Seattle’s new $20 minimum wage for 2025 has caused a 6th restaurant to close since the new year.
Pike Place Market bakery The Confectional closed on Sunday after 18 years in business.
Owner Destiny Sund told KIRO News Radio, “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. So this has been a long week for all of us at The Confectional.”
The minimum wage for all employees in the city limits, regardless of business size, jumped to $20.76 on January 1. Last year, if a worker earned at least $2.72 per hour in medical benefits or tips, the business only had to pay its employees $17.25 per hour, but now, for those businesses that featured tips, the change to the minimum wage was a 20 percent increase. The Emerald City’s increase is $4 more than Washington State’s minimum wage requirement.
Sund added, “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. And my employees did make that up in tips.”
She continued, “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. And that’s just not sustainable.”
At least five other restaurants in Seattle have closed or are closing just days after the city council’s new minimum wage law went into effect.
Hellbound and Down 