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Since the tipped wage went into law in DC, at least one survey shows 4,000 jobs have been lost.
WASHINGTON — Summer is coming to an end and with it the summer lull for D.C. restaurants. The lull many bar and restaurant owners feel got deeper thanks to inflation and a tipped wage increase.
So we hit the streets of Adams Morgan to get a better view of the issues. On one Friday night, we found guests flocking to Le Mont royale on Adams Mill Road.
“We're a French Canadian Disco here in Adams Morgan,” owner Chas Jefferson said. “We focus on neo-bistro French food, like oysters, poutine, and cocktails and wine."
Owner Chas Jefferson opened it more than a year and a half ago. In that time, he’s learned quite a few lessons.
“Number one is your team is everything and it's taken a long time to get the right squad,” he explained
Another lesson: doing business in D.C. in 2024 is tough.
“Thanks to inflation food costs are up 40% from pre-pandemic levels,” he said. “Labor costs are also up.”
Labor costs seem to have hit every bar and restaurant on 18th Street. Several we spoke to did not want to go on the record but said this year they have cut staff to deal with the cost increases.
Most of them pointed to the DC council passing an escalating tipped minimum wage that increases yearly and hit $10 an hour this summer.
“To turn the economics on their head in with one vote,” Jefferson said. “Yeah, it's been tough. Like we've seen it all over the city.”
According to the Restaurant Association of Metropolitan Washington’s most recent survey, it has also hit workers.
Since the increases went into effect in 2023, restaurants have made up the difference by hiring fewer workers. To the tune of at least 4,000 full-service jobs lost.
“We realize that minimum wage and tip wage increases every so often,” New Roofer’s Union owner Natalia Alexander said.
But there’s a different view from here. Alexander said they have not reduced staff.
“We're just simply paying them more,” she said. “Some restaurants are making it up with fees. But, we're trying to not do that. We're trying to be a little bit more creative on cost-cutting in other areas.”
She said what will help the most will be the end of the summer season.
“We are extremely busy in September, October, and November,” she said. “So we are sort of making it all back.”
Chas agrees with that.
“We thrive in the fall,” he smiled. “Our food is just like it's built for the fall and winter.”
The Restaurant Association of Metropolitan Washington is currently conducting another survey. The results are expected in the next few weeks.
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