On top of lost revenue, Las Cruces restaurant owners face minimum wage increase

LAS CRUCES, New Mexico - As Las Cruces restaurant owners struggle to bring back their staff, they now must plan for a state increase in the minimum wage.

"Restaurants are literally on life support," said Mayor Ken Miyagishima during Monday's Las Cruces City Council meeting.

The minimum wage in Las Cruces is currently $10.25 an hour. Tipped employees make $4.10 an hour. However, in 2021, New Mexico's state minimum wage will increase to $10.50 an hour.

During the pandemic, the owner of the Las Trancas told ABC-7 that he hasn't been able to keep all of his employees on payroll.

"Just for everybody and for me, it's been really, really tough on businesses," said Ramiro Alcala.

Last year, he had 25 employees. This year, he said he's down to 11 staffers. Business at Las Trancas is 35 percent less than it was last year.

"I really think that business owners are going to weigh whether it's worth staying open," said Mayor Miyagishima. "Now, you've got an employee with no job."

The mayor urged councilors to avoid another minimum wage increase on top of the state increase. Councilors ultimately voted to reconsider the issue later this month.

"It is tough to increase it because it goes across the board from bussers to dishwashers," Alcala said.