The restaurant and hospitality industries are hit hard by shifting regulations, rising costs and smaller margins
PUBLISHER
Thurston County Chamber of Commerce
EDITORIAL
David Schaffert
360-357-3362
dschaffert@thurstonchamber.com
CONTRIBUTORS
David Schaffert
Natasha Ashenhurst
ADVERTISING
Sales & Marketing:
Krystal Barkus-Franco
Elizabeth Bretschneider
Ashley Chandler Shelbi Boyd
SUBSCRIPTIONS
360-357-3362
info@thurstonchamber.com
DESIGN
Ben Hawkes
Mosaic Marketing Studio
COVER
Governor Bob Ferguson. Photo courtesy of the Governor's Office.
PRINTING Print NW
CONTACT THE CHAMBER 809 Legion Way SE Olympia, WA 98507 360-357-3362
info@thurstonchamber.com thurstonchamber.com
In This Issue: A Historic Moment–and a New Chapter
May is a month of milestones. On May 14, the Thurston County Chamber will host its 120th Annual Meeting, a gathering that’s as much about celebrating history as it is about shaping the future. This year’s keynote speaker, Governor Bob Ferguson, will reflect on his first months in office and weigh in on some of the most pressing issues facing Washingtonians today—from cost of living to community wellbeing.
We’ll also hear a Chamber update and mark the official passing of the gavel from Trenton Fluetsch to Tessa Bradley.
We’re also looking at the challenges facing our hospitality industry. This issue dives deep into a sector under pressure. Despite its role as a cultural cornerstone and major employer, the restaurant business model is struggling to keep pace with rising costs and shifting consumer expectations.
Through candid interviews with Anthony Anton, President and CEO of the Washington Hospitality Association and local restaurateurs like Danielle Knutson, Pam Oates, Shina Wysocki, and Cher Hobbick, we explore what it takes to survive—and even thrive—in an evolving economic landscape. Their stories highlight a common thread: a commitment to people, community, and innovation.
Whether it’s rethinking pricing models, fostering team resilience, or launching new spaces like Altitude 15, these local leaders are finding ways to adapt with purpose.
As always, thank you for being part of this vibrant business community. We hope you find inspiration, connection, and a renewed sense of possibility in the stories that follow.
—David Schaffert, President/CEO
THURSTON COUNTY CHAMBER
“ OLYFED BANKERS HAVE THE BEST ATTITUDE, FRIENDLIEST SERVICE AND ALWAYS
INTERIOR DIMENSIONS, OLYMPIA I CEO Diane Gassman (right), Designer Emma Gomez
D iane Gassman, Founder and CEO of Interior Dimensions, a full-service interior design firm has been proudly banking with OlyFed for more than a decade. Diane met a long-time OlyFed banker at an Olympia Master Builder’s meeting and was thoroughly impressed with her professionalism and kind heart.
Soon thereafter, Diane made the switch to OlyFed where she says they always work together to help with her deposits, ACH transfers and digital banking needs. “Their bankers have the best attitude and friendliest service, “Diane said. We love how they’ve helped us grow and support the community.”
It’s OlyFed’s caring approach that showed Diane the bank truly puts real relationships above the bottom line.
(left)
May 2025
Visit thurstonchamber.com/events or scan the QR code for more info about all upcoming Thurston Chamber events.
After Hours
Annual Meeting
Join our host, TVW | Washington Public Affairs Network at 1058 Capitol Way S, Olympia, WA 98501 on Thursday, May 1 at 5:30 p.m. for a special Thurston Young Professionals Networking Event. Enjoy bites and beverages as you expand your network! All are welcome – feel free to invite other 20 to 30-year olds so they can expand their networks! Thurston Young Professionals is sponsored by KGY Media Group.
Join our Business After Hours host South Puget Sound Community College Foundation at 2421 Heritage Ct SW, 4th Floor, Olympia, WA 98502 on Thursday, May 15 at 5:30 p.m., for mingling and networking with other business professionals, a door prize business card drawing, beverages and appetizers. Business After Hours is a great opportunity to expand your network, and it is proudly sponsored by ROXY 94.5.
