Fast food chains in California increase their prices: Will In-N-Out Burger raise its rates?
Some fast food chains have raised their prices in California due to the recent increase in the minimum wage. In-N-Out Burger vows to protect their rates.
On April 1, a new law came into effect that benefits more than half a million California workers in the fast food industry, thanks to an increase in their minimum salary which exceeds both the national and the state minimum.
The new minimum wage of $20 per hour applies to fast food workers at restaurants with at least 60 locations throughout the country, with the exception of establishments that make and sell their own bread, such as Panera Bread.
However, despite benefiting workers, customers of several fast food restaurants will suffer from higher prices, as some companies choose to hike the prices of their products or services, as well as invest in automation in response to the minimum wage increase.
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Fast food chains in California that have raised their prices
McDonald's and Chipotle are two of the fast food chains that announced they will charge more in the Golden State. On the other hand, some Pizza Hut owners have decided to opt for layoffs.
According to the New York Post, Burger King is another of the chains that will raise their prices.
Per the publication, the biggest jump came at a Burger King, where a Texas Double Whopper meal package was $15.09 on March 29, then hit $16.89 in April, a price increase of $1.80 for the same meal. Overall, most items increased between 25 cents and a dollar.
The media also reported a price increase at Hart House, a fast food chain founded by actor Kevin Hart, where prices increased by up to 25%. Other restaurants reviewed by the NY Post showed no changes, including Chick-fil-A and Wendy’s.
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Will In-N-Out Burger raise its rates?
At In-N-Out Burger, the changes in price were more modest. Burger prices rose about 25 cents, while soft drinks went up five cents. The chain’s president Lynsi Snyder said she tried to fight the price increases, and has promised that the restaurant won’t implement drastic hikes after the Fast Act’s implementation this month.