In-N-Out makes pricing pledge with California minimum wage law, as others raise rates and cut personnel

In a pledge to ensure the affordability of meals at In-N-Out, Lynsi Snyder, the President of the beloved West Coast burger chain, has made a commitment.

In a recent interview with NBC’s TODAY, Snyder assured that the private company will not experience significant price hikes in California due to the state’s new minimum wage law. The Fast Act, which came into effect on April 1, now guarantees a starting wage of $20 per hour for fast food workers, an increase from the previous $16 standard.

During VP meetings, Snyder found himself engaged in intense discussions, advocating against substantial price hikes. He firmly believed that it was his responsibility to prioritize the welfare of their customers.

According to Snyder, the company has no plans to consider mobile ordering options as they would negatively impact the customer service experience. Additionally, she made it clear that there is no interest in franchising or becoming a publicly traded company.

According to a report by the New York Post, an In-N-Out location in Los Angeles has recently increased the price of their burgers by 25 cents and their drinks by 5 cents.

McDonald’s, Chipotle executives announce price hikes

Snyder’s firm stance on not raising prices sets In-N-Out apart from some competitors who have chosen a different approach following the implementation of the Fast Act.

During a conference call in November, McDonald’s CEO Chris Kempczinski mentioned that the company plans to raise prices in order to balance out the wage increases. Additionally, the company aims to reduce restaurant expenses and enhance productivity.

According to Kempczinski, franchisee cash flow in California will experience a short-term decline. It is difficult to determine the exact impact due to mitigation efforts, but there will definitely be a negative impact.

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During a conference call at Chipotle, Chief Financial Officer Jack Hartung stated that the Mexican grill chain is anticipating an increase in prices in California by a “mid-to-high single-digit” percentage. However, he made it clear that a final decision regarding the price hike had not been reached yet.

According to Business Insider, last year, two major Pizza Hut operators revealed their intention to lay off over 1,200 delivery drivers in the state before the Fast Act came into effect.

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