‘Gee and Ursula:’ Another restaurant closes after the Seattle minimum wage rises again

The new year likely put extra money in a lot of Seattle workers’ pockets, but it put some local businesses in a tough spot and some of those owners have felt they have had no choice but to close.

Seattle’s minimum wage rose on Jan. 1 from $19.97 per hour to $20.76, as stated in an ordinance from the City of Seattle. The new hourly wage is $4 higher than the state of Washington’s new 2025 minimum wage of $16.66 per hour.

Previous coverage: New year brings more money as Seattle’s minimum wage rises

As Jason Rantz of KTTH noted in a recent piece, the City of Seattle also ended the tip credit of $2.72. Previously, restaurants were able to pay $17.25 hourly wage if their staff earned at least $2.72 in tips per hour.

The lack of a tip credit has already impacted small businesses as the city of Seattle’s wage hike has led several restaurants to close their doors at the beginning of this year.

Jackson’s Catfish Corner in Seattle’s Central District, West Seattle eateries Bel Gatto and Bebop Waffle Shop, and The Jilted Siren in Capitol Hill have all closed with the new minimum wage playing at least some role in the closures.

From Jason Rantz: 2 more Seattle restaurants close over ‘untenable’ minimum wage hike

The Confectional in Pike Place Market will close

The number of shuttering restaurants will climb at least one more after this weekend as Destiny Sund, owner of the Pike Place Market bakery The Confectional, told KIRO Newsradio’s “The Gee and Ursula Show” during an interview Friday that she will close her business after the weekend.

“I wanted my team to have a wonderful holiday season, so I didn’t mention to them that we would be closing until after New Year’s Day,” Sund said. “So this has been a long week for all of us at The Confectional.”

Sund also pointed out it’s not just the higher wage that is sinking her business, citing the end of the tip benefit as well.

“That allowed businesses 50 employees or under to subtract $2.00 from the minimum wage. If they could make it up in tips and or benefits,” Sund said. “And my employees did make that up in tips.”

Sund said she ran the numbers and determined that maintaining the business would not be feasible as yearly costs would be too high.

“And just doing the math with the additional increase and the loss of the tip credit, it would cost my business an additional $18,000,” Sund explained. “And that’s just not sustainable.”

The business owner also stated they tried raising prices, but sales declined.

“I raised my cheesecake prices to $8 each and saw a sharp decline in transactions, so it’s obvious that people can’t pay a higher price or nobody needs a delicious cheesecake,” she said.

Higher Seattle minimum wage was ‘the final straw’

Sund also expressed a desire to be “completely fair” and explained that other factors have hurt business in recent years, including the loss of foot traffic due to the COVID-19 pandemic. In addition, inflation has increased the price of eggs and other ingredients.

“Then, of course, the price of eggs, the price of chocolate, the price of cream cheese — I don’t use the cheapest ingredients to make cream cheese — (played a role),” Sund stated. “So, all the price increases have also been pretty rough, so I cannot fully blame minimum wage increase as the number.”

In the end, however, the wage hike was the drop that spilled the drink, so to speak.

“The minimum wage, yes, I would say that was the final straw, though,” Sund said. “Everything else I was willing to work with or could have worked with. Meeting with additional vendors, doing more advertising, thanking Seattleites when they come down to the market personally …”

As the conversation between host Ursula Reutin, guest host Angela Poe Russell and Sund wrapped up, Sund said she thinks Seattle Mayor Bruce Harrell and the Seattle City Council need to “take a hard look” at the small businesses impacted by the raising minimum wages and higher cost of living in Seattle.

“I think the city really needs to have a conversation about all the mom-and-pop stores. And is it worth losing an entire business — many of which have workers making well above minimum wage?” Sund asked. “Is it worth losing all of those jobs for a few?”

Head here or tap on the player to listen to the entire conversation with Seattle business owner Destiny Sund.

Steve Coogan is the lead editor of MyNorthwest. You can read more of his stories here. Follow Steve on X, or email him here.

Heather Bosch is an award-winning anchor and reporter on KIRO Newsradio. You can read more of her stories here. Follow Heather on X, or email her here.