This browser does not support the Video element.
2 out of 5 DC restaurants say they could close this year
Two out of five D.C. restaurants say they could close down by the end of the year, according to a recent survey.
WASHINGTON - Two out of five D.C. restaurants say they could close down by the end of the year, according to a recent survey.
By the numbers:
The Restaurant Association of Metropolitan Washington surveyed more than 200 restaurants in January and February.
The survey shows that two in five, or 40%, of full-service casual places said the year likely to close in the coming year.
62% of restaurants surveyed reported lower profits in 2024.
Last year, D.C. saw it's highest number of restaurant closures – but also the highest number of openings.
Dig deeper:
RAMW tells FOX 5 that as diners choose to stay home amid inflation, keeping up with labor costs is also a big concern.
In July, tipped worker wages in D.C. go up from $10 an hour to $12 an hour.
"Couple years ago Initiative 82 passed, and we've seen an increase in labor costs. You put all that together, it's been an extremely challenging time," said Eric Heidenberger, part owner of D.C. Restaurant Group, which employees 250 people. "We've been around for 45 years, we've never seen a stretch like this in our history."
"I think everyone is concerned," said Shawn Townsend, President and CEO of RAMW. "These are real issues for everyone, regardless of what category of restaurant you fall in. The margins are already super thin in the restaurant industry, whether you are five-star or a sandwich shop downtown on M Street."
Townsend said RAMW is working with elected officials to figure out policy changes to support local restaurants.
"We're not looking for a check or grant - we're looking for meaningful policy and legislative updates to address some of these concerns," Townsend said.
Also at issue – federal worker layoffs. The District's Chief Financial Officer estimates federal job cuts will lead to a $342 million decline in D.C.'s revenue.