Many workers were excited when the state of California announced an increase in minimum wage to $20 for fast food workers across the state. However, the general public is starting to resent this idea as they believe that this increase has caused fast food outlets to increase their prices by startling amounts.

While the workers are happy and grateful for the new $20 minimum wage, the customers are not. This is because many restaurants had to increase their prices to keep up with the new wage rate. In-N-Out, a popular and majorly affordable fast food restaurant, has also increased its prices, making its food less affordable for those who earn low wages in the community. 

On April 1st, In-N-Out raised its prices by a notable percentage in order to meet up with its expenses. The restaurant released a statement to KTVU, explaining the need for the raise to meet up with the new minimum wage. The statement also explained that they would not want to compromise on the quality of their food and needed an alternative solution to be able to pay their workers in California. 

This increase in prices was surprising to many as In-N-Out has always been one of the cheapest fast food options in the country. In an interview with Today, Lynsi Snyder, the president of the fast food chain, said that the company’s executives tried their best to keep the prices down. She also described their meetings as going “toe-to-toe” to ensure that they weren’t increasing the prices extravagantly. 

Since In-N-Out already had a starting minimum wage of $22 to $23 an hour before the implementation of California’s new minimum wage, many residents do not understand why the company is still raising its prices. However, it is possible that the overall hike in the state is affecting the company’s expenses, thereby forcing them to increase their menu prices. 

The price of In-N-Out fast food has always varied depending on the specific location, but it remains the same to date. Reports show that a double-double burger combo that was $10.68 is now $11.44 in Los Angeles County. However, a double-double with fries is now $13.63 in Fisherman’s Wharf after the addition of tax costs.  

On the one hand, there are customers who are not happy with the price increase and have been very vocal about it. On the other hand, there are some customers who understand the need for the price increase. Chris Hachlica, a semi-regular customer at a Californian In-N-Out, said that he understands the need for the increase in food prices because he believes the economy is bad.

Some other residents have mentioned that In-N-Out’s price increase was reasonable because the brand has a reputation for treating its employees really well. Elizabeth Birmingham, a resident of Alameda, California, cited this as her reason for understanding the price increase. She also said that people were willing to support In-N-Out because they also support their employees better than most restaurants do. 

There is also a difference in the reaction of in-state residents and those who are out-of-state residents. Khalil Coleman, a man who had just moved from Georgia to Oakland, California, was a bit shocked at the difference in prices. When he came to California, he was surprised to see that his regular order, which was never up to $15, was now $20.  

Coleman also noted that the general prices of things have skyrocketed, causing a lot of discomfort for customers. From grocery stores to restaurants to fast food outlets, things are no longer cheap and affordable for everyday living. For Coleman who has a one-year-old child, he told KTVU that the cost of living is on the higher side for him and his family. 

Recently, inflation rates across the country have begun to drop from disturbing highs. However, those highs were sustained for a long period of time, and it would take a while before the economy started to feel the effects of the fall. The post-pandemic inflation rate in California is about 20%, and even though it has dropped now, it is still higher than it was before the pandemic started. 

Therefore, some people believe that the increase in minimum wage across California is not helping matters due to the already high prices of items and the battle with inflation. Since the bill went into effect in April, over 10,000 fast-food jobs have been lost due to companies downsizing their workforce in order to be able to pay their staff the required amount. 

This increase in wages has also caused many of these fast-food chains to seek digitalization. The Los Angeles Times reported in May that many fast-food chains are looking to cut labor costs by automating their services or building digital branches. However, this would be terrible for the economy, as thousands of jobs will continue to be lost through automation.