Restaurant report reignites tipped minimum wage debate
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Allie Carl/Axios
The latest tactic to revive Denver's restaurant industry revisits a controversial idea: lowering the city's minimum tipped wage.
Why it matters: A report released last month by the city's tourism arm reignited a clash between those seeking to lower labor costs to stay afloat and business owners who say providing a living wage is essential.
The big picture: The report indicates labor costs rose roughly 50-55% between 2019 and 2024, and says it now costs more to run a restaurant in Denver than in New York City.
State of play: The report made multiple recommendations to address the industry's challenges, but tweaking tipped wages appears to have caught the attention of at least one Denver City Council member.
- Councilmember Darrell Watson, whose district includes culinary epicenters like the RiNo Art District and Park Hill, recently confirmed to Denverite that he is interested in exploring a change to the city's wage laws.
Context: Denver's current minimum hourly wage for tipped workers jumped from $15.79 to $16.27 this year.
- The report suggests reducing the wage to the state's minimum ($12.14), noting labor costs are a major reason so many establishments are struggling to stay in business.
What they're saying: "Cutting workers' wages doesn't actually save restaurants," sap sua owner Ni Nguyen recently posted in a now-deleted Instagram response to the report.
- Nguyen, whose Vietnamese restaurant has received national accolades, said lowering wages is for some owners who want "to pay less, so then they can pocket more." He added that he pays his staff a living wage.
- Watson declined Axios' request for comment.
Flashback: Last year's fight over a bill on tipped wages drew intense political bickering, with attacks from groups opposing the measure targeting state lawmakers.
Between the lines: Visit Denver co-produced the restaurant report alongside the city's economic development office, and inKind, an app that partners with restaurants to offer dining rewards.
- It included feedback from 160 surveyed restaurants. Dana Faulk Query, co-owner of Big Red F Restaurant Group, and Adam Schlegel, a restaurateur and food and beverage consultant, led the project.
- Query in a statement called for "rebalancing wage financing while maintaining high wage standards," adding that the challenges faced by the industry "are not insurmountable."
What we're watching: Whether there's enough political will at City Hall to explore changing the city's minimum.