“While the wage hike is California Express celebrated as a win for workers grappling with inflation and a high cost of living, some small businesses express concerns, foreseeing challenges ahead. Frankie Allen Bell, owner of Frankie’s Pizza in Old Sacramento, emphasizes the escalating costs faced by businesses, including rising utilities.
California Express
Bell, who refuses to pass on the burden to customers through increased prices, highlights the difficulty this poses for small enterprises. Opening his restaurant just a year ago, he expresses the necessity of working longer hours to sustain the business.
A few blocks away, El Maya faces similar struggles, with its owner as the sole employee. Luis Perez, owner of the store offering goods from various countries, finds it economically unfeasible to hire additional help, even before the wage increase takes effect. He wishes for government assistance to support small businesses grappling with heightened costs since the onset of the pandemic.
Meanwhile, Strapping, a novelty and gift store with three locations in Sacramento, has been paying its employees a starting wage of $16 for years. Owner Susan Stewart expresses her support for workers but acknowledges the ongoing challenges. While proud of offering competitive wages, Stewart highlights the difficulty of sustaining a $16-an-hour wage, especially with a 25% decrease in sales in 2023 compared to the previous year.
The concerns raised by these small businesses shed light on the complex dynamics businesses face as they navigate the economic impact of wage hikes, urging a closer examination of the broader economic landscape and the need for supportive measures for small enterprises.”
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