The Colorado restaurant industry has had a tumultuous yet engaging legislative session in 2025, with both victories and setbacks, particularly for the Colorado Restaurant Association (CRA).
Sonia Riggs, the president and CEO of CRA, described the session as one of the most challenging in her decade with the organization, while expressing gratitude for the progress made for food businesses across the state.
Independent restaurants are grappling with years of escalating food, labor, and operational costs, leading to devastating consequences for establishments already struggling with low-profit margins.
Despite the number of new restaurants opening, renowned eateries in the Denver area have shuttered recently, which prompted the CRA to take action on behalf of its 5,000 member businesses.
While a significant bill aimed at ending credit card fees on tips and tax went down in flames, a proposed bill that would have facilitated worker unionization was vetoed by Governor Jared Polis, pleasing the restaurant association.
Among the more contentious legislative issues was the Restaurant Relief Act, also known as House Bill 1208.
This proposed legislation sought to increase the amount that employers could deduct from the hourly pay of tipped workers, allowing the tips earned by these workers to cover the deficit.
However, this particularly applied only in areas where local wages surpassed the state minimum, such as Denver, where tipped servers earn $15.78, a considerable $4 above Colorado’s state minimum wage for tipped workers.
The bill sparked opposition from worker advocates, who argued it would effectively reduce wages for some of the lowest-paid employees.
Among dissenters was Holly Adinoff, general manager and owner of Sullivan Scrap Kitchen in Denver.
Expressing her dismay, Adinoff stated, “It was heartbreaking to think that the only way that restaurants could succeed is by cutting wages 25% for people who are barely making it.”
Others, like the national advocacy group One Fair Wage, argued for the complete elimination of the tipped credit system, advocating that all workers receive full minimum wage while retaining their tips.
After considerable revisions, the Restaurant Relief Act passed, with the stipulation that local municipalities would decide on any changes to the tipped credit system.
Although Governor Polis has yet to sign the bill into law, Riggs expressed optimism, deeming it a significant victory for the industry.
While immediate relief might not be forthcoming, local owners were appreciative of the heightened attention to the challenges facing restaurants.
Alec Schuler, chef-owner of Tangerine breakfast spots in Boulder, Lafayette, and Longmont, welcomed the direction things are heading.
He noted the proposed efforts to lower credit card fees and not tax tips, which are generally advantageous for restaurateurs like himself.
“It’s minimal … but 80-cents an hour still adds up to a chunk of money,” Schuler said, indicating he would even support changing tipped minimum wages if only one of his restaurants could benefit.
In federal developments, the U.S. Senate recently approved the No Tax on Tips Act, which garnered support from both major presidential candidates during the election season.
If enacted as it stands, this legislation would exempt tipped workers—including restaurant servers, bartenders, baristas, food-delivery drivers, and those in beauty services—from federal taxes on their tips.
However, the bill has limitations, such as imposing a cap of $25,000 and only applying to tipped workers earning $160,000 or less in 2025, with future adjustments for inflation.
While the CRA has not taken a definitive stance on this act, many restaurant owners believe it could offer a beneficial way for tipped workers to retain a larger portion of their earnings.
Adinoff reflected on the potential positive impact, stating, “Any way that we can get more money into our people’s hands is great.
Nonetheless, One Fair Wage criticized the No Tax on Tips Act for failing to address broader issues affecting service sector workers, many of whom earn too little to incur federal taxes.
According to IRS guidelines, individuals earning less than $14,600 annually are exempt from paying federal income taxes, a figure that translates to around $7 an hour for full-time employees.
This threshold falls well below Colorado’s current minimum wage of $14.81 and tipped minimum wage of $11.79.
Alarmingly, 20 states still adhere to the federal minimum wage of $7.25 and maintain a tipped minimum of only $2.13 per hour, not having raised these figures since the federal mandate in 2009.
In an overview of economic headlines, notable stories have emerged from the Colorado region.
Front Range cities are rallying against a $99 million proposal to purchase Colorado River water rights, with Western Slope communities, spearheaded by the Colorado River District, striving to acquire historic water rights tied to the Shoshone Power Plant to bolster their economies.
In cultural news, a new art center is set to debut in a former Denver fortune cookie factory, scheduled to open on May 24, and aiming to showcase new work by contemporary artists on an annual basis.
Legislation signed into law by Governor Polis will simplify the process for food truck operators in Colorado, allowing them to obtain a single license for operation across various locations in the state.
Meanwhile, changes tied to the state’s Medicaid program could potentially result from a significant budget bill proposed by former President Trump, prompting concerns about increasing uninsured individuals in Colorado.
In the corporate arena, AT&T has announced its acquisition of Lumen’s home fiber business—including the Colorado market—for $5.75 billion, marking a significant transition from Lumen’s previous identity as CenturyLink.
In legal matters, several Colorado cities have filed suit against both Governor Polis and the state, claiming a violation of local governments’ rights to control their growth and development strategies.
In relation to employment, the city of Denver has issued warnings about impending layoffs, as Mayor Mike Johnston disclosed a projected $50 million reduction in revenue for the current fiscal year.
Consequently, the city anticipates a $200 million deficit in the upcoming year due to economic downturns that have resulted in decreased consumer spending.
City officials have imposed a hiring freeze and necessitated furloughs for employees ranging from two to seven days within this year, with forewarnings of potential layoffs in 2026.
On a brighter note, the nearly completed 16th Street Mall in Denver has officially undergone a name change to simply “16th Street.”
After a lengthy construction process spanning over three years, the new branding—costing $100,000—is expected to culminate in a grand summer kickoff that coincides with the upcoming Outside Festival in Civic Center Park.
Adding to Colorado’s technological landscape, Colorado Springs is welcoming another chip manufacturer, Okika Devices, which has transitioned from analog product designs.
Originally based in Carlsbad, California, Okika will establish its new headquarters and research center in Colorado Springs, adding 20 new employees with an average annual compensation of $104,250.
The company is set to be eligible for over $402,000 in state income tax credits through the Pikes Peak Enterprise Zone initiative.
Moreover, job opportunities are on the horizon for potential 9-1-1 call takers in Colorado.
A virtual job fair hosted by the Colorado 9-1-1 Resource Center is scheduled for June 3, featuring two sessions that will cover the training requirements and provide insights from experienced emergency communication specialists.
Additionally, the Regional Transportation District is hosting a job fair on May 30, concentrating on recruiting bus and rail operators alongside maintenance, technical, and management roles, with several positions offering a $4,000 hiring bonus.
For readers possessing insights or news regarding Colorado’s economic scene, they are encouraged to share their information with the Sun.
As the Memorial Day weekend approaches, readers are invited to express their thoughts on the economy’s impact on their lives and share their stories to further the conversation surrounding Colorado’s economic landscape.
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