California’s minimum wage increases ahead of the new year

(NBC, KYMA/KECY) - California's minimum wage will be increased to $16.00 an hour starting January 1, and several business owners share how the pay increase will impact their businesses.

"When I went to college, I ran a lot of pizza restaurants. I always loved it. One day, it was a dream of mine to actually do it," said Frankie Allen Bell, a business owner in California.

A dream come true for Bell, but it's a complicated love as the business expenses seem to never end.

"I'm drowning a little bit...and it keeps going up," Bell expressed.

Wage increase come January 1

Come January 1, California's minimum wage will go up from $15.50 an hour to $16.

"We like to help people to get a job so they can...keep living and make a living, but it's kinda hard for us to pay that much money now," said the owner of "El Maya."

A few blocks down, the owner says he's his only employee because of that.

"We're still alive, you know. At least we can get enough to pay our rent, you know? But it's kinda hard. Sometimes there's no business," the owner spoke.

Inflation isn't helping

Labor and rent are pricey, and inflation isn't helping.

"I think big companies, they don't mind. They think it's much better for them. But for a small business like ours, it's kinda hard," the owner shared.

"Hard" is a word we heard a lot nowadays from small businesses.

"It is difficult. It's the biggest expense I have is employees and if it continues to rise I'll have to make some tough decisions," said Susan Stewart, owner of "Strapping."

Fears

Stewart says the minimum wage hike doesn't impact her because she already starts her employees at $16.00 an hour. Most make more than that.

"You have to be able to feed your family and feed yourself. So, it's one of those things I'm happy to see because it's really expensive to live in our city," Stewart remarked.

But her fear is what's to come as business and sales have slowed down.

"I don't know how that will play out if it continues to increase. It is really difficult. We are down 25% this year from last year," Stewart shared.