There’s been a lot of change in the Colorado Springs restaurant scene for many years now, with an ongoing boom in new restaurants, bars, coffee shops, tea rooms and more. That has been true again this year, and we’ve rounded up lists of new restaurants as well as new bars, coffee shops and more. Unfortunately, 2024 has seen another trend on the rise with many local restaurants closing their doors for good.
Running an independent local restaurant has never been an easy business proposition. Profit margins are thin, and it’s common to see mom-and-pop eateries and startup food and beverage ventures come and go.
But it’s also no secret that the ever-present challenges to local restaurants have grown even more daunting in recent years due to the repercussions of the COVID-19 pandemic, inflation and other national economic difficulties. As we cited earlier this year, the Colorado Restaurant Association says only about 3 cents from every dollar spent at a Colorado restaurant remains after operators pay for labor, overhead and food. And the association reports Colorado had the highest menu-price inflation in the nation in 2023.
It’s all those persistent headwinds that finally prevailed against many, forcing many restaurants — some long-time popular spots — to close their doors for good this year. Rebecca Taraborelli, co-president of the Pikes Peak Chapter of the Colorado Restaurant Association, says there are more closures than usual.
“Many restaurants have taken a huge hit to profitability the last few years, so reserves are low, and people are over-leveraged. Combine that with a significant dip in volume this year, many restaurants have just run out of options to stay open,” Taraborelli says. “2022 and 2023 brought unprecedented challenges to restaurants. Post-covid supply chain issues and labor shortages led to significant increases in labor costs and food costs, the two biggest expenses for restaurants. Most restaurants I know have not been profitable for a couple years. Combine that with decreased traffic in 2024, and we see closures left and right.”
Many of the closing restaurants have pointed to similar challenges and factors as they have announced their closures in heartfelt social media posts.
In downtown, it’s a point of pride to be home to the largest concentration of locally owned restaurants in Southern Colorado. The numbers there show a significant turnover this year, but still with a slight net gain of restaurants and bars. The Downtown Partnership of Colorado Springs recently reported that 25 overall downtown businesses closed while 29 opened. Of those that closed, 17 were food and beverage industry businesses, including some that serve food and drinks such as 3E’s Comedy Club. Of the new openings, 19 were restaurants, bars, coffee or tea houses, including Lulu’s Downtown, the music venue with daytime coffee service.
But closures happened all over the city. Some were especially unexpected, like Mountain Shadows and FH Beerworks / Neat Whiskey House. The latter combo businesses were east-side leaders in the local craft brewing and distilling scene. (And for the record, FH’s Sticky Paws won our inaugural Beer Madness bracket back in 2017 when they were still operating downtown as Fieldhouse Brewing.)
Even for restaurants that remain open, Taraborelli says 2024 has been especially rough for local restaurants. She notes a 15% decrease in traffic at her own restaurants, Rasta Pasta, despite introducing online ordering and delivery this year. “In my conversations with other restarautuers, it doesn’t sound like we are alone,” she says. “Most restaurants saw decreased volume in 2024. Consumers are carrying more debt than ever, and folks are tightening their belts. People are eating out less and spending less when they do eat out.”
How to Help Local Restaurants Stay Open
So what can local foodies do to support their favorite eateries and watering holes? A few of the closing restaurants have left some time to to sell off inventory (FH Beerworks / Neat Whiskey House until Dec. 21) or to go out with a New Year’s Eve party farewell (Munchies 719, closing on Dec. 31).
To support restaurants remaining in operation, remember that we vote with our dollars when it comes to any business, and those dollars are especially crucial to local small businesses. Taraborelli gives these tips to help make sure your favorite restaurant stays open.
1. Choose local, independently owned restaurants.
“The larger restaurants and national chains have more resources to weather the storm, but many mom-and-pop favorites are just another bad quarter away from closure,” she says. “Every cover counts and will help a small restaurant stay alive.”
2. Order directly from the restaurant.
“Skip Door Dash and Grub Hub,” Taraborelli says. “Order directly from the restaurant and pick it up.”
3. Tip generously when you visit a full-service restaurant.
“Traditional servers are taking a big hit right now because tip fatigue is real,” Taraborelli says. “We are all prompted to tip dozens of times a day, so set boundaries on nonessential tipping and tip generously in full-service restaurants.”
4. Give local gift cards.
“Instead of giving Amazon or Best Buy gift cards, buy gift cards from small, local restaurants,” Taraborelli says. “It is a more thoughtful, sincere gift to give. And it supports restaurants by both the initial gift card sale and also by potentially introducing new customers to the business.”
Farewell to Local Restaurants That Closed Permanently in 2024
We won’t claim that this is an exhaustive list, but we offer it as a moment of remembrance for many of the noteworthy restaurants, bars, coffee shops and other related small businesses that have closed this year. Without editorializing on each one, there are some notable spots that were long-time, popular local favorites and industry leaders. Their presence will be missed.
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- Batch Slapped Brewery
- Bell Brothers Brewing
- Brooklyn’s on Boulder / Lee Spirits
- Cy’s Drive-In
- China Town Restaurant
- Dirty Byrd
- Drifter’s Hamburgers
- Dog Haus Biergarten
- 3E’s Comedy Club
- FH Beerworks / Neat Whiskey House
- Lemon Lodge Ski Bar
- Marco’s Pizza, downtown
- Momma Pearl’s Cajun Kitchen
- Mood Tapas Bar
- Mountain Shadows
- Munchies 719
- Nova Nightclub
- The Perk
- Pop Kitchen
- Red Swing Brewery
- Springs Orleans
- The Well
- Wild Goose Meeting House
- Wing Zone
