Downtown restaurants struggle due to rising costs


(COLORADO SPRINGS) — Many local restaurants in Colorado Springs say they are struggling, and it is forcing some of them to shut down. Problems including inflation, increased rent prices, and people trying to save money by eating at home, are leading many mom-and-pop shops to close.

“At one point we had seven restaurants in our group, and now we’re down to two,” said Luke Travins the owner of Mackenzie’s and a few other local restaurants.

FOX21 News has reported on local restaurants struggling to stay afloat throughout the past few weeks.

“It has become very difficult for small businesses to survive, survive in Colorado. Between minimum wage laws, there’s several new state-mandated payroll taxes. It all adds up and it’s all dollars out of our bottom line,” added Travins.

Owners say some issues are still lingering from the pandemic, combined with the growing city, restaurants have to go head-to-head for business.

“It’s a very competitive market. It’s very difficult to turn a profit,” says Travins.

Now many mom-and-pop shops are scared and unsure of what’s to come.

“When it comes to my restaurants, I’m always concerned. I’m always scared, right? But I’m here, I’m fighting, right? I’m here with my teams and I’m jumping back and forth between my businesses,” said Brother Luck, owner of Eleven 18.

On Tuesday, June 11, The Well announced their closure, and just in the past year, The Lemon Lodge, The Perk Downtown, Tejon Eatery, My Friend’s Pub, and more shut their doors.

“Interest rates [have] gone up, so if you’re borrowing money, that’s been a big problem,” added Mike Callicrate the owner of Ranch Foods District.

He says rent is one of the biggest issues facing these local businesses.

“The other problem is, people don’t have the disposable income they used to have. As a result of inflation and price gouging, costs have gone up, and only keep going up,” added Callicrate.

He says the city needs to pay more attention to local businesses, instead of large corporate chains.

“It’s like they don’t like local businesses, when you look at who influences the decision-making around this city, it’s the developers. So, when Taco Bell goes in on Stone and Filmore, they give them a spotlight and a turn lane, along with an arrow, when they won’t even widen my entrance from the street,” said Callicrate.

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