Waffle House Implements Price Hike After Increasing Wages

Waffle House, a beloved fast-food chain, is joining the ranks of restaurants raising prices to fund wage increases for their employees. This move follows similar actions by California’s In-N-Out, which recently hiked prices to accommodate the state’s new $20 minimum wage. Businesses, particularly in the fast-food industry, are under immense pressure to raise wages due to record-high inflation, and Waffle House is no exception.

To fund these wage increases, Waffle House will raise menu prices. The price hikes will be more pronounced in urban locations due to higher living costs in these areas. CEO Joe Rogers III explained in a video message to employees that while customers in urban centers will see higher price increases, suburban areas will experience more modest hikes. Rogers emphasized that the company aims to enhance the overall customer experience, promising better hospitality, service, cleanliness, and portion sizes to match the higher prices.

This decision comes after the Union of Southern Service Workers, representing Waffle House employees, organized a series of strikes. The union’s demands included a wage of $25 per hour for all workers, 24/7 security at restaurants due to increased in-store violence, and an end to the company’s policy of deducting $3.15 daily from workers’ paychecks for meals, regardless of whether they eat on the job.

Over the past year, Waffle House has faced significant pushback from unionized workers demanding higher pay and better benefits. In response, the company announced a few weeks ago that it would increase the base pay of its employees to $3 per hour starting this month, with a planned rise to $5.25 per hour by June 2026. Wages will vary across states, reflecting different minimum wage laws.

Waffle House is not alone in passing wage costs onto customers. In-N-Out recently increased prices for various menu items to cover the new minimum wage in California. For instance, at a San Francisco location, a double-double burger with fries and a drink now costs $13.63 after taxes.

Despite these price hikes, a report from the Roosevelt Institute suggests that the fast-food industry has sufficient profits to absorb higher operating costs without resorting to layoffs or significant price increases. The report highlights that fast-food prices have risen by roughly 47% over the past decade, with last year’s prices being 27% above production costs. This indicates that the industry could manage increased wages without excessively burdening customers.