Seattle’s progressive experiment with a $20.76 hourly minimum wage is wreaking havoc on the city’s small businesses. Within days of the new law going into effect, at least five beloved eateries have closed their doors, with the local hospitality industry warning that more closures are imminent in 2025.
For many, this wage hike—combined with skyrocketing costs of doing business in the city—is the final blow. The owner of Bel Gatto Bakery in West Seattle posted a heartfelt sign on its door announcing its closure after less than a year in business.
“Our revenues, unfortunately, are not able to cover the close to 20% increase in mandated wages, salaries, and payroll taxes put into effect by the Seattle City Council effective 1/1/25,” the note read. “This ruling has made continuation of our bakery operations untenable.”
The ripple effects are being felt across the city. Jackson’s Catfish Corner, a soul food institution in the Central District for over 40 years, has also shut its doors. Owner Terrell Jackson expressed his frustration in an emotional Instagram video, citing the wage hike, dwindling foot traffic, and rising operational costs as the reasons for the closure.
“I know the minimum wages went up to 20 bucks an hour… I know that’s hard for my business as a small Black business,” Jackson said. “I’m not Amazon or Walgreens or Walmart who can pay their employees that much.”
In Capitol Hill, The Jilted Siren lounge was forced to close its Bellevue Avenue location over the New Year weekend, with owners openly blaming the elimination of the tip credit. This credit had previously allowed small businesses to count employee tips toward meeting wage requirements, providing some relief.
Seattle Mayor Bruce Harrell allowed the tip credit to expire last October, citing “wage fairness” as the rationale. However, critics argue this policy reflects a fundamental misunderstanding of how small businesses operate.
“Seattle City Council made some pretty short-sighted, negligent decisions, and there are going to be quite a few casualties from it,” The Jilted Siren posted on social media.
Longstanding family-owned businesses are also falling victim. Plum Bistro, a Capitol Hill staple known for vegan cuisine, announced it would close after 20 years, alongside its smaller satellite, Plum Chopped. While owner Makini Howell did not specifically address the reasons, many suspect the wage hike played a role.
Bebop Waffle Shop, a beloved establishment founded over a decade ago, shut down last week. Owner Corina Luckenbach revealed the new wage law would have increased her costs by $32,000 annually.
“It’s just not sustainable,” said Anthony Anton, president and CEO of the Washington Hospitality Association, which predicts the number of restaurants in Seattle will shrink by 5% to 8% this year.
Seattle’s small business community is sounding the alarm, but the city council seems deaf to their plight. While big corporations can absorb these costs, small, family-run establishments—once the heart of Seattle’s neighborhoods—are being pushed to the brink. The question remains: how many more closures will it take before city leaders acknowledge the damage they’ve done?
