Seattle restaurants innovate to tackle rising labor costs with new dining models

Eating out will likely be an evolving experience for customers as restaurants in Seattle and elsewhere look for new ways to deal with soaring labor costs and other economic pressures.

Anthony Anton, the president and CEO of the Washington Hospitality Association, said local restaurants will need to change their business models if they plan to remain viable in the coming years.

“I think you're going to find a fascinating economic setting in 2025,” Anton said. “We're going to see a lot of attempted changes for new ideas and new models."

"Some of them will work," Anton added. "Some of them will bluntly be rejected by either our workers or by consumers, and we're going to see the emergence of a different kind of restaurant model throughout 2025."

One of the latest pressures on food and beverage operators in Seattle is the rise of the minimum wage at the start of the year, coupled with the loss of the tip credit.

The previous minimum wage in Seattle was $19.97, but the tip credit allowed restaurant owners to pay their workers $17.25 per hour due to the gratuities and other benefits they received.

With the expiration of the tip credit, restaurants must now pay their employees at least $20.76 per hour, which is a $3.51 increase per employee per hour.
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Joel Moreno

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