NASHVILLE, Tenn. -- More than a thousand Tennessee workers received a pay raise on Friday due to the federal minimum wage increase from $6.55 to $7.25 an hour.

But how is that affecting area Nashville businesses?

Local business owner Bob Bernstein of Bongo Java is not sure what this means for future business.

"When prices of everything else start to go up, it's going to affect us all. But I don't think it will be a huge deal, but it will affect us in the little ways," said Bernstein.

The Tennessee Department of Labor said most small businesses in the area were prepared for the federal increase.

But M.J. Polneau, who manages a local Mrs. Winner's restaurant said while they are ready for the wage increase, they just hope customers can support the salary boosts.

Other local businesses that Channel 4 News spoke to, such as Calypso Café in Nashville, said they are also ready for the federal wage increase, but they may feel the financial pinch down the road.

"It's a double-edged, you know? It's going to effect people’s prices, but it's also ... people need the money," said Bernstein.

Bongo Java has paid its employees above minimum wage for years, but with this 70-cent increase, a new problem may emerge.

"There will be some pressure to raise wages, but the way our wages are set now, I don’t think it will be immediate," said Bernstein.