At least five more restaurants in Seattle are closing their doors just days after the city council’s new minimum wage law mandating an hourly pay of $20.76 an hour went into effect — with the local hospitality industry predicting that more small businesses will go under in 2025.
The owner of the Bel Gatto bakery in West Seattle posted a sign on its door announcing that after less than a year in business, it will no longer offer service to customers.
“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.” News of the Bel Gatto’s closure was first reported by the local news site Westside Seattle.
Jackson’s Catfish Corner, a soul food eatery that has served Seattle’s Central District for 40 years, announced its last day of operations on Friday, according to the restaurant review site Eater Seattle.
“I just cannot do it anymore,” owner Terrell Jackson said in an Instagram video announcing the closure.
“I’m maxxed out, y’all.”
Jackson said that the new minimum wage hike, the dwindling foot traffic in his area and the overall rising cost of doing business in Seattle conspired to finish off his restaurant.
“I know that the minimum wages went up to 20 bucks an hour… I know that’s hard for my business as a small black business,” Jackson told the news site Converge.
“I’m not Amazon or Walgreens or Walmart who can pay their employees that much.”
In the nearby, trendy neighborhood of Capitol Hill, the owners of the The Jilted Siren said the city council’s new minimum wage law forced them to go under and shutter their bar lounge.
The owners said that they closed down their Bellevue Avenue location over the New Year weekend and are considering a reopening in a more affordable part of town, according to Capitol Hill Seattle.
They said that small businesses such as The Jilted Siren are unable to operate in light of the new law which does away with a so-called “tip credit” that allowed entities with fewer than 500 employees to count tips received by workers toward meeting the city’s minimum wage requirement.
Last October, Seattle Mayor Bruce Harrell indicated that he would allow the tip credit to expire because it was “the right thing for wage fairness.”
“We will see what shakes out w all the changes coming in January. Seattle City council made some pretty short sighted, negligent decisions and there are going to be quite a few casualties from it,” the lounge posted on social media.
Plum Bistro, a family-owned business that has served vegan and vegetarian cuisine in Capitol Hill for 20 years, also shut down, it was announced last week.
“We will look back on these past 20 years with great gratitude for your patronage,” chef and owner Makini Howell said in the announcement.
“It’s been such a pleasure to share the joy of vegan food with you.”
Plum Chopped, the smaller lunch and salad satellite restaurant that opened next door, is also being shut down.
Howell did not address the reasons for the closure.
Rapport, a “self-pour” wine bar in Capitol Hill, announced that it has closed its doors indefinitely. Its last night of operation was Dec. 29.
According to Capitol Hill Seattle, the decision was due to a personal family matter and that it was still possible a new deal for the lease could be worked out.
Last week, Bebop Waffle Shop, which was founded by former New York City resident Corina Luckenbach more than a decade ago, closed its doors for good.
Luckenbach also cited the new minimum wage law as a key factor in the decision.
“This is financially just not going to make sense anymore. Because, just for me, the increase would cost me $32,000 more a year,” Luckenbach 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 just not sustainable,” he told the Seattle Times.
The WHA, which represents local restaurant owners, predicted that the number of eateries operating in Seattle will drop by between 5% and 8% this calendar year.
The Post has sought comment from the mayor’s office.
[Notigroup Newsroom in collaboration with other media outlets, with information from the following sources]
