McDoubles are $1.29 where I live. Quarter Pounders with cheese are typically $3.99. But neither really compare with any In-N-Out offering - not even the Quarter Pounder. Therefore, In-n-Out offers tastier, fresher burgers for less than McDonalds.
OK, now that you have established that, you'll need to explain your premise that employees getting paid higher wages leads directly to better quality and lower priced burgers. How does that work exactly? I.e. what's the math?
Then explain if you believe that raising the minimum wage again will make others' (e.g. McDonald's) burgers become better quality and cheaper, too.
In-n-Out is a demonstration that a business which pays higher employee wages can still offer high quality products made with expensive materials at lower prices. We've established that, at least for fast food.
I argue that McDonalds (and Walmart and others) do not suffer from minimum wage floors. They're clearly successful - mightily so. But it's clear that most fast food restaurants could take some lessons from In-n-Out.
They are: Adopt policies which work. Have very specific policies for how things are done. Train your employees and pay them well. Specialize and build an efficient business model.
Some things which are very specific about In-n-Out which you do not always notice at other fast food restaurants:
1. Managers never interrupt a cashier when he or she is taking an order. Cashiers, once they say "may I help you?" maintain their focus on the customer until the order is finished. I notice very sloppy and inconsistent application of this at other fast food restaurants.
2. At most fast food restaurants, I notice the floor gets rather wet when it is mopped, and then when customers walk through it, they leave footprints (from the dust and dirt on their shoes) which nulls the mopping. In-n-Out has a special procedure for mopping the floor, where only a damp mop is used, and a second employee moves with them, absorbing any dampness with a floor duster.
3. At many fast food restaurants, I notice that an employee might clean tables with a spray bottle containing cleaning chemicals, and I have experienced the mist from these bottles settle around me (and my food). In-n-Out never does this.
4. In-n-Out's food is very consistent. At other fast food establishments (not all), I have noticed sloppy construction of the food, (condiments missing or poorly spread, partially or poorly baked buns, etc.). In-n-Out trains the employees on such things, apparently, because of the extreme consistency and quality.
5. At many fast food restaurants, I have often experienced no policies regarding complaints about food - often I am met with blank stares or incomprehension. In-n-Out will always make sure the customer is treated well.
6. Most fast food restaurants offer new menu items every few months. This does not increase their menu selection, as it simultaneously causes an item to be deleted from the menu. What does this mean? Apparently marketing is a higher priority than great recipes. If they can't win the customer with food, than win them over by telling them they're still trying to figure out what the customer wants.
McDonalds is successful, and it does pay minimum wage (or higher). Yet their product is far below the quality of a much more successful operation which pays its employees more, and offers a better product (food quality and service combined), and yet on balance, seems to charge less for its products. And McDonalds' sales per store are much less than that other successful operation.
