DENVER (KDVR) — Restaurants are worse off under this year’s inflation than they were during the pandemic darkness of 2021, according to a new survey.
Inflation is threatening to shutter Colorado’s independent restaurants. Under the current conditions, 54% of restaurants said they’ll have to close within a year due to rising costs of operations, according to a Colorado Restaurant Association survey.
Virtually all restaurants said costs of operations are higher now than a year ago. Labor has risen most, followed by food, supplies and alcohol. Nine out of 10 Colorado restaurants are increasing prices to keep up with wage inflation, food price inflation and widespread labor shortages.
This tracks with recent economic data. Colorado has climbed ahead of national wage estimates by $2 an hour at $33.28 per hour. The U.S. had an average wage of $31.31 per hour in December 2021, according to U.S. Bureau of Labor Statistics data.
The wage gains come as the restaurant industry tries to coax back workers lost in the pandemic.
On average, restaurants said they’ve increased wages by 20% since the pandemic started. Three out of four restaurants have had to raise wages between 11% and 40%. Nevertheless, the industry is still, 8,400 workers short of its pre-pandemic levels.