MYTHs & FACTs
THERE ARE VOICES pushing a narrative about the restaurant industry in Colorado that lacks evidence and support from the employees they say they represent. Below are some basic facts that dispel the myths they’re pushing.
MYTH: Restaurants are just struggling because of post-pandemic adjustments.
FACT: The data shows this is a structural contraction, not a temporary downturn. The industry actually recovered immediately after the Pandemic only to steadily contract throughout 2024. Denver lost 6% of overall restaurant jobs and 15% of full-service jobs between 2019–2024, while the rest of Colorado grew by 3.3%. Costs have increased across every category—labor, rent, goods, insurance—and earnings have fallen 20%. These trends are accelerating, not stabilizing.
MYTH: Denver’s restaurant costs are comparable to other major cities.
FACT:With amendments, this bill will NOT decrease wages in any part of Colorado. Tipped food-and-beverage workers will continue to earn great pay and keep their tips.
MYTH: The tip credit is a way for restaurants to pay workers less than minimum wage.
FACT: No restaurant employee in Colorado can be paid less than the full local minimum wage. The tip credit affects how that wage is financed—the share paid directly by the employer versus the share covered by tips. If tips fall short in any given week, the employer must pay the difference. It’s the law.
MYTH: Restaurant closures are just part of normal business cycles.
FACT: When the rest of the state is growing and Denver is contracting, that’s not a normal cycle—it’s a policy-driven structural problem. Once-vibrant corridors like RiNo, South Broadway, Colfax, and LoHi have been described as “dying” by commercial brokers. National brands are walking away from Denver expansion entirely.
MYTH: Only restaurant owners benefit from policy changes—not workers.
FACT: When restaurants close, workers lose their jobs. Denver is missing an estimated 10,000–15,000 restaurant jobs. The industry employs more women and people of color than any other sector. Restaurants that can stay open can invest in their teams—those that can’t, close.
HARD TRUTHS.
REAL RESTAURANT DATA.
Restaurants are closing across Colorado at an alarming rate, an unintended consequence of Colorado’s immovable tip offset.
92% of Colorado restaurants were forced to increase menu prices when the minimum wage increased in 2025.
68% of Colorado restaurants were forced to reduce staffing and cut employee hours when the minimum wage increased in 2025.
$52,591: the average cost to Colorado restaurants when the minimum wage increased in 2025.
Aligning the tipped wage for food-and-beverage workers while allowing localities to adjust wage rates as needed frees up money to support back-of-house workers, invest in more staff hours overall, and keeps restaurants open and employing 10% of Colorado’s workforce.
63% of local restaurants will invest in higher wages for kitchen crews if the tip offset is higher.
56% will increase staffing and give more hours to current workers.
43% will stay open for business longer.
Restaurants employ more women and people of color than any other industry.
6 in 10 cooks and chefs are people of color.FACT: