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Seattle minimum wage hike taking toll on small businesses

Seattle minimum wage hike taking toll on small businesses

This week, Seattle’s minimum wage requirement increased by 79 cents from last year.

The new wage of $20.76 per hour is one of the highest in the country.

The owner of Bebop Waffle Shop told us it’s been a tough start to the new year since she had to permanently close her doors. This decision was influenced by several factors, but the rising wage requirements for her small business were a major hurdle.

On the corner of California Avenue and Admiral Way sits a building housing two small businesses: a flower shop and a waffle cafe.

Now this week, half of the building went dark.

Corina Luckenbach, who opened Bebop Waffle Shop more than a decade ago, says the new minimum wage hike was the final factor in a series of struggles.

“I jumped at the chance to be part of this community, it was such an incredible opportunity I couldn’t pass it up,” Luckenbach said.

Unfortunately, that dream has come to an end.

“Everything is so expensive, the price of goods is double and triple, the equipment costs, now with the new minimum wage increase I’m facing an additional $32,000 in annual costs, just based on current hours,” Luckenback said.

As of Jan. 1, Seattle’s minimum wage increased by 79 cents, reaching $20.76 per hour for all businesses, regardless of size.

The other half of the building will also close for in-person business later this year, another casualty of Seattle’s rising business costs.

“When you work really hard and it doesn’t feel like it’s paying off, it can be frustrating. I think that’s the case for a lot of small businesses, Rebekah Balcom with the Flower Lab said.

Seattle’s temporary tip credit also expired on January 1. It went into effect in 2015 to help restaurant employees offset lower wage costs. This means the minimum wage will be uniform across Seattle and will require an increase in labor costs of more than $3 per hour for each employee.

Seattle Mayor Bruce Harrell replied the frustration, saying:

“While this is the right thing for wage fairness, we recognize it will present a significant change for many small businesses who are still recovering from the impacts of the pandemic and the resulting record inflation.”

Just three days after closing, the waffle shop is already missed.

Nina Urciuoli is visiting Seattle from New York City and tells us she was really looking forward to trying Bebop.

“I was here to get waffles. I’m so disappointed. They’ve been hyped up to me, and I was ready to try them,” Urciuoli said.

Luckenbach expressed gratitude for the support but said it was time to close this chapter so another one could begin.


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