
Summary
.....................................................................................................................................................................................
3
Business
and
Research
Problems
..........................................................................................................................................................
3
Research
Objectives
....................................................................................................................................................................................
3
Methodology
...................................................................................................................................................................................................
3
Sampling Method
............................................................................................................................................................................................
3
Sample Size
.......................................................................................................................................................................................................
3
Key
Criterion
..................................................................................................................................................................................................
4
Key
Findings
...................................................................................................................................................................................................
4
Sales
forecast
..................................................................................................................................................................................................
4
Conclusion
and
Recommendation
........................................................................................................................................................
4
Detailed
Findings
..........................................................................................................................................................................................
5
Appendix
1
Product
Concept
................................................................................................................................................................
14

3. 3
Executive Summary
The purpose of this project was to evaluate the potential demand for In-N-Out Burgers in the GTA
market. In-N-Out Burgers is an American burger chain that has been operating for over 60 years in the
U.S.A. They offer high quality beef burgers that are never frozen and express through their motto
“Quality you can taste.” As per our calculations, In-N-Out classic hamburgers could be sold in Canada for
$3.05, and a combo for $6.25, which includes a burger, fries and a soft drink.
We set a criterion, which states that if at least 18% of our respondents express interest in buying In-N-Out
Burger combo at $6.25 giving us an opportunity to forecast a viable sales goal of $1,000,000. We would
recommend launching In-N-Out Burger in the Canadian market.
The result of the research demonstrated that the criterion was met with significant positive response. 67%
of respondents stated the intention to buy burgers from In-N-Out Burger, which gives us sales forecast of
$3,668,756. We can conclude that our concept is relevant to potential customers expectation in terms of
price, competitive advantages and value perception. Thus, we recommend launching In-N-Out Burger in
GTA market.
Business and Research Problems
The business problem for our research was formulated as “to determine whether or not In-N-Out Burger
would be a viable contender in the Canadian fast-food market.” The research problem was stated as “to
evaluate the potential demand for In-N-Out Burgers in the GTA market by answering the question “how
much sales we can expect upon entering Toronto fast food market?”
Research Objectives
In order to resolve the research problem we set the following research objectives:
1. Estimate consumer behavior towards burgers: purchase frequency and amount of money spent on
burgers;
2. Evaluate price perception;
3. Assess awareness about In-N-Out burger;
4. Determine concept perception of In-N-Out burger;
5. Assess buying/purchase intention toward the concept.
Methodology
We chose the quantitative survey research method to forecast from appropriate numerical data. The
online survey was the main method of data collection for our research due to budget and time limitation.
The online questionnaire contained screener questions to confirm that all respondents meet our
requirements like their age, burger consumption and living/studying/working in GTA.
Sampling Method
We adopted non-probability sampling method due to time and budget limits. We adopted convenience
snow-ball sampling by posting the link to the online survey through the Internet (Facebook pages,
Facebook groups, e-mail, Skype)1
. We asked our friends to fill out the questionnaire and to repost or to
forward the link to their friend who met the screener requirements.
Sample Size
We have built our analysis on the sample of 68 respondents2
, which means that with confidence level of
95% we have confidence interval of 12%. This is based on an assumption that value of each variable in
general population could be 12% less or more from the meaning stated in our report.
1
We are aware that this sampling method has serious biases as it’s limited by active Internet users as well as by younger
people, students, educated people because we will send invitations to take part in survey through our social network.
2
We have received 76 responses on our questionnaire; however, eight respondents did not pass screener due to their age.

