Seattle’s Minimum Wage Hike May Actually Become a Nightmare for the Restaurant Industry

Restaurant owners have warned that this wage increase could hurt their businesses. However, it could also destroy the industry as a whole in Seattle.

Back in 2015, this was a big deal for many workers, as a $15 minimum wage was long fought for. However, this law is also tied to inflation. As inflation goes up, so do minimum wage hikes.

This fall, Seattle’s Office of Labor Standards will officially announce what the minimum wage hike will be in 2025 — but many restaurant owners are already concerned.

However, employers who have less than 500 employees may only pay workers $17.25. This difference may also be made up by certain factors, such as medical benefits or tips.

However, officials haven’t yet come out to clarify exactly what this wage hike will be — though it will be at least $20 an hour.

As cost of living prices continue to skyrocket, restaurant workers are relying on seeing this wage hike — even if their employers are warning it could be detrimental to their businesses.

There aren’t a lot of restaurant groups doing business in the city that have fewer than 500 employees. Therefore, they’ll be forced to pay this higher wage hike, whereas other industries may not have to.

In an effort to make up for this increased cost in wages, restaurants could end up seeing their operational costs skyrocket.

For example, restaurants could end up cutting jobs, which could help them make up for revenue losses. Reduced operations could also help bring in more profits.

Now, these menu prices may only continue to rise if this expected wage increase is as high as the industry is predicting.

As a result, many consumers have stopped eating out at expensive restaurants. If Seattle continues to raise menu prices, then consumers may simply stop going to these restaurants.

Restaurants in Seattle may choose to implement these charges, all in an effort to make up for the loss of profits if their employees receive a higher wage.