While the wage increase aims to address income inequality, it has become a burden for local entrepreneurs already grappling with high urban rents and supply-chain costs.

Justin Foronda, a second-generation entrepreneur and owner of Hifi Kitchen in Historic Filipinotown, exemplifies the effort and resilience displayed by small-business owners. Despite the pandemic-related disruptions, Foronda managed to keep his restaurant open through sheer determination. He organized events such as a Filipino holiday market and panel discussions on the history of Filipinos in hip hop to attract customers. Additionally, Foronda offered weekly specials and ventured into other business endeavors, including a gift shop and dessert sales.

Foronda, who also works as a nurse on weekends to support his restaurant, has faced increasing challenges in meeting the rising costs associated with the minimum wage hike. While he supports the idea of higher wages for his employees, the rapid increase in minimum wage means that his planned efforts to provide competitive compensation become the new minimum standard.

The impact of the minimum wage hike is not limited to Foronda or fast-food chains alone. Small businesses across Los Angeles are now forced to consider whether to raise prices in order to manage their own elevated costs. The strain of expensive commercial rental rates and supply chain expenses further complicates their decision-making process.

Experts warn that these grassroots businesses play a vital role in maintaining the fabric of communities and their unique identities. The rise of big chains, such as Starbucks, does not provide the same local touch. However, finding a balance between fair wages and affordable prices is crucial to ensuring the sustainability and success of small businesses.

While some small businesses have managed to adjust their operations and keep prices within a reasonable range, others have been forced to reduce working hours to save on labor costs, just like the case of Paul's Kitchen in downtown Los Angeles.

Despite the challenges faced by small businesses, studies show that the immediate effects of the wage hike may not be severe since many entry-level jobs already pay more than the minimum wage. However, the long-term viability of small businesses hinges on creating an environment where they can thrive alongside highly-capitalized real estate interests.

To address this issue, some cities, like Berkeley, have implemented measures to support small enterprises, such as special loan funds and simplified permitting processes. These initiatives aim to level the playing field for small businesses and make operating in such areas more feasible.

While a higher minimum wage can contribute to a brighter future for fast-food workers, it is crucial to strike a balance that considers the well-being of small businesses and the communities they serve. Achieving this delicate equilibrium is essential to prevent minorities, immigrants, and wage workers from bearing the brunt of economic policy decisions.

As Foronda approaches the 5-year anniversary of Hifi Kitchen, his determination to persevere remains strong. Operating in a volatile economic landscape, he hopes to reach his short-term goal of October, coinciding with Filipino American History Month. Should the business come to an end by then, Foronda plans to go out with a memorable celebration.

The struggle faced by Foronda and other small-business owners sheds light on the broader challenges that need to be addressed to ensure the survival of locally-owned enterprises in Los Angeles. Balancing the needs of workers and business owners is paramount to creating a sustainable and inclusive economy.