4. 4
Key Criterion
We determined a viable sales goal of $1,000,000. In order to reach the sales goal we must sell the
equivalent of 160,000 burger combos (at $6.25 for a burger, fries and a soft drink combo).
The general population for our research is 889,396. We made following calculations to get our general
population. Population of GTA in the age group of 18-25 years is 673,423 and the age of 25-34 years is
1,036,953, which makes 1,710,376 total population in age group of 18-34 years (Statistics Canada).
According to PMB data 52% of GTA population are burgers eaters, giving us 889,396 (1,710,376*52%)
potential consumers in age 18-34.
In order to reach our viability criterion, we must sell burger combos to approximately 18%
(160,000/889,396) of our chosen target market if we experience 0 customer retention. This implies that
we need at least 18% of respondents to express intention to buy combos from In-N-Out Burger at a price
of $6.25.
Key Findings
• 60.29% of respondents eat fast-food burgers 1-2 times per month
• 51.52%of respondents buy a combo (burger, fries and a soft drink) when they consume fast-food
burgers
• 60.61% of respondents believe product freshness is extremely important for fast-food burgers
• 75.76% of respondents believe that $6.25 is an agreeable price for a burger combo
• 77.27% of respondents are either interested or very interested in having an In-N-Out burger
location in their city
• 80% of respondents either agree or strongly agree that an In-N-Out burger location would be
popular in their city
• 67% of respondents would purchase a burger combo at $6.25
• 75% of respondents would purchase a burger at $3.05.
Sales forecast3
We have exceeded our minimum criterion by 3.6 times. As 66% of respondents stated an intention to buy
a burger combo from In-N-Out Burger at $6.25, we can forecast sales of 889,396 * 66% = 587,001 of
burgers combos, which will make 587,001*$6.25= $3,668,756 sales. The expected sales are exceeding
our minimum requirements of $1,000,000.
Taking into consideration our confidence interval of 12%, we have estimated the best case and the worst-
case scenario forecast. In the worst case, 54% (66%-12%) of target audience would buy 480,274
(889,396*54%) burger combos generating sales of $3,001,710 that significantly exceeds the minimum
requirement of $1,000,000 sales. In the best-case scenario, we will have to be ready to satisfy the demand
for 78% (66%+12%) of target group with 693,729 combos (889,396*78%) generating sales of $4,335,803
(693,729*$6.25).
Conclusion and Recommendation
We definitely recommend In-N-Out burger to enter GTA market as the sales forecast is exceeding our
requirements. We also identified that pricing meets the expectations of the potential consumers.
Moreover, the competitive advantage of fresh burgers, which is offered by In-N-Out Burger, is the most
important factor for choosing a burger chain amongst the respondents. In addition, we observed that 61%
of the target audience is already familiar with the brand. Considering the results of our research, we
recommend to launch In-N-Out Burger in GTA market.
3
In our sales forecast we neglected frequency of consumption because it is unsure that if consumers would completely shift
from the existing burger chains. So our forecast is based on the assumption that everyone, who stated the intention to buy our
burgers, would buy a burger at least once a month.

5. 5
Detailed Findings
Answer Choices Responses (%) Responses (People)
18-24 years 69.12% 47
25-34 years 29.41% 20
35-49 years 1.47% 1
Total 100% 68
This question was asked in order to ensure that people participating in our survey were part of our
predetermined target market. Our target group was planned to consist of people from the ages of 18-49,
separated into three separate groups as demonstrated in the table above. Based on the data we obtained we
see that only one person belonging to the age group 35-49 completed the survey4
. So we eliminated this
group from our final analysis. Through these findings we see that the majority of respondents fall under
our age group of 18-24 years of age (69.12%).
4
As we expected, the online survey gave us a significant alignment (biases) to the younger group of target audience. We were
not able to receive acceptable number of respondents in the age of 35-49 (just one response). Expecting this representative
issue we were planning to conduct face2face intercept survey on exit locations of our main competitors to cover the oldest age
group, however due to the weather condition we had to reject this method. In order to broaden the conclusion on the age group
of 35-49 years, we need to conduct an extra-survey, which would focus on this group.

6. 6
Answer Choices Responses (%) Responses (People)
Daily 2.94% 2
2-3 times per week 13.24% 9
Once per week 16.18% 11
1-2 per month 60.29% 41
Less than once per month 7.35% 5
I do not consume fast-food burger 0% 0
Total 100% 68
We used this question in order to determine the frequency in which our target group consumes fast-food
burgers. We were targeting those who consume them at least 1-2 times per month. Therefore the 5
(7.35%) people chose less than once per month were asked to exit the survey, leaving us with 63 people.
Based on the findings we see that the majority of respondents (60.29%) consume fast-food burgers 1-2
times per month. Those who consume fast-food burgers once per week, constitute 16.8%, and 13.34% of
respondents consume them 2-3 times per week. We observed that the majority of the people consume
fast-food burgers, thus our sample size represents right people who would consumer our product.

7. 7
Answer Choices Responses (%) Responses (People)
Just Burger – Answer question 5.1 13.64% 9
Combo - Answer question 5.2 51.52% 34
Depends on Situation - Answer both 5.1. And 5.2 34.85% 23
Total 100% 66
We asked this question to determine the purchase behavior of existing burger eaters. We determined that
a majority of respondents (51.52%) frequently purchase the entire combo when dining at burger
restaurants. This indicates that we can expect In-N-Out Burger customers to purchase the combo option
when visiting a potential location. This is an important factor because the single burger price is much
lower than the competition however the combo price is competitive when compared to other burger
chains. The In-N-Out experience is more fulfilling when the meal is purchased as a combo, allowing the
customer to enjoy more of the product offerings in a single meal. When interpreting the third response
option, “Depends on Situation” we believe that if the customer is directly offered the combo from a sales
representative, they will most likely purchase it. In conclusion, we determined that the average burger
consumer in GTA would most likely spend on a combo.

