Across Washington state, family-run restaurants aren’t just places to eat—they’re places of memory, culture, and community. From the teriyaki shops anchoring Seattle neighborhoods to diners in Wenatchee and noodle bars in Spokane, these local treasures carry the flavors of tradition and immigrant ingenuity. But today, they’re being buried under a mountain of regulations, taxes, and fees.
Running a restaurant has never been an easy task. However, it’s now becoming nearly impossible. Owners navigate shifting health standards, absorb staggering utility increases, pay ballooning payroll taxes, and field new reporting mandates with barely a moment’s notice. Just as they recover from pandemic-era losses, they’re hit with fresh burdens—not backed by data or practicality, but by a system indifferent to their reality.
High labor costs—especially in Seattle, where the minimum wage is now $20.76—combined with inflation driving up the costs of food, rent, utilities, and insurance, are squeezing profits. In 2023, the average profit margin for restaurants in Washington was just 1.5%. Even the busiest spots are barely staying afloat. And on top of everything, some restaurant owners are also facing break-ins and theft, which add another layer of expense, with repairs and stolen inventory hitting owners already operating on razor-thin margins.
For generations, owning and operating a restaurant has been a cornerstone of the American Dream for immigrant families. It’s how newcomers build roots, create jobs, and share their heritage with the community. The menus may differ, but the story is the same: hard work, sacrifice, and the hope of a better future. In Bellevue alone, some of the region’s most beloved eateries—family-owned pho shops, Indian cafes, Chinese bakeries—were born from that dream.
Seattle’s recent experiment with gig-worker regulations and untested delivery pay law have had painful consequences. Restaurants—especially those relying on delivery—have seen fewer orders and higher costs. Data from the Washington State Department of Revenue shows a 5% decline in restaurant sales in the first quarter of 2024 compared to the year before. Seattle’s delivery pay ordinance, though well-intentioned, has raised costs for app-based delivery services and shrunk demand. For working families, the homebound, and countless others who rely on delivery services for food, groceries, and essentials, these added costs have made convenience a luxury they can’t afford.
Now, lawmakers are renewing their push for a statewide “delivery fee” to fund road maintenance. Though paused for now, it’s slated to return in 2026. Add that to the growing stack of taxes and fees, and you have a recipe for shuttered storefronts, especially in places where the cost of doing business is already sky-high.
These businesses aren’t backed by venture capital. They’re backed by grandmothers’ recipes and second mortgages. They employ local teens, feed local families, and donate to local causes. They don’t need handouts—they need common-sense policies that recognize their value and stop pushing them to the brink.
Let’s simplify licensing. Roll back excessive taxes. Build space for restaurants to grow—not just survive. And let’s ask honestly: Are we building a region that welcomes the world with local flavor and community resilience—or one that surrenders those values to unchecked bureaucracy?
Jared Nieuwenhuis is a member of the Bellevue City Council. He was first elected to the council in November 2017.
