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Denver restaurant adds 20% surcharge to better pay staff

Jelly Cafe's owner said he needed a way to attract new workers and keep the ones he has from leaving.

DENVER — Many businesses are struggling to come back from the pandemic, including restaurants whose owners worry about keeping staff and paying them a living wage. 

To combat that, Denver's Jelly Cafe is adding a 20% service charge to each bill.

It's a move that angered some customers, hundreds of whom took to Reddit to complain.

But owner Josh Epps said he needed a way to attract new workers and keep the ones he has from leaving.

"The service charge effectively allows the restaurant to take in that revenue and distribute it amongst the whole staff -- not just front of the house -- as a higher living wage, a higher base pay," said Epps.

Epps said he doesn't expect customers to tip on top of the 20% surcharge but if they do, the money goes directly to the service staff. 

Epps said servers at Jelly Cafe, located in Capitol Hill and near the University of Denver, make $16 per hour plus tips. Back of house staff, like cooks, make more than $20 an hour.

RELATED: Boulder bakery and coffee shop workers vote to unionize

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