Seattle’s progressive initiative to implement a $20.76 hourly minimum wage is causing significant challenges for the city’s small businesses. Shortly after the law was enacted, at least five cherished restaurants have shut down, and the local hospitality sector is cautioning that additional closures may occur in 2025.
For numerous establishments, this wage increase—alongside soaring operational costs in the city—has proven to be the tipping point. The proprietor of Bel Gatto Bakery in West Seattle displayed a poignant notice on its entrance, revealing its closure after operating for less than a year.
Regrettably, our revenue is insufficient to accommodate the nearly 20% rise in mandated wages, salaries, and payroll taxes implemented by the Seattle City Council as of January 1, 2025. This decision has rendered the continuation of our bakery operations unfeasible.
The repercussions are being experienced throughout the city. Jackson’s Catfish Corner, a longstanding soul food establishment in the Central District for over four decades, has also ceased operations. Owner Terrell Jackson conveyed his disappointment in a heartfelt Instagram video, attributing the closure to the increase in wages, a decline in customer traffic, and escalating operational expenses.
“I understand that the minimum wage has risen to $20 per hour… I recognize that this poses a significant challenge for my small Black-owned business,” Jackson stated. “I am not Amazon, Walgreens, or Walmart, which can afford to pay their employees such wages.”
The Jilted Siren lounge, located on Bellevue Avenue in Capitol Hill, was compelled to shut down over the New Year weekend, with its owners attributing the closure to the removal of the tip credit. This credit had enabled small businesses to include employee tips in their wage calculations, offering some financial relief.
Seattle Mayor Bruce Harrell permitted the expiration of the tip credit last October, justifying the decision with the notion of ‘wage fairness.’ Nevertheless, detractors contend that this policy demonstrates a significant misapprehension of the operational realities faced by small businesses.
The Seattle City Council has made several shortsighted and negligent decisions, which are likely to result in numerous negative consequences,” stated The Jilted Siren on social media. Long-established family-owned businesses are also suffering as a result.
Plum Bistro, a well-known vegan restaurant in Capitol Hill, has announced its closure after two decades, along with its smaller counterpart, Plum Chopped. Although owner Makini Howell did not explicitly mention the reasons for the closure, many believe that the recent wage increase may have contributed to this outcome.
The Seattle City Council has made several shortsighted and negligent decisions, which are likely to result in numerous negative consequences,” stated The Jilted Siren on social media. Long-established family-owned businesses are also suffering as a result.
Plum Bistro, a well-known vegan restaurant in Capitol Hill, has announced its closure after two decades, along with its smaller counterpart, Plum Chopped. Although owner Makini Howell did not explicitly mention the reasons for the closure, many believe that the recent wage increase may have contributed to this outcome.
The small business sector in Seattle is raising concerns, yet the city council appears unresponsive to their challenges. Unlike large corporations that can manage these expenses, small, family-owned businesses—historically the backbone of Seattle’s communities—are nearing collapse. The pressing question is: how many additional closures will it require for city officials to recognize the harm they have inflicted?
