D.C. restaurants face "pandemic 2.0" under Trump's federal crackdown

The big picture: D.C.'s hospitality scene has been feeling the Trump slump, with tourism and restaurant reservations down. Last month, the city's restaurant association officially extended its restaurant week — an action typically reserved for emergencies like severe weather — in hopes of boosting business.

• "This is our pandemic 2.0," Shawn Townsend, CEO of the Restaurant Association of Metropolitan Washington, tells Axios.
• Between the federal escalation and tipped minimum wage hike, "we could be heading for a potential panic. I've heard from folks that won't renew leases or even consider D.C."

Meanwhile, noncriminal ICE arrests were surging in D.C. before the federal crackdown.

• And now under it, the city has given police the green light to coordinate with immigration authorities, weakening its sanctuary status.
• Out of nearly 2,000 arrests in D.C. since Trump's emergency order in early August, 786 have involved people living in the country illegally, White House spokespersons tell Axios. They say "many" have criminal records or outstanding warrants.

What they're saying: Apéro owner Elli Benchimol tells Axios some employees are too afraid to work in the District over fear of detention — despite having legal work documents.

• She, like other businesses, has started sharing checkpoint locations with staff on social media and WhatsApp.

Meanwhile, sales at the Georgetown restaurant are down 40-50% from the same time last year, Benchimol says. Suburban patrons have ghosted. She's had to fire three employees and cut everyone else's hours to get by.

• She's also tightened the menu, removing some caviars and other expensive items.
• "All I can do is cut costs and cut labor," Benchimol tells Axios. "It's really scary."

What I'm hearing: One restaurateur, who spoke on the condition of anonymity to protect their employees, is relocating staff too fearful to work between their D.C. and suburban locations.

• They've also seen D.C. sales drop. "It reminds me of COVID — I'm weeks away from going to landlords because I can't pay rent."
• Another is making contingency plans to run kitchens on a ghost crew. That includes developing shorter menus, and having ownership — who haven't cooked professionally for years — jump behind the line in emergencies.

Zoom out: Employee funds — once a resource to float staff during the pandemic — are back.

• Maketto is fundraising for two employees who were detained and their families, as well as resources to respond to "future incidents."

A D.C. restaurateur, who spoke anonymously to protect their staff, tells Axios three employees were detained over Labor Day weekend — all with legal work visas. The group paid over $2,500 for an immigration lawyer to help.

• They're putting together a fund to pay for staff groceries, as well as Ubers to work because employees are scared of checkpoints and ICE activity at bus stops.

Reality check: The D.C. split-screen that's playing out on social media is also happening in restaurants — scenes of empty dining rooms in Columbia Heights contrast with a slew of big restaurant openings (many years in the works, before the administration).

• There's a noticeable chilling effect on a typically vocal industry that stood up for immigrants in the first Trump administration — like the Day Without Immigrants in 2017 when over 100 places closed in solidarity.

The bottom line: It's not just labor — restaurants are losing critical talent and cultural identity.

• At Venezuelan restaurant Alma in Baltimore — where Trump threatens the National Guard is headed next — owner Irena Stein tells Axios she's already lost more than half of her kitchen staff due to the administration's immigration policies.
• "You can't just hire other nationalities to come and understand the complexity of the cuisine — it's rooted in Venezuelan culture," Stein tells Axios. "It's a culture we're all about sharing."