It's not just in your head. Restaurant prices in Seattle and across Washington state are high.
In fact, they might be higher than almost any other part of the country, according to a new analysis of chain restaurant menu prices conducted by the Washington Hospitality Association, a lobby group that represents restaurants in the state.
In Seattle, eating out costs 17% more than it does on average across 20 major U.S. cities, the study found. This means it ranks as one of the costliest places for dining, beating even New York City and second to only San Francisco.
At the state level, Washington ranked the most expensive, with the study finding that menu prices here to be nearly 14% higher than the national average. (The study excluded Hawai'i and Alaska, which face unique affordability issues due to their distance from the contiguous U.S., among other factors.)
To some degree, I knew we'd be in a higher percentile," said Anthony Anton, president of the Washington Hospitality Association. But he said he had assumed that some other states would be even more expensive. "When you really look at it, you realize we're the highest. I didn't see that coming."
The study looked at menu prices across 20 full-service and quick service restaurants, focusing on chains like Olive Garden, IHOP, Denny's, Burger King, Pizza Hut and Taco Bell.
From online menus, WHA researchers — a team of six college students — gathered price data for two popular entree items at each chain, pulling numbers from locations across the country. They then calculated the average price difference across all items by region. For the analysis, researchers looked at the 48 contiguous states and 20 major cities.
By focusing on the exact same items at the exact same chain restaurants, researchers hoped to isolate price differences by region.
"It really allows us to look at the cost by geography in the majority of cases," Anton said.
A quick browse of online menus illustrates just how much cheaper restaurant prices are beyond Seattle.
At the Capital Grille, one of the restaurants included in the study, a bone-in dry aged New York strip steak costs $42 at the chain's downtown Seattle location during lunch. In Charlotte, N.C., the same entree is listed for $35 — more than 16% cheaper.
At Denny's, an order of the restaurant's "Original Grand Slam," which includes pancakes, eggs, bacon and sausage links, costs $16.29, if you're picking it up in Seattle. In Austin, Texas. it'll run you just $11.79 — more than 25% cheaper.
At Burger King, a large Whopper meal, including a burger, fries and soft drink costs $13.88 to pick up in Seattle. That's about a dollar cheaper than it would cost in San Francisco, where the same meal goes for $14.79. That said, it's still significantly more expensive than, say, Columbus, Ohio, where the combo costs just $10.79.
High menu prices risk driving diners away, say restaurant owners and operators in the Seattle area. Those impacts are felt at independent and local businesses, not just the national chain restaurants covered by the study.
"We just see less people dining out," said Chad Mackay, CEO of Fire and Vine Hospitality, which operates restaurants across the Pacific Northwest. "There's definitely a reluctance to go out and spend money right now."
In the Seattle area, some businesses have been rolling out lower-priced menus in hopes of coaxing diners back. But prices can only go down so much before margins disappear.
Mackay said that running a restaurant in Seattle comes with uniquely high operating costs, including utilities, rent and labor.
Unlike in many states, restaurants in Washington can't take tip credits, a mechanism that allows employers to pay subminimum wage as long as tips make up the difference. In addition, minimum wage rates in Seattle and other Washington cities are high compared to many other regions and the federal standard.
Mackay is currently preparing to open a new restaurant location in downtown Boise. There, he anticipates that utilities will cost less than a quarter of what they cost in Seattle, and rent will be 40% lower, as well.
"If you add all the little things up, it's expensive to do business here," he said. That doesn't mean it isn't worth it. Still, "to the end consumer, it costs more to eat out.
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