Los Angeles businesses speak out against proposed wage hikes before City Council

LOS ANGELES (KABC) -- The Los Angeles City Council is considering an ordinance to raise wages for some workers in the city.

Hotel and hospitality workers would get up to $30 an hour in 2028. It comes as the region will host the World Cup, the Super Bowl and the Olympics in the next few years.

Business owners spoke out Monday saying they are already struggling to stay afloat because of high costs.

Chef Claire Risoli says it was heartbreaking when she had to close her Highland Park restaurant Pocha back in August.

"I wasn't able to pay myself a salary. I didn't draw a salary for almost 5 years," Risoli says. "Luckily, I have another source of income, but if I didn't have that other source of income, I don't think it would've lasted as long."

She says the costs simply became too high. A number of other small business owners are worried that the new proposed wage ordinance in Los Angeles will force some to close.

"This proposed ordinance will only put more revenue and more jobs at risk," Maria Salinas from the Los Angeles Chamber of Commerce says. "And small businesses feel this the most."

The City Council is expected to take up this wage ordinance on Wednesday.

"The average profit for a restaurant is 3 to 5%," says Stuart Waldman from the Valley Industry and Commerce Association. "While hotels average 7 to 10%. This ordinance would push many businesses past their breaking point."

Ray Patel owns the Welcome Inn Eagle Rock. It's been run by his family since 1998.

"Aside from the labor cost we have other costs. Insurance has gone up astronomically in cost, 30%. The cost of goods to supply to our guests and obviously labor. That's our biggest concern," says Patel.