In-N-Out’s decision to raise prices, coinciding with implementing a California law that boosts the minimum wage for fast food workers, will directly impact customers. Despite In-N-Out President Lynsi Snyder’s reported efforts to keep prices stable, customers will now be paying more for their favorite burgers and shakes.
In-N-Out, in a conversation with local California news station KTVU, explained the rationale behind the price adjustment. They stated, “On April 1st, we made a slight increase in our prices to align with the pay raise for all Associates working in our California restaurants. This adjustment was also necessary to uphold our quality standards,” In-N-Out informed KTVU.
In California, the starting rates at In-N-Out fall between $22 and $23 per hour depending on the location, which is a bit higher than the state’s required minimum wage.
The recent legislation has increased the minimum wage for fast food joints with over 60 branches from $16 to $20 per hour. However, there’s an exception for establishments that produce and sell their own bread.
California Governor Gavin Newsom signed the legislation raising the minimum wage in September. “California is home to more than 500,000 fast-food workers who — for decades — have been fighting for higher wages and better working conditions,” he said, adding that it would make the state “one step closer to fairer wages, safer and healthier working conditions, and better training by giving hardworking fast-food workers a stronger voice and seat at the table.”
In-N-Out President Lynsi Snyder said in May that she fought to keep prices down, but inflation won out in the end. In an interview with Today, she said, “I was sitting in VP meetings going toe-to-toe saying, ‘We can’t raise the prices that much, we can’t.'” She mentioned feeling “an obligation to look out for our customers.”
Customers had mixed reactions to the price rise. Khalil Coleman, who moved to Oakland just two weeks ago, told KTVU, “Especially coming from Georgia, California prices are a little bit higher, but when I came to In-N-Out, and I was spending $20 on a meal, it’s something that I did not expect at all.” In-N-Out prices differ slightly across the state, with the Double-Double meal reaching $13.36 in San Francisco. The exact order in Alameda costs $12.
Pittsburgh, California resident Chris Hachlica told KTVU, “The price increase? I understand because the economy’s bad. Food’s going up, all types of stuff.” The Labor Department has consistently reported inflation rising 3.4% month over month this year, and experts expect the trend will continue. Federal Reserve officials are expected to announce a decision on interest rates this week.
Experts expect the Fed to hold steady rates between 5.25% and 5.5% to lower the inflation rate to 2%. In 2022 and 2023, policymakers raised interest rates to the highest since the 1980s to slow inflation. They are unlikely to change tactics as long as inflation continues to rise. “It’s not just the price of eggs, it’s bread, it’s cheese, it’s milk, ’cause I have a 1-year-old child, that we need to buy, so the prices in general are definitely a lot higher and it’s noticeable,” Coleman commented.
