How will small businesses cope with rising minimum wage? Higher prices eventually

As minimum wage gets set to go up again in Upstate New York – small business owners have rallied to raise awareness about the challenges it provides them.

The state’s minimum wage increased to $11.80 on Tuesday.

Archimage part-owner Kim Fredell supports the hike, and notes that it’s a way for ‘people to feel a sense of dignity about their lives’.

Meanwhile, minimum wage rates will increase to $15 for workers in New York City, and $13 for those in Long Island and Westchester.

There are plans to push Upstate New York’s wages higher, but some small business owners are already concerned.

Alex Tahou, who runs a successful restaurant in Rochester, spoke with about the wage hike. “So maybe the minimum wage is increasing and people increase their prices higher than the minimum wage increase cost them. So now people are going to be paying more than what they were paying before. So the increase in the minimum wage might be eaten up by the extra costs of what they’re purchasing,” Tahou said.

He’s not raising prices this year, but is considering it in the future as operating costs continue to rise.

A number of other groups have been outspoken about the rise of minimum wage, and the stress it puts on small businesses.

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