In N Out just forced to raise prices | The Economic Ninja

Hey everybody, Economic Ninja here. I hope you’re doing well. We have got to talk about In-N-Out today. And the reason why we got to talk about In-N-Out is obviously because of Gavin Newsom raising, you know, forcing all fast food joints to start paying their employees $20 an hour. And we’re seeing the fallout from that. From everything from Rubio’s to McDonald’s, Carl’s Jr. But In-N-Out actually is a lot different. And the reason why, and first off I got to say, In-N-Out is by far my favorite burger joint in California. You can see just the line of people here to order burgers.

It’s absolutely insane. So this is what’s really interesting. In-N-Out was just, just came out and said that it has to raise its prices across the board to deal with this increase in minimum wage. But you see, In-N-Out is different. In-N-Out has always paid its employees darn near $20 an hour. And the reason why is because their job, they want to hire the best of the best employees. I have two friends that actually are managers in In-N-Out. They make like around $100,000. And you can see that their employees, every time I’m inside, unbelievably happy, energetic, hardworking people.

And you’ve got to be a hardworking person at a burger joint when you’re dealing with a line of cars like this. All right? Now, again, this is something really interesting. In-N-Out has always paid near $20 an hour to starting wage. And now that, and the reason why is because they wanted to attract the best of the best employees, right? They wanted to retain good employees. But now with inflation and crazy policies in California, it’s becoming way too expensive so that this is why these, all these fast food joints are having to raise their price, right? Because it was forced upon them by the government.

So check out this story out of Fox Business. In-N-Out raises California prices in response to minimum wage hike. It says In-N-Out Burger customers are paying more for their double doubles and shakes after California’s new minimum wage law went into effect. It says the California-based burger chain told local news station KTVU that it has raised menu prices across the Golden State. The price increases reportedly took effect on the same day California bumped its minimum wage. On April 1st, they said we raised our prices incrementally to accompany a pay raise for all the associates working in our California restaurants.

The price increase was also necessary to maintain our quality standards. In-N-Out told them in a Fox Business reached out for a comment. They said starting wages at In-N-Out California range from 22 to 23 dollars an hour based on location which is slightly higher than the mandated minimum wage. Under the law, the minimum wage rose from 16 dollars to 20 dollars an hour for restaurants that have had at least 60 locations nationwide except those that make and sell their own bread. Isn’t that an interesting little uh convenient tip right there? I bet you there’s going to be a lot of companies fast food joints that start making their own bread watch except those that make their own bread.

So it says this equates to an annual salary of $41,600. Gavener Newsom, Governor Newsom, Gavener, the Gavenator, it’s a total tool, signed the legislation AB 1228 in the law in September saying that at the time California is home to more than 500,000 fast food workers who for decades have been fighting off higher inflation. Well the great news about this country and even the state of California is you get to choose where you work right? You’re not forced to and everyone I know that has worked in In-N-Out absolutely happy with the organization.

They pay well, they treat their employees well. You know a fun little fact, Tim Kennedy, you know the fighter from uh unbelievable fighter in the UFC. I was actually one of his youth leaders in school and church and he worked in an In-N-Out. As a matter of fact his entire family, all of his siblings worked in an In-N-Out. I have friends like I said that manage these stores and they’re very happy. They’re actually quite content. Now in California even at $100,000 for a manager salary they’re having a hard time getting by but they had the choice and they left, one of them left California and went to work at another In-N-Out.

They’ve been very, very happy but I wanted to bring you this story because this is one of those excellent points that even companies like In-N-Out that have been notoriously high paying jobs in the industry, they are now forced to raise their food costs because they have to, they want to keep up or still be way above all these other fast food joints right? Because they want to attract quality employees. Now with that being said you have to realize no company is immune from this because as the price, the minimum wage for let’s say McDonald’s workers goes up, Carl’s Jr.

workers go up right? Companies like In-N-Out have to bump up their price as well but it’s not just that. Across the street at Walmart or at TJ Maxx or any of these restaurants in this area that I’m looking at right now you have to realize they are all competing for employees too and they’re competing for good employees so it is going to cause everybody to raise their prices or sorry their wages and in turn what happens when you run up your wages, you have to charge more bringing a whole another wave of inflation and I do believe that this is not just going to be a story of California that you’re going to see as this inflation lingers more and more states are going to become emboldened to force companies to pay more or they’re going to have to pay more without being forced because they’re going to have a attracting good talent and that’s going to bring a second wave of inflation.

Hey, I hope you got something out of this. Let me know down below what your favorite fast food joint is. You get it? And guys, four days left for the pre-filming discount for Mortgage Master. Hope you guys got something out of this. The economic ninja is out. [tr:trw].

See more of The Economic Ninja on their Public Channel and the MPN The Economic Ninja channel.