Exclusive: The D.C. restaurant association aims to kill Initiative 82
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Widespread restaurant closures. Job and revenue loss. Talent drain. Many are painting a grim picture of D.C.'s dining scene and its future — which is why the Restaurant Association of Metropolitan Washington is calling on legislators to repeal Initiative 82.
Why it matters: I-82, which eliminates the tipped minimum wage, is among the most controversial laws recently passed in D.C. — and now, nearly three years into its implementation, many argue the system isn't working and needs to be reevaluated.
The D.C. restaurant industry is at a "tipping point," RAMW president Shawn Townsend tells Axios, and he's gunning for a return to the traditional tipped minimum wage and its $5.35/hour base pay.
Catch up quick: I-82 was passed by voters and then implemented in May 2023, incrementally raising tipped wages to reach the citywide minimum wage (currently $17.50/hour) by 2027.
- The tipped wage is currently at $10, but poised to jump to $12 in its next increase July 1.
- Previously, it was common practice in D.C. and much of the U.S. for tipped employees to be paid a lower base salary, assuming tips would meet — and often surpass — minimum wage. If not, businesses are legally required to make up the difference.
Driving the news: Townsend tells Axios that the association plans to call on the DC Council to repeal I-82 before July.
- Earlier in the week, Axios spoke with members of a growing coalition of small businesses and hospitality workers about their plans to lobby legislators on a milder measure: A temporary freeze.
- By keeping I-82 at the $10 base wage, businesses could keep their doors open, workers in jobs, and allow for an independent impact study, they said. That effort, which RAMW also supports, is still on.
"Everything is still on the table," Townsend says, "but we're going all-in on repeal, and we'll see where [the council] lands."
Reality check: None of the DC Council members have introduced legislation to repeal or freeze I-82 — and according to three councilmembers' offices that Axios spoke with, the topic hasn't even been introduced for discussion.
- Plus, I-82 has a tumultuous history — an earlier version was repealed in 2018 — and workers are already enjoying the benefits of higher wages.
- "There's not an appetite on the council for a full repeal," Kevin Chavous, chief of communications for At-Large Councilmember Anita Bonds, tells Axios.
That said, a freeze isn't out of the question. Bonds hosted a public hearing in January with dozens of small business owners and hospitality workers to hear about the impact of I-82.
- Soon after, RAMW released a report that a record number of restaurants closed in 2024 — 74 in total — and that DC restaurants face double the sales decline of suburban locations between 2004 and the year prior (16% vs. 8%).
- "That's all concerning for us, and why we're taking a closer look," says Chavous. "Maybe a freeze or delaying the next increase. We need to consider all options that will help right now."
Context: The I-82 increase comes at a uniquely turbulent time in D.C. when food and operational costs are spiking, and restaurant patronage is slumping as people worry about spending and job security amid Trump's federal government cuts.
- A recent RAMW poll of over 200 full-service restaurants revealed that 44% are considering closing this year — a sliver of the association's 1,500 members, but a "snapshot of what the industry is fearing and facing," says Townsend.
- In the same survey, nearly half (49%) said they saw fewer diners, while 47% reported lower sales last year.
What they're saying: "It doesn't cure everything, but I-82 is the only thing the council and mayor can affect," Tony Tomelden, owner of The Pug, tells Axios.
- On Wednesday, he announced the coming closure of Brookland's Finest, his decade-old neighborhood pub, citing declining foot traffic, rising food costs, and "the payroll challenges Initiative 82 presented."
"We're ringing in half of what we did pre-pandemic," Tomelden tells Axios. He estimates his payroll costs would increase by roughly $60,000 a year after July's wage increase. "We likely could have cut a lot of staff and made it, but that changes the nature of the place."
- Tomeldon says he's more realistic about a freeze than a repeal, "but something has to give."
Between the lines: Workers have long been divided on I-82. Many have voiced support for higher wages for all and the end to a tipping system that can be discriminatory, arbitrary, and one that's historically attracted bad actors who've stolen wages and tips.
- And then there are the many whose voices aren't heard — workers without English proficiency or who may be undocumented — who benefit from higher wages.
- Other workers argue they make far more than minimum wage with tips, and say they've seen their gratuities and wages go down — especially as restaurants impose service fees to help cover costs.
Zoom in: Yana Tarakanova, a restaurant worker of 12 years who provided testimony at Bonds' hearing, said her shifts were cut by 5-10 hours a week because of changes made after I-82. Service charges also cut down on her tips.
- "I do not blame [customers] at all, especially when you are not sure where the fees go," says Tarakanova, who says the businesses are also forced to cut support staff like bussers and food runners.
- "It is not profitable, they have to adjust. They are not charities. I don't blame them either."
What we're watching: If the DC Council, with everything going on, and everything that's happened, takes up I-82 again.
Editor's note: This story has been corrected to reflect that Anita Bonds is D.C.'s At-Large Councilmember (not Ward 2).