Delores Tronco, owner of The Greenwich in Denver, recently shared her experience with running a restaurant in the city and how the rising costs are impacting her business. She originally left New York City for Denver expecting it to be cheaper to operate a restaurant, but she found that costs in Denver are quickly exceeding her expectations. Tronco highlighted the impact of Denver’s higher minimum wage for tipped workers, which has led to her laying off staff and taking on additional responsibilities herself.
Julian Hitchcock, a restaurant investor, stated that Denver’s food scene is essentially on pause due to the increasing costs for restaurant owners. The minimum wage for tipped workers in Denver has increased by 60% since 2020, putting many restaurants at a breaking point. As costs continue to rise, fine dining restaurants and more automated “iPad restaurants” may have a better chance of survival compared to those in the middle.
Critics of the proposed House Bill 1208, which would lower the minimum wage for restaurant workers in Denver, argue that it would harm workers and be a step backward. Saru Jayaraman, president of One Fair Wage, stated that Colorado is the only place advocating for lower wages for restaurant workers while other states are moving towards fair wages for all employees.
Juan Padró, CEO of Culinary Creative Group, shared his experience of exploring other cities for expansion due to the challenges of operating in Denver. He found that labor costs in Denver are significantly higher than in other cities, impacting the profitability of restaurants. Despite considering expansion elsewhere, Padró’s priority remains on keeping his businesses thriving in Denver.
