In-N-Out makes price pledge with California minimum wage law, as others raise rates, slash staff

In-N-Out makes price pledge with California minimum wage law, as others raise rates, slash staff

In-N-Out President Lynsi Snyder has vowed to protect prices at the West Coast’s favorite burger chain.

In a new TODAY interview, Snyder told NBC’s TODAY that the private company won’t see drastic price increases in California after the state’s new minimum wage law. The Fast Act went into effect on April 1 offering fast food workers a $20 an hour starting wage, up from the previous $16 standard.

“I was sitting in VP meetings going toe-to-toe saying, ‘We can’t raise the prices that much, we can’t,” Snyder said. “Because I felt such an obligation to look out for our customers.”

Snyder also said the company would not explore mobile ordering options as they hinder the customer service experience. She also expressed zero interest in franchising or transitioning into a publicly traded company.

An In-N-Out location in Los Angeles recently raised prices for a burger by 25 cents and for a drink by 5 cents, the New York Post reported.

An In-N-Out location in Hesperia, California.

McDonald’s, Chipotle executives announce price hikes

Snyder’s insistence that In-N-Out will not raise prices is a departure from the approach some competitors have taken after the Fast Act went into effect.

At a November conference call, McDonald’s CEO Chris Kempczinski said the company would increase prices to offset the wage increases, as well as cut restaurant costs and improve productivity.

“There will certainly be a hit in the short-term to franchisee cash flow in California,” Kempczinski said. ‘Tough to know exactly what that hit will be because of some of the mitigation efforts. But there will be a hit.”

At Chipotle conference call that month, Chief Financial Officer Jack Hartung said the Mexican grill chain expects to increase California prices by a “mid-to-high single-digit” percentage but clarified a “final decision” was not yet made.

Late last year, two major Pizza Hut operators announced plans to lay off more than 1,200 delivery drivers in the state before Fast Act went into effect, according to Business Insider.

This article originally appeared on USA TODAY: Will In-N-Out increases prices in face of California minimum age law?