Many thanks to Tutta Bella Neapolitan Pizzeria Seattle at REN for hosting the Seattle Restaurant Alliance January meeting.

We were happy to host a productive discussion on how to survive and thrive in Seattle in 2025. Below are some of the ideas of what our members were doing to diversify their revenue and mitigate losses for a tough new year.

Diversifying revenue

• Some restaurants are deciding to add new revenue sources to overcome potential hardship this year, which include:

Catering

Events

Larger delivery emphasis

Pop-ups

• Others are looking to reach out to new markets to increase their customer base by changing their menu more frequently or adding new menu items for people with dietary restrictions.

• While some restaurants already use service charges to drive additional revenue, others expressed reluctance to add service charges to avoid negative customer reactions.

Mitigating losses

• To meet rising goods and labor costs and to offset losses, many restaurants are raising menu prices.
• Many are looking to change their tipping system in the new year due to the changes in total compensation in Seattle leading to a steep increase in minimum wage. In most cases there is a shift to allocating more pooled tips to back-of-house employees in order to balance overall pay levels. This is an ongoing dilemma for Seattle restaurants, many of whom have needed to change their entire model.
• Many restaurants are reducing their hours of service because they cannot afford to stay open during slower hours. Some have decided to cut entire days or cut an hour at open and close because they are the slowest times.

Other topics

• Many expressed concerns about the uncertain business environment of 2025. News of closures and reduced hours are increasingly visible in the media.
• Guests are starting to comment about tipping less given the publicity of the minimum wage increase. This is an additional unknown factor in overall compensation.
• There was general discussion about wanting to “change the message” about our industry in the public view. The last year has seen a swarm of negatively-toned media coverage (high cost of eating out, minimum wage, etc.). Members expressed a desire to shift to more positively-themed topics about the impacts restaurants and bars have in our local communities.

We also had a presentation from Julia Gorton from the Washington Hospitality Association’s state team, who gave an overview of the association’s legislative priorities for 2025. Hill Climb will be held virtually from Jan. 27-31. You can register HERE.

Next SRA meeting:

Our next meeting is Feb. 5. RSVP for location.

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