In-N-Out Burger, a popular fast food chain based in California, recently raised prices for some menu items following the state's minimum wage increase for fast food workers. The price hike affects various locations throughout the state and includes an increase in the cost of a Double-Double burger, fries, and a drink.
The Fast Act went into effect on April 1, 2023, offering fast food employees a $20 an hour starting wage. In response to this change, executives at chains like McDonald's and Chipotle also announced price increases to offset the wage hikes. The minimum wage increase has led to foot traffic declines for major chain restaurants in California compared to their national averages during April and May, according to data from Placer.ai.
In-N-Out Burger confirmed that prices increased at its California locations on April 1, 2023. The starting wage for In-N-Out employees in the state is $22 to $23 per hour.
The price of a Double-Double burger, fries, and a drink now costs between $11.44 and $15 depending on the location. For instance, at Fisherman's Wharf in San Francisco, the cost is $13.63 after taxes.
However, prices are cheaper in other locations like Daly City where a Double-Double with fries and a drink costs $11.52, a cheeseburger meal costs $9.54, and a hamburger meal costs $8.99 after tax.
The price increases have been met with mixed reactions from Californians. Some support the new minimum wage as necessary to help workers cope with rising living costs, while others argue that it will push prices up too much for consumers.
In-N-Out Burger is not the only fast food chain experiencing these challenges. McDonald's, Burger King, Wendy's, Jack in the Box, and other chains have also reported underperforming foot traffic in California compared to their national averages during April and May.