D.C. restaurants continue to struggle since the pandemic, with a record 73 restaurants closing in 2024, and a survey of restaurant operators by the Restaurant Association of Metropolitan Washington paints a bleak outlook for 2025.
More than 200 restaurant owners responded to the survey — nearly half said they saw fewer diners in 2024 and 47% said they saw lower sales.
Full-service casual restaurants are least optimistic about their business, with 44% saying they are likely to close in 2025, citing rising costs and tipped wage increases that are outpacing revenue. That is almost double the number of suburban restaurants that expressed concern about staying in business.
Furthermore, 51% of restaurant operators in the survey expect conditions to worsen this year, a 21% jump from the association’s survey last year.
The association’s own forecast for this year suggests that if the tipped wage increases another 20% in July, restaurant closures could spike 50%.
Two out of three full-service casual restaurants in D.C. reported lower profits, compared to 52% in the suburbs. Sales have fallen for 47% of all restaurant segments. Food and beverage costs have increased for 68% of restaurants, and 88% of restaurants expect even higher expenses this year.
In addition to higher costs for food, rent and labor, D.C. restaurants are also facing changing behaviors for dining out customers.
A separate survey of D.C. residents found rising prices are leading many to cut back on dining out, with 47% eating out less, and 46% more likely to choose restaurants in Maryland or Virginia. A third of D.C. residents surveyed say they are choosing less expensive restaurants, and another third say they order fewer dishes per visit.
In the restaurant operator survey, 71% in the District said they have cut staff and 82% have cut their hours.
Full survey results and Restaurant Association of Metropolitan Washington comments are online.
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