Another DC restaurant closing down, blaming controversial 'Initiative 82'

Another DC restaurant closing down, blaming controversial I-82

Another popular D.C. restaurant just announced its closing, blaming a controversial ballot initiative as one of the reasons. Haikan will have it's last day on Saturday after a decade on V St. in the Shaw neighborhood.

WASHINGTON - Another popular D.C. restaurant just announced its closing, blaming a controversial ballot initiative as one of the reasons.

Haikan will have it's last day on Saturday after a decade on V St. in the Shaw neighborhood.

The owners told FOX 5 they had no comment beyond the statement posted to their social media, which reads in part, "after almost 10 years in Shaw, we’ve made the difficult decision to close our beloved Haikan. The challenges of food costs, Initiative 82 and the economic climate in the city brought us to this decision."

The backstory:

Initiative 82 has been cited by several popular restaurants recently as a factor in their closures.

The legislation was passed overwhelmingly by D.C. voters — twice 1 a few years ago. It raised the minimum wage for tipped workers from just over $5 an hour to currently $10 an hour. In July, it will increase to $12 an hour and keep increasing until it reaches $17.50 an hour in 2027.

The Restaurant Association of Metropolitan Washington has been vocal in its opposition of Initiative 82, even asking D.C. Council to repeal it recently.

But when speaking to several council members, it doesn't appear a full repeal would be on the table.

Councilmember Anita Bonds told FOX 5 she does not support a repeal, but would potentially consider a freeze - which means keeping the minimum wage at $10 per hour, while they figure out what the best way forward is.

Those in favor of I-82 point out that restaurants often close for a variety of reasons and this blame game is simply an easy way out.

Local perspective:

FOX 5 spoke to a server and bartender, Blake Vincent, who is also part of the group One Fair Wage. They helped draft the legislation.

Vincent said since last year, his bar has seen a roughly 5 to 10 percent increase in customers and a repeal of I-82 would be horrendous.

"That scares me because the people I work with depend on a living wage in order to live, to pay their rent," Vincent said. "We live in D.C. It's very high rent. I'm able to pay my rent because of the wage I make with tips on top of it."

One Fair Wage pointed to more than 30 restaurants opening their doors in D.C. since the start of the year, more than a dozen in April alone.

PREVIOUS COVERAGE: Here's how Initiative 82 could transform DC's restaurant industry

Other residents who spoke with FOX 5 also seemed to support the minimum wage increase.

"Anytime you talk about tipping, it's going to be hot topic," said Steven Freeman. "But $5 an hour for people who serve your food and all that, in today's climate, today's economy, that's not enough can't live off of it so you've got to find a balance."

"You know, if the food is good, and everything is working well in the restaurant, there's no reason for it shut down," said Matt Zakrzewski. "There's probably a way money can be moved around to pay these people the money they deserve."

"I just think that people need to be paid a living wage," said Melissa Bell. "They can't continue to pay what they have paid in the past, everything is going up and it's only fair that you pay your workers enough."

What they're saying:

Below is a statement from the Office of the Deputy Mayor for Planning and Economic Development:

"We recognize the challenges that many DC businesses are facing. The District is proud to have robust programs to support local retail businesses, but we also know we must also advance a growth agenda that makes it easier to do business here, particularly in the restaurant industry. We will continue to work with the Council on that agenda and legislative proposals as Mayor Bowser advances her FY26 budget."

Below is a statement from RAMW President and CEO, Shawn Townsend:

"The closure of Haikan, a cherished ramen spot in Shaw, marks yet another significant loss for our city's dining scene. After nearly a decade of serving the community, Haikan's decision to shut its doors underscores the mounting challenges faced by independent restaurants in Washington, D.C.

While factors like rising food & rent costs and a shifting economic climate play roles, the impact of Initiative 82 cannot be overlooked. This policy, which eliminates the tip credit, has introduced financial strains that many small businesses find insurmountable. As labor costs escalate, restaurants are forced to make difficult decisions, often resulting in reduced staff hours, increased menu prices, or, as in Haikan's case, complete closure.

It's imperative for our city leaders to recognize the unintended consequences of Initiative 82. We urge the D.C. Council to reevaluate this policy and consider measures that support both fair wages for workers and the sustainability of our local businesses. The preservation of D.C.'s unique culinary landscape depends on balanced solutions that address the needs of all stakeholders."

The Brief