Home
/
RELIGION & LIBERTY ONLINE
/
Will Seattle’s New Minimum Wage Law Cause Restaurants to Be Replaced by Soup Kitchens?
Will Seattle’s New Minimum Wage Law Cause Restaurants to Be Replaced by Soup Kitchens?
Jan 19, 2026 2:26 AM

The people of Seattle recently voted to put their poorest residents out of work by increasing the minimum wage to $15 over the next seven years. But wealthier residents may soon find out just how quickly it will affect them too. A number of area restaurants are already shutting down, and many others will soon closing their doors. As Anthony Anton, president and CEO of Washington Restaurant Association, says, “It’s not a political problem; it’s a math problem.”

[Anton] estimates that mon budget breakdown among sustaining Seattle restaurants so far has been the following: 36 percent of funds are devoted to labor, 30 percent to food costs and 30 percent go to everything else (all other operational costs). The remaining 4 percent has been the profit margin, and as a result, in a $700,000 restaurant, he estimates that the average restaurateur in Seattle has been making $28,000 a year.

With the minimum wage spike, however, he says that if restaurant owners made no changes, the labor cost in quick service restaurants would rise to 42 percent and in full service restaurants to 47 percent.

“Everyone is looking at the model right now, asking how do we do math?” he says. “Every operator I’m talking to is in panic mode, trying to figure out what the new world will look like.” Regarding amount of labor, at 14 employees, a Washington restaurant already averages three fewer workers than the national restaurant average (17 employees). Anton anticipates customers will definitely be tested with new menu prices and more. “Seattle is the first city in this thing and everyone’s watching, asking how is this going to change?”

You may have the smartest lawyers on retainer, the most-connected lobbyists on your payroll, and the most powerful politicians in your pocket, but it won’t help you change the law of unintended consequences. When you muck around and make changes to plex system—such as labor pricing—you’re bound to create problems like the one’s Seattle’s restaurateurs will be facing. The law of unintended consequences always gets the final say.

If it were a matter of mere ignorance this new law might be excusable. If the supporters of the $15 minimum wage were able to honestly say, “We couldn’t have known raising the wage would put people out of work” we could let them off the hook. But they knew—or should have known—because it has been pointed out to them time and time again.

But the wealthy won’t suffer for long. What will happen is that the activists who pushed so hard for wage increases will simply leave the city. Once their favorite bars and restaurants shut down, they’ll move to another city where the cost of living isn’t inflated by absurd wage floors. The people who will be left behind to suffer the consequences will be the working poor—many of whom were priced out of their jobs.

