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?
Jul 1, 2025 10:08 PM

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 Bearing Each Other’s Burdens Can Lighten Our Burden of Debt
In this week’s Acton Commentary, “A Passion for Government Leads to Neglect of Our Neighbor,” I examine how the disconnect between desires and deeds with reference to helping the needy among us perpetuates unbalanced budgets and spending on debt to the detriment of future generations. I highlight how St. John the Baptist came to “turn the hearts of fathers to their children” (Luke 1:17) by exhorting people to look to their neighbors and the small but practical ways they can...
Video: Rev. Sirico on the Papal Conclave
KNOP-TV featured a report earlier this week in which it interviewed Acton president and co-founder, Rev. Robert Sirico describing the tough decision the Cardinals faced when choosing a new pope. ...
Audio: Rev. Robert A. Sirico Discusses Pope Francis with Hugh Hewitt
Acton Institute President Rev. Robert A. Sirico has been in Rome all week for the Papal Conclave, and joined host Hugh Hewitt on The Hugh Hewitt Show yesterday afternoon to discuss the new pontificate of Pope Francis. What kind of a man is Pope Francis? What will his priorities be for his pontificate? What is his view on markets? All these questions and more are explored in the conversation. Listen to the full interview here: ...
Pope Francis: For the Church, the City, and the World
Pope Francis Surprise was the reaction in Rome on hearing of the elevation of Cardinal Jorge Mario Bergoglio, Archbishop of Buenos Aires, to the Papacy. My colleagues in Rome told me that the Plaza was unusually quiet as the people tried to figure out what was going on. I guess the Cardinals showed that they elect the pope on their own terms, and now everyone is wondering who Pope Francis is, how he will lead, and what will characterize his...
Audio: First reactions to Pope Francis on ‘Al Kresta in the Afternoon’
Director of the Istituto Acton in Rome, Kishore Jayabalan, and Acton Director of Research, Samuel Gregg, were recently featured on Ave Maria’s Al Kresta in the Afternoon to discuss the selection of Cardinal Jorge Bergoglio of Buenos Aires as Pope Francis. Jayabalan was in St. Peter’s Square for the announcement and he says that the mood in Rome was quite different than it was in 2005. Despite the thousands of people in the square, it was very quiet; most people...
Samuel Gregg: Is Pope Francis a Man of the Left?
Pope Francis At National Review Online, Acton Research Director Samuel Gregg talks about the “profound illustration of the limits of applying secular political categories to something like the Catholic Church.” He goes on to discuss the “particular concerns” that Pope Francis has regarding economic issues, including materialism and consumerism, and the poor, all reflected through his life of asceticism. Gregg then places these reflections in the context of modern day Argentina. More: Over the centuries … Catholics have actually disagreed...
Evangelical Luis Palau Discusses Fellow Argentine Native Pope Francis
Evangelical leader Luis Palau discusses his old friend and fellow Argentine native, Pope Francis, in a new interview at Christianity Today. A few excerpts that stood out to me: He’s a very Bible-centered man, a very Jesus Christ-centered man. He’s more spiritual than he is administrative, although he’s going to have to exercise his administrative skills now! But personally, he is more known for his personal love for Christ. He’s really centered on Jesus and the Gospel, the pure Gospel....
Education Inequality is Family ‘Inequality’
Over at the , Sarah Garland wonders how we can move toward ending “racial inequality in gifted education” programs. Garland laments the following: Gifted and talented programs have been the target of criticism ever since the concept took hold in the 1970s as huge demographic changes were transforming urban school districts. White, middle-class families were fleeing to the suburbs. Like magnet schools, accelerated programs for gifted students were attractive to many of these families and provided a way to counteract...
Video: Kishore Jayabalan discusses Pope Francis on France 24
Kishore Jayabalan, Director of Instituto Acton in Rome, Italy, joined France 24 News today to discuss the pontificate of Pope Francis I as he assumes his new office of leadership. ...
Rod Dreher on Community, Calling, and Life with Limits
In his ing book, author and journalist Rod Dreher chronicles his journey back to his hometown of St. Francisville, Louisiana, in “the wake of his younger sister Ruthie’s death.” After spending time in St. Francisville during the final months of his sister’s life, Dreher, who left his hometown as a teenager and bounced around from city to city in the years proceeding, was struck by the support and generosity his sister received from munity. In a column written shortly after...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved