Will customers be hit with higher prices when LA's minimum wage increases?

Maggie Eves is a server at a coffee and waffle shop called I Met Her At A Bar in the Miracle Mile.

The 29-year-old recently moved here from Boston to escape the snow and find some sunshine at the beach. She came here with no job but landed one fast at the corner cafe. She makes $15 an hour. 

Come July, that will increase to LA’s new minimum wage of $16.04 an hour, a news she welcomes.

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She says after taxes, her $2,000 bi-monthly checks are "really sad." That being said, she’s relieved to hear of the upcoming raise.

The tips also help, which comes to about $200 a week for Eves.

Jake Smith, who works with Maggie says, "Every little bit helps I suppose."

Instead of making $15 an hour, Smith makes $16 an hour because he’s a supervisor in the coffee and waffle shop. 

He’s getting what Eves and other minimum wage workers will be getting starting in July. He says even just a dollar an hour wage increase may squeeze some small businesses. 

He says, "The margins are razor thin and when you increase stuff like that, it does mean, unfortunately, that there may be restaurants that are affected," Smith said.

But, what does it mean to consumers? 

Does it mean that businesses will trickle this back down to the customer in higher prices?

"Absolutely, I wouldn’t be surprised if not just us, but other restaurants or other businesses… everything is getting more expensive," Smith explained.

"Everyone loves a raise so bottomline is that this is good for all the minimum wageworkers, right?" said Eves.

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