DENVER—Restaurants throughout the Mile High City have faced challenges, from construction projects to the minimum wage increase and fewer people eating out. However, there could soon be a person to help navigate the concerns of restaurant owners and bring them to city leaders.
Denver7 has reported on multiple restaurants, such as Taco Uprising, Monaco Inn, and Taco House, closing their doors for good. It has also taken an in-depth look to understand the struggles in the hospitality industry.
Sonia Riggs, president and CEO of the Colorado Restaurant Association, expressed her appreciation for Denver city leaders and Visit Denver, a nonprofit trade association. She recognized that restaurants were hurting and needed help. In her role, Riggs said she hears from more restaurants that close their doors when their leases run up.
"According to Denver Excise and Licensing, we've lost between 23-24% of restaurants in the last several years, and I think that's a really concerning fact," said Riggs. "Just to see that we have that many fewer food and beverage establishments, which are typically 10 to 11% of our workforce, it's a devastating fact for not only the workforce for sales tax revenue."
Riggs said restaurants have faced safety issues, and labor costs have been hard on the industry. Therefore, Riggs said it is important for the city to find ways to help support this industry.
"My understanding is that they are looking for an individual or company that will help do interviews and roundtables, and a lot of research to find out what really are the issues with Denver restaurants and how they can be supportive," Riggs said.
The Denver Postreports that this would be a "six-month contract role" and would "find ways to improve its existing permitting and regulatory processes."
Brad Anderson, the owner of Benzina, an Italian restaurant on Colfax Avenue, feels the challenges of running a local restaurant. During his 40 years in the restaurant industry, Anderson has expressed the hardships that have come with the minimum wage increase and the construction on Colfax.
"They put in a new water line down Colfax, which was kind of a precursor to what's going to happen with the rapid transit bus line. That's not good. It's disrupted the traffic patterns on Colfax, and people aren’t using that as much. They are more on 13th, 14th, 17th, and 18th. So, I don’t know what it will do for the businesses on Colfax when the bus line goes in, and it's one lane of traffic each way," Anderson said.
Looking out from the restaurant's patio, a message board warns drivers of the construction on Colfax. Anderson explained that the restaurant is pivoting and finding a new way to keep its doors open. The restaurant will close its doors on May 31 and open on June 6 as Benzina Italian Diner, limiting labor-intensive jobs.
"We are going to lose 2-3 people in the back of the house, and two people in the front of the house are going to have to lose their jobs because the dynamics just don't work," Anderson said.
Anderson explained that as the minimum wage has gone up over the years, it has made it more difficult. Right now, nearly half of the revenue goes toward labor.
When asked about a restaurant liaison, Anderson expressed it would be impactful if the person could help deliver his concerns to the Denver City Council and make a change.
"I think anything like that will help, but again, it has to go from help to action, and if action doesn't happen and quickly, especially on Colfax. The bars down by the Capitol are already in big trouble, and it's coming this way. Once they start closing parts of the street and taking away parking, it’s not going to be good," Anderson said.
Now, as the restaurant shifts to a simpler menu, Anderson hopes this will help boost the business and help the city council realize "how the restaurant business works."
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