Local businesses react to minimum wage increase - KCBD NewsChannel 11 Lubbock

7/24/09

Local businesses react to minimum wage increase

By Brittany Pieper  - bio | email

LUBBOCK, TX (KCBD) - Some workers across the South Plains got a raise Friday as the national minimum wage went up to $7.25 cents an hour. Several local businesses such as restaurants and grocery stores are affected by the increase, but they've known it was coming for awhile and say they were prepared.

"We planned for it in our menu pricing, so yeah, we planned for it in our budget," said David Cea, who owns Caprock Cafe.  He says about 1/3 of his employees make minimum wage. They'll now see a raise of 70 cents an hour.

When minimum wage goes up, Cea has to adjust prices, but because this is the last in a series of minimum wage increases that began in 2007, customers won't see an increase at this time. The restaurant already planned for it when setting prices

Raymond Guerrero is one of the Caprock employees who will benefit from the raise. While Cea says it doesn't affect his business much, it does affect the individuals. "It'll help me because I have a family, and it will help out a lot. It'll bring groceries in the house, pay the rent, pay the bills," said Guerrero. 

United Supermarkets has hundreds of local employees who will benefit from the raise. It does impact their bottom line, but they don't plan to raise prices at this time either. "I don't think we'll see prices rise at all. We have to maintain our competitive advantage everywhere that we can," said company spokesman Eddie Owens. 

Instead, the company will have to make cuts elsewhere. "We have to do our business smarter today than we did yesterday in order to maintain our profitability," said Owens. 

While some consumers getting the raise will have more money to spend, the Lubbock Economic Development Alliance, or LEDA, says it won't have much impact on Lubbock's economy. "It won't make a bit of difference in my opinion. For the people, again, that are on the low end of the wage scale, it'll help some, but we just don't have that many here," says Gary Lawrence with LEDA.

This is the last in a series of minimum wage increases that began in 2007.

©2009 KCBD NewsChannel 11. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

kcbd.com Jobs

Search KCBD.com Jobs for available openings in and around the Lubbock area!

  • Local News on KCBD.comNewsMore>>

  • breaking

    Small explosion at Kilauea summit shoots ash plume thousands of feet into air

    Small explosion at Kilauea summit shoots ash plume thousands of feet into air

    Monday, May 21 2018 11:04 AM EDT2018-05-21 15:04:11 GMT

    Authorities are again warning residents in the Big Island's Ka'u district to be prepared for ashfall and potentially "hazardous air quality" through the day.

    Authorities are again warning residents in the Big Island's Ka'u district to be prepared for ashfall and potentially "hazardous air quality" through the day.

  • Divided Supreme Court rules for businesses over workers

    Divided Supreme Court rules for businesses over workers

    Monday, May 21 2018 10:21 AM EDT2018-05-21 14:21:59 GMT
    Monday, May 21 2018 10:57 AM EDT2018-05-21 14:57:13 GMT
    The justices ruled 5-4 Monday, with the court's conservative members in the majority, that businesses can force employees to individually use arbitration to resolve disputes. (Source: Supremecourt.gov)The justices ruled 5-4 Monday, with the court's conservative members in the majority, that businesses can force employees to individually use arbitration to resolve disputes. (Source: Supremecourt.gov)

    A new Supreme Court will allow employers to prohibit workers from banding together to complain about pay and conditions in the workplace.

    A new Supreme Court will allow employers to prohibit workers from banding together to complain about pay and conditions in the workplace.

  • Texas school shooting survivors face a 'spiritual war zone'

    Texas school shooting survivors face a 'spiritual war zone'

    Monday, May 21 2018 12:52 AM EDT2018-05-21 04:52:04 GMT
    Monday, May 21 2018 10:56 AM EDT2018-05-21 14:56:59 GMT
    (Elizabeth Conley/Houston Chronicle via AP). A billboard is seen off of I-45 near Santa Fe, Texas, where a student shot and killed eight classmates and two teachers at Santa Fe High School.(Elizabeth Conley/Houston Chronicle via AP). A billboard is seen off of I-45 near Santa Fe, Texas, where a student shot and killed eight classmates and two teachers at Santa Fe High School.

    The shooting suspect, 17-year-old Dimitrios Pagourtzis, has been jailed on capital murder charges.

    The shooting suspect, 17-year-old Dimitrios Pagourtzis, has been jailed on capital murder charges.

Powered by Frankly
<div id="CDEV-footer"> <div class="top"> <div class="search-box"> <div class="wnSearchBox" id="WNSearchBox-bottom"><form method="get" onsubmit="return wnValidateSearchTerm(this,0)" action="/Global/searchresults.asp"><span>Can't Find Something? </span><input type="text" class="wnQueryText" name="qu" size="20" value="" placeholder="Search For It Here"><input type="submit" class="wnSubmit" value="Search"></form></div> </div> <div class="station-info"> <div class="logo"><img src="http://ftpcontent.worldnow.com/wncustom/custom/kcbd/2015/images/kcbd-footer-logo.png" width="103" height="98" border="0" /></div> <div class="contact"> <div>5600 Avenue A<br>Lubbock, TX. 79404</div> <div>(806) 744-1414</div> </div> <div class="fcc"> <div><a href="https://publicfiles.fcc.gov/tv-profile/kcbd">FCC Public File</a></div> <a href="mailto:publicfile@kcbd.com">publicfile@kcbd.com</a> <div>(806) 744-1414</div> <a href="/story/4693037/kcbd-eeo-public-file-report">EEO Report</a> <a href="/story/19485867/closed-captioning-on-kcbd-newschannel-11">Closed Captioning</a> </div> </div> </div> <div class="footer-main-nav"> <ul class="link-group"> <!--<li><a href="#">News Now Link</a></li> <li><a href="#">News Now Link</a></li> <li><a href="#">News Now Link</a></li> <li><a href="#">News Now Link</a></li>--> </ul> </div> <div class="news-link"> <ul class="link-group"> <li><a href="http://www.ktre.com/category/241993/texas-news-now">Texas News Now</a></li> </ul> </div> <div class="bottom"> <div class="copyrightText"> <a id="wnLogo" href="http://www.worldnow.com"><img src="http://ftpcontent.worldnow.com/wncorp/logos/worldnow_white.png" id="wn"></a> <div class="text"> All content &copy; Copyright 2000 - 2018 Raycom Media. All Rights Reserved. For more information on this site, please read our <a href="/story/8774923/privacy-policy">Privacy Policy</a>, and <a href="/story/8775106/terms-of-service">Terms of Service</a>, and <a class="adchoice" href="//www.aboutads.info/choices" target="policy">Ad Choices</a>. </div> <div class="clear"></div> </div> </div> </div>