Starting Sept. 30, Florida’s minimum wage will go up to $12 an hour.
This is all part of the state’s constitutional amendment to increase pay by $1 each year until it hits $15 in 2026. Voters approved this amendment back in 2020 and now the minimum wage for tipped employees, like Sheryl Digiulian, will go up to $8.98 an hour.
"I’ve been a server for 40 years," Digiulian said.
Digiulian has served up clam chowder at Crab Shack Restaurant on Gandy for nearly 18 years.
"I actually have a savings now," she added.
Digiulian said she's been able to do that because now she’s getting a paycheck on top of her tips.
“I mean, it's helped us. Especially during the slow times when business is slow like right now; September, October, we’re out of season,” she added.
On the contrary, Paula Odell has been a bartender and server all of her working career and she told us increasing minimum wage is creating a cloud of doubt.
"It did increase our check a little bit more, but working for mom-and-pop places worrying about how our boss is going to keep us hired is a double-edged sword,” Odell explained.
The owner of the Crab Shack said its profit margin is low, and there have been months he’s lost money. After the pandemic and through record inflation, he said he’s already had to change his menu prices four times just this year.
"Newer customers that come in do have sticker shock, and you know what, we're used to getting 18 and 20%. Now we're getting 12 and 15," Odell said
While the Crab Shack said its regular guests keep them in business, the owner, Tyrone Dayhoff, said he expects he’ll have to raise prices for the fifth time after minimum wage increases again at the end of the month.
"I’ve been incurring losses to try and protect the business," Dayhoff added.
We wanted to know what the economic impact this could have, so we reached out to economist Victor Clarr.
"There’s no question that raising minimum wage by one dollar a year—there's no way that’s going to maintain pace with inflation… At the same time, it’s not like it's enough to make a difference in terms of real purchasing power," Clarr explained.
Digiulian said her bank account sees the difference.
"My paychecks go directly into my savings," she said.
While Dayhoff said he’s happy for his employees, and they deserve higher pay, he said the restaurant industry is more vulnerable now than ever before.
"It is a struggle, but eventually, I do have to pass it on to the customer. I can’t keep incurring losses, or I won’t be able to stay open," Dayhoff added.
