In-N-Out to close its first restaurant: Where and why?

In-N-Out Burher is closing their only location in Oakland, California as the company claims out-of-control crime levels are putting their staff and customers at risk. The restaurant will close for the final time on 24 March.

“Despite taking repeated steps to create safer conditions, our Customers and Associates are regularly victimized by car break-ins, property damage, theft, and armed robberies,” the company said in a statement. All staff will be moved to other stores or offered a severance package.

Other companies have closed stores in California citing crime concerns in recent months, often without evidence to support the claim.

Does the reasoning behind the closure add up?

Crime levels in Oakland have indeed spiked. According to the San Francisco Chronicle the area around the closing store has seen 1,335 incidents of crime since 2019. Robberies rose by 37% and burglaries by 24% in 2023, according to KPIX.

Fast food companies are dealing with increased worker wages in Californi. For 2024, the new minimum wage is set at $16 an hour. However, starting 1 April, 2024, the minimum wage for fast food workers will be $20 per hour. In-N-Out will be affected by this legislative change, potentially hurting its bottom line. However, the opening of a store in Madera, California, suggests the company does have faith to invest in the Golden State.

Yhe company’s larger financial picture is very healthy. According to Restaurant Business Online as In-N-Out doesn’t publish their revenue, 2022 sales were $1.82 billion. The year prior they were $1.07 billion, just over a 70% increase to 2022. The company has the strength to invest if these figures are true, so it could be said their reasoning behind the closure is truthful. Oaklanders will have to travel further yonder to get their burgers.

“Our top priority must be the safety and wellbeing of our Customers and Associates - we cannot ask them to visit or work in an unsafe environment,” the statement continued.