DENVER (KDVR) — Several beloved local restaurants in Denver have closed over the past year, and according to some business owners, it’s because of the city’s minimum wage laws and rising costs.
From Cap City Tavern to Sushi-Rama, regulars’ go-to spots and community favorites are seemingly closing left and right. Why are they closing? Well, some say it’s because of Denver’s economic climate and labor regulations.
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Denver enacted Revised Municipal Code Chapter §58-16 in November 2019 to annually adjust the minimum wage in Denver to the cost of living. This has ultimately increased the minimum wage to $18.81 and $15.79 per hour for tipped workers, and in 2026, it will go up even more.
While this increase is to combat Denver’s cost of living, and has made Denver’s minimum wage one of the highest in the nation in 2024, several business owners said the minimum wage was one of the reasons they had to close their doors.
Restaurants struggle with Denver’s rising minimum wage
Troy Bowen, owner of Noble Riot, is cautioning restaurateurs from setting up shop in the city after just closing his restaurant in August, after opening in 2019. He said it’s never one reason why a restaurant closes, but the minimum wage rate, along with the pandemic, safety and traffic issues, caused him to close in the River North Art District…