I don’t know about you, but I can’t believe we are already into the new year. We’ve got an election coming in February (vote Yes on the Seattle Public School levies and Yes on Proposition 1B!), legislative session is in full swing, and we’re gearing up for our spring trips to destinations like Germany and Toronto, Canada. And while many of us are feeling optimistic and excited for 2025, the story feels much different for many of our small businesses.
To use the cliché – Seattle, we have a problem: Too many of our small businesses are not healthy, and we’ve got to do something about it – all of us.
It’s not news that many small businesses, especially restaurants, especially in Seattle, are struggling.
You’ve read about it in the news. You’ve seen the closure notices. You’ve seen boarded-up storefronts. And it’s not news that the pandemic, inflation, and waves of supply chain and hiring challenges are major contributors.
But there’s more to it than that, and we need to acknowledge it and do something about it – all of us.
When it comes to government, public officials are making well-intentioned policy choices that are having consequences – and those are piling up – and we are hearing about it regularly from members like you.
For example, in 2024, one Chamber member saw a 30% decrease in app-based delivery orders, lost four months of revenue at a new location because of delays in permit approvals, and is expecting a 20% increase in operating costs because of the minimum wage increase. In 2014 the minimum wage increase was expected to be $0.50, but in 2025, it is actually going to be a $3.51 increase. That’s a lot of impact in 365 days.
One member saw their insurance premium estimate go up 30% year-over-year, which their agent attributed to public safety concerns. She shopped around, but couldn’t find anything less expensive, so she is considering forgoing an expansion opportunity to make the books balance.
Another member faced so much online doxing for speaking up about their experience that they had to close for a period of time – meaning they lost even more revenue.
We need to do better – our small businesses are job creators, major contributors to the economy, and a critical part of the social fabric that make our neighborhoods places we want to be.
So here’s what we need in 2025.
Small business owners and operators: Tell the Chamber what you need today so we can put our elbow in and be your best champion.
Public officials: Consider your policy decisions in the context of everything else happening to these businesses. Don’t ignore voices raising concerns around real consequences, no matter how inconvenient they are to the conversation. In many ways, government creates the environment that businesses thrive or fail in, and it needs to be accountable to that.
Residents and visitors: Patronize these businesses, often. Appreciate the struggles of small businesses are real, and the challenges are often not self-inflicted. And have grace when they are wrestling with actions like raising prices, shifting hours, using surcharges, or changing their business models – these are almost always last resorts to make things pencil, not first choices.
Business organizations: We need to make sure businesses know what resources we have to help them, like our Business Health Trust, which lowers employee insurance costs, specialized IT help and engineering services, free personalized solutions for businesses of any size from grand opening services, visibility and marketing opportunities, and of course, being your advocate and champion.
I sometimes hear that when one small business or restaurant closes, have no fear because another one will open in its place a few months later. I totally reject that zero-sum game thinking. There is no reason we can’t have both businesses, and our community would be better for it.
We are working with Seattle Mayor Bruce Harrell on some innovative ideas that may push the envelope, which is a good thing. We’re running our Community Business Connector program throughout King County helping connect small businesses to technical assistance. And we’re working statewide on a playbook to help small businesses prepare for the impacts of the 2026 FIFA World Cup, so they can be ready and resilient. But we need to do more – all of us.
Because Seattle isn’t Seattle if you can’t stop and pick up a small gift for a friend at Watson Kennedy, then meet them for dinner at Tutta Bella before heading to a show at The 5th Avenue Theatre, followed up with a late-night burger and milkshake at Dick’s Drive-In.
Rachel