Potential restaurant closures are a concern for dining establishments in Washington, D.C., as revealed by a recent survey conducted by the Restaurant Association Metropolitan Washington (RAMW). According to the survey, 44% of full-service casual restaurants in the area consider closing their doors “very” or “somewhat likely” in 2025. The findings were reported by local media outlet WJLA, which examined the survey results from 217 restaurants in the D.C. area conducted between January 24 and February 11.
The survey highlights that the closures are driven by increasing costs and wage hikes that are outpacing revenue. Smaller percentages of fast-casual and suburban restaurants in the D.C. area, at 15% and 23% respectively, also indicated potential closures this year, according to RAMW.
The data pointed out that nearly half of all surveyed restaurants experienced a drop in sales last year, with 62% reporting reduced profits. Rising expenses, particularly for food and drinks, are putting significant pressure on D.C. restaurants, with 68% facing increased costs and more than 80% expecting worsening financial conditions as the year progresses.
RAMW’s report, published by WJLA, stated that the survey reveals an industry grappling with declining sales and customer visits, rising food costs, major federal layoffs, and the ongoing effects of increasing tipped wages. Approximately 49% of D.C. restaurants encountered decreased customer attendance last year, with residents opting to eat at home to avoid high expenses.
Additionally, concerns about tariffs, new immigration policies, and other business impacts weigh heavily on restaurants, according to RAMW. The minimum wage for tipped workers in D.C. increased by $2 to $12 per hour as of July, aiming to align with the city’s overall minimum wage in the coming years. This increase could potentially lead to a higher number of closures, according to RAMW.
RAMW CEO Shawn Townsend noted that full-service restaurants, which contribute to the cultural fabric and neighborhood identity of the city, are facing unprecedented challenges. These pressures could threaten not only individual businesses but also alter the distinctive dining scene of D.C.
Washington, D.C. hosts over 2,600 restaurants, supporting approximately 66,400 restaurant and foodservice jobs, as reported by the National Restaurant Association. The city generates $7.7 billion in restaurant and foodservice sales. Nationally, the restaurant industry is projected to achieve $1.5 trillion in sales this year, according to estimates from the National Restaurant Association.
