There are employees, and there are employers — so, what exactly happens when wages go up?
Kim Tan opened the first Crab Hut in 2007. She did it with her husband and her sister as a way to help her parents.
“In the beginning, it wasn’t as hard for us because things were still very affordable back then,” Tan said.
Then came a second location. The businesses weathered the pandemic, but now the owners say the latest minimum wage hikes in California might be too much to overcome.
“Every time minimum wage increases it’s like that domino effect to all of us. And, you know, we have to raise our prices,” Tan said, “Our margin is already so thin that if we don’t raise our price, we have to close.”
Tan says customers have been patient, but some have disappeared. The restaurant now closes for lunch because she says they …