Why In-N-Out burger chain has pop-up stores in Australia

IN-N-OUT burger sold out of burgers in 30 minutes when they arrived in Melbourne out of the blue last month. The reason they were here might surprise you.

SNAKING down the footpath of a residential street in Windsor, nor far from the Melbourne CBD, customers lining for a chance to sample In-N-Out burger had two questions in mind.

“What am I going to order?” and “Why are they here?”

A number of customers queuing up asked the latter. It makes no sense for the California-based burger giant to open for half an hour when they have no intention of ever bringing the brand Down Under.

Now, it appears the real reason has been revealed — and it’s less about bringing animal fries and double-doubles to the good people of Melbourne and Sydney.

In-N-Out burgers are only available in the US.

It turns out In-N-Out has to be seen to have a presence in Australia to lock up its trademark and prevent other companies from ripping off its business model or appropriating its slogans.

A registered trademark provides a business with exclusive rights to use, license and sell the mark. It could be argued that In-N-Out doesn’t have a presence in Australia and therefore has no interests to protect but In-N-Out’s pop-up restaurants provide it with that presence, it claims.

As the podcast TechDirt explains in an article referring to the company’s “bullshit pop-up strategy”, In-N-Out “turns up so-called pop-up storefronts for its chain in Australia and a few other countries every so often, specifically to keep just barely within the trademark law provisions”.

Those provisions require a trademarked name or logo be used at least once every five years.

It’s a strategy that’s being tested in the courts right now where In-N-Out is suing Australian-owned Hashtag Burgers, which runs Down N’ Out burger restaurants in Sydney.

The American chain wants the Australian restaurants to stop using the Down N’ Out moniker, claiming it is trying to “mimic” In-N-Out’s business.

Arnold Schwarzenegger, left, eats a hamburger wrapped in lettuce during a lunch break at an In-N-Out restaurant in California. Picture: Stephen Savoia/AP

Federal Court proceedings commenced late last year with In-N-Out claiming the company is “passing off” or implying its burgers are sold with the rival’s endorsement.

In 2016, an In-N-Out pop up in Sydney’s Surry Hills saw people queuing for hours on end to get a taste of the cult fast food chain.

Last month it was Melbourne’s turn where burgers at the pop-up sold out in half an hour and those who didn’t arrive early left empty-handed.

In-N-Out launched in 1948 in California and limits itself to only a handful of US states including Nevada, Oregon and Utah.

Representatives from In-N-Out told news.com.au they have no plans to bring the chain to Australia.

Originally published as Why In-N-Out burger chain has pop-up stores in Australia