Business owners prepared to get 'creative' to save money as minimum wage increases
Finance professor and author Gary Strumeyer says for most businesses, the minimum wage increase could mean consumers will be spending more money.
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New York's minimum wage will increase to $17 an hour by 2026. Some business owners say this could make it harder to make profits.
Darren Anselmo, who owns NutriWolf in Farmingdale and Deer Park, says higher food costs and supply chain issues already make it difficult to have a profitable business.
"We are trying to be creative in way where we can save money but not compromise quality because that's our most important thing," Anselmo says.
Finance professor and author Gary Strumeyer says for most businesses, the minimum wage increase could mean consumers will be spending more money.
"For some businesses, it can be the tipping point…where it affects the visibility of the business," Strumeyer says. "It hurts the bottom line and some of the costs are passed on."
The minimum wage is currently $15 an hour before changing to $16 an hour in Jan. 2024. It will go up by 50 cents in 2025 and another 50 cents to $17 in Jan. 2026.
Some employees worry if the $17 increase is enough if the increase means prices for everything will also go up.
Owner of Yaaas Tea Kelly Zhou says she started at minimum wage and eventually became an entrepreneur. She opens four business locations on Long Island and says she is happy to see employees get a boost in wages.
"The increase of the minimum wage will help you get more stability, less turnover, more happier employees, happier employees will lead to happier customers," Zhou says.
In 2027, the minimum will increase to adjust with inflation.