Join the Chamber on Wednesday, May 14, 2025, at 11:15 a.m., at Saint Martin’s University’s Norman Worthington Center at 5300 Pacific Ave SE, Lacey, WA 98503 for the Thurston Chamber's 120th Annual Meeting featuring Governor Bob Ferguson, who will speak to the challenges and opportunities ahead–budget realities, cost of living pressures, and the overall wellbeing of Washingtonians. He will also take part in a moderated Q&A. This event will sell out, so get your tickets today. Register at bit.ly/TCC_Annual_Mtg. Thank you to our Presenting Sponsor, Port of Olympia.
Thank You Sponsors!
The VOICE prints on FSC® Certified paper. The Forest Stewardship Council® (FSC), is a non-profit organization that sets
IN THIS ISSUE
Restaurateurs' Business Model is Broken p. 7
The restaurant and hospitality industries are struggling with shifting business models, rising costs and smaller margins.
Rooted in Community: Shina Wysocki & Chelsea Farms Oyster Bar p. 11
For co-owner Shina Wysocki, the restaurant industry is about more than flavors & food–it's about fostering a sense of community in downtown Olympia.
High Hopes and A Bold Vision for Altitude 15 p. 14
Cher Hobbick, owner of Bite Me Catering and the soon-to-launch Altitude 15 Food Hall is turning her longtime vision into reality–one plate at a time.
Making It Work at Three Top Olympia Restaurants p. 16
Co-owners Dannielle Knutson & Pam Oates candidly share the shifting challenges of running Budd Bay Café, River's Edge and the Olympia Oyster House.
Caught in the Lens: A Night on the Town p. 18
Enjoy a special edition Caught in the Lens with photos from our recent Chamber Foundation fundraiser, A Night on the Town.
THURSTON CHAMBER
The Business Model Is Under Stress: Inside
the Restaurant Industry’s Fight to Survive
by Natasha Ashenhurst
EDITOR’S NOTE:
"We are at a pivotal moment in the hospitality industry. Business models are shifting—some moving toward service-based charges—but the industry is facing real stress. At its core, hospitality is about people: those gathering and those working to make it possible. The future will bring evolution, but not without cost. It’s a conversation we can’t afford to ignore."
It’s no secret that restaurants were hit hard by the pandemic—but for many, the real crisis is happening now. Even as the economy slowly rebounds and customers return to dining out, restaurant owners across Washington are facing a stark new reality: the math doesn’t work anymore.
“For the first time in my 30-year career, I believe the restaurant business model in Washington is broken,” says Anthony Anton, President and CEO of the Washington Hospitality Association.
Chefs working in the kitchen at Chelsea Farms Oyster Bar. According to co-owner Shina Wysocki, the costs of ingredients, labor, and utilities have all increased faster than guest expectations of cost.
In Thurston County alone, there are more than 614 restaurants employing over 11,400 people, making hospitality one of the region’s largest industries. And yet, many of these businesses are operating in the red. Before 1998, the business model was relatively
stable: one-third of revenue covered food, one-third labor, and one-third everything else—with a slim 4% profit margin. But as labor and food costs have risen dramatically, that margin has shrunk to near nothing. Now, the average full-service restaurant in Washington earns 60% less in profit than the national average.
“The walls are closing in,” Anton says. “Costs are rising, margins are shrinking, and there’s only so much owners can raise prices before customers push back.”
One recent study showed that a typical Washington restaurant with $1.1 million in annual sales brings home just $16,500 in profit—barely enough to stay afloat.
“My margin has been in the red each year since COVID,” says Danielle Knutson, owner of River’s Edge, Budd Bay Café, and Oyster House. “If I wasn’t so passionate about this business and my employees, I would have already boarded up.”
Present Day
Even customer satisfaction—a long-standing strength of the industry—is down for the first time in decades. Hotel dining revenue is also seeing historic lows. The pressure is mounting, and restaurant owners are being forced to rethink the basics.
