MISHAWAKA — Local businesses are bracing for the third federal minimum wage increase on July 24th. Some workers will receive 70 cents more per hour, but some business owners say higher wages will affect their bottom line.

Saving money is the name of the game in this challenging economy.

"Everything costs money in this country of course," said Paulo Teixeira, owner of Strikes and Spares in Mishawaka.

Teixeira keeps an eye on his expenses. He's ready to roll with his newest attraction, indoor go-kart racing.

"Indiana is the place of racing, it comes as a natural thing," said Teixeira.

With a minimum wage increase looming, future attractions may take a backseat in an effort to keep costs in line.

"Small businesses like us will have to somehow adjust to this new reality," he said.

When wages increase from $6.55 to $7.25, July 24th, Paulo's 22 full and part-time workers won't necessarily strike it rich, but they're looking forward to a bigger payday.

"I'm not necessarily counting down the days," said Kellie Keb, who has worked at the facility since it opened in 2004.

"I'm not against the minimum wage to go up," said Teixeira. "I think people should be paid for what they do."

Paulo says it's too early to determine his next course of action. Right now, he's not looking to cut his staff or raise prices.

"With the economy, there's no way we can pass the costs on to the public by increasing the final price that they pay," he said.

But he knows a higher payroll will pump the brakes on profits.

"We have to wait a little bit and see how it goes," Teixeira said.