WASHINGTON (7News) — Washington, D.C.’s restaurant industry is facing a grim start to the new year, with record closures and fewer new openings, according to the Restaurant Association of Metropolitan Washington (RAMW).
In 2025, 92 restaurants closed across the city — up from 73 in 2024 and nearly double the number from 2022. If the trend continues, the city could surpass 100 closures by the end of 2026.
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Meanwhile, openings have slowed sharply. Through November, 109 new restaurants opened, a 30% drop from last year, and only about half of those were mid-priced, neighborhood restaurants — the backbone of D.C.’s local dining scene.
“We’ll see faster casual, we’ll see less service in restaurants due to the shortage of workers, the increase in labor costs, and I think that’s just going to be a new norm,” said Shawn Townsend, president and CEO of RAMW.
“I think we will continue to see fine dining be ok, but that middle market is where we will probably see more chain restaurants come in. I think folks are making intentional decisions to dine elsewhere, outside of the district.”
Industry experts said the trend highlights the growing challenges faced by mom-and-pop and mid-priced neighborhood restaurants, while fine dining and fast food locations have been more resilient.
D.C. did see record restaurant openings last year, but that momentum is fading. Experts said future openings are more likely to be concept changes or expansions rather than new independent restaurants.
Local restaurant owners are closely watching the market as they adapt to higher labor costs, rising rents, and slower foot traffic — all factors shaping what many expect to be a new normal for the city’s dining scene.
Dining and Cooking