“They’re Just Spending Less”: Record Number Of Restaurant Closures Sweep Washington D.C.

2025 became a record year for restaurant closures in D.C., according to the Restaurant Association of Metropolitan Washington (RAMW): 92 closures, up from 73 in 2024 and 48 in 2022, according to Fox 5 DC.

Owners cite multiple pressures — federal layoffs, the August federal takeover, a fall government shutdown, higher wages under Initiative 82, rising rents, and food costs — but uncertainty has been the biggest drag.

Diane Gross, RAMW Chair and co-owner of Cork Wine Bar, said business has slowed and customers are cutting back.“They’re spending less per person, whether it’s one less drink or ordering less food. They’re just spending less,” she said.

She added that the federal takeover discouraged dining out: “People were less likely to come out… maybe. And I think people either stayed home or went out to our neighbors in Maryland, in Virginia…”

Fox 5 DC writes that many closures — from Haikan to Sticky Rice and dozens more — have been blamed on Initiative 82’s tipped-wage increase. RAMW says mid-priced, mid-sized restaurants ($20–$40 per person) were hit hardest.

Phil Coppage, owner of Cynthia’s Bar and Bistro, said survival depends on community ties: “We feel like little survivors… Really ingratiate yourself to the people who live around you… Hospitality is our differentiator.”

Immigration enforcement also hurt staffing: one-third of restaurants saw workers detained, and nearly 60% reported employees staying away out of fear.

Despite closures, 109 restaurants opened by November — more than closed — though still 30% fewer openings than last year. Cork plans a smaller new location in Cleveland Park, and Gross remains optimistic: “I think we always have hope because we love what we do…”