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California $15 Minimum Wage Worries Business Owners, Excites Workers

VACAVILLE (CBS13) – Digger's Deli has been a staple to the community, slicing meat and wrapping sandwiches for 39 years. When it went up for sale three years ago Gigi Warshawsky and her husband put in a bid for what she calls 'Our American Dream.'

"We bought into it with our savings, with our retirement to buy into this deli and raising minimum wage might put us out of business," said Gigi Warshawsky

With the historic minimum wage hike to $15 an hour, she feels like it will cost her their dream.

"It's going to be devastating. We're a mom and pop. They're aren't many mom and pops around. We are surrounded by franchises. We are surrounded by box stores," she said.

Last year they had 13 employees, now they're down to 10 and may have to make more cuts.

"Ten dollars an hour it's really tough, you need about 12 hour shifts to get by," said Allen Davis who works at the deli, but is thinking of picking up a second job.

Davis enjoys working at Digger's Deli, but he needs more hours with the current minimum wage. A struggle many people deal with on a day to day.

"It's going to be a little tough, but I'm going to find a way to make it work, you have to get by some how," he said.

Warshawksy says right now their employees salaries make up 30 percent of the business cost. Another 30 percent goes towards food and beverage, and then 40 percent makes up the business, rent, insurance and more.

Once minimum wage is $15 an hour, it will hike employee costs up to 45 percent.

Warshawsky, who has picked up shifts herself to make up for the loss, said it's time to get more proficient and do more with less.

"We do care on all levels, but we want to stay open so we can take care of our employees," she said.

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