New Gig Ordinance in Seattle Cuts Into Pizzeria Sales
Seattle’s new “PayUp” gig-worker ordinance—enacted in mid-January 2024 to guarantee app-based delivery workers a minimum wage of approximately $26.40 per hour before tips—was meant to uplift those drivers. Instead, it’s slicing deeply into small businesses’ revenues.(m.kuow.org, GeekWire, KOMO)
At Il Villaggio, an Italian pizzeria in Magnolia, owner Jeffrey Stern reports a dramatic 50 percent drop in delivery orders via third-party apps. “Just in the third-party delivery apps? Fifty percent down,” he laments. On a typical Sunday evening, they’d receive 13–20 delivery orders—but on one recent night, only three came through by 5 p.m.(king5.com, Hoodline) Customers are reacting to a new $5 “regulatory response fee” tacked onto app orders to offset rising operating costs faced by delivery platforms.(king5.com, KOMO)
At Spice Waala, where around 30–40 percent of sales historically came from delivery, co-owner Uttam Mukherjee reports a similarly painful decline. Since January, they’ve seen a corresponding 30–40 percent slump in delivery revenue, pushing the business perilously close to unprofitability.(m.kuow.org, KOMO)
Amid mounting frustrations, some restaurant owners are scrambling to pivot. Il Villaggio, for example, is considering deploying a pop-up on its website encouraging customers to save up to 30 percent by ordering directly—bypassing app-based fees altogether.(king5.com)
Meanwhile, delivery drivers and their advocates remain split: some argue the law is improving pay, while others say it’s led to fewer orders, decreased tips, and longer idle periods.(m.kuow.org, GeekWire, king5.com)
Now, Seattle’s City Council is under pressure to reassess the PayUp law’s unintended consequences. Council leaders and unions are calling for a more balanced fix—one that supports fair pay for drivers without undermining the viability of local eateries and affordability for consumers.(m.kuow.org, Flexible Work News, thestand.org, GeekWire)
