Denver restaurants struggling with rising costs, permitting, homelessness, survey says
Denver’s Food Scene Faces Challenges with Opening New Restaurants
Denver’s food scene is experiencing some setbacks as regulatory agencies are making it difficult for small businesses to open new restaurants in the city. A recent industry report highlighted the costly and lengthy process of opening a restaurant, which is driving small businesses to the suburbs and deterring national brands from entering the market.
The 68-page report, released in collaboration with Denver’s Economic Development and Opportunity office, gathered feedback from restaurant owners and real estate brokers who expressed concerns about the challenges they face in opening and operating restaurants in the city.
One of the main issues raised in the report is the rising costs associated with opening and running a restaurant in Denver. Factors such as homelessness, loitering, drug use, and public nuisances, as well as construction projects, have been cited as deterrents for customers. Additionally, labor costs have increased significantly due to rising minimum wages, further impacting the financial viability of restaurants.
The report also highlighted challenges related to the permitting process, with delays and inconsistencies in turnaround times for acquiring permits for zoning and fire department approvals. National brands interested in entering the Denver market have faced obstacles due to the lengthy permitting process, leading some to abandon their projects.
The report’s authors presented their findings to various agencies, urging for improvements to support local businesses and streamline regulatory processes. Denver’s Department of Transportation and Infrastructure acknowledged the feedback and committed to implementing changes to better support the restaurant industry.
Restaurant operators also acknowledged their role in lengthening the permit process by providing incomplete or incorrect information. The report emphasized the need for collaboration between city leaders and restaurant associations to address the challenges faced by the industry.
Despite the challenges, the report commended Mayor Mike Johnston and the city for their efforts to address homelessness and boost tourism downtown. Restaurant associations in Denver echoed the concerns raised in the report and called for more collaboration with city leaders to streamline regulatory processes.
The report, based on feedback from restaurant operators and industry professionals, serves as a call to action for the city to work towards becoming a more supportive environment for restaurants. It invites a discussion on how Denver can overcome its current challenges and become a more welcoming city for new restaurant ventures.
