Staff Reports
The president of In-N-Out Burger, a popular fast-food chain, has warned that increasing the minimum wage for fast-food workers can lead to higher prices for customers. California recently implemented a new law raising the minimum wage for fast-food workers to $20 an hour, up from the previous $16 an hour. This change, which went into effect on April 1, has led to a variety of challenges for both workers and customers.
In-N-Out President Went 'Toe-to-Toe' to Stop Price Hike After $20 Minimum Wage; Even She Had to Cave In via @WestJournalism https://t.co/6k2A40M6I2
— Shawn Brunel (@BrunelShawn) April 11, 2024
As a result of the wage hike, some fast-food restaurants have closed suddenly, leaving workers without jobs or with reduced hours. In addition, customers at chains like McDonald’s, Burger King, and In-N-Out have reported notable price increases. The law applies to eateries with over 60 locations nationwide and limited table service, impacting many popular fast-food chains, including In-N-Out, which is closely associated with California.
In an interview with NBC’s “Today,” the president of In-N-Out, Lynsi Snyder, revealed that she had attempted to resist price hikes at the chain after the new law was passed. She emphasized her efforts to maintain the customer experience by avoiding cost-cutting measures such as automation and mobile ordering. However, Snyder acknowledged that the company was eventually forced to implement modest price increases to accommodate the higher labor costs resulting from the minimum wage hike.
The price hikes at In-N-Out were reported to be more moderate compared to those at other chains, with burgers rising by 25 cents and sodas by 5 cents. Customers expressed mixed reactions to the increases, with some finding the adjustments reasonable and others concerned about the broader impact on prices. The president of In-N-Out emphasized the company’s commitment to prioritizing customer satisfaction while navigating the economic challenges posed by the new minimum wage law.
Ultimately, the realities of market forces prevailed, necessitating adjustments in prices to offset the increased labor costs. Despite efforts to mitigate the impact on customers, the chain was compelled to make adjustments in response to the new law. The experience serves as a reminder of the complex dynamics involving higher minimum wages, customer affordability, and business operations, particularly in the fast-food industry.
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