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In Seattle, the city with the ninth highest cost of living among metro areas in the U.S., eating out can be expensive. In our recent Seattle Restaurant Week diner survey, people told us that higher menu prices over the last few years means they’re pickier about when and where they eat out, and some now save it for special occasions.
At the beginning of this year, Seattle’s minimum wage increased to $20.76 per hour. While most employees earn much higher wages than this, the new policy also eliminated the tip credit for small employers like most restaurants (which allowed employers to count an employee’s tips as a part of their overall wage compensation), effectively resulting in a $3.51 increase per hour. This will in effect add thousands or tens of thousands of dollars a month to most restaurants’ labor costs. As a result, those already high dine out costs continue to climb.
Understanding that raising the minimum wage was necessary to address rising costs of living in Seattle, restaurant owners, employees, and diners were overwhelmingly in support of the wage increase. However, higher labor costs mean higher menu prices, and with 53% of Seattle Restaurant Week diners reporting they are less likely to eat out if it continues to cost more, restaurants and their workers are in a very precarious position.
Less business could mean layoffs or reduced hours for workers as well as restaurant closures. Ultimately, it’s up to diners to keep eating out for the minimum wage increase to benefit workers as intended.
How we got here
Over the last 10 years, Seattle has seen more restaurant labor requirements go into effect like paid sick and safe leave, as well as wage increases. These were part of welcome and necessary changes, addressing long standing gaps in compensation exacerbated by race and gender inequities.
In addition to these higher labor costs, other factors have compounded the economic challenges for restaurants, including accrued debts and lost business due to the pandemic that have hindered recovery, food prices that have risen 25% between 2019-2023 — a higher rate than all-items on the Consumer Price Index — and commercial rent increases that mirror housing prices across the region. These businesses with notoriously low margins have very little room to weather additional cost increases. According to a 2024 Deloitte study cited by the WA Hospitality Association, Seattle restaurants made an average of 1.5% profit margin over the past year, compared to 4% nationally.
Some restaurants have adopted service charges as a way to fill gaps in higher expenses. Diners can probably expect to see more service charges or other pricing models as businesses explore ways to meet their obligations to both employees and guests. Diners in our own survey, reiterating their desire to see restaurant employees earn a living wage, provided their input on models they most prefer, including higher prices with tips included in the menu price. A little patience and grace will go a long way as restaurants experiment with new ways to make it work.
How you can support Seattle’s restaurants
We know that dining out more is something not everyone’s budget can bear. We hear you. However, for those who have the means to do so, dining out is the best way to keep our restaurants afloat. If you’re able to, dine out more frequently. Aside from treating yourself — and family and friends — to delicious cuisine, it’s a tangible investment in those favorite community hubs and neighborhood anchors you want to see there for years to come.
There are plenty of other ways we can still support our restaurants, even if it takes a little creative thinking.
Dine out during Seattle Restaurant Week!
From March 30 – April 12, over 200 restaurants will offer specially curated menus at a range of prices that fit most budgets, from $20 up to $65.
This is your sign to plan a date night or friends and family gathering at a local restaurant. Is there a restaurant you’ve been meaning to check out, or maybe a spot you love but haven’t been to in awhile? Make a date and put it on your calendar!
Buying gifts? Purchase a gift card at a restaurant
A restaurant gift card is perfect for any occasion: holidays, birthdays, special achievements, celebrations, and anniversaries. Everybody’s gotta eat, and purchasing gift cards supports restaurants and workers.
Plan your celebration at a restaurant
Similar to purchasing gift cards for special occasions, you can plan a memorable event at a restaurant. We can’t think of a better way to celebrate than by bringing family and friends together over great food and drinks. Of course you’ll want to call ahead and make reservations for larger parties.
Support local for catered events
Work parties, family reunions, graduation parties, and other special events are all opportunities to support our local culinary communities! If your company purchases meals for coworking sessions and other events, suggest that they opt for a local caterer who prioritizes locally produced, seasonal ingredients. Check out Eat Local First’s listing of catering companies for ideas.
Spread the word: Enjoy a recent meal out? Tell your friends about it!
Now is the time to hype up your favorite restaurant, cafe, or bar. Maybe that’s your local date night spot, the cafe around the block that has your order memorized, or your favorite hidden gem — tag them in a social media post, tell your friends, and help get the word out.
Have an outstanding dining experience? Let your server know, post a positive comment on the restaurant’s social media, or find another way to pass on your praise to the restaurant and workers themselves.
This Seattle Restaurant Week, pull up a seat, and show up for the places you love.
Please reach out to us at gro.doogelttaes@wrs with questions or inquiries!
Seattle Restaurant Week is a promotion of Seattle Good Business Network’s Good Food Economy program. Copyright © 2025 Seattle Restaurant Week, all rights reserved. Site by Cocomo.dev.
