Small-business owners brace for uncertainty as $20 hourly fast-food wage takes effect

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Small-Business,Uncertainty,Fast-Food

California's new minimum wage for fast food workers is celebrated by progressives and economists. But how will small businesses fare? Justin Foronda, a small-business owner in Los Angeles, shares his experiences and concerns.

Justin Foronda is the type of creative, motivated, second-generation entrepreneur who should be able to thrive in Los Angeles. Born and raised in Historic Filipinotown, Foronda opened Hifi Kitchen in 2019 and kept the doors open during the pandemic's economic disruptions through pure hustle. Last year the 37-year-old staged a Filipino holiday market across street from Hifi to draw crowds to the neighborhood. He started a board game night at the store to bring in customers.

A higher fast-food wage exerts upward pressure on all those wages, creating an additional stress for businesses already struggling to pay elevated urban rents. Restaurant and retail shops facing expensive commercial rental rates and increased supply-chain costs must now decide whether to raise prices, and by how much.

 

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