McDonald’s franchise owner Scott Rodrick says his company has experienced “cost pressures” since California’s minimum wage hike targeted fast food franchises on “Maria Bartiromo’s Wall Street.”
Bebop Waffle Shop closed its doors on Monday after a brand new minimum wage increase made operating costs unsustainable.
Corina Luckenbach, owner of A West Seattle waffle shop, lamented that she had no alternative but to shut her business when town’s latest minimum wage law went into effect on January 1, raising the hourly wage to $20.76.
“It was my dream. Own my own cafe, run it the way I want and really serve people” – Luckenbach he told Fox 13 she later noted that she “cried every day” over the upcoming closure for a lot of reasons.
Luckenbach, who founded Bebop Waffle Shop greater than 10 years ago after moving from New York, said her company was already combating high inflation and lower foot traffic because of the growing popularity of working from home.
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The owner of the waffle maker, Corina Luckenbach, lamented the closure of her business because of the rising costs of employing employees. (FOX 13 YouTube channel)
“It won’t make financial sense anymore. Because in my case, the raise will cost me $32,000 more a year,” she told Fox 13.
According to New York Post Office“The new $20.76 per hour law – which is $4 more than Washington State’s required minimum wage – applies to businesses large and small. It also eliminates tips and benefits.”
Many local businesses that after served as community gathering places have been forced to shut because of the Covid-19 pandemic and its economic fallout, and the Bebop waffle shop, named after the owner’s dog, appears to be no exception.
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Bebop Waffle Shop owner Corina Luckenbach credited a minimum wage increase and reduced foot traffic for closing her business. (Fox 13 YouTube channel)
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Luckenbach revealed to the media that the “hardest thing” about closing a business is that it ultimately “takes away people’s safe space.”
“The stories of what it meant to people to come and feel safe and welcome – I just didn’t know,” she said with tears in her eyes.
The latest data shows that in early 2025, almost half of US states increased the minimum wage, which meant a pay increase for about 9.2 million employees.
Raising Cane co-founder AJ Kumaran discusses the impact of California’s minimum wage increase on his company in “The Claman Countdown.”
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An evaluation by the Economic Policy Institute found that 21 states were expected to boost their minimum wages at the beginning of the yr, and 48 cities and counties raised minimum wages above state minimums – mainly in California, Colorado and Washington.
Fox Business’ Breck Dumas contributed to this report.
