DC restaurants already feeling impact of government shutdown
Government shutdown impacts workers, businesses
The federal government shutdown is expected to lead to thousands of furloughs and major impacts to local businesses.
WASHINGTON - It's day one of the federal government shutdown, and D.C. restaurants are already feeling the effects. That's on top of a tough year for the industry in general.
Local perspective:
Diane Gross, who owns Cork and Wine Bar on 14th Street, NW, and also serves as Chair of the Board for the Restaurant Association of Metropolitan Washington says it's death by a thousand cuts.
Restaurants went into this federal shutdown already on their back foot from the federal takeover and immigration crackdowns.
"I wish I could say we are doing so much to prepare, but it's really hard, I think, because we're coming off a summer where sales are already down. There aren't a lot of reserves. Restaurants typically have about 13 days of cash on hand, so there's not a lot of room there," said Diane Gross, owner of Cork Wine Bar.
Gross says that several of her employees are federal workers who either got fired during the recent reductions in force or are trying to make some extra cash to make ends meet. She's worried about her staff if this shutdown continues much longer.
Gross says restaurants typically have 13 or so days of cash reserves but those reserves are already down this year after a slower than average summer.
Busboys and Poets Owner Andy Shallal comes to the table seasoned with the experience of 20 years in the restaurant business in D.C. He says he has learned to accept the unexpected and while he hopes the shut down ends soon, his focus is on providing community to people who need it right now.
"I received an email from somebody saying that they want to start a group, kind of, meet-up for people that have been laid off to meet here on a regular basis until the shutdown is over, so we;re considering that," Shallal said. "I think people need to be in the community at this time."
Dig deeper:
Ironically, the Restaurant Association of Metropolitan Washington launched a new campaign on Wednesday called, "Together We Dine," aimed at supporting restaurants facing what they call unprecedented challenges.
The campaign is in response to dramatic drops in sales in August.
RAMW survey data shows 71% of D.C. restaurants reported sales drops and nearly three-quarters saw a decline in diners compared to last year.
Like many restaurants around the city, Cork will have special happy hour prices for federal workers each day.