In-N-Out Burger, California’s most famous fast-food chain, is raising its menu prices in response to California’s new minimum wage law.
Last year, Gov. Gavin Newsom (D) signed a law raising the state’s minimum wage at fast-food restaurants from $16 to $20 an hour, which went into effect on April 1.
“I never expected to come to In-N-Out and spend $20 on a meal.”
Democrats who supported the law said it was necessary to pay workers the minimum wage. But forcing restaurants to raise the minimum wage by 25% has negative consequences because employers rarely absorb the cost of wage increases. Typically, employers pass the cost on to consumers or employees (in the form of layoffs). And shortly after Governor Newsom signed the law, some employers announced layoffs. Other fast-food chains announced they would raise prices or increase automation.
Earlier this year, In-N-Out President Lynsey Snyder She said she didn’t want Raise menu prices as a “duty” to customers.
But that’s exactly what the burger chain was forced to do.
“On April 1, we gradually increased our prices to coincide with a pay increase for all California restaurant employees. The price increases were also necessary to maintain our quality standards,” In-N-Out said. Check with KTVU-TV.
Currently, In-N-Out employees make between $22 and $23 an hour, depending on the restaurant’s location.
Menu board at an In-N-Out Burger restaurant in Pleasant Hill, California, September 30, 2013. (Photo by Smith Collection/Gado/Getty Images)
A double-double meal — which includes a burger, fries, and drink — now costs as much as $13.63 in San Francisco, KRON-TV reports. reportIn Los Angeles County, the same meal would cost about $11.44. According to KTLA-TV.
An In-N-Out spokesperson confirmed to KTLA that the price increase is a direct result of the minimum wage increase introduced by Democrats.
Meanwhile, he said customers know the economy is “bad” and are therefore comfortable with higher prices.
“Prices going up? I know it’s because the economy is bad. Food and everything is going up in price,” In-N-Out regular Chris Hakulika told KTVU.
“California is a little pricey, especially coming from Georgia, but coming to In-N-Out and paying $20 for a meal is something I definitely didn’t expect,” Khalil Coleman told KTVU.
The news that In-N-Out prices have gone up Hoover Institution Analysis California’s new minimum wage law has led to the loss of more than 10,000 jobs in the state.
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