Residents of California should prepare to spend more on burgers and shakes at In-N-Out.
On April 1, the Irvine-headquartered fast-food chain raised its prices across California due to the state’s new minimum wage increase for fast-food employees, Denny’s chief operating officer Warnick wrote in an email on Thursday.
Starting wages at In-N-Out branches in California now range from $22 to $23 per hour.
On April 1, the minimum wage at fast-food chains with over 60 locations nationwide increased to $20 an hour.
This wage is the highest in the U.S. restaurant sector and $4 more than other industries.
In-N-Out Burger opened its 231st location in Woodland in May 2009. The chain will soon expand into Colorado, including a distribution center in Colorado Springs and up to 50 restaurants.
How much is an In-N-Out burger currently in California?
In an April interview with NBC’s “Today” show, In-N-Out President Lynsey Snyder promised to keep menu prices stable.
“I was in VP meetings shifting from foot to foot, saying, ‘We can’t raise prices that much. We can’t,’” Snyder told NBC. “I felt a strong obligation to care for our customers.”
Despite Snyder’s promises, prices at In-N-Out have risen.
The cost of food and drinks varies depending on the In-N-Out location.
Customers can expect to pay 25 to 50 cents more for a Double-Double, a burger with two beef patties and two slices of cheese, plus fries and a drink, Warnick said.
On Friday, a Double-Double, fries, and a medium drink cost $10.45 at an In-N-Out in Natomas. An 8.9% tax brought the total to $11.36.
In-N-Out Burger signs, two in the foreground from the fast food chain’s original location and one in the background at a new location in Baldwin Park, California.
In-N-Out Burger signs, two in the foreground from the fast food chain’s original location and one in the background at a new location in Baldwin Park, California.
What is In-N-Out? Where are the restaurant locations?
Founded in the late 1940s, In-N-Out calls itself the original California burger stand with “the freshest ingredients available.”
The fast-food chain offers hamburgers, cheeseburgers, fries, and milkshakes, as well as sodas and lemonade.
On Friday, prices at a Natomas In-N-Out ranged from $3.60 for a hamburger to $5.90 for a Double-Double.
An order of fries costs $2.30.
Chocolate, strawberry, and vanilla shakes were available for $3 each.
It is probably best known for items not listed on the regular menu.
In-N-Out’s “not-so-secret menu” features grilled cheese sandwiches and lettuce-wrapped burgers.
Also available are burgers served animal style with lettuce, tomato, pickles, extra spread, and grilled onions.
“We’re all about making our customers happy,” In-N-Out wrote on its website.
In-N-Out has over 400 locations across the country.
How has the minimum wage hike impacted restaurants?
A new study from the foot traffic analytics platform Placer.ai shows that an increase in menu prices has a direct correlation with a decrease in customer foot traffic.
“It’s early, but we’re starting to see the ripple effect of the minimum wage increase on the broader restaurant industry,” wrote RJ Hottovy, head of analytics research at Placer.ai, in a June 7 article titled “Measuring the impact of California raising the minimum wage in restaurants.”
Popular fast-food chains, including McDonald’s and Chipotle, have underperformed since California raised the minimum wage for workers, according to the study.
Other businesses have ceased operations entirely.
On June 1, Rubio’s Coastal Grill permanently closed nearly 50 locations across California and filed for bankruptcy, citing “significant increases” in California’s minimum wage.
A total of 13 locations were closed in San Diego, 24 in the Los Angeles area, and 11 in upstate, according to a news release.
“While painful, closing the stores is a necessary step in our long-term strategic plan to position Rubio’s for success for years to come,” company representatives wrote in the announcement.
“The closings were caused by the rising cost of doing business in California.”
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