As Denver’s minimum wage increases, restaurateur confidence lowers

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As Denver’s minimum wage increases, restaurateur confidence lowers
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Tynin Fries joined The Denver Post in 2018 as an intern. Then, she joined the team as a Digital Strategist and was promoted to Deputy Director of Audience in 2022. She is a proud ASU Cronkite alumna (#godevs)! In between producing news and writing stories, Tynin is out exploring all that Colorado has to offer.

When Joel Appel bought Zaidy’s Deli & Bakery, he didn’t expect it to be this hard.On Jan. 1, that number will be $18.81.

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.

“We all support the idea of people earning more and people earning a living wage, but I don’t think people understand who is giving the raise too. They’re aiming for A and hitting B,” Appel 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.”

“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.”“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.

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.

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