Denver minimum wage set to increase to $19.29 in 2026
A sign at a Papa John’s in 2021 advertises wages for new hires. (BusinessDen file)
When the clock strikes midnight on the cusp of the new year, Denver’s minimum wage will rise from $18.81 to $19.29. That, according to a survey by the Colorado Restaurant Association, will cost the average Mile High restaurant an extra $70,000 next year. “With costs continuing to skyrocket and dining on the decline, local restaurants aren’t earning enough to stay in business long term,” Nick Hoover, the state restaurant association’s director of government affairs, said in a statement. “It’s death by a thousand costs right now,” he continued. “So we hope that our local and state elected officials will do everything they can to help restaurants in the new year, not hurt them.”
Though the increase — up 74% from 2019’s $11.10 an hour — is a challenge for some Denver eateries, the bigger problem relates to tipped workers, several restaurateurs have told BusinessDen. Their hourly minimum will be $16.27 with the $3.02 “tip credit,” as it is commonly called. For comparison, the federal minimum wage for tipped workers is $2.13. That, restaurateurs argue, creates a disparity between front- and back-of-house workers, because the latter group is not eligible for tips, and servers’ tips generally far exceed the tip credit. Some spots have implemented a blanket service charge, since money from that can be distributed to all staff. Denver established a local minimum wage in 2020, gradually increasing it from $11.10 per hour to $15.87 by 2022 to better reflect the local cost of living. Since then, the number has been adjusted each year based on a variant of the Consumer Price Index, a commonly used measure of inflation. Denver’s minimum wage is one of the highest in the country, topping major cities including New York City ($17 as of Jan. 1), Los Angeles ($17.87) and San Francisco ($19.18). It trails Seattle, which will increase its hourly minimum to $21.30 next year. Those rising labor costs, among other things, have led to a decline in restaurants in Denver. The city’s Department of Licensing and Consumer Protection, formerly Excise and Licenses, reported that retail food establishment licenses have declined 21% since July 2023. At the end of November, it reported a net loss of 506 licenses, according to the CRA. A sign at a Papa John’s in 2021 advertises wages for new hires. (BusinessDen file)
When the clock strikes midnight on the cusp of the new year, Denver’s minimum wage will rise from $18.81 to $19.29. That, according to a survey by the Colorado Restaurant Association, will cost the average Mile High restaurant an extra $70,000 next year. “With costs continuing to skyrocket and dining on the decline, local restaurants aren’t earning enough to stay in business long term,” Nick Hoover, the state restaurant association’s director of government affairs, said in a statement. “It’s death by a thousand costs right now,” he continued. “So we hope that our local and state elected officials will do everything they can to help restaurants in the new year, not hurt them.”
Though the increase — up 74% from 2019’s $11.10 an hour — is a challenge for some Denver eateries, the bigger problem relates to tipped workers, several restaurateurs have told BusinessDen. Their hourly minimum will be $16.27 with the $3.02 “tip credit,” as it is commonly called. For comparison, the federal minimum wage for tipped workers is $2.13. That, restaurateurs argue, creates a disparity between front- and back-of-house workers, because the latter group is not eligible for tips, and servers’ tips generally far exceed the tip credit. Some spots have implemented a blanket service charge, since money from that can be distributed to all staff. Denver established a local minimum wage in 2020, gradually increasing it from $11.10 per hour to $15.87 by 2022 to better reflect the local cost of living. Since then, the number has been adjusted each year based on a variant of the Consumer Price Index, a commonly used measure of inflation. Denver’s minimum wage is one of the highest in the country, topping major cities including New York City ($17 as of Jan. 1), Los Angeles ($17.87) and San Francisco ($19.18). It trails Seattle, which will increase its hourly minimum to $21.30 next year. Those rising labor costs, among other things, have led to a decline in restaurants in Denver. The city’s Department of Licensing and Consumer Protection, formerly Excise and Licenses, reported that retail food establishment licenses have declined 21% since July 2023. At the end of November, it reported a net loss of 506 licenses, according to the CRA. This story is for our paid subscribers only. Please become one of the thousands of BusinessDen members today! Your subscription has expired. Renew now by choosing a subscription below! For more informaiton, head over to your profile.

