Downtown restaurant and business owners are expressing mixed
feelings about an upcoming increase in minimum wages.

Beginning March 30th, the minimum wage in Madison will increase
from $5.15 an hour to $7.75 an hour. The minimum wages of tipped
employees are also increasing from $2.33 an hour to $3.88 an
hour.

The present wages will increase gradually depending on the size
of the business, and the new wages will be in full effect by
January 2008.

Some small retail storeowners on State Street, such as Jon
Williamson, owner of Sports World, are not worried about the
increase.

“I have not paid anyone less than $7.50 for four
years,” he said. “You get what you pay for.”

Mark Paradise, owner of Sunroom Café, feels the same
way.

“I don’t think it’s going to affect us,”
he said. “Almost all of our employees make that or
more.”

John Hutchinson, owner of Fontana Sports Specialties, said
although the retail stores may not be affected, other storeowners
would feel some effects.

“I know for some people I’ve talked to, especially
the restaurants, they say it’s going to affect them
dramatically,” he said.

Tom Woodford, general manager for Angelic Brewing Co, explained
smaller restaurants cannot afford a wage increase because they lack
the flexibility large chain restaurants have.

“Rent has gone up over the past decade substantially in
the downtown area, and that in itself is driving away the smaller
businesses,” he said. “People can’t afford to own
businesses on State Street, and I’m sure the wage increase
won’t help.”

Woodford is concerned about the future of the smaller, more
unique establishments in downtown Madison.

“The classier places in downtown Madison will soon
disappear and downtown Madison will turn into one large corporate
chain,” he said.

Both Woodford and Dustin DiMarco, manager of State Street Brats,
believe the restaurants in Madison will have to increase their
prices because of the heightened wages.

“I think it’s a big mistake on the part of the city,
quite honestly,” DiMarco said. “Jobs that don’t
need to be in Madison are going to take their business elsewhere,
but for restaurants that have to be located in Madison, the prices
are going to go up more.”

Woodford feels inflation will be the ultimate outcome of the
increases, saying, “We’re going to have to hit the
customers for more money for a higher payroll.”

A manager of Rainbow Bookstore Coop, Marsha Rummel, believes the
minimum wage increase is a good idea. She noted the cost of
downtown living has increased, which low-income workers have
trouble affording.

DiMarco, however, does not agree with these thoughts. Even with
the minimum wage increase, he said low-income workers will still
remain below the poverty line and upper-class business owners will
not take a pay cut in order to compensate employees for the higher
wages.

“The people that are going to miss out are the middle
class, because their buying power is going to go down,” he
said.

DiMarco said after the restaurants increase their prices,
tourism would also be affected.

“If you can get a burger and a beer for $5 in Middleton
and the same product for $8 in Madison, what would you do?”
he asked.

Woodford admitted the outcome of the minimum wage proposal was
better than he anticipated. According to Woodford, it landed right
in the middle of Ald. Austin King’s, District 8, and Mayor
Dave Cieslewicz’s proposals.

“I think our concerns were addressed, but we really
won’t know what will happen until 2008,” Woodford
said.