Another iconic California company is pulling up roots and heading east. This surprise move has people wondering why it’s happening now and what it means for the state’s economy. With many businesses leaving, this shift could signal bigger changes ahead for California’s future.
A Beloved California Brand Heads East
It’s In-N-Out Burger, a fast-food legend tied deeply to California’s culture since 1948. The news shocked loyal fans and state leaders alike. CEO Lynsi Snyder’s decision to relocate part of the company east has stirred strong reactions, marking a major moment for the Golden State.
More Than a Burger Chain
In-N-Out has been part of California’s identity for 77 years. What began in Baldwin Park grew into a symbol of family-owned entrepreneurship and West Coast pride. According to the company, it’s always been run by the Snyder family, with Lynsi Snyder now at the helm.
This move sparks deeper questions about California’s future.
Inside the Big Move
In-N-Out plans to shut down its Irvine headquarters by 2029 and open a $125.5 million office in Franklin, Tennessee, by 2026, according to state officials. The new office will create 277 jobs in Williamson County.
Some of Irvine’s 500+ employees may relocate, while others will shift to Baldwin Park or face hard choices.
Workers Face Tough Decisions
Over 500 Irvine employees now face a crossroads. Some may move to Tennessee, others might transfer to Baldwin Park, and many must weigh uncertain futures. According to Lynsi Snyder, Tennessee offers “wonderful opportunities” like affordable homes.
With the average Tennessee home priced at $335,000 vs. $786,000 in California, the appeal is clear.
Why Tennessee Is Winning
Tennessee’s low taxes and friendly business climate make it hard to resist. California’s income tax hits 13.3%, while Tennessee has none. Its corporate tax is also lower. Business Insider reports Snyder chose Tennessee for its values and affordability. Policy and cost-of-living differences are pushing companies to think twice.
What Lynsi Snyder Really Said
Snyder told ABC7, “We’re not moving In-N-Out Burger’s corporate headquarters… We’re not leaving California.” Still, she admitted that “raising a family” and “doing business” aren’t easy there. The Irvine office will close by 2029, while Baldwin Park stays open and a new Tennessee headquarters opens.
Big Money, Big Plans
In-N-Out’s move to Tennessee is a serious, long-term plan. They’re investing $125.5 million and creating 277 jobs in Franklin, with the new hub opening in 2026. The company plans up to 35 restaurants there, potentially adding thousands of jobs as part of this big bet.
Irvine Feels the Hit
Closing the Irvine office by 2029 means about 500 jobs will move to Baldwin Park or Tennessee. This will hit the local economy hard, affecting payroll and businesses that rely on office workers, like restaurants and real estate. The ripple effect will be felt throughout the region.
Back to Baldwin Park
Baldwin Park is becoming In-N-Out’s West Coast base again. Some employees face longer commutes or relocation, adding challenges. Though seen as a “return to roots,” this move is driven by California’s high operating costs. Rising expenses are forcing companies like In-N-Out to rethink how they work in-state.
Tennessee’s Gaining Fast
Tennessee is quickly becoming a top destination for businesses. In 2024, it attracted 67 major projects with $7.2 billion in investment, creating over 9,600 jobs. Companies like Nissan, Mars Petcare, and Community Health Systems operate in Franklin. Its location and tax benefits pull firms from costly states like California.
California’s Corporate Slide
Between 2018 and 2023, California lost eight Fortune 500 headquarters, mostly to Texas. Tesla, Schwab, and Chevron are notable examples. According to the Public Policy Institute of California, the state lost 789 headquarters and 77,600 jobs from 2011 to 2021. In-N-Out is the latest to expand out of state.
Politicians and Public Push Back
Governor Newsom and In-N-Out executives say Tennessee expansion is just growth, not leaving California. Yet social media shows disappointment, with some calling for boycotts, according to SFGATE. The move sparked debate over how California’s high costs and regulations may push even iconic brands away from their roots.
A Big Future in the South
In-N-Out plans 35 new Tennessee restaurants as part of its $125 million investment and new headquarters in Franklin. This expansion could create thousands of jobs, though numbers are projections as of July. Texas will continue handling supply, while Tennessee opens new opportunities in the southeast.
Will More Companies Follow?
California leads in tech and innovation but rising costs push some firms to relocate or expand elsewhere. Though exits are still a small share, high-profile moves fuel debate about the state’s business future. In-N-Out’s eastern growth shows many companies are rethinking where to grow in the next decade.