Exhibit CC 09-20-2016 Item No. 9 Minimum Wage Written Communication (2) Lauren Sapudar (�C �j �2,� � �l� � �f
From: Toni Oasay-Anderson
Sent: Tuesday, September 20, 2016 8:18 AM
To: City Clerk
Subject: FW: Proposed Minimum Wage Ordinance - BItter+Sweet's perspective
-----Original Message-----
From:Janice Chua [mailto:
Sent: Monday, September 19, 2016 5:53 PM
To: City Council<CityCouncil@cupertino.org>
Cc: David Brandt<Davidb@cupertino.arg>;Angela Tsui<AngelaT@cupertino.org>
Subject: Proposed Minimum Wage Ordinance-BItter+Sweet's perspective
City council members,
I am writing to share my concerns and thoughts on the proposed Minimum Wage Ordinance, which will be an item on the
agenda for City Council meeting to be held on September 20,2016.
Governor Brown had signed in a bill to increase minimum wage in CA from the current$10 an hour to$15 an hour as per
the following schedule:
$10.50 an hour as of 1/1/2017
$11.00 an hour as of 1/1/2018
$12.00 an hour as of 1/1/2019
$13.00 an hour as of 1/1/2020
$14.00 an hour as of 1/1/2011
$15.00 an hour as of 1/1/2022
The city of Cupertino is proposing an ordinance to accelerate the increase in minimum of wage by 3 years, as per the
following schedule:
$12.00 an hour as of 1/1/2017
$13.50 an hour as of 1/1/2018
$15.00 an hour as of 1/1/2019
In July 2011, when Bitter+Sweet first opened its doors for business, the minunum wage in Cupertino, CA was set at$8.00 an
hour. As a first-time small business owner,I had hired inost of my less experienced employees a starting salary of at least
$8.50 an hour. The only employees I ti�ould hire at the minimtun wage of$8.00 an hour were high school students with no
relevant experience. I was really proud to say to my team that I offer more than minimum wage to anyone working in my
team.
5 years later, the miniintun wage now stands at$10.00. While I am still able to hire most of iny employees at a little more
than minimum wage, admittedly it is getting harder for me to do so. Sales have been flat the last 5 years. Nonetheless, the
cost of doing business continued to climb- rent, cost of goods, insurance, workers' compensation, etc. Needless to say,
profits have been very slim.
In order for n1e to stay in btisiness and adhere to the acceleration of minilmim wage inei-e�se, as pi-oposed by the city, t11e
following would have to take place:
i �
l. Increase sales, or
2. Cut labour hours, or
3. Cut cost of operations (somehow), or
4. Increase prices
I have worked hard to increase revenue at Bitter+Sweet the last 5 years, and will continue to do so. However, I have been
dealt circtimstances that are beyond my control-groups of regulars keep getting moved out of the area, customers'
schedules get in the way of them paying more visits to the store, etc.
Cutting hours would be a huge challenge. My staffing is extremely lean, and I would be hard pressed to cut more hours
from my team.
It would be impossible for me to cut my cost of operations without sacrificing quality. I am not willing to go that route.
The only viable option left for me is to increase my prices. In order for make up for the additional$5 increase in wages,I
would have to increase my prices by at least 20%.The percentage goes up if my suppliers increase their prices as well. If I
have up till 2022 to work in the 20%increase in prices, I can do a gradual increase once every 18-24 months. To work in that
increase in 3 years would probably cause me some loss in business. I can only hope that my faithful customer base would
continue to come in for a$6 red velvet latte.
An increase of$2 in minimum wage in 2017 would set me back by at least$15,000 far the year. If my revemte remains flat, I
would be put out of business in no time. Personally, I would be sad to hirn off the lights at Bitter+Sweet, as I believe we
have done a lot of good for this community. But I may have no choice, as it would not make any financial sense for me to
dip into my personal savings to pay my employees.
On a micro level, I want to point out a couple of facts about my employees.
1. Each of them make at least$4.00 an hour in credit tips. Which means, even employees who are paid$10.00 an hour are
making at least$14.00 an hour once you include their credit tips.
2. Most of them live with their parents. Any extra they make would just form part of their disposable (and spending)
income.Making$200 more per month (before taxes) is not going to prompt them to move out and rent a place of their own.
Small businesses farm a vital part of this country's economy. It is my hope that you consider measures to help us survive in
this challenging environment, rather than impose measures that make it hard for us to survive. Thus, I would urge you to
NOT pass an ordinance that would accelerate the increase in minimum wage by 3 years. If you absolutely feel that passing
this ordinance would serve the community best, then do consider exemptions for tipped employees and/or businesses with
(i) fewer than a certain rnimber of employees or (ii) less than a certain amount of revemie/profit.
Thank you.
Janice Chua
Owner, Bitter+Sweet
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