The Restaurant Association Metropolitan Washington survey shows a bleak future for casual restaurants in the District.
WASHINGTON — More than two in five full-service casual restaurants in D.C. say they are likely to close within the coming year, according to a new survey from the Restaurant Association Metropolitan Washington.
The survey, released on Tuesday during the Restaurant Association Metropolitan Washington annual meeting, cites falling sales and customer traffic, escalating food costs, major federal layoffs, and the ongoing impact of tipped wage increases as the reasons behind many struggling establishments.
“This situation is particularly severe for neighborhood full-service restaurants that have long defined DC’s dining culture,” the survey reads.
Key findings of the survey show that 44% of “full-service casual restaurants” said they are likely to close in 2025, with 11% upping that to “very likely.” Those restaurants allegedly claim rising costs and tipped wage increases outpaced revenue.
The survey says nearly half of all restaurants saw fewer diners in 2024 than the previous year.
“Diners are increasingly staying home due to rising prices,” the survey reads. “With 47% of DC residents saying they’re dining out less frequently.”
According to an online survey from the Restaurant Association Metropolitan Washington, nearly half of D.C. residents are eating out less, and just as many are likely to choose restaurants in Maryland or Virginia. Other customer habits surveyed include:
- 32% are selecting cheaper restaurants
- 31% are ordering fewer dishes per visit
- 24% are skipping alcoholic drinks
The survey says these issues are compounded by job cuts, workers earning less and closing fewer hours, as well as rising costs, and 51% of restaurants expect these conditions to worsen in 2025.
As the federal workforce fallout continues with the Trump administration, the Restaurant Association Metropolitan Washington survey shows an overwhelming 73% of restaurant owners are anticipating negative effects from the layoffs and relocations that have happened in President Donald Trump’s first 100 days in office. Additionally, 82% of restaurants are concerned about how tariffs will increase food, beverage and equipment costs.
“The greatest challenge for the upcoming year will simply be keeping our doors open,” a restaurant owner is quoted in the survey. “We’re very close to selling or closing our D.C. locations – an extremely unfortunate situation given that our group has operated in D.C. for so many years. Overall, we’re no longer profitable and are exploring other states to open in.”
You can read the full survey below.