8. 8
This question was asked to determine the internal price reference maintained by existing burger
consumers. In order to target the intended market, a detailed understanding of price expectations and
competition is necessary. We observed a general trend towards combo purchases at price range of $8-
$9.99. Furthermore, the question helped us reveal a strong majority of burger consumers expect to spend
less than $6.00 for a single hamburger. Thus, we determined that In-N-Out prices fall within or below the
expected cost for both a single burger and burger combo.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Less
than
$2
$2-­‐$3.99
$4-­‐$5.99
$6-­‐$7.99
$8-­‐$9.99
$10
or
more
5.2. How much did you spend on the last
purchase of Combo
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Less
than
$2
$2-­‐$3.99
$4-­‐$5.99
$6-­‐$7.99
$8-­‐$9.99
$10
or
more
5.1. How much did you spend on the last
purchase of Single Burger
Less than
$2
$2-$3.99 $4-$5.99 $6-$7.99 $8-$9.99 $10 or
more
Total
5.1. Single Burger 4.26% 29.79% 40.43% 8.51% 12.77% 4.26% 47
5.2. Combo 0.00% 0.00% 23.21% 21.43% 41.07% 14.29% 56

9. 9
We asked this question to determine the internal price reference for burger consumers. This helped us to
we determine that In-N-Out has a positive price perception among burger consumers. The majority of
respondents (75.76%) believe that the combo price of $6.25 is “Good” which indicates a perception of
fair pricing and satisfactory quality. Very few respondents believed that the price was “Questionably
Low” (7.58%) which suggests that the competitively low price of an In-N-Out burger combo does not
indicate low quality based on its value pricing. In conclusion we have determined that In-N-Out maintains
a positive price perception among a significant majority of burger consumers.
Answer Choices Responses (%) Responses (People)
Questionably Low 7.58% 5
Good 75.76% 50
High But Affordable 16.67% 11
Too High 0.00% 0
Total 100% 68

10. 10
Q6: How important are the next factors for you when you choose a burger chain to visit?
Not at
All
Somewhat
Important
Moderately
Important
Significantly
Important
Extremely
Important
Total
Freshness of Product 0.00% 1.52% 6.06% 31.82% 60.61% 66
Price 1.52% 13.64% 27.2% 33.33% 24.24% 66
Variety of Options 1.52% 6.06% 31.82% 31.82% 28.79% 66
Delivery Time 9.09% 4.55% 27.27% 37.88% 21.21% 66
Portion Size 1.52% 3.03% 28.79% 36.36% 30.30% 66
Staff Service 6.06% 19.70% 28.79% 30.30% 15.15% 66
Reputation of Company 1.54% 10.77% 20.00% 43.08% 24.62% 66
This data was collected to determine the favorable factors our target groups perceive when choosing a
burger chain. We observed that over half of the respondents (60.61%), view the freshness of the product
to be an extremely important factor. The importance of price, variety of options, delivery time, portion
size, staff service, reputation of company are averaged between moderately important, significantly
important, and extremely important. In regards to staff service, 13 (19.70%) of respondents as only
somewhat important. Other than that, few respondents view any factor as somewhat important or not
important at all.
20%
5%
14%
11%
6%
3%
2%
29%
27%
27%
20%
32%
29%
6%
30%
38%
33%
42%
32%
36%
32%
15%
21%
24%
24%
29%
30%
61%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Staff
Service
Delivery
Time
Price
Reputation
of
Company
Variety
of
Options
Portion
Size
Freshness
of
Product
Not
at
All
Somewhat
Important
Moderately
Important
SigniYicantly
Important
Extremely
Important

11. 11
Answer Choices Responses (%) Responses (People)
Yes 60.94% 39
No 32.81% 21
Not Sure 6.25% 4
Total 100% 64
This question was important in determining the preexisting awareness of In-N-Out Burger. The answers
show that 61% (the majority) of respondents have heard of In-N-Out Burger, 33% have not heard of In-n-
Out Burger, and that 6% are not sure if they have heard of In-N-Out Burger. We can conclude that the
majority of respondents have heard of In-N-Out Burger and are aware of the brand. Thus, we can say that
the majority of the respondents display considerable interest to eat burgers at burger chains.