Some are exploring service charges instead of tips in high-minimum-wage areas. Others are restructuring operations to reduce costs or increase sales volume—by $70,000–$90,000 per unit just to stay even. The problem isn’t a lack of dedication or creativity. It’s a model that’s simply out of step with today’s economic landscape.
Still, Anton remains hopeful.
“The industry is challenging itself to find new ways forward,” he says.
After all, restaurants are more than places to eat. They are gathering spaces, cultural hubs, and cornerstones of our community. Their survival is everyone’s business. Washington's average profit margin is 60% lower than the national average for full service restaurants.
“We’re asking tough questions. What model works now? What can we do differently—and how can our communities support us in the process?”
In this issue of VOICE Magazine, the Thurston County Chamber continues the conversation with local restaurant owners to hear firsthand how they’re navigating this new reality—what’s working, what’s not, and what keeps them going despite the odds.
$1,100,000
$16,500
“If I wasn’t so passionate about this business and my employees, I would have already boarded up.” — Danielle Knutson
For Shina Wysocki, co-owner of Chelsea Farms Oyster Bar, the state of the restaurant industry is about more than just food— it’s about connection. It’s about farming, flavor, and fostering a sense of community in the heart of downtown Olympia.
Shina co-owns the Oyster Bar with her brother, Kyle Lentz, and their spouses, Bill Wysocki and Shannon Lentz.
“I’m a farmer first,” she says. “One of the most rewarding parts of having the restaurant is seeing people enjoy the food we grow.”
Chelsea Farms Oyster Bar is part of a vibrant, evolving culinary scene in Olympia—one that’s becoming more diverse, more inclusive, and more local than ever before.
“We’re seeing more cuisines being represented in our community, which is enriching our food culture,” Wysocki explains. “And there’s been a huge increase in farm-to-table dining. We have incredible small farms, cheese makers, ranchers, brewers. The variety of food grown and crafted here is astonishing.”
At the Oyster Bar, that abundance comes full circle. Wysocki and her team source local ingredients whenever possible and work closely with regional producers to showcase the bounty of the South Sound.
“Being recognized in this community— my hometown—is a massive win for me. I'm committed to leaving it better than I found it."
ROOTED IN COMMUNITY:
Shina Wysocki on Resilience, Local Flavor, and the Future of Dining
by Natasha Ashenhurst • Photos by Shanna Paxton Photography
“Restaurants are very vulnerable to vibe changes. That’s why building a strong team is so important.”
“Watching local chefs make magic with local products is a beautiful thing,” she says.
Still, running a restaurant in 2025 is not without its challenges—many of which are invisible to the average diner.
“Costs of ingredients, labor, and utilities have all increased faster than our guests’ expectations of cost,” Wysocki notes. “It’s never an easy pill to swallow, but it’s the reality we live in.”
Navigating this delicate balance— between staying accessible and maintaining quality—is a constant push and pull.
“We’re doing our best to find
creative ways to serve our community while staying true to the level of service and experience people have come to expect.”
For Wysocki, success isn’t always measured in profits or accolades. Sometimes, it’s about keeping the doors open.
“During COVID, success meant keeping our team together,” she says. “Now, some days, it means just surviving. Restaurants are deeply affected by subtle shifts in public mood—vibe changes, I call them.”
To weather the uncertainty, Wysocki focuses on cultivating something more enduring: a strong, supportive team.
“If our team is thriving, they create an atmosphere where guests can relax, connect, and enjoy themselves. That’s the kind of space I want to build. When I see our dining room full of people enjoying their time with each other, I feel successful.”
Her roots in Olympia run deep, and her vision for its future is as clear as a freshly shucked oyster.
“This town has been my home most of my life,” she says. “Being recognized in the downtown community—that’s a massive win for me. I’m committed to leaving it better than I found it.”
“We’ve always loved old buildings and vibrant downtowns,” Cher says. “It’s been our dream to buy an old building and develop it into a community hub. Altitude 15 is something we’ve wanted to do for a very long time.
Inspired by the energy of food halls in Austin, Portland, and even the hawker stalls of Singapore, Altitude 15 will blend culinary innovation with community connection—right in the heart of downtown Olympia.
“We want to create a space where everyone feels welcome,” Cher explains. “Somewhere you can grab a bite and a drink, relax, and spend time with friends. A place where
FROM Catering TO Community
Cher Hobbick’s Vision for Altitude 15 and the Future of Dining in Downtown Olympia
by Natasha Ashenhurst • Photos by Shanna Paxton Photography
Cher Hobbick, owner of Bite Me Catering and the soon-to-launch Altitude 15 Food Hall, is no stranger to bold ideas and big dreams. Alongside her husband Mike, she’s turning a longtime vision into reality—one plate at a time.
you don’t have to call your friends to meet up—because they’re already there.”
The transition from Bite Me Catering to a physical location feels like a natural step. With three successful years under their belt, the catering business is not only continuing but expanding within Altitude 15. A new restaurant, Atlas, will offer an extension of Bite Me’s menu—with “a few new surprises” promised for adventurous diners.
Cher also sees the food hall model as a smart business solution in today’s volatile economic climate.
“With rising food and labor costs, traditional restaurant models are becoming harder to sustain,” she says. “Food halls offer shared costs for things like utilities, janitorial services, and marketing, which makes it more manageable for individual vendors. It’s a way to keep margins healthy while still offering creative, high-quality food.”
Cher Hobbick in one of the bathrooms at Altitude 15. "Each bathroom is an immersive experience designed by Aaron King, our designer," she said.
“Altitude 15 will feel like a second home,” Cher says. “It’s a space that adapts to every occasion— from cozy date nights to quick lunches between meetings.”
But Cher isn’t just reimagining physical space— she’s also seeing a shift in how people want to eat.
“Post-pandemic, we’ve noticed people don’t want the formal sit-down dinner as much,” she shares. “They want to mix and mingle. Food stations and grazing tables let guests enjoy themselves at their own pace. It’s less structured, more social.”
That shift has influenced both catering trends and her plans for Altitude 15. In many ways, the food hall model is perfectly suited to today’s diners—offering variety, creativity, and flexibility.
“These shared spaces allow chefs to try bold new ideas,” Cher explains. “It’s where guests can discover dishes they’ve never encountered before—and fall in love with them.”
While the journey ahead is exciting, it isn’t without challenges. When asked what keeps her up at night, Cher jokes, “Getting my cat Yuki to leave me alone and stop putting his whiskers up my nose.”
But in truth, her passion for Olympia is what keeps her going.
“We love downtown Olympia,” she says. “Watching it grow and evolve has been amazing—from quirky shops to welcoming theaters, there’s just something special about this place.”
With Altitude 15 set to become a new landmark in the downtown landscape, one thing is clear: Cher Hobbick is not just building a food hall— she’s building community.
“Altitude 15 will feel like a second home.... Somewhere you don’t have to call your friends to meet up—because they’re already there... It’s where guests can discover dishes they’ve never encountered before— and fall in love with them.”
"The panels were inspired by our trip to Vietnam. We appreciated the organic feel and natural elements. They are made out of Acre, a product made from discarded rice husks and PVC."Cher Hobbick (outside of Altitude 15)
In This Together
Budd Bay Café, Olympia Oyster House and River’s Edge Owners Reflect on Resilience in a Changing
Industry
by Natasha Ashenhurst
Paxton
For decades, Budd Bay Café, River’s Edge, and the Olympia Oyster House have been staples in Thurston County’s culinary scene. But as co-owners Dannielle Knutson and Pam Oates candidly share, the restaurant industry is no longer business as usual. They share that they haven’t fully recovered from the pandemic, and there’s a long list of things they need to address—building maintenance, equipment upgrades, staffing—but with constantly changing regulations, rising food prices and ongoing minimum wage increases, it’s hard to focus on getting their restaurants back into the shape they need to be in.
Photography by Shanna
Photography
“We’d
rather employ people than turn to technology to ensure guest satisfaction.”
– Pam Oates
“Guests still expect the same level of service and quality we’ve always offered,” said Oates. “They still want breakfast. They still ask for our all-youcan-eat Sunday buffet. But the reality is, the cost of doing business has skyrocketed. Some of those services just aren’t financially viable anymore.”
Margins for restaurants have always been slim, but Knutson shared that today’s net profit margins hover around 1.5% or less—a figure that leaves little room for reinvestment or error.
“We’ve had to cut back on ‘extras’ at all three restaurants,” Knutson said. “We can’t get back to the way we used to run things. It’s heartbreaking, and that’s why we’re being honest with our customers and asking for their understanding and support.”
Despite the challenges, the heart of these restaurants remains in their people.
“We’re all in the same boat—and the more we connect, the more strength we find.” – Dannielle Knutson
“We treat our staff like family,” said Knutson. “We both started where our employees are now—working the line, waiting tables—and we’ve kept many long-term team members by creating a positive work-life balance and a workplace built on respect.”
That commitment to community extends beyond their kitchens. Knutson has recently organized restaurant meetups, uniting local owners to brainstorm solutions and support one another.
“We’re all in the same boat,” she said. “And the more we connect, the more we realize how much strength we have when we come together.”
Still, the weight of rising costs— from utilities and labor to taxes and insurance—has left even the most experienced restaurateurs searching for relief.
“What doesn’t keep us up at night?” Oates joked, before growing serious. “We’re trying to fix something that
wasn’t broken. It’s frustrating. It feels like there’s no room to breathe—let alone grow.”
One fear they share is customer fatigue over rising menu prices or the addition of service charges, necessary steps to cover increased expenses and keep their teams employed.
“We don’t want to lose the human connection in all of this,” Knutson said. “We’d rather hire real people than replace them with technology. That’s what this industry is about—it’s about people. That’s why we’re here.”
Ultimately, both women are hopeful that transparency, collaboration, and community support will help them— and others—navigate forward.
“Most of us didn’t get into this business to get rich,” Oates said. “We did it because we love feeding people. We love seeing familiar faces. We love being a part of this community.”
SPECIAL EDITION CAUGHT IN THE LENS
THANK YOU TO ALL WHO ATTENDED THE FOUNDATION'S ANNUAL FUNDRAISER
PHOTOS BY SHANNA PAXTON PHOTOGRAPHY
Lens
A Historic Milestone–and a Moment to Look Ahead
Governor Bob Ferguson to Join Chamber's 120th Annual Meeting
Every spring, the Thurston County Chamber's Annual Meeting offers a moment to pause and take stock—of where we’ve been, where we’re headed, and what’s possible when our community moves forward together. But this year’s event, happening on Wednesday, May 14, 2025, marks an especially significant milestone: the Chamber’s 120th Annual Meeting.
It’s fitting, then, that the keynote speaker for this year’s gathering is someone who understands both the weight of history and the urgency of the present—Washington State Governor Bob Ferguson.
A fourth-generation Washingtonian, Ferguson grew up the son of a public school teacher and a Boeing employee. He’s also a former state chess champion, a detail that reflects his strategic approach to leadership— pragmatic, methodical, and always a few moves ahead. At the Annual Meeting, Governor Ferguson will reflect on his first few months in office, speak to the challenges and opportunities ahead—budget realities, cost of living pressures, and the overall wellbeing of Washingtonians— and take part in a moderated Q&A.
In addition to the keynote, the event will include a brief report from the Chamber team on regional economic initiatives and community impact. Attendees will also witness the passing of the gavel as outgoing board chair Trenton Fluetsch hands the reins to incoming board chair Tessa Bradley.
Whether you're a longtime member or newly connected to the Chamber, this gathering is more than just tradition— it’s a chance to connect with fellow leaders, reflect on shared progress, and help shape the future of Thurston County. Mark your calendars. You won’t want to miss it.
Thank you to our Presenting Sponsor, Port of Olympia
What: Thurston County Chamber's 120th Annual Meeting
Who: Annual Meeting featuring Governor Bob Ferguson
When: Wednesday, May 14, 11:15am-1:15pm
Where: Norman Worthington Center at Saint Martin’s University, 5300 Pacific Ave SE, Lacey, WA
This event will sell out. Get your tickets today! Visit bit.ly/TCC_Annual_Mtg
