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In-N-Out Makes Price Hike Amid Higher Minimum Wage

restaurants

By Victoria M.

- Jun 24, 2024

California's statutory wage increase has led In-N-Out Burger, a cherished fast food giant, to reluctantly boost its menu prices, stirring broader discussion about the affordability of fast food.

On April 1, California enacted the FAST Act, raising the minimum wage to $20 per hour from the earlier $16 per hour. This wage hike directed fast-food chains like In-N-Out to adjust their pricing structures to maintain viable profit margins. Simultaneously, it has incited consumers' reevaluation of their spending on fast food.

Lynsi Snyder, owner and president of In-N-Out, remarked, "Only when absolutely necessary we increase our menu prices. That's what we did in our California outlets starting from April 1 this year." Snyder emphasized the firm's commitment to offering maximum value to its customers.

Los Angeles Magazine reported that the price adjustments at In-N-Out include the Double-Double combo now costing $10.45, the cheeseburger combo priced at $8.65 and the hamburger combo retailing for $8.15, excluding taxes. Depending on the region, prices have increased from $0.25 to $0.50, as stated by USA Today. KTLA highlighted that in Los Angeles County, the price for the Double-Double combo is now $11.44, a rise of $0.76 from 2023 rates.

An important context to understand is that these price increases haven't been instantaneous. The Double-Double combo's cost has escalated over time-it was priced at $8.59 in 2020, and $9.14 in 2021 before crossing the $10 threshold in 2023 with a price of $10.68.

However, In-N-Out is certainly not the only fast-food chain to experience the cost implication of the wage increase. Many fast-food chains, including McDonald's, Burger King, Pizza Hut, Chick-fil-A, and Chipotle, have also adjusted their prices upward. This broader price hike across the industry has led adults to reframe fast food as a "luxury." According to a LendingTree study, 78% of participants affirmed fast food to be more expensive, thus becoming a luxury. The study reported that about 65% of respondents were "shocked" by the high cost of their recent fast-food bills.