DC Restaurant Sector Lags Hotel and Other Retail in Post-pandemic Recovery
In FY 2025, the District collected more than $2.0 billion in general sales and use tax revenue across eight categories, each with different tax rates (Table 1). The main sources of sales tax revenue were the General Retail, Food & Drink (Restaurant), and Hotel subcategories, which together accounted for 93 percent of the total sales tax revenue. When adjusted for inflation, this analysis shows that the city’s restaurant sector experienced the steepest decline, with real activity in 2025 falling 15.1 percent compared to 2019.
