McDonald’s franchise owner Scott Rodrick says his company has faced “cost pressure” since California’s minimum wage hike targeted “Maria Bartiromo’s Wall Street” fast-food franchises.
Bebop Waffle Shop permanently closed its doors Monday after another minimum wage hike made operating costs unsustainable.
Corina Luckenbach, owner of a West Seattle waffle maker, lamented having no choice but to close his business when the city’s new minimum wage law took effect Jan. 1, raising the hourly wage to $20.76.
“That was my dream. To own my own coffee shop, run it the way I want and really be of service to people,” Luckenbach said. told Fox 13, later noting that she “cried every day” about her impending closure due to multiple factors.
Luckenbach, who founded Bebop Waffle Shop more than 10 years ago after emigrating from New York, said his business was already struggling with high inflation and a decline in foot traffic due to the growing popularity of working at home. residence.
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Waffle shop owner Corina Luckenbach lamented the closure of her business due to rising costs of employing workers. (FOX 13 YouTube channel)
“It doesn’t make financial sense anymore. Because, just for me, the raise would cost me $32,000 more a year,” she told Fox 13.
According to The New York Post“The new $20.76 an hour law – $4 more than the minimum wage requirement in Washington state – applies to large and small businesses. It also eliminates tip or gratuity credits. benefits.”
Many local businesses that once served as gathering places for the community have been forced to close their doors due to the COVID-19 pandemic and its economic fallout, and the Bebop Waffle store, named after the owner’s dog, no longer seems to be no exception.
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Corina Luckenbach, owner of Bebop Waffle Shop, attributes the closure of her business to the rising minimum wage and reduced foot traffic. (Fox 13 YouTube channel)
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Luckenbach revealed to the media that “the hardest thing” about closing the business is that ultimately it “takes away a safe space for people.”
“The stories about what it meant for people to come in and feel safe and feel welcomed — I just didn’t know,” she said through tears.
By early 2025, nearly half of U.S. states have seen minimum wage increases, which means higher wages for some 9.2 million workers, according to recent data.
Raising Cane Co-CEO AJ Kumaran explains how California’s minimum wage increase impacted his company in “The Claman Countdown.”
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An analysis from the Economic Policy Institute indicates that 21 states were poised to raise their minimum wages at the start of the year, along with 48 cities and counties that would raise their wage floors above their respective minimums – mainly in California, Colorado and Washington.
Breck Dumas of Fox Business contributed to this report.
