McDonald's franchise owner Scott Roderick says his business has been under cost pressure since California's minimum wage hike targeted Maria Bartiromo's Wall Street fast-food franchises.
Bebop's Waffle Shop closed its doors for good on Monday after a new minimum wage hike made operating costs unsustainable.
Corina Luckenbach, owner of A West Seattle The Waffle Shop lamented that it had no choice but to close when the city's new minimum wage law went into effect on Jan. 1, raising wages to $20.76 an hour.
Luckenbach “It was my dream. To have my own cafe, to run it the way I want and I really like to serve people.” told Fox 13, He later noted that he had “cried every day” about its impending closure due to multiple factors.
Luckenbach, who founded Bebop Waffle Shop more than 10 years ago after moving from New York, explained that his business is struggling with both high inflation and low traffic due to the growing popularity of working from home. was doing
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Corinna Luckenbach, the owner of the Waffle Shop, lamented the closure of her business due to increased costs to hire workers. (FOX 13 YouTube channel)
“It doesn't make financial sense anymore. Because just for me, this raise is going to cost me $32,000 more a year,” he told Fox 13.
according to New York Post“The new $20.76 hourly law — which is $4 above Washington state's required minimum wage — applies to businesses large and small. It also eliminates tip credits or benefits.”
Many local businesses that were once community gathering places have been forced to close amid the Covid-19 pandemic and its economic fallout, and Bebop Waffle Shop, named after its owner's dog, appears to be no exception.
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Corinna Luckenbach, owner of Waffle Bebop, credits the increase in the minimum wage and reduced foot traffic for closing her business. (Fox 13 YouTube channel)
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Luckenbach revealed to the media The “hardest thing” about closing a business is that it ultimately “takes away a safe space for people.”
“Stories like what it meant to people to come in and feel safe and feel welcome — I just, I didn't know,” she said through tears.
By 2025, nearly half of US states would have seen it raising the minimum wage That meant a pay rise for 9.2 million workers, according to recent data.
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An Economic Policy Institute analysis shows that 21 states were set to raise their minimum wages at the start of the year, with 48 cities and counties raising their wage floors above their respective state minimums. Mostly in California. Colorado and Washington
Fox Business' Burke Dumas contributed to this report.