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DC Full-Service Restaurant Workers Hit By Steady Losses In 2024, Closures Reach Record High

Key Findings

  • DC full-service restaurant workers lost jobs nearly every month in 2024, with employment dropping 3% on average. 
  • August saw the steepest decline at 6%, following July's increases in tipped wages and the District’s Paid Family Leave tax.
  • Limited service restaurants added jobs each month, rising 3% on average.
  • 70% of restaurants have cut hours, laid off staff, or stopped hiring to reduce costs. 
  • DC restaurants face double the sales decline of suburban locations (16% vs. 8%). 
  • A record 74 restaurants closed in 2024.

Full service restaurant workers steadily lost jobs last year, marking a deepening downturn that’s also shut down 74 restaurants to date – surpassing 2023 and 2022’s closures. 

“This is a restaurant community fighting through extraordinary pressures,” said Shawn Townsend, President and CEO of the Restaurant Association of Metropolitan Washington (RAMW). “Even our most established operators are struggling to survive as diners decline and wages and payroll taxes soar.”

DC restaurants are experiencing a dramatically steeper decline than their suburban counterparts. In the District, profit margins have plunged to less than half of pre-pandemic levels — with more than four out of five restaurants reporting decreased profitability.

Full-Service Workers Confront Regular Losses  

Full-service restaurants are shedding jobs at an alarming rate, with employment falling on average 3% each month in 2024 compared to last year, according to the US Bureau of Labor Statistics. August saw the steepest decline at 6%, coming directly after July's two major labor cost increases: Tipped wages rose 25% and the District Paid Family Leave tax nearly tripled.

Meanwhile, limited-service restaurant workers gained jobs in all 12 months of 2024, with employment rising 3% on average.

 

Full-Service Restaurant Workers Hit by Steady Job Losses

2024
Month

        No. 
Full-Service 
Jobs
        +/- %
Last Year
        No. Limited 
Service Jobs
        +/- % 
Last Year
        No. Total 
Restaurant 
Jobs
        +/- % 
Last Year
January        

26,800

       

-3%

       

13,000

       

+2%

       

39,800

       

-1%

February        

27,600

       

-2%

       

13,400

       

+3%

       

41,000

       

-

March        

27,700

       

-3%

       

13,500

       

+1%

       

41,200

       

-2%

April        

28,600

       

-5%

       

13,800

       

+1%

       

42,400

       

-3%

May        

29,500

       

-3%

       

14,200

       

+2%

       

43,700

       

-2%

June        

29,900

       

-3%

       

14,400

       

+4%

       

44,300

       

-1%

July        

29,200

       

-5%

       

14,200

       

+3%

       

43,400

       

-2%

August        

28,300

       

-6%

       

14,300

       

+4%

       

42,600

       

-3%

September        

28,600

       

-4%

       

14,500

       

+6%

       

43,100

       

-1%

October        

28,900

       

-2%

       

14,300

       

+3%

       

43,400

       

-1%

November        

29,600

       

0%

       

14,300

       

+4%

       

43,900

       

+1%

December*        

29,500

       

-1%

       

14,200

       

+5%

       

43,700

       

+1%

US Bureau of Labor Statistics
* Preliminary

 

A new survey of RAMW members shows the scope of job losses and escalating pattern of cuts across all positions. While 70% of restaurants have reduced staffing overall (up from 64% in April), the impact varies by role:

  • 30% have laid off bussers, food runners, hosts, and other support staff.
  • 24% have laid off servers.
  • 91% of restaurants have cut servers’ hours.
  • 88% have reduced kitchen staff hours.
  • 88% have decreased hours for support staff.

“The loss of full-service restaurant jobs should concern everyone who cares about economic opportunity,” said Townsend. “We're not just losing jobs, we're losing opportunities. These positions consistently provide earnings well above minimum wage – double, triple, or more – through tips. That's harder to replace than many realize.”

Profits Drop as Costs Keep Rising, Sales Keep Falling

Restaurants face intensifying pressures of rising costs and falling demand. The impact has been severe, with more than four in five restaurants (81%) reporting decreased profits. Margins have plunged to just 6% – less than half of pre-pandemic levels – as the District endures a record wave of closures. A total of 73 restaurants shut down in 2024; a 40% increase from 2023’ total of 53 and 54% increase  from 2022's 48 closures. Restaurants report widespread operational challenges:

  • 85% face higher labor costs.
  • 70% experience higher food costs. 
  • 53% report  higher occupancy costs. 

At the same time, menu price increases have not kept pace with mounting costs. Although 70% of restaurants have raised prices, the average 9% increase falls short of rising expenses. These price changes have coincided with weaker demand, exacerbated as the District enters its fourth year of reduced downtown workers:

  • 70% of restaurants experience a decrease in summer sales compared with 2023. 
  • 75% report less customer traffic.

Declines Are Double in DC Than Suburbs

The challenges are particularly acute in the District, where restaurants are experiencing roughly double the declines of suburban counterparts. Among businesses that report declines in revenues and customer visits, suburban restaurants report an average 8% drop in sales while DC businesses face a 16% decline. Customer traffic shows an even starker contrast: a 20% plunge within the District versus 9% in the surrounding counties. 

"As a group, we are no longer profitable in DC," said one multi-unit operator in the survey. "Our locations in other jurisdictions have remained profitable, but given the decrease in foot traffic and increase in cost of goods and labor, it is extremely difficult for small independent operators to be profitable in the city.”

“The numbers tell us what our members already know," said Townsend. “Every lost job and every restaurant closure represents lost careers, reduced tax revenue, and another vacant storefront in our community. 

“We need solutions that address both immediate pressures and long-term sustainability.”

About the Survey

The survey of 158 restaurant members was conducted online Sep. 18 to Oct. 14. Respondents were mostly casual full-service restaurants (64%) and independently owned and operated (97%). 

About RAMW

The Restaurant Association of Metropolitan Washington (RAMW) is the regional trade association representing restaurants and the foodservice industry in the Washington, DC Metropolitan Area. Established in 1920, RAMW is an advocate, resource and community for its members. The Association works to promote and sustain the growth and development of the industry while providing its members legislative and regulatory representation, marketing and small business support, programming and events. RAMW strives to serve its members with professionalism and integrity, and provide them the training, education and support they need to grow a successful business.

 

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