A Big Challenge for DC Restaurants? Price-weary Customers

WTOP | by Jeff Clabaugh| March 24, 2025

The Restaurant Association has forecast that if the tipped wage increases by another 20% in July, restaurant closures will spike by 50%, boosting closures beyond 100 restaurants, and will slow restaurant industry job growth by 21%.

Restaurants continue to cut back on hours of operation and employees to counter rising labor costs. Three out of four have reduced their workforce, even more in the full-service casual restaurant category.

“We’ve already cut everywhere we can cut,” the restaurant association quoted one unidentified restaurant owner as saying. “We’ve reduced hours, eliminated positions, and streamlined our menu, but with another wage increase coming in July and fewer office workers dining out, I honestly don’t know if we’ll make it to 2026.”