D.C. restaurant collapse: 44% say closure likely this year as profits plunge, outlook darkens. Full-service dining in crisis

D.C. restaurants are hitting a breaking point. A new survey from the Restaurant Association Metropolitan Washington (RAMW) shows that 44% of full-service casual restaurants expect to shut down this year. That’s nearly half the industry, waving the white flag before 2025 even arrives. Owners cite rising costs, fewer customers, and wage hikes squeezing their margins beyond repair.

The situation is already dire. In 2024, 62% of restaurants reported lower profits, and over half expect things to get worse next year. A 21% jump in pessimism should tell you everything. It’s not just the restaurants struggling—customers are cutting back, too. Nearly half of D.C. residents are dining out less, with many opting for cheaper spots, skipping drinks, or ordering fewer dishes. Inflation hasn’t just hit grocery stores. It’s reshaping how people eat, and restaurants are paying the price.

Owners are also feeling the impact of federal job cuts and relocations. With fewer government employees sticking around, 73% of restaurants worry about losing a key customer base. On top of that, 68% of establishments report rising food and drink costs, with no sign of relief. Margins are razor-thin, and the walls are closing in.

Many owners are now weighing their options—sell, relocate, or close up shop entirely. D.C.’s restaurant scene isn’t just struggling. It’s unraveling.

Sources:

https://www.foxbusiness.com/economy/44-restaurant-owners-washington-dc-fear-may-have-close-2025

https://www.wusa9.com/article/money/economy/dcs-casual-restaurants-likely-to-close-2025-new-survey-claims/65-b44f8c4e-1300-4137-8902-06bc9cdf86f9

https://www.prnewswire.com/news-releases/ism-reports-economic-improvement-to-continue-in-2024-302016160.html