In-N-Out Heiress Lynsi Snyder Leaves California for Tennessee, Citing Family and Business Challenges
Last month, Lynsi Snyder—the billionaire owner of In-N-Out Burger and granddaughter of the chain’s founders—announced that she’s moving her family from California to Tennessee. She plans to continue growing the beloved West Coast burger brand while raising her family in the new state.
“There’s a lot of great things about California,” Snyder said on the “Relatable” podcast with conservative host Allie Beth Stuckey, “but raising a family is not easy here. Doing business is not easy here.”
While Snyder is relocating personally, In-N-Out’s headquarters will remain in California. However, the company is opening a regional hub in Franklin, Tenn., and streamlining its operations in the Golden State.
Her decision is the latest in a string of high-profile moves that fuel the perception that California is driving businesses away.
Over the past several years, major companies have made similar choices. Tesla shifted its headquarters from Palo Alto to Texas in 2021. Financial firm Charles Schwab moved to the Dallas area that same year. In 2024, Chevron—founded in California 145 years ago—announced it was heading to Texas as well. Elon Musk has since moved the main offices of SpaceX and X (formerly Twitter) to Texas, too.
These departures often grab headlines and spark claims that California is becoming an increasingly hostile place to do business. Conservative voices, like commentator and tech entrepreneur Steve Hilton, point to the state’s high taxes, steep housing costs, and heavy regulatory climate as proof that it’s driving out companies and families alike.
But economists say the narrative is more complicated.
“California continues to be a magnet for tech, biotech, entertainment, green energy, and agriculture,” said William Riggs, a management professor at the University of San Francisco. He notes that the rise of artificial intelligence has sparked a surge in office leases in San Francisco—the highest since before the pandemic.
The state’s economy, valued at $4.1 trillion, remains the fourth-largest in the world. Experts argue that while California does lose companies, the exits are relatively small compared to the scale of its economy.
“It’s being overhyped,” said Christopher Thornberg, founding partner of Beacon Economics. “California is a big, competitive economy. We’ve got lots of great stuff here.”
Still, there are real challenges. State data shows that more companies have left California than arrived every year since 2014, with net out-migration peaking at 741 companies in 2022. In 2023, 533 more firms left the state than came in.
Executives often cite the state’s 13.3% top income tax rate—which also applies to capital gains—as well as its complex regulatory environment. Businesses must navigate overlapping state, county, and city rules on labor, safety, and environmental standards.
“When businesses complain about California regulations, they’re not kidding,” said Kevin Klowden of the Milken Institute. “There are lots of overlapping authorities, and it’s really hard to operate.”
Other states, including Texas and Florida, are taking advantage of that frustration. They lure companies with lower taxes, lighter regulation, and even cash incentives. Texas Gov. Greg Abbott has dubbed his state the “headquarters of headquarters,” recently awarding hair-care brand Paul Mitchell $640,000 to expand in Dallas County.
Even so, relocating a corporate headquarters rarely means abandoning California completely. Tesla, for example, still operates a factory in Fremont, an engineering hub in Palo Alto, and a design center in Hawthorne. Northrop Grumman, which left for Virginia in 2011, still develops and builds aircraft in Palmdale.
Experts agree that California must address its high housing costs and complex regulations to remain competitive long term. But for now, the state retains its status as a global center of innovation.
“California is still where people go to try new ideas,” Klowden said. “Some businesses will leave, but others are eager to come in.”