Keeping a restaurant open and profitable has never been more difficult. Rising food costs due to inflation, ongoing supply chain disruptions, and a highly competitive labor market have created significant hurdles for restaurant owners across Colorado. Recruiting and retaining both front-of-house staff and kitchen employees has become increasingly difficult, especially as wage expectations grow and operational costs continue to rise. In response to these pressures, restaurant operators and industry advocates are rallying behind House Bill 1208—commonly known as the Restaurant Relief Bill—which proposes to adjust wage structures for tipped employees.
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Data from the Colorado Chamber of Commerce underscores the financial strain on the industry, with 92% of restaurants having raised menu prices to offset wage hikes, 68% reducing staff hours or cutting positions entirely, and 80% of restaurant closures in early 2025 occurring in Denver, where the cost of doing business is among the highest in the state. Without financial relief, restaurant operators warn they will have no choice but to continue raising prices, cutting jobs, or shutting their doors entirely.
In addition to the Colorado Restaurant Association, the Colorado Chamber of Commerce has also thrown its support behind House Bill 1208. Many restaurant owners have publicly expressed their hope that the legislation will provide the breathing room necessary to keep their businesses afloat.
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