In-N-Out President Lynsi Snyder Vows to Protect Prices Amid California’s New Minimum Wage Law
Fast Food Workers Receive $20 an Hour Starting Wage
President Lynsi Snyder of beloved West Coast burger chain, In-N-Out, recently assured customers that prices will remain stable despite California’s new minimum wage law, according to a recent TODAY interview conducted by NBC’s TODAY.
The California Fast Act, which took effect on April 1, raised the minimum wage for fast food workers to an impressive $20 an hour, up from the previous $16 standard [source].
In light of this change, Snyder joined meetings emphasizing the significance of maintaining affordable prices and noted that the company will not significantly increase prices for their valued customers.
In-N-Out Stands Firm Against Price Hikes
In a bold stance against industry practices, Snyder insists that In-N-Out will not bow to the pressure to raise prices, setting it apart from many of its competitors who have already adjusted their costs after the minimum wage increase.
In a recent New York Post report, it was disclosed that an In-N-Out location in Los Angeles slightly increased burger prices by 25 cents and drink prices by 5 cents.
Competitors Resort to Price Hikes to Offset Costs
While In-N-Out is renowned for offering tasty burgers at affordable prices, competitors such as McDonald’s and Chipotle have recently announced plans to increase prices in order to balance escalating wage expenses:
McDonald’s CEO: Price Hikes and Reduced Costs
McDonald’s CEO, Chris Kempczinski, has confirmed that the popular fast-food chain intends to combat the wage increase by raising prices while simultaneously cutting restaurant costs and enhancing efficiency [source]. Although the exact increase remains uncertain, Kempczinski anticipates a short-term impact on franchisee cash flow in California.
Chipotle’s Plan for California Price Adjustments
Chipotle’s Chief Financial Officer, Jack Hartung, has disclosed that the popular Mexican grill chain is considering an increase in California prices by a “mid-to-high single-digit” percentage, although a final decision has yet to be made [source].
Pizza Hut Forced to Lay Off Delivery Drivers
Prior to the Fast Act taking effect, it was reported that two major Pizza Hut operators in California opted to lay off over 1,200 delivery drivers in order to mitigate the financial impact [source].
