WEST HOLLYWOOD, Calif. — As a West Hollywood restaurant owner, Walter Schild has kept his restaurant afloat through the pandemic; however, the latest city wage hike, as his restaurant recovers, could be another hurdle.

“We will have to reduce hours, we won’t reopen for brunch and I think some businesses will be forced to leave,” Schild said.

The City of West Hollywood approved an ordinance raising the minimum wage incrementally to $17.64. The first increase to take effect in July 2022.

Based on Schild’s 2019 costs and revenue, he believes the difference will make an impact on his bottom line and take away from kitchen staff raises.

“Our restaurant, most restaurants that are full service with lots of cooks and service staff, make 5% or 7% profit because of labor. It’s our biggest expense and this ordinance creates a $300,000 incremental cost and we lose $150,000,” Schild said.

Schild said his servers are his highest earners who often make between $30 to $50 per hour, when combining hourly wages and tips. He added that kitchen staff earns about $18 per hour and would likely not see the benefit.

Business owners like Schild in the city expressed that they are not necessarily opposed to the increase. Their concern is on how it is applied. As more restaurant and bar owners like Schild speak out, Mayor Lauren Meister shared that the city will be taking an additional step to make the model fit for businesses.

“The ultimate goal is to get to a point where everybody has the same minimum wage. I just think that because restaurant and bars have a different business model than a lot of other businesses that it might take a little bit longer than we had hoped,” Meister said.

Schild’s Rosaline restaurant on Melrose is within a short distance to City of Los Angeles businesses who will not be subjected to the same wage increase. An issue, Schild believes could make it harder for WeHo businesses.

“West Hollywood is too low today, I think. It is at the $13 standard. I think you should increase that up to the standard of Los Angeles and I think that you should acknowledge and allow us to pay our kitchen staff more by not mandating thousands of dollars of pay for workers making over $60,000 a year,” Schild said.

Until then, he will continue to keep his restaurant on track. He is just hoping this new hurdle will not be the last straw for other businesses to stay open in the city.