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Here’s What Every Local Restauranteur Needs to Focus on Now, Given the Minimum Wage Hike in Seattle

This past week, Seattle’s Minimum Wage Ordinance went into effect, phasing in an increase to the minimum wage to $15 an hour over time. According to Seattle.gov:

Small employers (fewer than 500 employees) will reach a $15 an hour minimum wage in seven yearsLarge employers (500 or more employees, either in Seattle or nationally) will reach $15 per hour in three years

How are restaurants, in particular, reacting to this this initiative?

Some restaurants are opting to increase the minimum wage to $15 immediately for their employees, instead of the mandated $11 for most employers as of April 1, 2015. Ivar’s Salmon House, for example, is paying its employees $15, while at the same time removing tips, but making up for tips by sharing the money generated by menu price hikes. Others are cutting operating hours to compensate for the increased wage expenses.

A survey conducted among 500 members of The Washington Restaurant Association found that restaurants would likely decrease hours, increase prices, or layoff staff in light of the minimum wage increase.

So what is a restaurant to do? For one thing, market your restaurant. Advertise. Publicize. Are you focusing on any or all of the following, and if not, now is the time to be business savvy or hire a consultant to help in the following areas:

Marketing plan development – what do you want your restaurant to look like one month from today? One year from today?

Public relations – reach out to the local media; how is your restaurant unique, what are you doing to remain profitable? It’s time to share your story.

Search engine optimization – how are your potential and repeat customers finding you?

Social media – are you having a conversation with your potential and current customers online?

Email marketing – are you reaching out via e-newsletters to your clientele?

Consider that 36 percent of operational costs for full-service restaurants are labor costs, according to the Washington Restaurant Association. With the new ordinance, labor costs will increase to 47.8 percent. Now consider that a surprising 400 restaurants in Seattle close or change hands every year.

If refreshing your marketing strategy isn’t on your immediate “to-do” list, it’s time to add that line item to your list. And move it to the top.

Krista Ulatowski, MPH, RDN:
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