Denver minimum wage set to increase to $19.29 in 2026

Sasha Nelson/staff
Starting Jan. 1, all eggs sold in Colorado will come from cage-free hens. Only time will tell whether the change will impact egg prices. , kicking off a multiyear ramp-up to 2025. “All of our producers — both in Colorado and producers who sell into Colorado — have been prepared for cage-free for many, many years,” said Kate Greenberg, the state commissioner of agriculture. “Our producers are producing. There should be eggs on the shelves, and they’ve done a great job of adapting in a challenging environment.”
Dan Zangari, the technical services section chief for the inspection and consumer services division at the Colorado Department of Agriculture, said that Colorado’s egg producers will be in full compliance by Jan. 1 and will have enough eggs to service the entire state. What is cage-free? The first phase of the law started in January 2023, requiring that egg facilities have 144 square inches of space per hen. The 2025 requirements will push this change further by mandating that any eggs sold or distributed in Colorado come from a fully cage-free facility. , this refers to an indoor or outdoor environment where hens are free to roam unrestricted with access to “enrichments that allow them to exhibit natural behaviors.” This includes items like scratch areas, perches, nest boxes and more. Since 2020, the Department of Agriculture has been working with producers through each of the transitions. “On the industry side, what I’ve heard is that having the phased approach has really been helpful for them because they’re having enough time to make that transition, and they don’t have that undue stress and cost of having to do that instantly,” Zangari said. estimated that producers will face up to a 20% increase in production costs implementing cage-free requirements. Bill Scebbi, executive director of industry group Colorado Egg Producers, estimated that producing cage-free eggs increases operational costs by between 16% to 18%. It is a change and law that producers supported from the start as the industry and market both move toward cage-free adoption, according to Greenberg. With the change, Colorado becomes the 10th state to ban the sale and production of caged eggs, joining Arizona, California, Massachusetts, Michigan, Nevada, Oregon, Rhode Island, Washington and Utah. The U.S. Department of Agriculture estimates
that by 2026, cage ban requirements and policies will cover 16% of all egg operations due to the policies of these 10 states. In 2022, they covered less than 5%. , Scebbi said the cage-free law is a “natural progression in (the Colorado Egg Producers’) ongoing efforts to meet evolving consumer expectations.”
The group’s members have “always prioritized responsible and humane practices,” he added. City Market locations in Colorado started transitioning to cage-free eggs in October as the state moves toward 100% cage-free in 2025. Supplies have since stabilized in the Kroger locations according to the brand. Colorado egg supply also took a hit from avian flu this year. Will this impact the cost and supply of eggs? The exact impact that this will have on egg prices remains uncertain, partially due to other forces at play including inflation and outbreaks of the highly pathogenic avian influenza. While national egg prices have fluctuated in recent years, the average cost of a dozen eggs has increased by 135% — rising from $1.55 to $3.65 — between January 2019 and November, according to the U.S. Bureau of Labor Statistics Consumer Price Index
. For the first 11 months of this year, the average price has increased by around 45% from $2.52 in January. published on Dec. 20, the average price of a dozen cage-free eggs rose by $0.49 to $2.99 this past week with inventory dropping 3%. Inventory of cage-free eggs, however, increased by 5%. In November, the average price of a dozen cage-free eggs was $3.23, according to the monthly cage-free egg report from the department
. This comes during the holidays, a time when consumer demand is heightened — and as avian influenza continues to impact supply, according to the report. In 2024, as in previous years, avian flu hit 12 states, including Colorado. Greenberg, in a November update to the Colorado Parks and Wildlife Commission, reported that Colorado was the epicenter of the outbreak in July and August. “We saw a few poultry, dairy and a few human cases all at the same time,” she said. “All of that has since resolved, knock on wood, at least for now in Colorado … but we are seeing outbreaks continue in neighboring states.”
In Colorado and other states, this caused challenges with supply. “We are working with producers, and they are hustling to get supply back online,” Greenberg said in November. “So they’re really not anticipating a big drop, but we just continue to monitor how the disease moves through the West and the U.S.”
The Dec. 20 report from the federal Department of Agriculture stated that while all major production systems saw impacts from avian influenza this year, cage-free experienced “the most disproportionate loss resulting in significant price impacts for cage-free eggs, especially in states with legislated confinement requirements such as California.”
In October, some Kroger grocery stores in Colorado had signs warning that shoppers could see egg supply issues due to the cage-free egg law. According to Jessica Trowbridge, Kroger’s spokesperson for the region, this was when the grocer had started to transition to cage-free but has since seen supply stabilize. With differing factors at play, it remains to be seen how next week’s cage-free change will impact egg supply and cost. However, some concerns remain. Sonia Riggs, president and CEO of the Colorado Restaurant Association, said she does expect negative consequences for restaurants. “Unfortunately, we do expect to see higher prices at restaurants and continued limited supply when the new cage-free egg law goes into effect,” Riggs said. “Local operators in Vail and elsewhere have shared that egg prices have been on the rise all year, and some are even seeing increases of more than 200%.”
These increases have “a major impact on restaurants’ bottom lines” at a time when restaurants are facing “a real struggle to stay afloat,” Riggs added. Colorado’s cage-free egg law is one of several new state laws
that starts in the new year. News

