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California restaurant owner expresses concern over $20 wage hike impact on business: Decision between price hike or closure



Last Updated on April 16, 2024 by Robert C. Hoopes

The owner of HiFi Kitchen in Filipinotown, Los Angeles, Justin Foronda, is speaking out against California’s newly enacted $20 minimum wage law, expressing fears that it could force him and his employees out of business.

Foronda, who has worked tirelessly to keep his restaurant afloat during the pandemic by implementing new ideas such as hosting events, now faces uncertainty with the higher minimum wage. While the law does not directly apply to his business, it adds to the existing challenges small businesses already face with industry standard salaries, rising food costs, and rental prices.

Celebrity chef Andrew Gruel has also weighed in on the issue, warning that the $20 minimum wage mandate in California could ultimately hurt small businesses and workers. Gruel predicts that fast food chains may respond to the increase by cutting hours and laying off employees in order to cope with the additional costs.

Foronda and others in the restaurant industry are concerned about the impact the law will have on their ability to stay in business and continue to pay their employees fairly. With the rising costs of operating a small business in California, many fear that the new minimum wage law could be the final straw that pushes them over the edge.

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As small businesses struggle to recover from the economic downturn caused by the pandemic, the $20 minimum wage law in California poses yet another challenge that could potentially worsen the already dire situation. The future remains uncertain for businesses like HiFi Kitchen, as they navigate the difficult road ahead.

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