Teresa Elizabeth, owner of La Toscanella Bakery, has welcomed customers into her South Lake Union shop for the past six years.
“A lot of beautiful pastries through here,” she said.
But during what should be one of her busiest times of the year, her beloved bakery is papered up with a sign on the door that reads in part: “Running a small business has been increasingly difficult in Seattle.”
“It really did shake us to our core,” said Teresa Elizabeth. “It's making it to where everything is in question and reminding us that's nothing forever.”
The small business owner says she was simply priced out of the neighborhood, as rents have skyrocketed along with the growth.
“A lot of those other mom and pop shops that were originally chosen for the neighborhood have not survived,” she said. “Big businesses are the ones that can handle the rent around here.”
While the city of Seattle doesn’t track the number of business closures citywide, local chambers have taken note of the issue.
“We're seeing a couple each month that are moving or closing for different reasons,” said Danah Abarr of the South Lake Union Chamber of Commerce.
Abarr points out that new businesses are still opening, as the region continues to grow and thrive.
However, turnover is visible. Not far from La Toscanella, the neighborhood pet store Scraps recently closed.
“The pattern that I'm seeing right now, we will be a witness to the extinction of small business in Seattle," warned Teresa Elizabeth.
Rent aside, small business owners list factors including the state's B & O tax, which taxes gross receipts instead of net, whether the business makes or loses money.
Then there's other city regulations from permitting to the recent increase in minimum wage, something business owners have stressed they support, but it’s one more factor in a delicate balance of a small business' bottom line.
While Teresa Elizabeth will have to shutter her South Lake Union location, she's banking on her loyal customers visiting her new shop in South Park. As the shop closes one chapter, it hopes to open another in a new part of town.
“We’re heartbroken that La Toscanella isn't in the neighborhood anymore,” said Abarr.
Abarr noted the city has stressed a message of wanting to support the mom and pop businesses, but added city policies don't always back up that goal.
“The actions don't align with the words,” said Abarr.
Seattle’s new Mayor Jenny Durkan recently announced a small business advisory council with the intent of allowing small business owners to weigh in on city policy.
Co-chairs include Joe Fugere, owner of Tutta Bella; Taylor Hoang, entrepreneur and executive director of the Ethnic Business Coalition; Donna Moodie, owner of Marjorie Restaurant and CEO of Mint Holding, a food and design company; and Tracy Taylor, manager of Elliott Bay Book Company.
Their first meeting is expected as early as February.
“Maybe there's a way that the city can help to subsidize or encourage those businesses just as we do with affordable housing,” suggested Abarr. “There have to be concessions for these really small businesses that have much fewer resources if we're going to say that we're a city that wants to encourage small business growth.”
Abarr says help is particularly needed for micro-businesses of fewer than 10 employees who have fewer resources and little room to absorb unexpected costs.
"I don’t really know what the fix is,” said Teresa Elizabeth.
However, she knows something has to change.
“If they really value having authenticity and eclectic culture within the city—they're going to need to help the small businesses in some manner,” she said.
KING 5 will continue to track this issue; if you have a tip, email political reporter Natalie Brand at nbrand@king5.com.