How Colorado’s new cage-free law might impact egg prices and supply

As Denver’s minimum wage increases, restaurateur confidence lowers
When Joel Appel bought Zaidy’s Deli & Bakery, he didn’t expect it to be this hard. At the time he reopened the Jewish joint’s doors in 2022, Denver’s minimum wage was $15.87. On Jan. 1, that number will be $18.81. According to a survey from The Colorado Restaurant Association, the hike will cost Denver restaurants an average of over $51,000 next year. “It just makes it very, very difficult,” Appel said, who took over Zaidy’s after it closed in 2020 . “Any business that’s getting the job done and showing a small profit has to worry about when things happen in the world because they just have zero cushion.”
Though the raise — up 65 percent from 2019 — has been an issue for most Denver eateries, the real issue comes down to tipped workers, Appel said. Their hourly minimum will be $15.79 with the $3.02 “tip credit,” as it is commonly called. In New York City, for comparison, tipped workers earn a minimum wage of $5.35. That brings the average front-of-house staffer to about $37 an hour with tips, according to Colorado Restaurant Association President Sonia Riggs. That is a stark difference from the roughly $23 to $25 per hour that untipped, back-of-house employees make, she said. From 2019 to 2022, Denver raised the minimum wage from $11.10 per hour to $15.87 to “catch up” to the modern cost of living. Since then, the number has been adjusted each year based on a variant of the Consumer Price Index, a commonly used measure of inflation. “We all support the idea of people earning more and people earning a living wage, but I don’t think people understand who (the city) is giving the raise too. They’re aiming for A and hitting B,” Appel said. Appel said he is exploring ways to get kitchen staff added to the tip pool, like having them man the register at the counter-service side of Zaidy’s. But finding a legal way to do it has been challenging, he said, so he is still weighing his options. He also has pondered substantially raising prices, but “that seems terrible and people would stop coming,” he said. “We’re trying to raise living standards, but it’s a complicated issue. One-size-fits all is always dangerous, especially in times like this,” he said. “This is the only thing that’s not driven by the market. When the price of food goes up, there are three other vendors waiting to slip in and compete. There’s not that when the city is telling us to pay our front staff more.”
Appel and his father founded cleaning product titan Orange Glo International, the parent company of Oxiclean, Kaboom and Orange Glo. They sold the business in 2006 for $365 million, and Appel has since been an angel investor in several companies, helping bring cleaning, ed-tech and food products to market. Because of his other job and the nearly 40-year reputation of the deli, Zaidy’s will stick it out, he said. But other restaurants who are toeing the line of profitability may not be as fortunate. “You just have no margin for the world to happen,” he said. “Most restaurant operators that are tight can’t afford any of those things to happen, and consumers have been staying away this year, like a high-single-digits downtick of customers. If that continues or gets worse, it’s gonna be bad news for Denver.”
For all these reasons, Appel isn’t looking to open another Mile High location anytime soon. “I don’t know that I want to say never, but there would have to be 100 factors lined up that look perfect,” he said. “Right now, why on earth would I do that?”
2024 was a rough year for all Colorado restaurants, Riggs said, and Denver accounted for over 80 percent of closures. The number of restaurants in the state declined 4.5 percent from summer 2023 to summer 2024, she said — the first time total figures have shrunk since the pandemic. “How can restaurants be expected to remain in business when every single operational cost has increased since 2019, and menu prices can’t follow suit without customers complaining and dining out less frequently?” Riggs asked. “It’s simply unsustainable.”
She and the association have and will continue to lobby the city and state governments to adjust the policy next year. But if those efforts aren’t successful, Appel said there’s only one way to help bolster the scene. “Eat out at Denver’s independent restaurants,” he said. “The chains have systems and marketing and buying power that the rest of us can’t touch.”
Zaidy’s owner Joel Appel in the restaurant on Friday, Dec. 20. (Max Scheinblum/BusinessDen)
