From the Restaurant Association of Metropolitan Washington (RAMW):
“New data from the Restaurant Association of Metropolitan Washington (RAMW) show that closures among DC’s mid-priced restaurants fell sharply by 54% in the first two quarters of 2026 — offering evidence that the DC Council’s 2025 reform of Initiative 82 is relieving pressure on local restaurants, even as operators continue to face higher costs, weaker diner spending, and staffing challenges.
Across all restaurant types, closures have fallen 43% year-over-year. The findings come as voters may soon consider Initiative 87, a new ballot measure that would raise D.C.’s minimum wage — already the highest of any state in the country — to $25 an hour, a faster and steeper increase than any American city has attempted.
“These numbers prove what happens when DC gets policy right. When the Council paused years of double digit wage inflation under Initiative 82, mid-priced restaurant closures fell 54% and citywide closures dropped 43% — the first real relief this industry has seen in years,” said Shawn Townsend, president and CEO of RAMW. “The proposed Initiative 87 would gamble that progress away. We just proved that careful, deliberate reform by elected lawmakers works. DC shouldn’t risk undoing it with a ballot measure that ignores the evidence.”
The findings come nearly one year after the DC Council voted to reform Initiative 82, which passed in 2022, significantly raising labor costs for restaurants with tipped workers. The Council’s 2025 action paused a scheduled tipped-wage increase and replaced Initiative 82’s full phaseout of the tip credit with a slower schedule that preserves the tip credit.
Before the vote, the tipped wage had risen by 50% in 2023 and another 25% in 2024, increases that left operators absorbing rapidly rising labor costs on top of higher food prices and shifting diner habits.
The decline in closures is significant as the broader economic picture for restaurants remains difficult. Diner spending at restaurants fell 17% from 2022 to 2025 (adjusted for inflation), according to the Brookings Institution’s DMV Monitor. Full-service restaurant employment was also down year over year in every month of 2025 and remained down through the first four months of 2026, according to Federal Reserve Economic Data.
Restaurants are also facing continued cost pressure. Rising labor and input costs — including double-digit increases in beef, milk, and produce — are pushing menu prices up 3.5% year over year in May and as much as 4.2% by December 2026, according to the Bureau of Labor Statistics and U.S. Department of Agriculture.
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About the Restaurant Association of Metropolitan Washington (RAMW)
The Restaurant Association of Metropolitan Washington (RAMW) is the regional trade association representing restaurants and the food service industry in the Washington, DC Metropolitan Area. Established in 1920, RAMW is an advocate, resource, and community for its members. The Association works to promote and sustain the growth and development of the industry while providing its members legislative and regulatory representation, marketing and small business support, programming, and events. RAMW strives to serve its members with professionalism and integrity and provide them with the training, education, and support they need to grow a successful business.”