The number of restaurants in Denver has dropped by 22% over the last three years, a stark figure that is indicative of the challenges eateries continue to face beyond the coronavirus pandemic.
There were 2,166 restaurants in the city at the end of 2021, and 2,118 at the end of 2022, according to Denver’s Department of Excise and Licenses, which requires owners to keep active retail licenses. The city couldn’t provide numbers for 2023 — licensing spokesman Eric Escudero said they were unreliable because the department transferred the entire application process online that year.
But by the end of 2024, there were only 1,693 active restaurant licenses.
Longtime Denver restaurateur Beth Gruitch, who co-owns Rioja in Larimer Square, said the business climate in Denver is difficult right now, but she also believes the future is promising as the city’s cuisine attracts more attention nationwide.
“We’re in a slump right now, but I don’t think it’s going (to last) forever,” Gruitch said.
Many of the closures last year made headlines as restaurateurs retired, got out of the business or moved their operations to the suburbs. They included Tex-Mex staples Taco House and Señor Burritos, which are now suburban after decades in the city; Fruition, a farm-to-fork restaurant run by James Beard award-winning chef Alex Seidel; and Café Brazil, which the city recognized as a “legacy business” just weeks prior to its closing.
Escudero said COVID-19 has been the “single-biggest disruptor” to the industry, with economic inflation raising overhead costs for kitchens while restaurant customers are staying home more often than they used to. “That’s not just a Denver issue, that is a national issue,” he said.
From Maine to California, cities have weathered similar waves of closures — something that also affected national chains like Wendy’s, which closed three of its Denver locations, and Red Lobster, which also closed some of its Colorado stores.
Chefs and owners in Denver have cited everything from the effects of construction to rising labor costs as reasons for closing up shop, along with higher prices for goods and a regulatory process they’ve found stifling and lengthy compared to some surrounding cities.
Denver’s rising minimum wage for workers who make more than $3.02 an hour in tips is a continuing source of frustration among many restaurants. The minimum wage was $18.81 as of the new year, up 65 percent from 2019.
Escudero defended the city’s regulatory process, saying that the 2023 overhaul that moved food-related applications online has reduced some fees and has helped streamline other tasks.
“If someone points to regulations as the main factor, it’s like looking up at the sky and ignoring the sun,” he said. “It’s clear to us what the greatest challenge is,” alluding to Covid-19.
Gruitch and Jennifer Jasinski, who co-founded Crafted Concepts, made news in 2024 when they closed Stoic & Genuine, a lauded seafood restaurant inside Union Station. The pair also stepped back from two other restaurants they founded, while keeping Rioja, which just celebrated its 20th anniversary, up and running.
But keeping up with costs can be a challenge. “We’re all still in Denver, we’re all still dealing with Denver minimum wage,” Gruitch said. “It would possibly be a little bit easier to operate,” in some of Denver’s suburbs.
The restaurant slump is at odds with Denver’s growing presence as a national food destination since Rioja first opened, Gruitch continued. She urged lawmakers to see how they can support restaurants over the next ten years, such as by offering a tax break to owners or employee resources to upstart kitchens.
“Sometimes the business side is what can challenge us most,” she said.