In the heart of Los Angeles, a $20 minimum wage law could be the knockout punch for small restaurants like HiFi Kitchen.
Owner Justin Foronda, after barely surviving the pandemic, faces a new challenge that could close his doors for good.
Beyond Big Chains
Though aimed at fast-food giants, California’s wage hike law hits closer to home for local favorites.
These establishments are caught in the crossfire, struggling to match the salary standards without the backing of a corporate giant.
A Creative Fight to Stay Open
From hosting Filipino markets to initiating board game nights, Foronda has thrown everything into keeping HiFi Kitchen buzzing, Fox News reports.
It’s not just about serving food; it’s about creating a community hub in Filipinotown.
Double Duty
To keep his restaurant afloat, Foronda isn’t just a restaurateur; he’s also a weekend nurse.
This dual role illustrates the dire situation faced by many small business owners who are doing whatever it takes to survive.
Racing Against the Tide
With the new wage law in effect, Foronda likens his struggle to “playing Mario Kart, and we’re just always trying to make it to that boost.”
A fitting metaphor for the constant battle to stay ahead amid rising costs.
The Unintended Victims
Despite not directly falling under the new wage law, Foronda and similar small business owners feel its ripple effects.
Rising wages force them to reconsider their financial strategies just to keep pace.
A Wider Impact
Not limited to wage issues, small restaurants also grapple with inflating food costs and escalating rent, Fox News notes.
It’s a triple threat that leaves little room for error—or profit.
A Dire Prediction
Echoing Foronda’s concerns, celebrity chef Andrew Gruel points out the irony of the wage hike.
Intended to make big corporations pay up, it might instead cripple the very workers it aims to help.
The Domino Effect
According to Gruel, large chains might absorb the cost by cutting hours or jobs.
While smaller establishments must raise prices or shut down—a stark choice with far-reaching consequences.
By Proxy
The new law might not mandate small restaurants to up their wages to $20.
However, the industry’s competitive landscape forces them to elevate pay scales regardless, putting immense pressure on their operational budgets.
Automation Isn’t an Option
For many small businesses, automation to offset labor costs isn’t feasible.
They lack the capital to invest in technology, leaving them with tougher decisions on pricing and service models.
Price Increases or Closure
As the wage increase unfolds, small establishments face a grim choice: “They’re either going to have to increase their prices or close,” says Gruel.
It’s a harsh reality check for those trying to navigate the restaurant industry in California.
