Denver Restaurants Face Uphill Battle Amid Rising Costs
Denver’s vibrant culinary scene is facing significant challenges as restaurants grapple with escalating product and labor costs. Data from the Department of Excise and Licenses reveals a 22% decline in licensed restaurant establishments over the past three years, signaling a concerning trend for the local dining landscape.
One restaurant exemplifying this struggle is Coperta, an Italian eatery renowned for its Southern Italian cuisine. Co-owner Aileen V. Reilly shared that operational adjustments have become a necessity to cope with rising minimum wage demands. In response to a 30% drop in sales since the pandemic, Coperta implemented a 23% service charge, shifted staff responsibilities, and reduced its workforce from 12 to 7 employees on busy nights.
Sonia Riggs, president and CEO of the Colorado Restaurant Association, highlights Coperta’s plight as part of a broader issue. "Denver is experiencing a net loss of restaurants unlike any seen before," Riggs reports, noting that 83% of Colorado’s restaurant closures last year were in Denver, accounting for a loss of 183 establishments. This decline is attributed to mounting costs for labor, utilities, rent, food, and supplies, compounded by decreased customer dining frequency.
Riggs emphasizes the strain on profitability, particularly as Denver’s tipped wage has surged 89% since 2019. “The pressure on restaurants is significantly greater than in other industries. There’s only so much customers will pay before they choose more affordable options,” she stated.
The outlook for the industry is pressing. As restaurants like LoHi’s Cart-Driver reopen after significant challenges, their management stress underscores the need for community support. Reilly urges patrons to continue dining out, saying, “We all want to be here.” As Denver grapples with this culinary crisis, the future of its beloved restaurants hangs in the balance.