DEMOCRATS AT WORK: “Death by a thousand cuts”: Colorado’s restaurant industry in crisis.
The big picture: The food industry in Denver and across Colorado has been battered over the past five years — and it’s adding up.
Rising costs for food, rent and property taxes combined with shrinking profit margins, growing regulatory pressures and budget-conscious diners are all pushing restaurants to the brink, industry experts tell us.
By the numbers: More than 200 restaurants closed statewide in 2024, per the Colorado Sun. Denver alone accounted for 82% of those losses, according to the Colorado Restaurant Association (CRA).
In the past three years, the city has lost 22% of its restaurants, the Denver Post reports. Some of the most recent closures include longstanding institutions like Fruition, Lao Wang Noodle House and Melita’s.
What they’re saying: “We’re in this kind of perfect storm moment,” CRA spokesperson Denise Mickelsen tells us. “It’s death by a thousand cuts.”
Zoom in: One major pain point is Denver’s increased tipped minimum wage, which is creating ripple effects industrywide. Local restaurant consultant John Imbergamo says it disproportionately affects back-of-house staff and forces price hikes that turn diners off.
You don’t say.
To top it off, the state assembly in Denver has a set of restaurant-unfriendly bills waiting in the wings.