When Joel Appel bought Zaidy’s Deli & Bakery, he didn’t expect it to be this hard. At the time he reopened the Jewish joint’s doors in 2022, Denver’s minimum wage was $15.87. On Jan. 1, that number will be $18.81. According to a survey from The Colorado Restaurant Association, the hike will cost Denver restaurants an average of over $51,000 next year. “It just makes it very, very difficult,” Appel said, who took over Zaidy’s after it closed in 2020 . “Any business that’s getting the job done and showing a small profit has to worry about when things happen in the world because they just have zero cushion.”
Though the raise — up 65 percent from 2019 — has been an issue for most Denver eateries, the real issue comes down to tipped workers, Appel said. Their hourly minimum will be $15.79 with the $3.02 “tip credit,” as it is commonly called. In New York City, for comparison, tipped workers earn a minimum wage of $5.35. That brings the average front-of-house staffer to about $37 an hour with tips, according to Colorado Restaurant Association President Sonia Riggs. That is a stark difference from the roughly $23 to $25 per hour that untipped, back-of-house employees make, she said. From 2019 to 2022, Denver raised the minimum wage from $11.10 per hour to $15.87 to “catch up” to the modern cost of living. Since then, the number has been adjusted each year based on a variant of the Consumer Price Index, a commonly used measure of inflation. “We all support the idea of people earning more and people earning a living wage, but I don’t think people understand who (the city) is giving the raise too. They’re aiming for A and hitting B,” Appel said. Appel said he is exploring ways to get kitchen staff added to the tip pool, like having them man the register at the counter-service side of Zaidy’s. But finding a legal way to do it has been challenging, he said, so he is still weighing his options. He also has pondered substantially raising prices, but “that seems terrible and people would stop coming,” he said. “We’re trying to raise living standards, but it’s a complicated issue. One-size-fits all is always dangerous, especially in times like this,” he said. “This is the only thing that’s not driven by the market. When the price of food goes up, there are three other vendors waiting to slip in and compete. There’s not that when the city is telling us to pay our front staff more.”
Appel and his father founded cleaning product titan Orange Glo International, the parent company of Oxiclean, Kaboom and Orange Glo. They sold the business in 2006 for $365 million, and Appel has since been an angel investor in several companies, helping bring cleaning, ed-tech and food products to market. Because of his other job and the nearly 40-year reputation of the deli, Zaidy’s will stick it out, he said. But other restaurants who are toeing the line of profitability may not be as fortunate. “You just have no margin for the world to happen,” he said. “Most restaurant operators that are tight can’t afford any of those things to happen, and consumers have been staying away this year, like a high-single-digits downtick of customers. If that continues or gets worse, it’s gonna be bad news for Denver.”
For all these reasons, Appel isn’t looking to open another Mile High location anytime soon. “I don’t know that I want to say never, but there would have to be 100 factors lined up that look perfect,” he said. “Right now, why on earth would I do that?”
2024 was a rough year for all Colorado restaurants, Riggs said, and Denver accounted for over 80 percent of closures. The number of restaurants in the state declined 4.5 percent from summer 2023 to summer 2024, she said — the first time total figures have shrunk since the pandemic. “How can restaurants be expected to remain in business when every single operational cost has increased since 2019, and menu prices can’t follow suit without customers complaining and dining out less frequently?” Riggs asked. “It’s simply unsustainable.”
She and the association have and will continue to lobby the city and state governments to adjust the policy next year. But if those efforts aren’t successful, Appel said there’s only one way to help bolster the scene. “Eat out at Denver’s independent restaurants,” he said. “The chains have systems and marketing and buying power that the rest of us can’t touch.”
This story is for our paid subscribers only. Please become one of the thousands of BusinessDen members today! Your subscription has expired. Renew now by choosing a subscription below! For more informaiton, head over to your profile.