When the wage increase is modest (around 20 percent), debates about the minimum wage remain in the realm of political debate. But when the increase is a 61 percent increase over seven years (just enough time for the businesses to flee the city), it es a moral issue. We shouldn’t stand by and let the poor suffer because the economic illiteracy of people who have “good intentions”; we have a duty to speak up on behalf of the urban poor. We should be clamoring for this minimum wage law to be repealed before the law of unintended consequences takes goes into effect. If we wait too long the only restaurants left in Seattle may be soup kitchens.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
How Amazon is Like a Sweatshop (And What That Reveals About Flourishing and Justice)
Liberal and conservative, right and left, red state and blue state—there are dozens, if not hundreds of ways to divide political and economic lines. But one of the most helpful ways of understanding such differences is recognizing the divide between advocates of proximate justice and absolute justice. Several years ago Steven Garber wrote an essay in which he explained the concept of “proximate justice”: Proximate justice realizes that something is better than nothing. It allows us to make peace withsomejustice,somemercy,...
Rev. Robert Sirico Takes On Trump’s Comments On Pope Francis
p Last week, the Washington Postfeatured an interview with Donald Trum, entrepreneur-turned-presidential candidate. Trump is clearly no fan of the ments on capitalism and free markets, and his approach to dealing with the pope on this topic is rather unique: Trump wants to scare Pope Francis. mon for someto criticize Pope Francis’s wariness about capitalism, but Republican presidential candidate Donald Trump just took that to a new level, saying he’d try to “scare” the pope by telling him: “ISIS wants...
Children Press-Ganged into EcoService
Whether they’re old enough to believe in the EcoGospel, or Gaia, or man-made climate change or not, children are the latest weapon pressed into service by the eco-warriors. First, it was co-opting Pope Francis and Laudato Si, and now it’s kids. Will they stop at nothing? The Wisconsin Daily Independent reported this past Monday that a group calling itself Citizens Preserving the Penokee Hills Heritage Park is promoting its environmental agenda with a painting of a young Native American girl...
Video: Creation And The Heart Of Man
Pope Francis has started an important global discussion on the environment with the release of his encyclicalLaudeto Si’, which the Acton Institute has been engaging in with vigor since it’s release, and has been ably covered as well here on the PowerBlog by the likes of Bruce Edward Walker and Joe Carter. But this isn’t the first time that Acton has waded into the debate over protecting the environment; Acton Founder Rev. Robert A. Sirico was debating Matthew Fox, proponent...
Could Wealth Redistribution End Global Poverty?
Americans make up around four percent of the world population and yet they control over 25 percent of the world’s wealth. What if we were to simply redistribute our wealth to the most needy people on the planet—wouldn’t that end global poverty almost overnight? “The answer unfortunately is no,” says philosopher Matt Zwolinski. “Sharing one’s wealth with those who have less is admirable and it often helps to relieve immediate suffering. But just sharing existing wealth we’ll never be enough...
How Protestant Missionaries Spread Democracy
Over the past 500 years, some countries have proven to be more receptive to democracy than others. What accounts for the disparity? What causes some countries to be more likely to embrace democratic forms of governance? As empirical evidence shows, one strong predictor is the presence of Protestant missionaries. “Protestant missionaries played an integral role in spreading democracy throughout the world,” says Greg Scandlen. “We could preserve our own if we learn from their ways.” Today we may think of...
The Denver City Council’s Despicable Disregard for the First Amendment
If you want to sell chicken sandwiches as the Denver Airport you need to check your First Amendment rights at the gate. That seems to be the message sent by the Denver City Council to Chick-fil-A, a fast-food chain that is seeking to open a store at the Denver International Airport. The Council is considering turning away the popular franchisebecause pany promotes a Christian ethic in their business dealings. This offends the Council who is worried about how it will...
Overcoming ‘Anti-Foreign Bias’ in Trade and Immigration
Many conservatives exhibit a peculiar tendency to be pro-liberty when es to business, trade, and wages, but protectionist when es to the economic effectsof immigration. It’s an odd disconnect, and yet, as we’ve begun to see with figures like Donald Trump and Rick Santorum, one side is bound to eventually give way. They’ll gush aboutthe glories petition, but the second immigration gets brought up, they seem to defer tolabor-union talking points fromages past. When pressed on this in a recent...
Gleaner Tech #4: A “Drinkable Book” That Turns Raw Sewage Into Drinking Water
[Note: See this introduction post for an explanation of gleaner technology.] Lack of clean drinking water is one of the greatest public health problems on the planet. Around the world there are 750 million people—approximately one in nine—who lack access to safe water, and millions will die each year from a water related disease. But a new “drinkable book” may soon provide an inexpensive way for the poor to get potable water. While getting her PhD in chemistry, Theresa Dankovich...
Americans Don’t Know Pope’s Environmental Views (And What That Means For Us)
There has been no document by a world leader that has received more attention this year than Laudato Si. Three months have passed since Pope Francis released his encyclical on the environment, and yet the media coverage and mentary on it has hardly waned. Here on the Acton PowerBlog, Bruce Edward Walker has piling a daily list of links related to news mentary on the encyclical. To date he has 62 posts with hundreds of links. As the Associated Press...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved