Reservations Cancelled: Trump’s Federal Takeover and the Fallout for D.C. Restaurants

Federal Takeover & Dramatic Drop in Reservations

On August 11, 2025, President Trump invoked the Home Rule Act to federalize the Metropolitan Police Department, deploying National Guard and multiple federal law enforcement agencies across D.C. (Sources: Wikipedia |The Guardian | Eater DC). That action triggered one of the most significant shocks to the city’s restaurant industry in recent memory.

• OpenTable data reveals a steep reservation decline compared to the same period in 2024:

  • Monday (Aug 11): −16%

  • Tuesday: −27%

  • Wednesday: −31% (peak drop)

  • Thursday: −29%

  • Friday to Sunday: −20% to −22% (Sources: The Independent | WTOP News | The Guardian | The Daily Beast | Axios | TheGrio.)

  • The average weekly decline approached 25%, ranking D.C. as the only major city to register a downturn among the top 20 U.S. cities tracked by OpenTable (Sources: The Independent | Newsweek | Axios | The Guardian | The Daily Beast).

Multiple local restaurateurs confirm the slump. While suburban branches held steady, urban locations—especially those downtown—saw sharply reduced traffic (Sources: Axios | The Guardian).

Meanwhile, Trump insisted that restaurants were “busier than they’ve been in a long time,” even citing anecdotes from “Democrats” who felt safe dining out again—statements widely rebutted by local business owners and reservation data (Sources: Axios | The Daily Beast |TheGrio |The Guardian).

Media & Industry Response

• Axios challenged Trump’s claim, pointing out the “steepest decline in reservations among 20 major U.S. cities” in August (Source: Axios).

• The Guardian reported drops of 16%, 27%, and 31% across several days, noting how military and law enforcement presence was dampening public activity (Source: The Guardian).

• CNN and other outlets ridiculed the notion that diners suddenly felt safe—particularly when crime rates were already at a 30-year low prior to the federal intervention (Source: The Daily Beast).

Additionally, celebrity chef José Andrés condemned the federal deployment, arguing that D.C. needed leadership grounded in democratic principles—not militarized enforcement—and warned it would undermine Restaurant Week, which coincided with the deployment timeline (Source: Eater DC).

Local tourism and hospitality groups also voiced concern. Since October, 48 groups have canceled or modified plans to visit or hold events in D.C., attributing part of the hesitation to political instability and negative messaging, though the revenue loss is estimated at only around 2% of projected 2025 totals (Source: Axios). Restaurant organizations have responded by promoting positive messaging, encouraging patrons to return during Restaurant Week (Sources: Axios | WTOP News).

Broader Economic Stressors on D.C. Restaurants

Beyond the immediate impact of the federal takeover, several long-term pressures have compounded challenges for D.C.’s dining industry:

a. Federal Layoffs & Budget Cuts

• Trump’s sweeping government layoffs and budget retrenchments are projected to remove $5 billion from the regional economy, chiefly impacting local restaurants, hospitality services, and contractors (Sources: FOX 5 DC | Washington Examiner | Financial Times).

• A survey indicated that 44% of fast-casual restaurants fear they may close by the end of 2025 due to rising costs, diminishing traffic, and labor instability (Sources: Washington Blade | Washington Examiner).

b. Tariffs & Rising Costs

• Trump’s tariffs—on goods from Europe, China, Canada, and Mexico—may trigger cost increases for essential supplies like produce, wine, packaging, and even basic disposables (Source: Axios).

• Operators report multiple pressures: from soaring ingredient costs to supply chain disruptions, all eroding thin profit margins (Sources: Axios | Financial Times).

c. Immigration Enforcement & Labor Anxiety

• ICE audits and enforcement sweeps in May triggered widespread fear among restaurant staff, leading to absenteeism, resignations, and operational disruption ahead of one of the busiest periods of the year (Source: The Washington Post).

• The heightened scrutiny and climate of fear have made staffing—especially within immigrant-heavy labor pools—a persistent concern.

Summary Table: Key Impacts on D.C. Restaurants