As Denver’s minimum wage increases, restaurateur confidence lowers

Alcohol to-go is here to stay in Colorado
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By Dionne Passacantando | Special to the Independent
On May 10, a Colorado State Senate bill that permanently legalizes the sale of alcohol for takeout and delivery from restaurants was signed into law by Governor Jared Polis at Cactus Flower Restaurant in Pueblo, Colorado. The bill authorizes a permanent policy shift for alcohol to-go, creates certainty for Colorado hospitality businesses, raises additional revenue for state and local governments, and allows patrons to continue to enjoy this convenient approach to alcohol-beverage sales. “Restaurants lost more than $3 billion in revenue during 2020 alone, and have struggled with inflationary pressures, labor shortages, and operational uncertainty ever since,” said Sonia Riggs, president and CEO of the Colorado Restaurant Association. “Alcohol to go from restaurants is a win-win; it’s extremely popular with the public and provides restaurants with a measure of confidence, knowing they can factor in this additional revenue stream as they make plans for the future. We’re delighted that alcohol to-go is now permanent in Colorado.”
This decision follows in the footsteps of well over a dozen other states that have already made alcohol to-go a fixture since COVID measures were enacted in 2020. Emillio Ortiz, partner and general manager of 503W Open Kitchen + Craft Bar in Colorado Springs, explains that “during the pandemic to-go alcohol was a major contributing factor for getting us through,” and “was comforting for patrons knowing they could get wine, beer or to-go cocktails without having to leave their house while still supporting us at the same time.”
Among those plugged into the restaurant and bar scene, the continuation of this policy seems like a no-brainer, serving as a helpful add-on for businesses to properly rebound and even thrive during what continues to be a challenging economic period. “There is no doubt that this can only be good for the on-premise hospitality industry,” says Ortiz. “In particular because of its promotion of increased revenue, competition and creativity. Plus, it gives us the ability to provide our patrons with more choices.”
Now that the legalities of this progressive shift are addressed, it properly allows businesses to streamline their to-go ordering and offers customers the warm and fuzzy feeling that there is a protocol intact to make takeout experiences just as rewarding and reputable as dining in. “If it answers the question of convenience and quality, then we are in good shape,” said Ortiz. “To have a careless approach to it could really dissuade patrons. It should be about safety, quality and consistency.”
Our recommendation for a to-go cocktail at 503W is the Passion Fruit Margarita, served in a sealed, 8 oz. glass bottle that accounts for two libations when poured into highball glasses with ice. Dehydrated lime garnishes are included. In addition, 503W sells a variety of their most popular in-house cocktails in the same convenient, pre-labeled format for maximum at-home enjoyment. Dionne Passacantando is a freelance writer and chief correspondent at Rocky Mountain Food Report, an independent online media publication https://rockymountainfoodreport.com and social media brand (@rockyfoodreport) based in Colorado Springs, that represents food culture, tourism, travel and lifestyle content.

