BOULDER — Faced with increased costs, lower attendance and difficulties recruiting staff, the restaurant business in Boulder and elsewhere is getting tougher, says the owner of local restaurant group Mountain Sun Pubs.
As a result of these headwinds Under the Sun Pub & Pizza on Broadway in Boulder will serve its last pie and pint on Saturday – at least for now.
“That’s the challenge of doing business in the restaurant industry in the post-pandemic world,” Mountain Sun owner Kevin Daly told BizWest this week. “It’s a combination of labor costs, staff shortages and sluggish sales.”
SPONSORED CONTENT
Find out why Sutherlands Lumber & Design Gallery has been a cornerstone of Fort Collins’ home improvement community for over 30 years.
While it’s always disappointing to have to close a business venture, “we’re really glad we stuck with it for 11 years,” he said.
Under the Sun, hidden beneath sister restaurant Southern Sun Pub & Brewery at 627 S. Broadway, has been open since 2013.
“There is such a housing shortage in Boulder that we now have a labor shortage,” Daly said. “It’s really, really hard” to find staff.
In addition to Under the Sun and Southern Sun, Mountain Sun operates the Mountain Sun Pub & Brewery on Pearl Street in Boulder, the Longs Peak Pub & Taphouse in Longmont and the Vine Street Pub in Denver, the latter of which just reopened last month after a four-year closure due to the COVID-19 outbreak.
“We opened Vine Street (in Denver) and it was so easy (to hire staff) and there were more customers. The demographics of Boulder have changed; it’s become a rich, old, white town. And there are just not enough people eating out … and nobody wants to commute to Boulder for work,” Daly said. “It’s an extremely difficult town (to operate a restaurant). High rents, older population. … Our Pearl Street location is also declining, but it’s easier to run because it’s small.”
In Longmont, “Longs Peak has been very busy,” he said. “Because rents are lower, a lot more young people are moving to Longmont and outside of Boulder. Boulder is going to be a very sophisticated place for companies.”
Under the Sun’s management team said that Under the Sun employees have already been found jobs at the company’s other restaurants and that the South Broadway space will continue to be available for private parties.
“We have a lease for two more years, so we’ll probably do private events,” Daly said. “And when we can hire staff again,” the owners may look to reopen Under the Sun. “The concept has been pretty successful. It’s just been a very quiet summer,” both in terms of customer visits and hiring.
Daly said the chances of reopening are “slim,” but there is a possibility that Mountain Sun “could consolidate the business (with Southern Sun) at a location that is easier to run.”
Boulder’s business leaders are aware of the challenges facing the city’s restaurateurs.
Restaurants, said John Tayer, CEO of the Boulder Chamber, “are key elements of (the city’s) character and something that makes Boulder special.”
However, he said, “There are significant additional new costs that our restaurants and small businesses must bear, whether it be high property tax rates, additional inflation in goods and labor costs. Added to this is the loss of customer traffic and business due to vacant offices and reduced employee traffic downtown during the day.”
Officials in Boulder are expected to soon begin discussing the possibility of Increase in the minimum wagea prospect that some business people believe could further intensify the struggle for profitability among local restaurants.
“Our first request would be to do no additional harm,” Tayer said. “While the city is now considering a possible minimum wage increase, we would certainly ask them to consider the potential impact on our restaurants and small businesses.”
