Colorado Springs restaurants struggle as inflation continues
COLORADO SPRINGS, Colo. (KRDO) - Restaurants all around Colorado Springs are reporting razor-thin margins this holiday season while business slows.
Communication Director and Spokesperson for the Colorado Restaurant Association Denise Mickelsen says it's a complex problem. Not only have restaurants been telling her about slower business, but expenses for restaurants in operations have also been going up.
"Operators have such high costs right now," Mickelsen said. "And if you're only making a 3% profit and then everything goes up far more than 3% ... I could go on and on."
Carlos Bistro, a high-end restaurant in Colorado Springs, reports that they've cut menu prices significantly. Even after that owner Carlos Echeandia says that his margins are dangerously thin.
"I mean I used to buy a box of lemons for $7, for a box of lemons ... Not anymore ... That's a joke," Echeandia said.
Mickelsen also said that increasing the minimum wage doesn't help. In January, the minimum wage will be increased again, costing each restaurant in Colorado an average of $78k, according to their data.
Mickelsen explained that when operating prices go up, so do menu prices.
"It's an interesting time. Inflation is not as high as it was, but we've just come through a really rocky few years, [the] pandemic, crazy historic inflation," Mickelsen said.
