Nah, that's the popular media reason for it. They are cheap first and foremost because of their supply system (their warehouses are fully automated, working like network hubs, routing packages from truck bay to truck bay, with trucks working like network cables to deliver the packages over roads). Low wages is a minor part of it, and other more expensive stores, including Target, as just as guilty of it. But, of course, if all you've done is go to he store and shop there, you would conclude that it's just the wages.
Never concluded any such thing, did I now? What I did was make conclusions about fast food.
Based on the same "I bought burgers from there, so I know" reasoning
I went to In-n-Out yesterday at 2:20 PM, after the lunch hour rush. I made it a point to count some things. What I saw was a very successful business kicking ass over McDonald's. I was there for 25 minutes. Here's what I saw:
1. They were calling order #45 when I walked in. When I walked out they were calling order #15, wrapping around from 100. That's 70 orders, each on average representing a party of two, totaling 140 meals in 25 minutes.
2. 17 employees. 3 to 4 working the registers. 1 to 2 cleaning tables and tending the beverage bar. The rest in the kitchen.
3. I counted 84 patrons, either seated at tables, in a line to order, or waiting for their order to go.
4. I ordered a combo meal for $5.20. I got a soda, a large carton of delicious fries that were in full unpeeled never frozen potato form only fifteen minutes prior, and a cheeseburger with lettuce hand leafed only minutes prior, and fresh onions and tomatoes. It's far more delicious than anything McDonald's offers, and actually fresh, and frankly, cheaper than an equivalent McDonald's meal.
Let's summarize: After the lunch time rush when things slow down, we had 17 employees, 84 patrons, and in 25 minutes, 140 fresh and delicious meals served, at a price which beats McDonald's. Frankly, you look like an idiot championing McDonald's.