Usually they are also in higher COL areas as well so I'd assume they pay more in Tax/Rent etc.
Rents might be high in Southern California, but the bulk of their rapid expansion was in the 70s and 80s when land was still reasonably cheap and they may actually own many of their own buildings.
That being said, it's long been time for In-n-Out to stop using American cheese and switch to Cheddar, but that's a whole industry problem...
Most Americans don't have that option, sadly.
> it's long been time for In-n-Out to stop using American cheese and switch to Cheddar
Please no—American cheese melts better. Or you need to have heavily processed cheddar to melt as nicely, and then there's not much of a difference.
Relying on low skill jobs to provide higher compensation without changing the underlying value prop of the employee seems to undermine fundamental economic principles.
Cooks at higher end restaurants, however, are skilled jobs. It takes years of knowledge and practice to master some culinary techniques, hence they are harder to replace, their work product can be sold for greater profit, and the individual will be able to obtain higher pay.
The same applies construction and most Amy other industry. Some jobs are low skilled, not requiring prior experience or skill, but many are skilled and can demand higher wages. This system incentivizes the individual to learn new skills, gain knowledge, try new things, and thereby gain a access to opportunities that pay higher wages.