Business owners need to take measures instead of automatically reflecting it in food prices.
Seattle’s minimum hourly wage has been raised by 75 cents since January 1st, raising it to $17.25 for small businesses (500 or fewer employees) and $19.97 for large businesses (501 or more employees), resulting in higher wages for restaurant owners and employees. How big will the impact be? Annelies Barnes-Sherman, the state’s chief economic analyst, said that since most restaurant workers are part-time workers, the impact of raising the minimum wage on business owners will inevitably be greater than on other industries, but annual minimum wage increases will not automatically lead to higher menu prices. He said it would be.
She explained in an interview with the Seattle Times that restaurant owners can take a variety of measures, including raising prices, reducing costs, and shortening operating hours. When the total number of employees at 24 chain restaurants exceeded 501, Stowell, the owner of ‘Isan Stowell Restaurant’, did not raise the minimum wage individually by 75 cents, but collectively raised it to $19.97. She instead charged a service fee of 22 percent of the food price and eliminated tips. However, she maintained the tipping system at ‘counter service’ restaurants, such as bagel shops, rather than formal restaurants.
Shannon Phelps, an employee at a cocktail bar in Pioneer Square, said that although the minimum wage increased to $17.25 per hour starting this month, it is still difficult to live in Seattle with this wage, which is about $36,000 per year. She said that on days when her business wasn’t working, she would only work four hours, but last year her hourly income, including wages, was $35 to $65, thanks in large part to tip income.
According to data from the Seattle-King County Workforce Development Council, a person would need to work full-time, 40 hours a week, and earn $21 an hour to cover the basic costs of living in Seattle. The data estimated it would cost $416 per month for food, but the actual cost is much higher, the Times said.