Despite industry woes, some Denver restaurants find ways to defeat odds
With costs climbing and many customers cutting back, Denver's restaurant scene has been hit hard.
The city's Department of Licensing and Consumer Protection says licenses for retail food establishments have declined 21% since July 2023.
But one Denver restaurant group that has survived the economic turbulence is counting on a unique New Year's Eve experience to keep people coming.
At Magna Kainan, a Filipino restaurant in Denver's RiNo neighborhood, Chef de Cuisine Jodee Reyes says restaurants are having to rethink what "a night out" means in this economy.
"People are not willing to spend their hard-earned money anymore, so we really need to create that experience for them," Reyes said.
On New Year's Eve, Magna Kainan is offering a three-course dinner for $45. The meal also includes the perk of skipping the line for entrance to the rooftop bar Sorry Gorgeous, which is hosting a ticketed celebration.
"I think that's a really unique situation we have here," Reyes said. "We wanted to offer that for people who want to go out and have fun in a safe environment."
Still, convincing people to spend money remains difficult.
In a statement to CBS News Colorado, Colorado Restaurant Association Director of Government Affairs Nick Hoover said costs continue to surge while dining traffic declines:
"Costs continue to skyrocket for Denver restaurants and dining out is on the decline, which means local businesses are struggling to earn enough to stay open long-term. Colorado lost 498 restaurants between Q1 2024 and Q1 2025, according to the Colorado Department of Labor & Employment; Denver's Department of Licensing and Consumer Protection shared that Denver retail food establishment licenses have declined 21% since July 2023, for a net loss of 506 active licenses as of November 2025. These declines reflect how challenging economic conditions are for restaurants right now. It's death by a thousand costs for our restaurant industry, with no end in sight."
Sorry Gorgeous entertainment director Peter Paul Scott says part of their strategy is creating a venue and atmosphere worth paying for.
"When you go to LA, New York, or Vegas, the venue matters," Scott said. "It's almost 80% of the experience. When you walk in, that first impression matters."
One of the DJs being featured at Sorry Gorgeous's New Year's Eve celebration is two-time Grammy-nominated DJ and producer Scram Jones, whose credits include working with artists like Mariah Carey, Eminem, and Rick Ross.
But even with nightlife energy and creative offerings, the looming 2026 wage debate weighs heavily on restaurant owners. Magna Kainan has already had to cut staffing. The Colorado Restaurant Association estimates upcoming minimum-wage changes could increase labor costs by more than 37% in 2026.
Hoover adds that restaurant spending in Denver is already down 6.7% compared to last year.
Still, those in the industry say they're hopeful that creativity and experience-focused dining will help businesses survive.
"I'm excited," Scott said. "I'm not thinking about the L's. I'm thinking about the W's — the wins."
