D.C. Restaurants Closing at Record Pace Amid Controversy Over Initiative 82

WASHINGTON, D.C. — The District’s restaurant industry is in crisis, according to a new mid-year report from the Restaurant Association of Metropolitan Washington (RAMW). The report reveals that restaurants are shutting down at record levels, with more than 900 jobs lost and closures averaging two per week in 2025.

Industry at a Tipping Point

Restaurant owners and industry leaders are pointing to Initiative 82, a controversial policy aimed at phasing out the tipped minimum wage, as a major factor driving the wave of closures. The initiative, which is currently in a phased implementation process, requires businesses to gradually increase wages for tipped workers to match the standard minimum wage—raising labor costs across the board.

By the Numbers

More than 50 restaurants have closed in the first half of 2025
Closures are nearly double compared to the same period last year
New restaurant openings are down 17% year-over-year
The District is on pace to surpass 100 closures by the end of the year, eclipsing 2024’s total of 73

RAMW warns that if these trends continue, D.C.’s once-thriving food and hospitality sector could face long-term damage.

Patrons and Owners React

For many D.C. residents, the rise in closures is both alarming and disheartening. Patrons told FOX 5 that the District’s vibrant dining scene is not just part of its economy, but its identity.

“The restaurant industry is the heartbeat of D.C.,” said one local diner. “It’s sad to see so many places we love disappear.”

Restaurant owners say rising operating costs, inflation, and the tip wage changes are forcing difficult decisions.

Looking Ahead: Initiative 82 Debate

The D.C. Council is expected to revisit Initiative 82 on Monday, as pressure mounts from both sides. Proponents argue the initiative ensures fair pay and dignity for service workers. Critics say the policy, without corresponding support or exemptions, is unsustainable for small businesses already operating on thin margins.

RAMW has called for a reevaluation of the initiative’s impact, urging city leaders to consider adjustments or support mechanisms to mitigate job losses and business closures.

With more closures expected in the months ahead, the debate over Initiative 82 is shaping up to be a defining issue for D.C.’s restaurant industry in 2025.