Alcohol to-go is here to stay in Colorado

Colorado Restaurant Association Partners with Adesso Capital to Expedite Cash Assistance for Restaurant Businesses Statewide
Colorado Restaurant Association Partners with Adesso Capital to Expedite Cash Assistance for Restaurant Businesses Statewide
DENVER — The Colorado Restaurant Association, the leading trade organization representing the state’s dynamic foodservice industry, has partnered with Adesso Capital to offer Centennial State restaurant businesses assistance in expediting federal pandemic-relief funds, which can be used for operating capital, payroll, inventory, or other expenses. The assistance includes filing for the Employee Retention Credit (ERC), a tax credit available to businesses that suffered reduced operating capacities or loss of revenue from COVID-19 restrictions. The credit stems from payroll taxes paid in previous years and offers up to $26,000 back per W-2 employee. Applications for ERC benefits pertaining to payroll paid from March 2020 through December 2020 must be sent in no later than April 15, 2024. For payroll paid January 2021 through September 2021, applicants have until April 15, 2025, to file. “I talk with local restaurant owners and operators every day, hearing regularly about their operational struggles due to mounting inflation and the aftermath of the pandemic, which is why I am so pleased that we have partnered with Adesso Capital to provide our members with the tools and resources they need to claim this tax credit and ensure their businesses survive,” says Sonia Riggs, President and CEO of the Colorado Restaurant Association. “With small businesses struggling to stay afloat during these challenging times, it is crucial that these tax credits be made available so that they can continue to provide jobs, boost the state economy, and support their communities.”
“I feel for the business owners who have weathered COVID-19 restrictions and kept their doors open; they’re truly the champions of the American Dream and we should all ensure they have every tool possible to keep going,” said Damon Maletta, founder of Adesso Capital. “We at Adesso feel it’s our job to help businesses take advantage of the ERC, especially because there are no restrictions on how the funds are used, giving power back to the people who know how to use these funds the best. It’s a passion of mine, and I still get excited every time we get that ‘Approved!’ notice for a new client.”
Together, the Colorado Restaurant Association and Adesso have helped Colorado small-business owners receive over $14 Million in ERC refunds, infusing the local economy with vital resources that reduce unemployment and create new opportunities for community growth. Adesso’s clients average a return of $150,000 per business. Colorado small business owners can learn more at  adessocapital.com/cora . Restaurants and other foodservice businesses interested in joining the Colorado Restaurant Association can find more details at  corestaurant.org/membership . About the Colorado Restaurant Association
The Colorado Restaurant Association (CRA) is dedicated to the enhancement and success of Colorado’s foodservice industry. Founded in 1933, the CRA is the leading trade organization for the state’s dynamic restaurant community. The CRA represents, educates, and promotes a $18-plus billion industry comprising more than 12,700 eating and drinking establishments and 285,000 employees. To learn more, visit  corestaurant.org . About Adesso Capital
With over $1 billion secured, Adesso Capital helps US-based businesses secure the critical funds they need to thrive. Thousands of business owners across the country have trusted Adesso to help fund their dreams with government relief programs or financing options like term loans, lines of credit, and SBA loans.

Colorado Restaurant Association Partners with Adesso Capital to Expedite Cash Assistance for Restaurant Businesses Statewide

Merger

Colorado Restaurant Association is a trade organization for the state's dynamic foodservice industry.

Date	9/28/2015
Round	Merger
Amount
Investors	Colorado Restaurant Insurance Agency
Valuation	$XXM
Revenue	0 FY undefined
Sources	2

First funding	9/28/2015
Last Funding	9/28/2015
Investor	Colorado Restaurant Insurance Agency
Rounds	1 Merger
Board Seats
Type	Corporation
Location	Colorado

How VCs Use CB Insights

Professional Services

Platform Overview

Colorado Restaurant Association

Investors Count

Funding, Valuation & Revenue

Colorado Restaurant Association Investors