Since the initial story about Seattle restaurant closings is making its way through the right wing blogs at the moment, prompting one wingnut outlet to declare that Seattle restaurants are closing “in record numbers,” let’s take a loot at the actual evidence provided in the story that launched the chain reaction. Before we begin let’s note despite long having one of the highest minimum wages in the country, while being located in one of only a handful of states with no ‘tip credit’ for wages, Seattle still manages to have the highest density of restaurants anywhere in the country, except for San Francisco and the greater New York City area.
What’s the evidence? The Seattle Magazine article that started this game of telephone identified four (4) restaurants that have closed or will close between February and May 2015. (A 5th restaurant is seeing its award winning chef resign to move to Spain; the alleged relevance here is unclear.) Included in these four restaurants is one that remains open at its original location, shifting its focus back to their original model, another is owned by one of Seattle’s most successful and celebrated restaurateurs, who continues to own five thriving establishments and is in the process of opening two new restaurants. The owner of the third closing restaurant (easily the most over-hyped Indian restaurant openings I’ve ever seen), identifies the reason for closing as a poor fit between format and location, which seemed pretty obvious to me when they opened. The space the fourth restaurant occupies will be immediately replaced by another new restaurant.
What isn’t included is any analysis to suggest openings are failing to keep pace with closings. Given the short typical lifespan of a restaurant and the size of Seattle, we should expect annual openings and closings to be in the hundreds in a typical year. Identifying four closing restaurants over a four month period is evidence for the thesis in the same way finding a bunch of Democratic voters who don’t want to vote for Hillary Clinton is ‘evidence’ her campaign is in trouble. Indeed, the right wingers are hoping you don’t read the original article, which closes by refuting its own highly speculative thesis:
Despite these serious challenges, however, brave restaurateurs continue to open eateries in Seattle, which, remembering basic supply and demand, also naturally accounts for closures we’ve already seen and more that will come. Capitol Hill alone is carrying on an unprecedented dining boom, and in mid January, Capitol Hill Seattle announced that Nue, Chris Cvetkovich’s modernist global street food joint, was the neighborhood’s 100th food and drink opening in three years.
Other major Capitol Hill additions from the last few months include Stateside, (Eric Johnson’s long-awaited French-Vietnamese outpost), Tallulah’s (Linda Derschang’s [of Smith and Oddfellows] casual neighborhood café) and Serious Pie Pike (Tom Douglas’s third location of his pizza joint, now open in the new Starbucks Roastery). Moreover, just this week on the Hill, we’ve got news of Lisa Nakamura opening the Gnocchi Bar in the Packard Building on 12th Avenue (formerly the Capitol Hill D’Ambrosio Gelateria Artigianale) at the end of March.
Those keeping score at home will note that the article identifies more restaurants opening than closing.
I have no idea what impact, if any, Seattle’s minimum wage increase will have on total employment in the restaurant industry. It’s well worth watching, because knowing at what point more aggressive minimum wage increases have this kind of impact may be useful for shaping future policy. It’s also important because business owners and ideological opponents of the minimum wage will lie and obfuscate to create a false impression of negative impacts, whether they exist or not.