Minimum wage increases pose major challenge for restaurant industry in blue states [Video]

January kicked off minimum wage hikes in 21 states, and experts say rising labor costs are making it tough for some restaurants to keep their doors open. 

Some 65 cities across the country rolled out wage increases at the start of the month. Cities in Colorado, Washington and California have some of the highest minimum wages in the U.S.

According to the Economic Policy Institute, Tukwila, Washington, has the highest minimum wage for non-tipped workers as of January at $21.10. Some of the other cities with the highest minimum wage this year include Seattle at $20.76; West Hollywood, California, at $19.65; Denver at $18.81; and San Francisco at $18.67. 

Jot Condie, CEO of the California Restaurant Association, said for many restaurants, significant cost increases are not sustainable. 

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