According to a recent survey conducted by the Restaurant Association of Metropolitan Washington (RAMW), two out of five D.C. restaurants are at risk of closing by the end of the year. The survey, which gathered responses from over 200 restaurants in January and February, found that 62% of restaurants reported lower profits in 2024. This comes after D.C. saw a record number of both closures and openings in the restaurant industry last year.
The ongoing challenges faced by restaurants include diners choosing to stay home due to inflation, as well as concerns about rising labor costs. In July, tipped worker wages in D.C. are set to increase from $10 an hour to $12 an hour, adding to the financial strain faced by many establishments. Eric Heidenberger, a part owner of D.C. Restaurant Group, expressed the difficulty of navigating these challenges, stating that it has been an “extremely challenging time” for the industry.
RAMW President and CEO Shawn Townsend highlighted the importance of policy changes to support local restaurants, rather than simply financial assistance. He noted that the thin profit margins in the restaurant industry make it particularly vulnerable to economic difficulties. Additionally, federal job cuts are expected to have a significant impact on D.C.’s revenue, further complicating the outlook for restaurants in the area.
Overall, the survey results indicate a precarious situation for many D.C. restaurants, with potential closures looming on the horizon. Stakeholders are advocating for policy changes to address the challenges faced by the industry and ensure the survival of local restaurants.
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