At least five more restaurants are set to close in Seattle, days after the City Council's new minimum wage law mandating $20.76 an hour goes into effect. That's what the local hospitality industry is predicting. In 2025, even more small and medium-sized businesses will go bankrupt.
Less than a year after opening, the owner of Belle Gut Bakery in West Seattle posted a sign on the store's door announcing it would no longer serve customers.
“Unfortunately, our revenues will not be able to cover the nearly 25% increase in wages, salaries and payroll taxes mandated by the Seattle City Council starting January 1, 2020,” the memo said. are.
“This ruling makes it impossible for us to continue our bakery business.'' News of Bel Gatto's closure was first reported. Local news site Westside Seattle.
Jackson's Catfish Corner, a soul food restaurant that has been serving Seattle's Central District for 40 years, announced Friday it will be in business for the last time. According to restaurant review site Eater Seattle.
“We can't do it anymore,” owner Terrell Jackson said in an Instagram video announcing the closure.
“I'm at my limit, guys.”
Jackson said the combination of a new minimum wage hike, declining foot traffic in his area and an overall increase in the cost of doing business in Seattle has forced his restaurant out of business.
“I know the minimum wage went up to $20 an hour…I know that's difficult for my business, which is a small Black business.” Jackson told news site Converge.
“I'm not Amazon or Walgreens or Walmart who can pay their employees that much.”
The owners of The Jilted Siren, located in a trendy neighborhood near Capitol Hill, said the City Council's new minimum wage law forced them to close their bar lounge.
The owners said they are closing the Bellevue Avenue store over New Year's weekend and considering reopening in a more affordable area of the city. According to the Seattle Capitol Hill newspaper.
They say they're considering a new law that eliminates so-called “tip credits,” which allow companies with fewer than 500 employees to count tips received from workers to meet city standards. He said small and medium-sized businesses are unable to operate. Minimum wage requirements.
Last October, Seattle Mayor Bruce Harrell He indicated he would allow the tip credit to expire. This was because it was “the right thing to do for pay equity.”
“We'll see what impacts all the changes that happen in January. The Seattle City Council has made some pretty short-sighted and negligent decisions that will result in significant casualties.” Lounge posted on social media.
Plum Bistro is a family-run business. Vegan and Vegetarian Food on Capitol Hill Closed for 20 years, It was announced last week.
“We look back on the past 20 years with deep gratitude for your patronage,” chef and owner Makini Howell said in a statement.
“I was very happy to be able to share the joy of vegan cooking with everyone.”
Plum Chopped, a small satellite lunch and salad restaurant that opened next door, will also close.
Howell did not give a reason for the closure.
Rapport, a self-drinking wine bar on Capitol Hill, has announced it will close indefinitely. The last working night was December 29th.
According to capitol hill seattlethe decision was due to personal family issues and meant there was still a chance a new lease could be finalized.
Last week, Bebop Waffle Shop, founded more than a decade ago by former New York City resident Corinna Luckenbach, permanently closed.
Luckenbach also cited new minimum wage laws as a key factor in the decision.
“This no longer makes financial sense because, for me personally, the increase would cost me an extra $32,000 a year,” Luckenbach said. he told Fox 13 TV.
Anthony Anton, president and CEO of the Washington Hospitality Association, said the situation is only going to get worse for small businesses in the Emerald City.
“It’s not sustainable.” he told the Seattle Times.
WHA, which represents local restaurateurs, predicted that the number of eateries operating in Seattle will decline by 5% to 8% this calendar year.
The newspaper has contacted the mayor's office for comment.
