DENVER — Denver's minimum wage will rise to $19.84 an hour on Jan. 1, renewing debate over how higher labor costs affect workers and businesses.

Some say the increase is necessary, while others say the higher wages could impact business operations.

Every business owner implements cost-cutting methods however they can. At Elemental Bakery and Coffeehouse, owner Cindy Wright chooses to take on more work herself to save some money.

Elemental Bakery & Coffeehouse owner Cindy Wright

“Instead of hiring a dish person, we all do the dishes. We're not looking to raise prices or anything right now,” Elemental Bakery & Coffeehouse owner Cindy Wright said.

Spending is top of mind, especially with another minimum wage increase on the horizon.

“I know they tie it to the consumer price index, so you expect that to go up,” Wright added.

► Watch Sophia Villalba's report in the video below:

Denver minimum wage hike means bigger paychecks for workers, higher costs for some businesses

Denver’s minimum wage is currently $19.29 an hour. On January 1, it will increase to $19.84, a $ 0.55 increase or a 2.85% increase.

The minimum wage for tipped food and beverage workers will be $16.82 per hour in 2026, up from $16.27 per hour, provided they earn at least $3.02 in actual tips.

Denver’s minimum wage over the years

These yearly increases stem from a 2019 measure passed by the Denver City Council that ties the minimum wage to the consumer price index.

Noah Kaufman, a physician and owner of an urgent care center, said he supports the increase due to rising costs.

“People are having to work two or three jobs. The cost of everything is going up in Denver and everywhere else,” ER physician & KaufCare Advanced Urgent Care owner Noah Kaufman said.

ER physician & KaufCare Advanced Urgent Care owner Noah Kaufman

Kaufman added higher wages are necessary.

“The prices of wages over time typically haven't gone up the same as the prices of, say, education and healthcare,” Kaufman said.

Not everyone sees the increase as a positive. The Colorado Restaurant Association president and CEO Sonia Riggs said:

“Denver restaurants are struggling under extraordinary pressures from the rising costs of food, rent, utilities, insurance, labor, and more. Increasing the minimum wage to $19.84 in 2027 will add tens of thousands of dollars in additional annual costs for every local, independent restaurant, shrinking their margins even more."

"These added costs will make dining out more expensive and add to Denver’s already high cost of living; it’s a vicious inflationary cycle. City Council must do something to support the family-owned restaurants that define Denver’s neighborhoods and economy," Riggs added.

Gregory Golyansky with the Colorado Union of Taxpayers said the impact could go beyond higher prices.

“You will have fewer people employed. Some will be let go and will be replaced either by machinery or some services will disappear,” Colorado Union of Taxpayers board member Gregory Golyansky said.

Colorado Union of Taxpayers board member Gregory Golyanksy

Golyansky added that for those trying to get their foot in the door in their careers, it may be even harder.

“The higher you make the minimum wage, the higher that first step is, and the harder it is to reach it. More and more people will not be able to reach it,” Golyanksy said.

Denver Mayor Mike Johnston said the minimum wage increase will help workers keep up with the cost of living.

“Denver workers deserve to be paid their worth. This increase reflects our belief in an economy that is strongest when its employees can afford to live in the city where they work. It’s why we’re not only increasing wages but staying laser-focused on solutions like making it easier to afford a home or access childcare,” Johnston said in a statement.

For some, adapting to change is nothing new.

“We just plan for it as best as we can,” Wright said.