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Business Leaders Warn $25 Minimum Wage Mandate Could Harm San Diego Economy

-Editorial

A proposed $25 minimum wage mandate by the City of San Diego has drawn strong opposition from local businesses and community leaders, who argue the policy could have devastating consequences for small businesses and the broader regional economy.

At a press conference held Tuesday by the San Diego Regional Chamber of Commerce, speakers including chamber president Chris Cate, local restaurateur Sara Arjmand, small business owner Steve Pinard, and San Diego Padres COO Caroline Perry warned that the measure would force difficult decisions for employers and increase the cost of living for residents.

“This proposed $25 wage mandate is reckless and economically irresponsible,” Cate said. “It will kill jobs, shut down businesses and non-profits, and increase the cost of living for San Diego families. Even the City of San Diego exempts itself from paying this wage to all employees, acknowledging it is unaffordable. Pushing this burden onto businesses is both hypocritical and dangerous.”

Opponents of the mandate say the proposal would exacerbate financial pressures already facing businesses, particularly amid ongoing inflation and staffing shortages. Several speakers highlighted potential ripple effects, including higher prices for goods and services, reduced employee hours, and possible closures.

“For our restaurants, this mandate forces an impossible choice — do we raise prices beyond what working families can afford, or do we reduce team member hours?” said Arjmand, who also represents the California Restaurant Association’s San Diego chapter. “This proposal threatens the fabric of our hospitality community.”

Perry, speaking on behalf of the San Diego Padres, noted that the team already complies with the city’s Living Wage Ordinance, which increases annually based on inflation. While affirming support for fair wages, she said the proposed increase would go too far.

“We believe in fair, competitive wages, but this proposal is too extreme,” Perry said. “It would drive up the cost of living, make it harder for San Diegans to attend games, and hurt the local businesses that rely on Petco Park.”

Small business owner Steve Pinard, who operates Action Sports Rentals, said the mandate could spell the end for his business.

“The reality of a $25 wage increase for my small, family-run business is simple: we will not survive,” Pinard said. “We are neighbors serving neighbors in a city where operating a small business is becoming harder and harder.”

Chamber officials and business leaders are urging the San Diego City Council to reject the mandate and consider policies that balance the needs of workers with the sustainability of local businesses.

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