RAMW urges the DC Council to repeal Initiative 82, citing financial strain on restaurants at risk of closing.
WASHINGTON — The Restaurant Association Metropolitan Washington (RAMW) wants the DC Council to repeal Initiative 82. This comes after the RAMW released a survey showing that 44% of full-service restaurants in the District are at risk of permanently closing their doors this year.
In a statement released by the RAMW they said since the passing of the initiative “our region’s economic reality has changed drastically.” The association is asking the council to restore the tipped wage system to help relieve the “rapidly mounting financial pressures on restaurants…”
Initiative 82 was passed by DC voters in May 2023. This law allows tipped wages to incrementally increase until it reaches the citywide minimum wage by 2027. The current minimum wage in DC is $17.50/hour. The tipped wage is currently $10/hour, but is scheduled to jump to $12/hour on July 1.
According to an online survey from the Restaurant Association Metropolitan Washington, nearly half of D.C. residents are eating out less, and just as many are likely to choose restaurants in Maryland or Virginia. Other customer habits surveyed include:
- 32% are selecting cheaper restaurants
- 31% are ordering fewer dishes per visit
- 24% are skipping alcoholic drinks
The survey says these issues are compounded by job cuts, workers earning less and closing fewer hours, as well as rising costs, and 51% of restaurants expect these conditions to worsen in 2025.
As the federal workforce fallout continues with the Trump administration, the Restaurant Association Metropolitan Washington survey shows an overwhelming 73% of restaurant owners are anticipating negative effects from the layoffs and relocations that have happened in President Donald Trump’s first 100 days in office. Additionally, 82% of restaurants are concerned about how tariffs will increase food, beverage and equipment costs.