Researchers from the University of Washington presented before a full City Council their early analysis of the impact of Seattle’s gradual march to a universal $15 minimum wage. The report — the first in a series of several commissioned by the council in tandem with their passing of the original wage hike ordinance — showed that, aside from a roughly 7% price increase in Seattle’s restaurant industry, there hasn’t been runaway cross-industry price inflation like some critics predicted. So, what do Capitol Hill’s bar, restaurant, and retail business owners have to say about the findings?
The report surveyed 567 Seattle businesses (the majority of whom have less than 500 employees, the city’s definition of ‘small business’) and 55 employees between the months of January 2015 and May 2015. During that period, the ordinance raised hourly wages to eleven dollars for non-tipped workers and ten for those receiving tips or medical benefits. And while the report didn’t find substantial price inflation (a look at grocery store, gasoline, and retail prices showed no noticeable increase), in addition to the recorded uptick in restaurant prices, a majority of employers surveyed said that they have or plan to raise their prices in order to accommodate the new labor costs.
“The bottom line is if there’s any place we can find price impacts, it is in restaurant sector,” research Jake Vigdor from the University of Washington Evans School of Governance and Public Policy told the council.
Capitol Hill business owners say these findings aren’t shocking. “We all knew that prices would go up and we’re seeing that as a result,” said Pike/Pine nightlife entrepreneur David Meinert. “I don’t think anyone should be surprised at that.”
Rich Fox, co-owner of Poquitos restaurant on Pike and the Rhein Haus on 12th, agrees. “What I see [in the report] is pretty consistent with what we’re dealing with at this point,” he said. “We’ve raised prices to account for the increase in labor.”
Both Fox and Meinert say that they haven’t raised prices universally (like bumping everything up 2% or what have you), but have strategically looked at what has been selling and where they think they can push consumer spending limits. “You pick your battles, where there is acceptable room to move and what you’ve sold in the past,” said Fox. Continue reading