Why Are So Many Seattle Restaurants Closing Lately?

Truth Needle: Is $15 wage dooming Seattle restaurants? Owners say no | The Seattle Times

An article suggesting the $15-an-hour minimum wage was a factor in some recent Seattle restaurant closures caught fire with national and conservative media this week. The only problem: When we asked the restaurateurs in question, they said it’s flat wrong.

“We were never interviewed for these articles and we did not close our … location due to the new minimum wage,” Kounpungchart and Frank said in an email. “We do not know what our colleagues are doing to prepare themselves for the onset of the new law**, but pre-emptively closing a restaurant seven years before the full effect of the law takes place seems preposterous to us.**”

** Frank went so far as to send a note to the author of the Washington Policy Center post saying: “Our business model is conducive to the changing times and we would appreciate it if you did not make assumptions about our business to promote your political values.”**
**
Shanik proprietor Meeru Dhalwala, who is also mentioned by Seattle Magazine, said in a Facebook message, “My closure is strictly due to location — nothing to do with wages.**”

“There’s going to be restaurants in Seattle,” Anton added. “It’s just going to be different, and that’s OK.”

As it stands now, the claim that these restaurants closed over the minimum-wage issue is false.

A fifteen dollar wage minimum will definately stifle business wherein wages at the Dollar Store and their like will close many or lower the staff count, because they depend on low wages to stay profitable. It is not just restaurants but all businesses that feel the heat. But for OSB’s sake hey no problem because we can pass laws forcing businesses to stay open and take losses. That would be the Socialists way, —right OSB?

No question about it. OSB seem to think conservatives “hate” the Middle Class, but it isn’t “conservatives” who’ve shrunk it over the past 9 years…it’s the Democrats.

[quote=“Pappadave, post:23, topic:46264”]
No question about it. OSB seem to think conservatives “hate” the Middle Class, but it isn’t “conservatives” who’ve shrunk it over the past 9 years…it’s the Democrats.
[/quote] My point in My above post is to show that the OP is a politically charged conservative hit piece without a shred of truth. The restaurants called out the publication on their BS.

Well, it READ like a piece designed to refute the premise that a $15 minimum wage will have a deleterious effect of any business’ bottom line…which any MORON knows that it will.

Cheap residents? Did you intentionally forget to subtract federal and state taxes from those who earn $72K, the remaining of which must pay for the necessities of life before going out to eat a hamburger that has doubled in cost because of a nitwit idea demanding an unskilled worker must get $15 an hour to carry the hamburger from the kitchen to a table?

Why do you have a problem with people being free to negotiate the value of their own labor and let the market place work its magic?

JWK


They are not “liberals”. They are conniving parasites who use the cloak of government force to steal the wealth which wage earners, business and investors have worked to create


Is that just for the city of Seattle or the state of Washington? They are going to raise the min. wage in Ontario to $11.25 an hour min. which would be the second highest in Canada. With the high cost of living in Canada and out higher income tax rate (and multiple rates), $11.25 is a losing battle for anyone who wants to fight poverty. If you are earning that in Toronto you might as well just leave the city.

A few years ago a company out of California was attempting to recruit me to work there in sales (I was working at a major corporation at the time in Toronto), I wish I had taken them up on their offer. As far as I can deduce, if you work hard and have a talent to offer, America is the place to express your economic value, especially in sales.

If anyone needs a top flight sales rep. let me know

I am a free market guy, though I am not against a reasonable min. wage expectation. I suppose the Dollar Stores in Seattle would be “5 Dollar Stores”. If everyone is making a higher min. wage they should have the excess disposable income to spend. One problem of course is that companies decide that the full-time wage impacts their bottom line and thus hire many for part-time work, with lower wages and benefit supports.

In my province of Ontario the ridiculous wages being earned by the public sector is startling. It’s the reason the province is in the worst shape of any large jurisdiction in North America. Google “Ontario Sunshine list” and check out he numbers of those in the province making over $100k a year. All of this debt to be transferred to the next generation (and the feds). Just this week the list of Toronto Police making over $100k was released, more than half of the force is making more than this, plus a very good benefit plan and benefits. You would be shocked by how many bus drivers, bureaucrats and the like in Ontario and surpassing the $100,000 mark. Politicians essentially buying labor peace and votes with taxpayers (and unborn taxpayers) pockets.

So an email from “frank” is ample evidence to render thousands of years of economic wisdom merely “conservative hit pieces”?

This is why democrats should never be allowed to run things.

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One paragraph stood out to me… “When it comes to the impact the $15 wage will have on restaurants, University of Washington researchers, University of California, Berkeley, researchers and an owner of seven local Subways agree that restaurants will have to raise their prices about 4 to 5 percent — meaning an additional nickel per dollar on Seattle restaurant checks.” I call BS on that and I will base it off personnel experience. When Colorado Springs minimum wage was $7.00 an hour, a 2 liter bottle of Pepsi brand Soda cost $1.00 WHEN NOT ON SALE, now that Colorado Springs has a $8.25 an hour, a 2 liter bottle of Pepsi brand Soda REGULARLY costs 1.35 when not on sale. Same store (Walmart), same location (Fountain 85/87 location), but $0.35 difference for a $1.25 increase in minimum wage. So, that’s (just for a $1.25 increase) a 35% increase in price (not 4 to 5 percent as they predict for a likely $5.50 increase in minimum wage), meaning that 5 dollar foot long that Subway is so proud of will cost AT LEAST (figuring a 35% increase as was seen with the soda) $6.75.

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Even around here the Dollar stores have few items that are a dollar any more. I imagine they will go the way of the five and dimes.

If OSB had actually read the article it said it may be a cause.

I don’t go out to eat anymore. The prices are ridiculous. Even fast-food joints are expensive. I can make my own burgers, subs, and chicken in my own kitchen and they will last a lot longer (in terms of meals) than a quarter-pounder or a bucket of KFC.

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But you must admit, Old Style Blues never fails to accomodate.

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As to the bolded sentence, NO IT DOESN’T, OSB. It means that 50% of the COLLEGE-EDUCATED people in Seattle earn $72K or more…NOT 50% or more of the population of Seattle.

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Crap! In my haste to show OSB Seattle residents are not “cheap” I missed your excellent point. SPOT ON!

JWK

“……with all these blessings, what more is necessary to make us a happy and a prosperous people? Still one thing more, fellow-citizens—a wise and frugal Government, which shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement and shall not take from the mouth of labor the bread it has earned. This is the sum of good government, and this is necessary to close the circle of our felicities“. Thomas Jefferson, First Inaugural Address

Try to remember that a $1.25/hour wage increase doesn’t just cost the owner $1.25. It costs him $10 more per day per employee, PLUS the increase in the employer’s share of social security, medicare, retirement (in the case of employers who provide it based on a percentage of wages) and increase in his unemployment insurance payments.

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The quality of waitresses must have gone down the tank if what they need is $15/hr.
Heck, I was averaging at LEAST $18/hr in wages and tips TWENTY-FIVE YEARS AGO - and that was at a Bonanza.
(Yes, I’ve waitressed in far more prestigious restaurants, but that oughta give you an idea of what any decent waitress/waiter should be able to earn.)

Another thing. What is it with the mentality of people who think others should spend simply based on "because he can afford it?"
I’m speaking from both the perspective of the purchaser and that of the employer.
Since when did it make any economic or financial sense to base your spending on what you could afford, rather than the value of what you are getting in return?

I guess they were absent that day it was taught that, “A fool and his money are soon parted.”

Another thing. It most certainly IS spouting “class envy” to state that someone should part with his money because some poor fool needs it more than he does.

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No, they won’t. The VALUE of their hard-earned dollar just took a hit.
Did you not consider that his rent just went up, along with his electric bill, fuel to get to work, groceries, and everything else?

One problem of course is that companies decide that the full-time wage impacts their bottom line and thus hire many for part-time work, with lower wages and benefit supports.

Of course they do. What other choice do they have other than to go out of business entirely?

In my province of Ontario the ridiculous wages being earned by the public sector is startling. It’s the reason the province is in the worst shape of any large jurisdiction in North America. Google “Ontario Sunshine list” and check out he numbers of those in the province making over $100k a year. All of this debt to be transferred to the next generation (and the feds). Just this week the list of Toronto Police making over $100k was released, more than half of the force is making more than this, plus a very good benefit plan and benefits. You would be shocked by how many bus drivers, bureaucrats and the like in Ontario and surpassing the $100,000 mark. Politicians essentially buying labor peace and votes with taxpayers (and unborn taxpayers) pockets.

Oh, and his taxes, too.

I was making something over $600/week as a very experienced computer programmer, when an internet friend said that when she was waitressing, she made over $600 a week in tips.