DC Restaurant Sector Lags Hotel and Other Retail in Post-pandemic Recovery
In FY 2025, the District collected more than $2 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 a steep decline, with real activity in 2025 falling 15.1 percent compared to 2019.
