Flagstaff, AZ (AZFamily) — According to the Flagstaff Chamber of CommerceThe cost of living is 14% higher than the national average and more than 10% higher than Phoenix.
That's why city ordinances require the minimum wage to be set at least $2 higher than the state's.
Flagstaff minimum wage Starting in January, tipped workers' wages will rise for the eighth consecutive year, from $17.85 to $16.85.
Restaurant owner John Conley said it's had a big impact on local businesses.
“It has been the most difficult four years of my 37-year career,” Conley said. “We have seen many more store closures over the past 18 months and we expect many more to follow.”
Conley is the owner of several restaurants in Flagstaff. Salsa Brava and Fat OliveHe said the continued rise in the minimum wage has forced many businesses to cut costs.
“Our biggest expenses have increased by 30 to 33 percent, so the only way to offset that is to raise our menu prices,” he said. “We've consolidated positions and lightened positions to offset the minimum wage.”
because Citizen-Initiated Minimum Wage Act of 2016Flagstaff wages should increase in line with state wages and the Consumer Price Index (CPI).
But hourly and tipped workers, like server Liadan Knapp, said the continued price increases are a lifeline because of Flagstaff's high cost of living.
“Everything is so expensive. It's impossible to save money,” Knapp said. “I don't have any support from my parents, so this job is the only way I can pay the bills.”
But as prices rise, she said she is also seeing the downsides of the price hikes.
“That means people will want to tip less because they'll end up paying more regardless of the service,” Knapp said.
Conley said the rising food prices have alienated local customers and tourists who don't fully understand why the prices are so high.
He said he's talked to the city, but was told that while they understand his concerns, it's a citizen initiative and they can't step in. He also agrees that workers should get higher wages as the cost of living rises, but he said there must be a better way to do that without draining funds from local businesses.
“Nobody is against raising the minimum wage. The problem is that the minimum wage is not well-defined,” Conley said.
He hopes that someone will start a new civil movement to bring balance to the surge. Proposition 138This system protects workers who receive tips.
“Please be patient as we also try to address the unmanageable increase in the minimum wage,” Conley said.
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