Viewpoint: Why D.C. must repeal Initiative 82
Washington Business Journal
May 14, 2025
By Shawn Townsend – Restaurant Association of Metropolitan Washington
Washington, D.C.’s restaurant scene is the beating heart of our city. It fuels the local economy, builds community and gives our neighborhoods their unique character. But that heart is under serious strain —and we’re dangerously close to flatlining.
Our latest industry survey found that 44% of full-service casual restaurants in D.C. expect to close by the end of 2025. That’s not just a statistic — it’s a flashing red warning sign.
Yes, inflation, reduced federal foot traffic, crime, and pandemic recovery have all played a role. But one fact remains clear: Initiative 82 has and will continue to accelerate this collapse.
When voters passed I-82 in 2022, it started a clock on the elimination of D.C.’s tip wage — a system that tipped servers support because it ensures they make at least the minimum wage, while often making far more through tips. In the best of times, the initiative would have been a challenge for restaurant operators, but the implementation has been a disaster.
The Council has the power — and responsibility — to address the unintended consequences of I-82.
This isn’t the first time we’ve been here. In 2018, D.C. voters passed Initiative 77, which also sought to eliminate the tip credit. But after hearing from the people actually impacted — tipped workers and restaurant operators — the D.C. Council repealed it. They recognized then, as they should now, that one-size-fits-all policy doesn’t work in a city dominated by small, independently owned restaurants.
Unfortunately, what we’re seeing today is a result of well-funded, out-of-town interest groups coming into DC to push an agenda that doesn’t reflect the lived realities of our workforce or business owners. These groups spent millions to influence voters, painting a misleading picture of restaurant owners as exploitative and workers as helpless. That’s not who we are.
Our tipped workers had legal protections under the tip credit and often earned $25-$30 an hour or more. Nearly 80% of those same workers oppose the elimination of the tip credit — because they’re working fewer hours, making less money, and leaving the industry.
These national activists didn’t stay to deal with the aftermath — they moved out of the District and on to their next campaign. And we’re left picking up the pieces.
What’s worse is that D.C. is now being treated as a test case. Restaurant operators in other states are nervously watching. If the tip wage can be dismantled here — despite the clear economic fallout — it could be used as a model elsewhere. That should worry anyone who cares about local control and small business survival.
Our restaurants are raising prices to stay afloat, which is driving away customers who can’t afford the higher costs — or who simply head to Virginia and Maryland, where prices aren’t shooting up. The problem isn’t limited to I-82, D.C.’s chief financial officer projects a $342 million revenue shortfall and an estimated 40,000 DC residents will lose federal jobs over the next four years. Every closed restaurant takes about 27 jobs with it. We’re not talking about future hypotheticals — we’re already in the storm.
We’re also witnessing what we call “the vanishing middle” — neighborhood restaurants that aren’t fine dining or fast food, but the comfortable, every day places that bring people together. These spots are disappearing, and with them, the shared spaces that make D.C. feel like D.C.
The Restaurant Association of Metropolitan Washington is calling on the D.C. Council to repeal Initiative 82 and reinstate the tip wage. This isn’t about reducing wages. It’s about restoring a system that worked — for diners, workers and owners.
Repeal would help stabilize the industry, protect local jobs and preserve the unique character of D.C.’s dining scene. Most importantly, it would show leadership. It would prove that the Council recognizes the real-world damage I-82 is having on our communities and course-correct to stop the bleeding.
The council got it right when it repealed Initiative 77. It’s time to do it again.
Let’s listen to the people who live here, work here, and build their lives here.
Together, we can fix this.
Shawn Townsend is president and CEO of the Restaurant Association of Metropolitan Washington. He is a member of the Business Journal's Power 100 list of influential business leaders.