Last month, Cherry Street Coffee House owner Ali Ghambari went to City Hall to testify about a bill that would permanently enshrine a tip crediting system, allowing small businesses to pay their workers a subminimum wage.  In front of City Council and members of the public, Ghambari suggested that the wage increase scheduled for January would force him to “close stores.” His testimony inspired five of his workers to quit, another five to walkout, and it ironically manifested what he feared—a store closure, if only temporarily.

And now that they’ve organized, 18 workers—about three quarters of the service staff—have provided the company with a list of demands. 

“Thank God this had consequences,” says Emma Komar, one of the workers who quit Cherry Street Coffee House. Komar says she believes other restaurant owners are talking about their retaliation against Ghambari and she hopes they’re worried. They should be. 

“The fact that [Ghambari] had to shut down a store is proof of how much power we have as workers,” Komar says. 

By Unpopular Demand 

Last month, Council Member Joy Hollingsworth introduced a bill that would establish a two-tiered minimum wage, allowing business owners who employ less than 500 workers to pay less than larger businesses, so long as customer tips made up the difference. Her bill would undermine a deal that the council brokered between business and labor during Seattle’s historic fight for $15 in 2014: that small business would get a decade to adjust, but come 2025, they would have to comply with the same minimum wage law as every other business. 

Workers and their labor unions fought against the bill in public comment, online, and in private meetings with Hollingsworth. The public shame seemingly got to her: Hollingworth retracted the bill just a week after introducing it. She will continue meeting with stakeholders behind-the-scenes to potentially work out a “balanced solution.” 

Despite the quick backpedal, workers are not soon to forget that their bosses were willing to let their workers shoulder their struggling business model. A Reddit post listing the restaurant owners who lobbied for a subminimum wage went semi-viral, with some commenters calling for an immediate boycott of the businesses. The businesses argued that they could not afford to pay their workers the minimum wage due to the COVID-19 pandemic and inflation. However, workers cannot afford their bosses not to pay them minimum wage. The post implicated Elliot Bay Brewing, Atoma, Lassi & Spice, Veraci Pizza, The Confectional, Moshi Moshi, Anthony’s, Delancey, Dino’s, Rachel’s Bagels and Burritos, Terra Plata, Queen Anne Beer Hall, and Cherry Street Coffee House.

For workers at Cherry Street Coffee House, the owner's comments at City Hall represented a final straw.

“I felt embarrassed to be working for somebody who was wearing a Cherry Street t-shirt on a public livestream talking about how it's too expensive for him to pay his employees,” says a former staffer at the Pine location, who asked to remain anonymous as to not hurt future job opportunities.   

Ripples Throughout the City

While it does not appear other businesses who spoke out against the minimum wage had to close up shop, one worker at Elliot Bay Brewing told The Stranger that the company had a “tense week” following the owner Todd Carden’s comments at City Hall. Carden did not respond to my request for comment. 

Lassi & Spice owner Susannah Dhamdbere told The Stranger she saw some backlash online after speaking in favor of Hollingsworth’s bill, but she could not tell if she had seen a drop off in customers.  

Dhambere says she was “honestly, a bit caught off guard” by the reaction. To her and other business owners, the discussion is a matter of who is paying for the minimum wage, not a question of if workers deserve it. Though, it is true that without tip crediting, workers at small businesses would make more money. 

Dhambere went to City Hall to answer a call to action from the Seattle Restaurant Association, which she is a member of. She claimed that if the tip credit system sunset, her labor cost would increase by 20% and it could “very likely” cause her to close her doors. However, in a call with The Stranger, Dhambere says she already pays her workers $20 an hour. She confirmed that she wouldn’t see a 20% increase in cost to comply with the law, but says she may have to raise her wages to be competitive. Dhambere says she wanted to advocate for other small businesses, too. Otherwise Dhambere fears corporate chains will be the only viable restaurants in the City — “Do you want a bunch of, you know, cheesecake factories and paneras to be what you have left in Seattle?”

Dhambere is disappointed that this policy has pitted small businesses against workers.

“I think our workers are struggling as are our small businesses,” Dhambere says. “I don't think that it needs to be one or the other.” 

She suggested that the Seattle Restaurant Association could also advocate for a state income tax to help address income inequality. 

But after the tip-crediting debacle, workers like Conor Dolan, a current staff member at Cherry Street Coffee House, see the Seattle Restaurant Association as a powerful enemy. 

“These are people that have resources, they have capital, they're able to reach people on the City Council. And we're just all showing up to work, just trying to try to make sure our bills are paid,” Dolan says. “But we’re still very powerful.”

“Beyond Disheartening” 

So, on August 17, five workers quit and five workers walked out across three locations, closing three of four Cherry Street Coffee House locations early that day. Pine location remains closed indefinitely. A sign on the Pine location claims it will reopen in late September—“good luck with that,” says a worker who quit their job at that cafe. 

UFCW 3000 Secretary-Treasurer Joe Mizrahi thinks Ghambari faced predictable consequences: “Picture owning a small business and publicly pushing to legally pay your workers less, then coming in on Monday morning and being like, ‘Hey guys, how was your weekend?’”

“Business owners large or small should not forget that they rely on their workers for whatever success they have,” Mizrahi says. “And ultimately workers have a huge amount of power by withholding their labor.”

Shortly after the workers quit, an upper manager, Laura Giovannoni, sent an apology to the workers on Ghambari’s behalf. 

“I’d like to apologize for the impression my remarks at the City Council meeting gave you as Cherry Street employees,” Ghambari said through Giovannoni via text. “I assure you, regardless of the financial pressures we face as a company, I support the minimum wage increase. Your efforts and contributions are absolutely what our business runs on, and you’re part of what makes Cherry Street such an important cornerstone of our neighborhoods.” 

