Seattle seems destined to discover that increasing the minimum wage to over $20 is the right ingredient to make small businesses close.
Under Democrat leadership, the city’s minimum wage law kicked the hourly wage up to $20.67 for 2025 – a move that seems to have kicked out plenty of businesses in the first week of the new year.
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The Seattle Medium recently focused on a string of black-owned businesses impacted.
“Catfish Corner is not alone in closing its doors. Nate Jackson’s Comedy Club in Tacoma, one of the largest Black-owned comedy clubs in the country, has also shut down. Flowers Just 4 U, a Central District staple operated by Mary Wesley for decades, will close on January 15 as Wesley retires.
“You’ve got to have a financial cushion,” Wesley said, reflecting on the difficulties of running a small business. “Getting the right people in the right positions is also crucial because not everyone you hire will be who you need.”
KING 5 Seattle focused on the closure Bel Gatto bakery and the West Seattle BeBop Waffle Shop, owned Corina Luckenbach.
After 11 years, Luckenbach has decided to shutter, citing the strains she says were made worse with the latest minimum wage boost. She said it was daunting to come up with an extra $32,000 a year to give her employees a raise.
"I'm a teeny, tiny business. Where do I make up that money?" said Luckenbach. "There's gonna be a lot of closures this year... I'm already seeing places close."
The Washington Hospitality Association predicts restaurant closures in Seattle will rise by 5 to 8 percent this year because of higher labor costs.
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