12. 12
Q9: In-n-Out Burger is an American burger chain that has been operating for over 60 years
in the US. They offer high quality beef burgers that are never frozen. Their motto is
“Quality you can taste.” In-N-Out classic burgers can be sold in Canada for $3.05, adding
fries and a drink will total cost $6.25. How do you feel about In-N-Out burger? Identify to
what extend do you agree or disagree with the next statements:
Strongly
Disagree
Disagree Neither
Disagree
Nor Agree
Agree Strongly
Agree
Total
I am interested to have
In-N-Out in my city
3.03% 4.55% 15.15% 37.88% 39.39% 66
In-N-Out would be
popular in my city
0.00% 3.08% 16.92% 44.62% 35.38%
65
This question helps us to evaluate the criteria that we have set for our research proposal. Majority of the
respondents i.e. 39% strongly agreed to the statement, “I am interested to have In-N-Out Burger in my
city”, 38% agreed, 15% were neutral, 5 % disagreed, and 3% strongly disagreed. This helped us to
conclude that majority of the respondents have a positive perception of In-N-Out Burger and they are
interested to have In-N-Out Burger in GTA.
When looking at the statement, “In-N-Out Burger would be popular in my city”, 35% of the majority
responded strongly agreed, 45% agreed, 17% were neutral, 3% disagreed, and 0% of respondents strongly
disagreed. This question helped us to determine that the majority of the respondents believe that In-N-Out
Burger has a potential to succeed in GTA.
5%
3%
15%
17%
38%
45%
39%
35%
0%
20%
40%
60%
80%
100%
I
am
interested
to
have
In-­‐n-­‐Out
Burger
in
my
city
In-­‐n-­‐Out
burger
would
be
popular
in
my
city
Strongly
Disagree
Disagree
Neither
Disagree
Nor
Agree
Agree
Strongly
Agree

13. 13
Q10: Evaluate to what extent do you agree with the following statement:
This question helped us to determine the potential purchasing intention of consumers in GTA for In-N-
Out Burger. Majority of the respondents (41%) strongly agreed to the statement, “ I would try burgers
from In-N-Out Burger”, 33% agreed, 14% somewhat agreed, 5% somewhat disagreed, 6% disagreed, and
1% strongly disagreed. Thus, giving us a suitable majority of respondents who may turn into consumers.
For the statement, “I would buy a combo from In-N-Out Burger if the combo cost is $6.25” 36% of the
respondents strongly agreed, 30% agreed, 20% somewhat agreed, 8% somewhat disagreed, 3% disagreed,
and 3% strongly disagreed. This question helped us to identify the purchasing intention in terms of
pricing. We can now use this information to further help pricing decisions for combos.
I would buy burgers from In-N-Out Burger if the burger cost $3.05: 44% (the majority) strongly agreed,
31% agreed, 11% somewhat agreed, 9% somewhat disagreed, 3% disagreed, and 2% strongly disagreed.
The question helped us to identify that the majority of the respondents would like to buy burgers at In-N-
Out.
The overall concept perception is positive, with the majority of respondents showing the desire to
purchase and be In-N-Out Burger consumers.
6%
3%
3%
5%
8%
9%
14%
20%
11%
33%
30%
30%
41%
36%
42%
0%
20%
40%
60%
80%
100%
I
would
try
burgers
from
In-­‐n-­‐Out
Burger
I
would
buy
combo
from
In-­‐n-­‐Out
Burger
if
the
combo
cost
$6.25
I
would
buy
burgers
from
In-­‐n-­‐Out
Burger
if
the
burger
cost
$3.05
Strongly
Disagree
Disagree
Somewhat
Disagree
Somewhat
Agree
Agree
Strongly
Agree
Strongly
Disagree
Disagree Somewhat
Disagree
Somewhat
Agree
Agree Strongly
Agree
Total
I would try burgers
from In-N-Out Burger
1.52% 6.06% 4.55% 13.64% 33.33% 40.91% 66
I would buy combo
from In-N-Out Burger
if the combo cost $6.25
3.03% 3.03% 7.58% 19.70% 30.30% 36.36% 66
I would buy burgers
from In-N-Out Burger
if the burger cost $3.05
1.56% 3.13% 9.38% 10.94% 31.25% 43.75% 64

14. 14
Appendix 1 Product Concept
In-N-Out Burger is an American burger chain owned and operated by Snyder family, which have been
operating over 60 years in U.S.A. The Snyder family tradition of providing our beloved customers with
the highest quality beef, produce and refreshments continues today across all 264 locations in California,
Nevada, Arizona and Texas. Our personal philosophy towards our products demands the highest quality
and the best customer experience. This is why our beef is hand selected by our butchers, ground fresh
daily, and never ever frozen. To ensure high standards of customer service we compensate our stuff above
State and Federal minimum wage legislation.
With subtle adjustments for the Canadian market, we are offering our menu to Canadian consumers at the
same affordable rates. Our classic hamburger will be offered for $3.05. Adding fries and a drink will total
$6.25.
Our menu is almost identical to the original location, the only addition being the “Double-Double”
burger. Maintaining our original menu including Hamburgers, Cheeseburgers, French Fries and
Milkshakes, ensures that each and every meal is prepared fresh and always will be. Although our menu is
small, it has big personality for those of our customers with particular tastes and appetites. Our famous
“Not-So-Secret” Menu including “Animal Style” Hamburger and French Fries or “Protein Style”
Hamburger."