Ghambari offered his workers a $1 per hour increase for the current pay period plus summer bonuses of $1000 for full-time employees and $500 for part-time.

But Ghambari’s public testimony sparked more than just a fight against tip crediting. In their moment of collective outrage, the workers laid out four demands to address what they described as long-standing issues in a letter signed by 18 Cherry Street Coffee House employees.  The group represents about three-quarters of the company’s service staff.

“Community is commonly stated as a pillar to Cherry Street Coffee House,” the letter opened. “However, your public comment at City Council advocating to keep the tip credit that enables you to pay us below minimum wage was beyond disheartening. Your stance abandons the community who shows up more than anyone else: your employees.”

The workers argued that the subminimum wage is “not just a question of morals or emotional integrity, but one of livelihood” given the exorbitant cost-of-living in Seattle, which crushes service workers. Ghambari’s actions at City Hall, among previous behavior, proves that he does not care about his workers or their livelihoods, the workers said in their letter.  

With word spreading of Ghambari’s public anti-worker advocacy, the workers advised him to choose his next move “carefully.” The letter laid out four demands to help him with “damage control” for his tanking reputation. 

The Demands

First, the workers alleged sexual harassment in the workplace. In the letter, the 18 workers accused Ghambari of describing workers as “sexy,” commenting on their sex lives, and giving some employees, particularly young women, “special attention.” 

“This is not conducive to a safe work environment as it is sexist, inappropriate, and frankly disgusting,” the letter read. 

The workers demanded the business adopt an official anti-harassment policy, either through a Human Resources department or a third party. 

Secondly, the letter demanded Ghambari send their work schedules three weeks in advance. The City of Seattle’s Secure Scheduling Ordinance, which requires employers give their workers two weeks notice for schedule’s, went into effect in 2017. However, the protection does not apply to workers at small businesses such as Cherry Street Coffee House. 

Komar recalled finding out she had a Sunday shift while she was closing down the store on Saturday. The workers wrote, “We all feel the stress of being unable to plan our lives because of the disruption of your current scheduling procedures.” They also argued such a policy would benefit Ghambri and management because it would prevent callouts and schedule conflicts. 

Third, the workers demanded Ghambari make the promised $1 an hour raise permanent, rather than limited to one pay period. 

And finally, the workers demanded Ghambari give them 60 days’ notice before cutting their hours by more than 50% or if he cuts them below 30 hours. In Council Chambers, Ghambari seemed to claim he would close stores when the tip credit law sunset, so workers thought it only fair he give them an official warning. 

“Your disregard for the wellbeing of your employees does not go unnoticed,” the workers wrote. “We ask for greater transparency regarding your plans for the company and that you revoke your plans to sacrifice our workers’ wellbeing for your personal gain. We will stand united as we fight for living wages and fair treatment, no matter what it takes. We are the community you should be prioritizing above all else. We will not stand idly by as your actions threaten our livelihoods. If you are truly as community-oriented as you claim, you will do the right thing and abide by our demands.”

Cherry Street Coffee House did not respond to our request for comment. 

Best We Can Do Is Anti-Harassment Training

The letter asked for Ghambari to respond by Tuesday, August 20. Workers finally received a response the evening of August 27.

“I want to get to what feels like the heart of the matter,” Giovannoni wrote. “[Ghambari’s] remarks at the City Council meeting were not eloquent or even well considered but they didn’t come from a place of malice, greed, or even indifference to the struggle facing Seattle service workers.”

Giovannoni said that Cherry Street Coffee House will “adapt to the changes, learn from our mistakes,” but they did not agree to all the workers’ demands. 

As it pertains to alleged sexual harassment, Giovannoni wrote, “Thank you for expressing your beliefs and concerns. We take these allegations seriously. Providing a workplace where everyone feels supported, respected, and welcome is of the utmost importance to us. Toward that end, all employees, including managers, will complete certified anti- harassment training in the very near future.” She said the company will review and update the anti-harassment policy it established in 2012. 

As for the raise, Giovannoni reiterated that workers would receive a $1 per hour increase “beginning” August 15, which unlike previous communication, implies the raise will continue. She added that the workers will get another increase in January to comply with the new minimum wage. 

The wage increase introduces a central question in this public conversation: could Ghambari always afford to pay his employees the minimum wage? Or did the company decide to push real operational issues down the line?  The Stranger posed that question to Cherry Street Coffee House in an email. At press time, the company had not responded.

The company did not commit to the other demands. Giovannoni said that the three week scheduling notice would require workers to submit requests for time off four weeks in advance to allow her time to put the schedule together. Still, she said the company understands the frustration and she “recommit[ed]” to posting them two weeks in advance. 

Giovannoni said the company is “unable” to commit to 60 days notice as a small business. She acknowledged that Ghambari’s council remakes caused these concerns and wrote, “Let me be clear, I don’t believe the minimum wage increase will cause us to close stores, but please know we are genuinely concerned about you, as members of our team and fellow human beings. We wouldn’t close your store without giving you ample warning, offer you work at a different location, or a good reference if you decided not to.”

The letter did not impress Ghambari’s workers.

“Even ignoring the fact that [the response] was a week past the deadline, the response is incredibly lackluster — and the fact that it wasn’t even written by [Ghambari] himself says it all,” says Komar. “To me, it demonstrates perfectly the lack of compassion and respect he has for his employees.”

Workers are strategizing next steps.

Cherry Street Coffee House workers told The Stranger that they hope other business owners will take note of their reaction to Ghambari’s advocacy. As one former Cherry Street Coffee House worker says, “Your workers are watching you cry at City Hall and we don’t feel sorry for you.”

Sure, business may rule at City Hall after the 2023 election, but workers still rule the workplace.