In-N-Out president fought to keep prices down amid California minimum wage hike

California fast-food chain workers get minimum wage pay increase

Fast-food workers in California received a pay raise on Monday. A new law took effect, setting a $20 hourly minimum wage for workers at large chains. KTVU's Jana Katsuyama joins us live from Alameda with a look at the impact.

The owner of the famed In-N-Out burger chain says she fought to keep costs down in California as legislation bumping up the minimum wage took effect.

"I was sitting in VP meetings going toe-to-toe saying, ‘We can’t raise the prices that much, we can’t,'" In-N-Out President Lynsi Snyder said in a Wednesday interview with "Today," adding that she felt "an obligation to look out for our customer."

Snyder, the chain's billionaire heiress, who took over the chain 14 years ago and helped the company weather a pandemic and persisting inflation, is far from the first to raise an issue with the legislation, which forced a slew of eateries to raise prices or close down some locations to offset the costs.

FOX Business reached out to In-N-Out for comment.

Under the law, the minimum wage rose from $16 to $20 an hour for restaurants that have at least 60 locations nationwide, except those that make and sell their own bread. This equates to an annual salary of $41,600.

Gov. Gavin Newsom signed the legislation, AB 1228, into law in September, saying at the time that "California is home to more than 500,000 fast-food workers who — for decades — have been fighting for higher wages and better working conditions."

He said the state is "one step closer to fairer wages, safer and healthier working conditions, and better training by giving hardworking fast-food workers a stronger voice and seat at the table."

In addition to the pay raises, the legislation also established a "Fast Food Council," including representatives for both workers and employers, that can approve further pay increases and set standards for working conditions.

A New York Post investigation revealed that some fast-food chains in the Los Angeles area raised prices when the legislation took effect on April 1, including Burger King, owned by Restaurant Brands International, Hart House and some In-N-Out locations.

Several places, namely pizza chains, closed some locations to get ahead of possible financial repercussions.

MOD Pizza, a nationwide chain, closed five shops in the state. Fosters Freeze also shut one location.

Michael Ojeda, 29, a Pizza Hut driver in Ontario, California, told The Wall Street Journal he received a notice from Pizza Hut franchisee Southern California Pizza in December informing him that his last day of work would be in February. The chain is part of Yum! Brands.

FOX Business' Jeffrey Clark contributed to this report.