Seattle’s minimum wage, which rose to $20.76 per hour on January 1, has proven too costly for some business owners, resulting in the closure of a long-standing small business and highlighting broader economic consequences of such policies.
The Bebop Waffle Shop in West Seattle, owned by Corina Luckenbach for over a decade, permanently closed this week due to the financial strain of the new minimum wage. Luckenbach told Fox 13 that the wage increase would have cost her $32,000 annually, making it impossible to sustain her business.
“This is financially just not going to make sense anymore,” she said. Although she supports fair wages, she explained, “I’ve cried every day.” Closing the shop was especially difficult because of its importance to the community. “The stories of what it meant to people to come in and feel safe and feel welcomed, I just didn’t know… it’s been really beautiful and cool to find that out.”
Seattle’s $20.76 minimum wage is $4 higher than Washington State’s requirement, and businesses relying on tips saw a staggering 20% increase in labor costs. Such increases are not without precedent. California faced similar consequences after Governor Gavin Newsom’s $20 minimum wage law took effect in April 2024.
Thousands of jobs were lost in California’s restaurant industry as businesses grappled with higher costs. Popular chains like Shake Shack closed six locations, and other companies, including McDonald’s, Burger King, Starbucks, and In-N-Out Burger, resorted to raising prices, cutting hours, and even transitioning to automation.
Seattle’s policy is the latest example of how sweeping wage increases, while well-intentioned, often come at the expense of small businesses, jobs, and the economic stability of local communities.