Denver restaurants absorb cost of minimum wage increases

DENVER — Serving the Mile High City can be tough. Yet over the past nine years, Coperta Italian restaurant has become a neighborhood staple, thanks to the support of both new and old customers.

“We’ve been happy to take on new regulars over the years, but it’s definitely our regular business, our steady business, that keeps the doors open,” said Paul Reilly, Coperta’s culinary director.

Nearing a decade-long job, Coperta has seen changes in the cost of employment as Denver’s minimum wage rises, as well as changes in upstate neighborhoods. In 2020, the minimum wage was $12.85 per hour; It is currently $18.29 in 2024 and will rise to $18.81 in 2025.

“Over the years, we’ve definitely become more prepared for minimum wage increases. That’s definitely something we want to provide for our staff. It’s something we’re very proud of,” Reilly said.

Part of tackling these costly challenges is planning ahead and reducing hiring, explained Reilly, who has a staff of about 20 people.

“We employ fewer people these days, so we may be busier, but there are fewer people working in the restaurant,” Reilly said.

Colorado Restaurant Association President and CEO Sonia Riggs released the following statement in response to Denver’s minimum wage increase:

“It has been incredibly difficult for restaurant operators to absorb minimum wage increases as well as rising costs for food, liquor, property taxes, utilities and more over the past few years. “Denver’s tipped minimum wage has increased by nearly 90 percent since 2019, and the non-tipped minimum wage has increased by almost 65 percent, resulting in operators being paid less and less in an industry with historically thin margins.”

Noisette Restaurant and Bakery opened in August 2022. The restaurant’s owner, Lillian Lu, has seen firsthand the challenges of running a local business.

“It’s definitely been a bit of an uphill battle just with the economy and also coming out of the pandemic. We’re dealing with a lot of inflation and wage growth,” Lu said.

While the increases directly affected his business, Lu remembered the days when he earned minimum wage and restaurant workers were required to have livable wages.

“Minimum wage increases are definitely a positive thing for our industry in general. Our industry workers have been severely underpaid for a long time. I was working in New York for $12 an hour without tips,” Lu said.

While dining at Noisette, Lu explained why menu prices may vary since the biggest expense is labor.

“What I mean is, restaurants operate on very tight margins, and so people sometimes get confused about why things are priced the way they are,” Lu explained. “But we have a system where we create the price, and when one part of that system changes, we have to change the price.”

Despite the challenges of running a local restaurant business, Lu and Reilly hope the community they love to serve will support them.

“We want to serve our community. We love what we do and hope it’s something that’s appreciated,” Lu said. “That’s why I think it’s really important to support small businesses in the area, especially independent local businesses.”

Denver restaurants absorb cost of minimum wage increases