Iconic Burger Chain Fights to Keep Prices Down Amid Massive Minimum Wage Increase

The owner of the iconic In-N-Out burger chain, Lynsi Snyder, is determined to keep prices low in California despite minimum wage increases. "I was sitting in VP meetings going toe-to-toe saying, ‘We can’t raise the prices that much, we can’t,'" Snyder told "Today." She feels a duty to her customers.

Snyder, who inherited the billion-dollar chain and has been at the helm for 14 years, navigated the company through a pandemic and ongoing inflation. The wage legislation has caused other restaurants to hike prices or shut down locations.

The new law escalated the minimum wage from $16 to $20 for large restaurant chains, setting an annual salary benchmark at $41,600. Exemptions apply to establishments baking their own bread.

Governor Gavin Newsom, who signed AB 1228 into law, highlighted the move as a victory for the state's 500,000 fast-food workers, aiming for fair wages and improved working conditions. "California is one step closer to fairer wages, safer and healthier working conditions," he stated.

The legislation also introduced a "Fast Food Council" to advocate for workers and employers, potentially leading to more wage increases and better work standards.

A New York Post investigation showed that some fast-food outlets, including Burger King and some In-N-Out branches, raised prices as the law took effect on April 1.

Mod Pizza and Fosters Freeze responded to the wage hikes by closing locations in California.

Michael Ojeda, a Pizza Hut driver, shared that the Southern California Pizza franchise informed him of his job's termination due to the new wage laws, underscoring the widespread impact of the legislation.