OPINION | Seattle's Untested New Gig Work Law Is Making Life Harder for Small Businesses

by Tonin Gjekmarkaj

I own and operate Byrek & Baguette, a local bakery and caf in Seattle serving Albanian dishes that have been perfected in our family for generations. We strive to provide great food and great service while creating jobs and contributing to the community. Unfortunately, the latest costly regulations imposed by Seattle's City Council are changing all that.

The costs of eating out and ordering in are rising rapidly, spurred by inflation, high rents, staffing costs, and — most notably — the newly enacted Seattle City Council policies that have increased fees for app-based delivery.

Third-party delivery apps have helped us stay in business during the worst of times and continue to help us retain and grow our customer base. Not only are we keeping current customers happy, but we're also reaching new customers through app-based delivery services, which historically account for nearly 50% of our sales.

But all that appears to be changing. The City recently implemented a minimum pay standard regulation that requires independent app-based delivery drivers to earn nearly double the local minimum wage, or roughly $30 per hour. This drastic increase has led to huge spikes in delivery costs. Simply put, consumers cannot afford to order delivery in Seattle because of the City's reckless policies. What's worse, the City didn't test this policy or consult business owners like me — they simply deployed a massive change to our local economy and expected businesses and consumers to bear the costs.

There is some initial evidence of consumer price-increase fatigue in just the first week of the minimum earnings standard being implemented. We've already seen a nearly 50% drop in third-party delivery app sales. It remains to be seen what the City's 10-cent-per-delivery fee on every order will do when it kicks in next year.

Restaurant margins are so small that we simply cannot withstand this or any decline like it over the long term. The fact is, our customers have grown used to delivery for the convenience it offers, and now the City has drastically reduced this revenue stream with an untested policy.

It's not just businesses bearing the brunt of bad policy. App-based delivery drivers are also being negatively impacted. A recent report by KING 5 highlighted the adverse impacts of Seattle's regulatory costs for app-based delivery workers. One delivery driver said he made $931 last year in one week and only $464.81 this year for the same week. That's just shy of a 50% drop in earnings. The new ordinance, drivers said, is "backfiring" and hurting those the policy promised to help.

This isn't good for my business or struggling city residents who use app-based work to supplement their income in an increasingly expensive city.

As a resident and business owner, it astounds me that our leaders aren't focused on critical, wide-spread issues like affordable housing, public safety, and policies that increase economic activity and vibrancy.

I don't speak for everyone, but I think I can sum up a general feeling in the business community: The Seattle City Council stepped way out of bounds again with this law that they didn't think through. They didn't do their homework to determine what restaurants really need, and now consumers, businesses, and independent app-based delivery workers are all paying.

This year, a new City Council has been sworn in, and all signals point to a change in culture and a more focused approach to make our city, workers, and businesses stronger. I hope they will listen to the businesses, delivery workers, and customers and repeal this law that is hurting us all.

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Tonin Gjekmarkaj is a Seattle restaurateur and owner of Byrek & Baguette.

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