Zaidy’s Deli & Bakery in Denver has faced significant challenges since Joel Appel took over the business in 2022. The increase in Denver’s minimum wage from $15.87 to $18.81 on Jan. 1 has put a strain on restaurants in the area, with an average cost increase of over $51,000 projected for next year, according to a survey from The Colorado Restaurant Association.
Appel expressed concerns about the impact of the wage hike on tipped workers, who will earn a minimum of $15.79 per hour with a $3.02 tip credit. This disparity in wages between tipped and untipped workers has created a significant gap, with front-of-house staff earning around $37 per hour with tips compared to back-of-house employees making $23 to $25 per hour.
The minimum wage in Denver has been steadily increasing since 2019 to keep up with the cost of living, but Appel believes that the city may be missing the mark with its wage policies. He has been exploring options to include kitchen staff in the tip pool, but legal challenges have made this difficult to implement. Additionally, raising prices significantly could deter customers from dining at Zaidy’s.
Appel, who co-founded cleaning product company Orange Glo International before selling it in 2006, remains committed to keeping Zaidy’s open despite the challenges. However, he acknowledges that other restaurants may not be as fortunate, especially given the current economic climate.
With over 80% of restaurant closures in Colorado occurring in Denver, Riggs of the Colorado Restaurant Association emphasizes the need for policy adjustments to support struggling businesses. While lobbying efforts are ongoing, Appel encourages the community to support independent restaurants to help sustain the local dining scene.
As the restaurant industry faces unprecedented challenges, it is crucial for stakeholders to come together to find sustainable solutions that benefit both businesses and employees. By raising awareness and advocating for change, Denver can work towards creating a more supportive environment for its vibrant restaurant community.
