WEST HOLLYWOOD, Calif. — Closure of neighboring West Hollywood businesses fills Hollyway Cleaners owner Karim Amersi with worry about the economic stability of West Hollywood.
“California is very, very difficult,” said Amersi. “A lot of people have left the state. It’s not viable if you’re not making money. There’s no point staying open.”
In July, West Hollywood was to increase their $19.08 minimum wage to $19.61 an hour — an increase delayed by the West Hollywood City Council until the end of the year. Giving business owners like Amersi a bit of a breathing room as they face high operational costs.
“Every chemical has gone up, the dry-cleaning fluid has gone up, hangers have gone up 30%,” said Amersi. “Business has not reached pre-pandemic levels.”
Amersi says that on top of high costs and to keep the type of skilled labor his business requires, he must pay above the city’s minimum wage.
“We’re competing with a school of employees,” said Amersi. “Our employees are very specialized. There’s a big garment industry downtown that absorbs a lot of tailors.”
To make their bottom line, Amersi has had to increase the amount of hours he works at his business and freeze hiring.
According to a City of West Hollywood survey for employees, 22% said they had been laid off and 17% said their hours or shifts had been reduced.
“I usually would hire at least two or three or four people every year,” said Amersi. “I’ve had to get rid of all my part timers and I’ve kept everyone full time.”
The West Hollywood Chamber of Commerce worked arduously for months with West Hollywood business owners like Amersi to call for a pause on the wage increase.
In addition, the chamber asked the Council to eliminate vacation accrual for part-time workers and the adoption of a compensation model that would use tips to adjust the minimum wages.
The minimum wage increase was the only suggestion adopted by the City Council.
“We’re not trying to undermine what the city is doing,” said West Hollywood Chamber of Commerce President Genevieve Morrill. “We’re just saying we need some help. We need you to pause a little, give us a little break, help us recover, help us find a way to sustainability.”
Morrill says the concerns from the chamber and businesses should raise concerns as at the end of the day, both business and employees are the most affected.
“We love our community, we want to stay here,” said Morrill. “We have had 85 businesses closed within a couple of years and we want to stop the bleeding.”
For the next six months, business owners like Amersi have six more months of hoping that business can bounce back. A struggle for survival that business owners like Amersi face every day when they open shop.
“So many businesses are closing or thinking of moving and leaving West Hollywood,” said Amersi. “It really hurts me because this city is my pride and joy. I’ve been here for 40 years and I love the city.”