Following California’s recent increase in the minimum wage to $16 per hour, a group of Los Angeles business owners in the Echo Park area is sharing their perspectives on the far-reaching implications. Reece Scelfo, owner of Brady’s Bakery, warmly welcomes the initiative, expressing his enthusiasm for providing workers with a living wage in California’s high-cost living environment. Although he has consistently offered competitive pay above the minimum wage, Scelfo is concerned about maintaining a competitive edge in retaining valuable employees as the minimum wage continues to rise. He recognizes the importance of addressing economic factors beyond just the minimum wage, including the impact of taxes and the overall cost of living in California.
Justine Hernandez, proprietor of Just What I Kneaded, a vegan bakery in Frogtown, stands out for her commitment to compensating employees well above the minimum wage, valuing their specialized skill sets. Despite the stress associated with maintaining higher wages, Hernandez passionately emphasizes the role of adequately compensating employees for the ongoing success of her business.
In the fast-food business, a new California law mandating a $20 minimum wage starting in April adds a new layer of challenge. Critics have linked the layoff of 1,200 Pizza Hut delivery drivers to this law, sparking concerns about its broader impact on the industry and the potential for unintended consequences.
Small business owners like Marcus Walberg, overseeing four L.A. Fatburger locations, and Oren Pius, proprietor of the Cosmic Vinyl record store cafe in Echo Park, express legitimate apprehensions about passing increased costs onto consumers. As they navigate the immediate impact of wage increases, both owners emphasize the intricate challenges of striking a balance in pricing to maintain customer satisfaction while ensuring the viability of their businesses. Walberg highlights the dilemma of increasing prices when customer perceptions are slow to catch up with the rapid rise in both the minimum wage and the cost of goods.
Pius, who manages Cosmic Vinyl alongside a full-time role in mental healthcare, asserts that the minimum wage remains too low, particularly given the challenges of living in the expensive city of Los Angeles. He passionately advocates for pay structures aligned with a company’s revenue and profit. This suggests that companies with higher earnings should proportionately compensate their employees. While acknowledging the inherent difficulties of operating a business in the current landscape, Pius prioritizes keeping the doors open and ensuring the well-being of his employees, even as he harbors a desire to provide them with higher compensation.
Businesses across California grapple with the multifaceted repercussions of the minimum wage hike and these Echo Park business owners provide invaluable insights into the challenges of balancing competitive pay, meeting customer expectations, and navigating the broader economic terrain. The diverse perspectives offered by these entrepreneurs shed light on the nuanced hurdles faced by small businesses. They may struggle to adapt to changes in minimum wage regulations and ensure the long-term sustainability of their operations. As the economic environment evolves, the voices of these business owners are a reflection of the broader picture, as businesses aim to navigate upcoming financial complexities and manage a successful enterprise.