Denver restaurants navigate the cost of minimum wage increases
DENVER — Serving the Mile High City can be challenging. Still, for the past nine years, Coperta Italian restaurant has become a neighborhood staple thanks to support from both new and old customers.
"We've been happy to make new regulars through the years, but certainly, our regular business, our consistent business, is what keeps the doors open," said Paul Reilly, culinary director of Coperta.
Coming up on a decade of business, Coperta has seen changes throughout the uptown neighborhood, along with changes to the cost of employment as Denver's minimum wage has increased. Back in 2020, the minimum wage was $12.85 per hour; now, in 2024, it is $18.29, and it will go to $18.81 in 2025.
"We have definitely, over the years, been more prepared year after year for the minimum wage increases. It's something that we absolutely want to provide for our staff. It's something that we take pride in," Reilly said.
With a staff of around 20, Reilly explained that part of navigating these costly challenges is planning ahead and reducing hiring.
"We employ less people these days, so we might be busier, but we have less people working in the restaurant," Reilly said.
In response to Denver's minimum wage increase, Sonia Riggs, president and CEO of the Colorado Restaurant Association, provided the following statement:
"It's been incredibly difficult for restaurant operators to absorb minimum wage increases over the past few years, on top of soaring costs for food, liquor, property taxes, utilities, and more. Denver's tipped minimum wage has risen almost 90% since 2019, and the non-tipped minimum wage is up almost 65%, leaving operators with less and less in an industry with historically thin margins."
Noisette Restaurant and Bakery opened in August 2022. The owner, Lillian Lu, has seen firsthand the challenges of running the local spot.
"It's definitely been a bit of a struggle, just with the economy, and just struggling from coming out of the pandemic as well. We're dealing with a lot of inflation and wage hikes," Lu said.
While the increases directly impact her business, Lu recalled the days when she made minimum wage and the need for restaurant employees to have livable salaries.
"The minimum wage hikes are definitely a positive thing for our industry in general. For a long time, our industry people have been severely underpaid. I used to work for $12 an hour in New York City and without any tips," Lu said.
When dining at Noisette, Lu explained why there might be changes to menu prices as labor is their largest expense.
"I mean, restaurants run on super tight margins, and so people are sometimes confused about why things are priced the way they are," Lu explained. "But there is a system in place where we create the price, and so when one part of that system is changed, we have to change the price."
Even with the challenges of running local restaurants, Lu and Reilly hope the community they love to serve will support them.
"We want to serve our community. We love what we're doing, and we hope that it's something that is appreciated," Lu explained. "So that's why I think it's really important to support any small business in the area, especially like local independent-owned businesses."
