Two more Seattle restaurants are calling it quits thanks to the untenable minimum wage hike.

At the same time that the Seattle minimum wage rose from $19.97 an hour to $20.76 an hour, the city ended the tip credit of $2.72. Under the previous rules, restaurants were able to pay $17.25 hourly wage if their staff earned at least $2.72 in tips per hour. But as cost of business continues to skyrocket in Seattle, a minimum wage hike without a tip credit is simply untenable for many small businesses.

Jackson’s Catfish Corner in Seattle’s Central District closed its doors in this new year. In an interview with Converge Media, owner Terrell Jackson argued Seattle is too expensive to operate in.

“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 said. “I’m not Amazon or Walgreens or Walmart who can pay their employees that much.”

Jackson isn’t alone in his complaints.

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A second West Seattle eatery closes, citing the minimum wage hike

Bel Gatto, a bakery and café, became the second West Seattle eatery to close its doors over the Seattle minimum wage hike. The owner posted a sign to the front door to thank supporters but said she can’t afford to stay open anymore.

“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. This ruling has made the continuation of our bakery operations untenable,” the sign read.

The owner, Peter Levy, explained to the West Seattle Blog that, “we were approaching close to a break even status in the last quarter of 2024, but the requirement to absorb another $4,000 per month in payroll expenses with the new mandate by the city put a break even further from our grasp which is what led to the closure.”

Last week, a video by Corina Luckenbach, owner of Bebop Waffle Shop in West Seattle, went viral as she said the minimum wage hike was forcing her to close after 11 years. She said she didn’t have an extra $32,000 a year to pay her staff what the city mandates.

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Will more restaurants close?

Ahead of the minimum wage hike, restauranteurs offered many warnings over what’s to come.

Ethan Stowell operates a number of Seattle’s top restaurants, including How to Cook a Wolf, Staple and Fancy, and Tavolata. He warned this change would be exceptionally costly for businesses in an industry notorious for razor-thin margins. And restaurants can’t merely raise menu prices again.

“I know everybody wants to say, ‘Just raise things (on the menu) a dollar or two,’ and that’s what it’ll be. That’s very simplified math. I wish it was that easy, but it’s not. This is a large increase that’s probably large enough to be equal to or close to what most restaurants in Seattle profit,” Stowell told “The Jason Rantz Show” on KTTH.

Portage Bay Cafe co-owner Amy Fair Gunnar noted the minimum wage change will cost her about $45,000 more a month. She said restaurants will have to “seriously change what they’re doing or they’re going to close their doors.”

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Ignoring the warnings, mocking the business people

The warnings from restaurant owners were mostly ignored or mocked.

Efforts by the Seattle City Council to address the forthcoming crisis fell apart after activists said they didn’t want restaurants to get an exception. Council president Sara Nelson told “The Jason Rantz Show” they will take up the issue again this year but there’s no specific idea yet to forward for legislation. The Mayor of Seattle, Bruce Harrell, has been almost completely absent from the issue.

Left-wing voices, meanwhile, claim to not care. That if businesses “can’t afford to pay a living wage,” then they shouldn’t be in business.

One reporter with The Stranger mocked one of the closures, quipping on X, “Has anyone ever eaten at bebop waffle lol.” Left-wing Seattleites condemned the business for “creating a right wing media darling to complain about paying people a living wage.”

KING 5 reporter Maddie White helped elevate this talking point by citing the National Low Income Housing Coalition, claiming “the average renter needs to make upwards of $40 an hour to afford rent.” But she’s quoting a stat for two-bedrooms. Minimum wage jobs aren’t meant to cover the cost of a single person renting a two-bedroom home or apartment.

Ironically, as activists dismiss the concerns of small business owners, they fail to acknowledge the inevitable consequence: when those businesses shut down, people lose jobs. A $20.76 hourly minimum wage — even with a $2.72 tip credit — means nothing if you’re unemployed.

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