Buffalo, N.Y. (WBEN) - Minimum wage in New York State is, once again, increasing to start the New Year, going up to $16 an hour - an increase of $.50 from 2025. While some businesses are ready for the increase, others are bracing for the price of everything else to continue to rise.
Scott Celani, co-owner of the Totally Buffalo Store, says he and his wife, Mary, are approaching the increase in minimum wage as they have over the last couple of years.
"The government's going to do what the government's going to do. It's our job as business owners to just adapt and react," said Celani in an interview with WBEN. "We pay a very competitive wage, and we very much are focused on creating and fostering a work environment that's very friendly, family-oriented, and a fun place to work. We have a great staff, and that's our philosophy, and I think it's helped us."
Starting in 2027, minimum wage will increase based off the cost of living with an inflation gauge for the Northeastern United States. Celani feels with that change coming at the end of next year, it's going to force businesses to find ways to be more competitive with other employers.
"We pay ahead of the minimum wage anyway, as it is right now, and we plan to continue to do so," Celani said. "And I think in order to really react to that properly and still thrive, I think you just have to not only have a competitive wage, but a job that people like doing, and a place of employment that people enjoy coming to. And that's what we focus on."
And while minimum wage increases could potentially lead to an increase in costs associated with products, he says it's about finding ways to adjust on the fly and save money in other places where you can.
"Labor costs, they're part of the equation, like every other cost you have. Things are always going up, and we've focused on keeping our prices very, very reasonable," Celani explained. "We haven't increased our prices much at all over the last few years. It's just another way of adapting. 'Well, if this expense has gone up, we're going to have to find ways to be more efficient in other areas.' Whether that's with suppliers and just trying to pinch the pennies here-and-there, if you're dealing with more expenses."
For others in the restaurant industry like Mark Ebeling, owner of Danny's South in Orchard Park by Highmark Stadium, he says the increase in minimum wage is going to raise the cost of operations.
"You used to have people at the right price, but now they're giving them more-and-more money every year. It's just a ripple effect," Ebeling said with WBEN. "Food's going to go up, gas is going to go up, electric is going to go up. It's just a ripple effect is what it does. It makes nobody any richer."
Ebeling feels that problem is only going to get worse with the changes coming to minimum wage for 2027.
"If you've been out to eat, look at how all these restaurants are raising their prices. You can't go out to eat for under $50 a person now, you used to be able to do that," Ebeling said. "Look at how much McDonald's is, how's McDonald's supposed to survive? You look at Tim Hortons, all these guys, it's crazy. You're gonna pay $10 for a cup of coffee and $10 for a hamburger at McDonald's. It's crazy."
Ebeling is already seeing how much people are not going out and spending their money within the community, and he can certainly understand why.
"Some restaurants are charging a 'back of the house fee', which is crazy. They get money for the back of the house, they add it right onto the bill, like $2 or $3 a person each at a table. Besides that, it just brings the cost up on everything. It's a ripple effect when you're talking about rent, gas, everything," he said. "These kids that are getting minimum wage can't even get their own apartment right now, because they're $1,500-to-$1,800 a month. That's what the problem is: Everything goes up with it, and it doesn't make anything better."