Washington, D.C. Restaurant Market Overview
$8 billion
Market Size
4,500+
Restaurants
380+
New/Year
$1.4 million/year
Avg Revenue
690,000
Population
$90,000
Median Income
Washington, D.C. Restaurant Startup Costs
Small Restaurant
Small cafe or quick-service (under 30 seats)
$200,000 - $450,000
Medium Restaurant
Casual dining restaurant (30-80 seats)
$450,000 - $950,000
Large Restaurant
Fine dining or large venue (80+ seats)
$950,000 - $2,800,000
* Costs vary by neighborhood, concept, and build-out requirements
Best Neighborhoods for Restaurants in Washington, D.C.
Location is everything. Here are the top neighborhoods for different restaurant concepts.
Penn Quarter/Chinatown
Best For:
Sports dining, Asian cuisine
Georgetown
Best For:
Fine dining, university crowd
14th Street
Best For:
Trendy concepts, cocktail bars
Navy Yard
Best For:
Modern concepts, stadium crowd
Adams Morgan
Best For:
Late-night, international
Required Licenses and Permits in Washington, D.C.
Food Establishment License
DC Health food service permit
Basic Business License
DC business registration
ABC License
Beer/wine or full liquor license
Certificate of Occupancy
Building use approval
Public Space Permit
Sidewalk cafe or patio
Food Manager ID
DC certified food manager
Monthly Operating Costs in Washington, D.C.
Rent
$4,000 - $22,000/month
Labor Cost
30-37% of revenue
Minimum Wage
$17.00/hour (DC minimum)
Food Cost
28-35% of menu price
Utilities
$1,200 - $4,000/month
Insurance (Annual)
$12,000 - $35,000/year
Popular Cuisines in Washington, D.C.
Opportunities in Washington, D.C.
- Affluent population
- Strong expense account culture
- Diplomatic community
- Convention/tourism traffic
- Ethiopian cuisine capital
Challenges in Washington, D.C.
- High minimum wage
- Complex liquor licensing
- Government shutdown impacts
- Transient population
- Metro access essential
Insider Tips for Washington, D.C.
- 1ANC (Advisory Neighborhood Commission) approval matters
- 2Government shutdowns hurt downtown
- 3Metro access is crucial
- 4Power lunch culture is real
- 5Ethnic cuisines thrive in diverse neighborhoods