Rising costs, shifting consumer behavior, and operational complexity are putting pressure on restaurant operators across the country. But in Denver, a new collaborative effort between inKind, Visit Denver, and the Denver Economic Development & Opportunity (DEDO) is helping define what a more sustainable restaurant industry can look like. The result is the 2025 State of Denver Restaurants Report, a comprehensive look at the challenges facing restaurants today and the opportunities ahead.

 Read the full report here.

The State of the Restaurant Industry in Denver

However, recent data highlights growing challenges:

• Restaurant employment remains below pre-2020 levels

• Labor costs have increased significantly

• Rent, food, and operational expenses continue to rise

• Profit margins are shrinking despite higher menu prices

For many restaurant owners, the reality is clear:

It's increasingly challenging to operate a profitable, sustainable business.

Why inKind Is Investing in Restaurant Sustainability

Through its partnership with Visit Denver and DEDO, inKind helped launch a Restaurant Liaison Project focused on:

• Gathering insights directly from restaurant operators

• Identifying key operational and financial challenges

• Developing actionable strategies to support long-term growth

This initiative builds on inKind’s broader goal: To provide restaurants with better access to capital, improved operational resources and insights and sustainable growth opportunities.

As inKind Co-founder Jonathan de Wolff explains: “A restaurant only succeeds when the guest is enjoying their experience, the owner has confidence in their ability to operate on a stable playing field, and the staff  feels seen and supported.”

Key Takeways from the Report

1. Rising Labor and Operating Costs

Restaurants in Denver are experiencing sharp increases in:

• Wages

• Rent and occupancy costs

• Food and supply expenses

While menu prices have increased, they haven’t kept pace with rising costs, leading to tighter margins and reduced profitability.

2. Changing Consumer Behavior

Guests are becoming more price-sensitive.

As dining costs rise, restaurants are seeing:

• Lower traffic

• Reduced frequency of visits

• Increased pressure to deliver value

This creates a difficult balance between maintaining quality and staying competitive.

3. Permitting Delays and Operational Friction

Opening or expanding a restaurant in Denver can take months due to permitting delays.

These delays impact:

• Hiring timelines

• Revenue generation

• Overall business viability

Reducing these barriers is one of the fastest ways to support restaurant growth and job creation.

4. Unequal Impact on Independent Restaurants

Independent and minority-owned restaurants are often the most affected by:

• Cost increases

• Limited access to capital

• Operational inefficiencies

These businesses are essential to Denver’s identity, but face the greatest challenges in today’s environment.

How inKind Is Helping Restaurants Grow Sustainably

Providing Alternative Restaurant Financing

inKind offers restaurant-by-design capital solutions created for restaurants, helping operators:

• Access funding without traditional debt structures

• Improve cash flow

• Invest in growth without increasing financial risk

Supporting Industry Collaboration

Through partnerships like the Denver initiative, inKind is helping:

• Connect restaurant operators with policymakers

• Facilitate industry-wide conversations

• Turn insights into actionable solutions

As highlighted by Visit Denver, restaurants are a cornerstone of the city’s economy and culture, making collaboration essential for long-term success.

Advocating for Operational Efficiency

One of the most impactful opportunities identified in the report is improving operational efficiency at the city level. Key areas include:

• Streamlining permitting processes

• Reducing administrative delays

• Improving coordination between agencies

These changes can directly improve restaurant success rates.

A Better Model for Restaurants: The Triple Win

At inKind, the goal is simple:

Create a restaurant industry where everyone benefits.

• Operators build sustainable, profitable businesses

• Staff earn stable, competitive wages in a supportive working environment

• Guests continue to enjoy high-quality dining experiences

This “triple win” isn’t theoretical, it’s achievable with the right systems, partnerships, and tools in place.

inKind’s approach is rooted in practical, operator-first solutions.

They struggle when the systems around them, cost structures, regulations, and access to capital, don’t communicate and adapt to changing trends and environments.. The work happening in Denver is an important step toward fixing those systems. And at inKind, we’re proud to be partnering with different stakeholders to build a stronger, more sustainable future for restaurants.