Denver’s dining scene just took a brutal hit. Two cherished establishments, Cap City Tavern and Denver Sweet, shut their doors for good on July 27, 2025, signaling a deeper economic storm.
According to the Daily Mail, these closures, happening within hours of each other, underscore a troubling wave of restaurant failures in Denver and beyond, driven by crushing financial pressures.
Cap City Tavern, a family-run staple for 18 years, was a beloved spot often called a “home away from home” by loyal patrons. Denver Sweet, a vibrant LGBTQ+ bar of six years, earned the 2025 Colorado Drag & Variety Award for Best Queer Bar. Both served their final customers on the same devastating day.
The reasons for these shutdowns are painfully familiar to business owners. Inflation, soaring food costs, escalating minimum wages, and a heavy load of local taxes and fees were cited by both establishments as insurmountable hurdles.
For Cap City Tavern, owned by the McTaggart family, who also run Bannock Street Garage Bar, the loss is personal. Patrons mourned on social media, with one writing, “What an incredible loss.” Another recalled, “Such a Denver staple.” Denver Sweet’s co-owners, Randy Minten and Ken Maglasang, shared their heartbreak. “Creating and running Denver Sweet has been a dream come true for us — and saying goodbye is heartbreaking,” they said.
They also revealed the extent of their struggle. “We've done everything we could to push forward — including personally funding operations — but the current climate simply isn't viable for us anymore,” they added.
Fans of Denver Sweet echoed the pain online. One wrote, “I loved going in and getting my pickle shots.” Another shared, “Y'all have shown me since the literal day I turned 21 that even though I'm a trans man, I am loved.”
Cap City Tavern’s closure drew a similar outpouring. “Sad to see the community of independently owned restaurants in Denver literally going extinct,” the tavern posted on social media, capturing the broader crisis.
Denver isn’t just losing a few eateries—it’s ground zero for a statewide collapse. A staggering 82 percent of Colorado’s restaurant shutdowns last year happened right here in the city. Even Colorado Springs is feeling the pinch with declining operations.
Nationally, the picture is just as grim. Historic spots like Hector’s Café and Diner, after 76 years, closed in early July 2025, partly for a museum expansion. Others, like Moro’s Dining after 45 years, shuttered in June 2025 due to retirement.
California’s Las Cuatro Milpas, with 92 years of history, is also closing as operators retire. Then there’s Cole’s French Dip in Los Angeles, ending a 117-year run due to declining business linked to local crime concerns.
Let’s be clear: these closures aren’t just “bad luck.” They’re the predictable result of economic policies that strangle small businesses. High taxes, wage mandates, and inflation—often fueled by unchecked government spending—create a hostile environment for entrepreneurs.
For readers looking to build wealth, this is a cautionary tale. Diversify investments beyond local businesses vulnerable to policy whims—consider broader market ETFs or real estate in less regulated regions. Stay frugal, save aggressively, and watch for opportunities in distressed assets as more businesses falter.
Denver’s dining spiral should wake us up to the cost of overreach. When iconic spots like Cap City Tavern and Denver Sweet can’t survive, it’s time to demand smarter, market-friendly policies that let businesses breathe—and thrive.