After almost 10 years on the scene, chef Jeff Osaka announced he will shutter Osaka Ramen after service on February 23. Last year the chef closed all but one of his Sushi-Rama locations, leaving open the original RiNo spot right next to his first ramen-focused eatery.
A press release stated the reason for the closing comes, “Amid significant challenges facing Denver’s restaurant industry, including rising ingredient costs, an evolving economic landscape, and the mandated tip credit on top of a high minimum wage. Despite these challenges, chef Jeff Osaka remains immensely proud of the culinary community he has built and the memories shared with loyal customers and members of the food scene.”
Unfortunately the current climate has affected many Denver institutions. At the beginning of the year chef Alex Seidel ended the chapter on Fruition, Farow in Niwot closed, Sushi Sasa folded, and chef Lon Symensma gave up his Denver location of YumCha. This week EatYa Pizza announced closure, Lucky Noodles on Colfax Avenue shuttered, and Lao Wang Noodle House’s last day is February 15.
To help the restaurant community, the Restaurant Relief Act was introduced yesterday, February 11, at the Colorado State Capitol. Supported by the Colorado Restaurant Association (CRA), EatDenver, the Hispanic Restaurant Association, the Colorado Chamber of Commerce, Downtown Denver Partnership, Downtown Boulder Partnership, and the Tavern League, the idea behind HB25-1208 is to reset Colorado’s tip offset laws for food and beverage.
A press release from the CRA stated the bill is necessary because, “Local restaurant operators want to fix the pay gap that exists between their tipped and non-tipped staff, which is a contributing factor to many recent restaurant closures.”
Last year more than 200 Colorado restaurants closed. According to the Department of Excise and Licenses, Denver alone saw 82-percent of those losses.
“Our members are terrified right now as they watch restaurant peers across the state close their doors,” said CRA President and CEO Sonia Riggs in a press release. “It’s time to address the unintended consequences of Colorado’s immovable tip offset, which handcuffs employers from giving raises to their back-of-house teams and forces them to cut tipped workers’ hours, eliminate positions like bussers and hosts, and eventually, go out of business. I hear it every single day, especially in Denver.”
Between the rising costs of ingredients, labor, and rent, it’s been hard for many places to make ends meet. Already the restaurant margins are low, and a recent report stated most owners only see a three-cent profit for every dollar. That means when you spend $100 to eat out, the restaurant makes $3. If there’s any emergency, unexpected closing, or theft, the businesses end up paying for it out of pocket.
For now, treat your restaurant workers with kindness, know they aren’t making a ton of money, and eat at independent and local spots as much as possible. We don’t want to see any more closed for these reasons.
