FLAGSTAFF (AZFamily) — The city of Flagstaff will be seeing an increase in minimum wage next year.
According to the city of Flagstaff, the consumer price index has risen by almost 3% in just a year. The city uses this to calculate the minimum wage, which will be rising to $18.35 in January.
However, local businesses said that this constant increase is hurting them and forcing them to make difficult decisions.
Downtown Flagstaff is full of coffee shops, boutiques, and unique restaurants. Armando Garcia is the owner of Baja Mar. He and his wife have lived in Flagstaff for eight years and opened their restaurant nine months ago downtown. Garcia said it’s been great to see their dream come to life, but the cost of living in Flagstaff has made things difficult.
“I knew that it was not going to be easy because the expenses right now are so high here especially in town,” Garcia said. “Downtown is not a cheap area.”
To combat the high cost of living, the city of Flagstaff has been raising the minimum wage since 2016. Over the past 10 years, it’s risen more than $10 an hour.
Benjamin Hall is a NAU student and server at Baja Mar. He said that many college students rely on tips, and increasing the minimum wage can also create problems.
“It’s pretty expensive up here,” Hall said. “As minimum wage goes up, it’s just going to make everything else cost more money too. So I definitely think that’s sort of the double-edged sword.”
According to a NAU study from earlier this year, the wage increase has cost the community 4,000 jobs, either through layoffs or lack of job creation.
Garcia said they are looking to cut hours, and he and his wife spend their days working to save money. He adds they just need more support during the week.
“We are trying to keep our affordable prices on the menu so come and enjoy the best seafood Baja style in town,” Garcia said.
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