SEATTLE NEWS ARCHIVES & FEATURES

Another restaurant falls victim to Seattle’s wage law

Apr 30, 2015, 3:33 PM | Updated: May 5, 2015, 10:40 pm

Z Pizza will be closing in the next few months because it can’t withstand Seattle’s min...

Z Pizza will be closing in the next few months because it can't withstand Seattle's minimum wage law owner Ritu Shah Burnham told KIRO Radio's Dori Monson. (AP)

(AP)

She did the math.

Z Pizza may have recently begun making a profit, but owner Ritu Shah Burnham said it won’t last long.

“I can’t continue to struggle and work as hard as I do and not get any return,” Burnham told KIRO Radio’s Dori Monson. “The numbers don’t work.”

Z Pizza, the only one in the Pacific Northwest, according to Burnham, will close in about four months. The pizza restaurant employs 12 people. Burnham began working more and cutting shifts to help the business break even, she told Dori.

Z Pizza’s began breaking even in 2014. By January 2016, if the restaurant does not see a 20 percent increase in profit, it will lose money.

“I don’t want to go backwards and I feel like I would be,” she said on air. She would need an “astronomical” amount of revenue to match the requirements of the minimum wage law.

Seattle’s wage law went into effect April 1. The law gives businesses the option to phase in higher wages over several years.

Businesses with more than 500 employees nationally have three years; those providing health insurance will have four. According to Seattle’s roll-out schedule, employees working for these large companies should be making at least $11 per hour.

Smaller businesses will have seven years to phase in the higher wages, which will include consideration for tips and healthcare costs.

Burnham said labor costs are 33 percent of her expenses. That’s going to jump to about 50 percent in 2016.

Franchise businesses, such as Z Pizza and Subway, are considered large employers.

Businesses such as Z Pizza can’t just &#8212 at the snap of a finger &#8212 increase the amount of customers they need to meet the new wage requirements, Dori said. And if they raise prices, they’re apt to drive customers away.

Dori told Burnham his biggest frustration with the minimum wage law is that it is being coordinated by “career politicians” who have never worked in the private sector.

Will Burnham consider opening another business in Seattle? Dori wanted to know.

“No,” she responded.

Seattle News Archives & Features

Associated Press

Authorities arrest arson suspect in connection with one of Spokane’s devastating wildfires

SPOKANE, Wash. (AP) — A man from Spokane, Washington, was arrested Monday and charged with setting one of the devastating wildfires that have destroyed hundreds of homes and other structures in and around the state’s second-largest city. The Spokane County Sheriff’s Office said Aaron F. Farinacci, 37, was arrested and booked on suspicion of first […]

2 days ago

rain seafair aug. 1...

Tom Brock

Blue Angels cancel Saturday Seafair performance due to high winds

The U.S. Navy's precision flight team, the Blue Angels, had to cancel its Saturday performance at Seafair, due to high winds.

4 days ago

Washington Gov. Bob Ferguson has declared a statewide wildfire emergency. (Photo: WA. Dept. of Natu...

Tom Brock

Washington Gov. Bob Ferguson declares statewide wildfire emergency

Washington Governor Bob Ferguson declared a statewide wildfire emergency Saturday, which includes a prohibition on most outdoor and agricultural burning.

4 days ago

Associated Press

Seattle police say 15-year-old arrested in connection with festival shooting had a ghost gun

SEATTLE (AP) — The 15-year-old arrested after a shootout at food festival near Seattle’s Space Needle over the weekend was armed with an untraceable ghost gun with an extended magazine, police said Tuesday. Police Chief Shon Barnes told a news conference that the weapon was a 9 mm gun from Polymer80 — a now-defunct company […]

8 days ago

Associated Press

Police search for second suspect following Seattle food festival shooting that killed 3

SEATTLE (AP) — Police searched for a second suspect Monday after gunfire erupted at a crowded food festival beneath Seattle’s Space Needle, leaving three people dead and four others wounded, including a toddler. Another suspect was earlier arrested. Investigators believe the two suspects were shooting at each other Sunday and, although one remained on the […]

9 days ago

Associated Press

Multiple people have been shot after gunfire erupts near Seattle’s iconic Space Needle, police say

SEATTLE (AP) — Multiple people were injured in a shooting Sunday night at an events complex close to the Space Needle in Seattle, police said in a statement. Authorities did not immediately release more information.

10 days ago

Another restaurant falls victim to Seattle’s wage law