Franchisee says Seattle’s minimum wage is ‘going to be a tragedy’
Mar 27, 2015, 5:57 AM | Updated: 7:23 am
Franchise business owners have to meet the same minimum wage requirements as large employers. KIRO Radio's Dori Monson spoke with one local business owner worried about how the ordinance will impact her family of five. (AP)
(AP)
Heidi Mann and her husband are parents of five. They make a living as owners of two Subway locations, but now face the possibility of closing at least one.
The couple’s Seattle location, which borders Shoreline, will have to increase its wages when the minimum wage ordinance goes into effect April 1.
Related: Franchise group will continue to fight Seattle minimum wage
“We’ve experienced a lot of customers telling us they will drive up the 20-30 blocks to the next Subway if we raise our prices,” Mann told KIRO Radio’s Dori Monson on Thursday.
Under the ordinance, large employers must reach a $15 minimum wage within three years. Locally owned franchises fall under the large employer category, a judge ruled last week.
As a result of the ordinance, some employees are asking for higher wages, but don’t seem to be as motivated, Mann said. The couple might not be able to afford to provide benefits.
Customers have told the couple they will cut down on tipping, too, because sandwich prices are expected to rise to meet operating costs and employees will already be making more. Without tips, employees could – in some cases – make less under the ordinance with fewer tips, Mann said.
“Profit is going to be diminished,” she explained to Dori.
How else will the ordinance effect the family, Dori wanted to know.
Right now, Mann’s husband works full time at the Kirkland location. He may transfer over to the Seattle shop and work 12- to 16-hour days to make up for the increased costs.
“It’s just going to be a tragedy,” Mann said.
