FORT MYERS, Fla. — Florida's minimum wage will increase by $1 to $14 per hour on September 30, with tipped employee wages rising to $10.98, according to the U.S. Department of Labor.
The wage increase comes as small businesses across Southwest Florida continue to face mounting financial pressures from rising operational costs, forcing many to close permanently over the past two years, according to Robert Podgorski, owner of Green Cup Cafe
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His business has been preparing for the wage increase by paying employees above minimum wage rates even before the mandate.
"Minimum wage isn't necessarily livable wage," Podgorski said. "We've always wanted to try and take care of our staff, and also in hopes to draw quality members."
Green Cup Cafe pays all employees the standard minimum wage rate rather than the lower tipped employee rate, even though the business receives tips. This approach helps the restaurant remain competitive in attracting talent, Podgorski explained.
He noted dramatic changes in the local cost of living since 2014, when Green Cup Cafe first opened in downtown Fort Myers. An apartment that once rented for $800 per month now costs around $1,600.
"We already have seen a historic closure of small businesses in the past couple of years," Podgorski said. "Usually small businesses will close and people will notice that they're not closing because they're not busy and they're not doing good business. It's just the cost of doing business nowadays is so much."
The challenges extend beyond employee wages to include increased taxes, rent, food costs, utilities and equipment expenses. These mounting pressures have made small businesses "more and more of a rare breed," according to Podgorski.
Several longtime local businesses have closed recently, including Remedies Parlor and La Macaroon in downtown Fort Myers, as well as Leone's in Cape Coral, according to Podgorski.
To manage rising labor costs while maintaining service quality, Green Cup Cafe has implemented technology solutions including self-order kiosks to reduce staff workload and provide customers more control over their ordering experience.
The restaurant also offers financial literacy training to employees and utilizes various resources to support staff beyond just wages.
Podgorski emphasized the importance of community support for small businesses during these challenging times, encouraging customers to choose local establishments over corporate chains when they go out to eat.
"I think small businesses are hugely important to the community," Podgorski said. "I think they strive for creativeness. I think they strive for community."
Green Cup Cafe specializes in healthy, organic and sustainable food options, including vegan and gluten-free menu items. The restaurant recently reopened after Hurricane Ian with offerings such as vegan crunch wraps, fried mushroom sandwiches, waffles, juices, teas and smoothies.
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