Thank You for Your Support
We want to start by expressing our deepest gratitude for your continued support. Your loyalty and frequent visits mean the world to us and to the entire Colorado restaurant community. We love serving you and creating memorable dining experiences, but like many locally owned restaurants, we are facing increasing challenges that threaten our ability to do so.
Rising Operational Costs
Several factors have significantly increased the cost of running a restaurant:
• Increased Labor Costs: Denver’s rising minimum wage has added an average of $82,412 in annual costs per restaurant. These increasing expenses force many businesses to raise prices, reduce staff hours, or, in some cases, close their doors.
• Higher Property Taxes and Rents: Skyrocketing commercial rent and property taxes have placed immense financial pressure on small businesses. Many restaurants are struggling to keep up, and some have been forced to relocate or shut down entirely.
Legislative Impacts
Recent legislation has introduced additional financial obligations:
• Colorado Secure Savings Program: This program requires businesses to either provide a private retirement plan or enroll employees in a state-facilitated savings program. While beneficial for workers, it increases administrative and financial costs for small businesses.
• Family and Medical Leave Insurance (FAMLI): This state-mandated program requires businesses to provide paid family and medical leave, funded through payroll deductions. Though it offers great benefits to employees, it adds another financial strain on restaurants already working with tight margins.
House Bill 1208
House Bill 1208 is one potential relief measure that aims to adjust the tip credit for restaurants in cities with higher local minimum wages, like Denver. If passed, this bill would increase the tip credit to $7.02, lowering the base wage for tipped workers from $15.79 to $11.79 per hour.
• Supporters argue this bill will help local restaurants stay open by balancing wages between tipped and non-tipped employees, preventing layoffs, and keeping menu prices stable.
• Opponents worry it could reduce earnings for tipped employees, despite the fact that most servers and bartenders in Colorado already earn well above minimum wage due to tipping.
House Bill 25-1269
House Bill 25-1269, known as the Building Decarbonization Measures bill, proposes updates to energy use benchmarking and performance standards for certain building owners. The bill aims to reduce greenhouse gas emissions by setting energy efficiency targets for buildings, which could lead to increased compliance costs for restaurant owners operating in affected properties.
Senate Bill 25-005
Senate Bill 25-005, titled Worker Protection Collective Bargaining, seeks to eliminate the requirement for a second election to negotiate a union security clause in the collective bargaining process. While intended to streamline unionization efforts, this change could lead to increased labor costs for restaurant owners, impacting their financial stability.
Energize Denver Policies
The Energize Denver Building Performance Policy is an initiative aimed at reducing energy consumption in commercial and multifamily buildings to improve health, equity, and sustainability. Developed with input from various stakeholders, including building owners and community experts, the ordinance sets energy-saving targets for buildings 25,000 square feet and larger, with specific requirements for smaller buildings as well. While these measures aim to reduce operating costs and pollution in the long term, they may require upfront investments from restaurant owners to comply with new energy efficiency standards.
Conclusion
The combination of rising labor costs, increasing rent and taxes, and new government mandates has put Colorado’s restaurant industry in a precarious position. Without relief, many more restaurants will be forced to close, and thousands of jobs will be lost.
To learn more about House Bill 1208, House Bill 25-1269, Senate Bill 25-005, and other legislation that impacts our vibrant local restaurant community—both positively and negatively—please visit the Colorado Restaurant Association at corestaurant.org.
Thank you again for your support. It is because of guests like you that we continue to do what we love. We appreciate you and look forward to serving you for years to come!