Why are so many iconic Colorado Springs restaurants closing down?

COLORADO SPRINGS, Colo. (KRDO) - Multiple eateries that have been staples of the Colorado Springs community are closing their doors for good, if they haven't already.

Mountain Shadows Restaurant in Old Colorado City just announced they are closing and will be selling their building.

Cy's Drive-in on the west side closed in October. The owner said the landlord decided she needed to be out by the end of the year.

Munchies 719 in Downtown Colorado Springs will close its doors for good at the end of the year. The owners told KRDO13 that they're seeing fewer people around downtown. Numbers from the Downtown Business Association back up this claim and show a 1.61% downturn in foot traffic downtown since 2023.

Chuck Thomas grew up in Downtown Colorado Springs and has been in the food business since he was 15. He said he always dreamt of a prime spot on Tejon. Now his wife runs Munchies 719 right on Tejon, but they've decided to cut their losses and shut their doors at the end of the year.

"Small businesses are struggling all over Colorado Springs," stated Chuck Thomas, whose wife owns Munchies 719.

Restaurant owners tell KRDO13 there's a multitude of reasons that quickly add up and lead to the decision to close their doors. 

"I sunk everything into the restaurant and I don't have any more to sink into it," shared Mountain Shadows owner, Kasie Swain.

Mountain Shadows opened in 1992. Swain started there as a waitress in 1993. She says it was a Cinderella story that she worked her way up the ladder, eventually taking ownership of the business. Now, she says she is heartbroken to shut the store down.

"I couldn't have told you that was going to happen ever. This was supposed to be for my grandkids," said Swain.

But with high prices of goods, employees to pay, and rent it became too much. 

"Everything's just going up," Swain said, "it's killing us, and every payroll, you're like, I'm going down. I'm going down really fast. So just being able to pay your employees and being able to keep the staff here, it's been kind of a struggle."

The owner of Cy’s Drive-in echoed a similar message. 

"It just keeps piling on every time you raise wages or add a new tax or whatever, it's this huge trickle down," said Kathy Micci, owner of Cy's Drive-in.

She wasn't planning to close, but the decision was made for her.

"I was hoping to sell it and be able to retire. However, my landlord decided for me that that was not an option any longer," shared Micci.

Now she's working to sell off the equipment left from Cy's Drive-in to make any of her investment back. Micci says interested customers can look for her, and the drive-in's posting on Facebook.

Customers heard another burger joint was closing soon, Drifter's Hamburgers. KRDO13 could not get in contact with the owners, despite many phone calls. When we went there, the doors were locked and the drive-thru was blocked off.  

"Go support local or there will be no local," said Thomas.

A message many owners could agree with, as Munchies 719, Mark Anthony’s Pretzels and FH Beerworks all plan to shut down by the end of the year.  

Swain hopes someone with a good heart who cares about the community will buy Mountain Shadows.

Other owners from Cy’s and Munchies 719 say they’re leaving the food business for good. 

While they all had many reasons to blame the closures on, all the restaurants had one thing in common, they're not only losing their business, they’re also losing their dream. 

"It's very expensive to be an employer as well. So we have high wages and a high cost of employment, which just makes it really hard to find a good quality workforce who can afford to stay in these positions," explained Reanna Werner, a small business owner, member of the Pikes Peak Workforce Center Board and the U.S. Small Business Association's Regulatory Fairness Board.