Written by Ayanna Smith
Restaurant reservations and foot traffic fell sharply across the nation’s capital last week as federal authorities asserted temporary control over the Metropolitan Police Department (MPD) under Section 740 of the Home Rule Act and deployed D.C. National Guard troops citywide. OpenTable data show that diners in D.C. dropped 16% on Monday, 27% on Tuesday, and 31% on Wednesday compared to the same days in 2024; an abrupt reversal just before Summer Restaurant Week.Â
The takeover, now the subject of ongoing litigation, has heightened visible security, created ad-hoc checkpoints, and sowed confusion among residents and visitors about where it’s safe or convenient to dine, shop, and gather. A federal judge has allowed the takeover to proceed while the legal challenges are pending; congressional leaders have also introduced measures to rein in the move.Â
Complicating matters, August is historically slow for D.C. hospitality. With Congress largely in recess, many staffers leave town, families are away, and local demand softens even in a normal year. This summer’s federal presence has amplified that seasonal lull.Â
What’s at stake for D.C.’s small business economy
Tourism and hospitality are foundational to the District’s small-business ecosystem. In 2023, D.C. welcomed roughly 26–27 million visitors, generating $10–$11 billion in visitor spending — a vital revenue stream that fuels neighborhood restaurants, independent retailers, cultural venues, and personal services firms. Downtown recovery was already uneven before the takeover, with office attendance and retail vacancies still below 2019 levels. A prolonged perception of instability risks chilling near-term sales and future travel demand.Â
Notably, official data show violent crime in 2024 fell to a 30-year low in the District, even as debates over crime trends continue. Regardless of the statistics, the current enforcement posture has changed customer behavior in the short term, and small businesses are feeling it in real time.Â
Survival Playbook: Practical Moves D.C. Small Businesses Can Make Now
In this challenging moment, the path forward for D.C. small businesses lies in pairing resilience with creativity, and these strategies offer practical steps to weather the storm.Â
- Launch a bold gift card campaign. If foot traffic is down now, give your customers the option to invest in your future. Gift cards allow loyal supporters to buy today and redeem later, providing much-needed cash flow during lean weeks. Position it like a “Black Friday” sale: short, high-energy, and widely promoted across social media and email. Sweeten the deal with a small bonus (buy $50, get $60) to drive participation. This approach generates immediate revenue while keeping customers engaged for the long term.
- Curate unique and exclusive group experiences. Design offerings that bring people together in safe and memorable ways. This could mean partnering with nearby businesses to create a multi-stop “neighborhood crawl,” day-long outings, or themed packages that highlight D.C. culture. Not only does this spread foot traffic across businesses, but it also instills a sense of belonging and excitement that can counteract fear or hesitation about visiting the city.
- Offer irresistible, time-bound discount packages. Limited-time promotions signal urgency and create an emotional pull for customers. Whether it’s a prix-fixe meal bundle, a retail pairing, or a midweek “locals-only” special, discounts offered with clear expiration dates encourage immediate action. The key is to make the deal compelling enough that people feel they cannot miss it, while ensuring that margins remain sustainable.
- Program for groups and certainty. If day-to-day walk-ins are shaky, sell certainty: private dining, prix-fixe menus, team offsites, family “tables,” themed nights, or after-hours shopping appointments. Package with a simple booking page and clear cancellation terms. Partner with neighbors to build micro-itineraries (e.g., “14th Street Mini-Crawl”: coffee → gallery → dinner). Cross-promote and share the list-building.
- Over-communicate safety, hours, and accessibility. Use social media and email daily to reassure customers that you are open for business. Share videos and photos of guests enjoying themselves, post clear instructions on how to navigate nearby checkpoints, and emphasize convenience and safety. Transparency reduces hesitation and builds trust.
- Reward loyalty among both customers and employees. This is the moment to double down on gratitude. Create a locals’ loyalty program, offer midweek bonuses for repeat customers, and highlight staff who go above and beyond. Recognizing those who sustain you, inside and outside your business, turns survival into shared resilience.
- Build a 13-week cash-flow “lifeline” and act on it weekly. Forecast inflows (prepaid sales, events, catering, delivery) against outflows (rent, payroll, COGS, debt service). Use this to time-shift expenses, reduce order quantities, and consolidate supplier deliveries. Share a one-page cash view with managers so every spending decision ladders to runway.
- Go where the customers are: pop-ups, patios, and proximate neighborhoods. If a checkpoint or security posture is limiting access to your block, consider taking your concept to open-flow areas, such as sidewalk activations, weekend markets, or short-term pop-ups inside allied businesses. Keep the menu/edit small; prioritize high-margin, travel-friendly SKUs.
- Make Restaurant Week work harder for you. Summer Restaurant Week in D.C. (Aug. 18–24) brings deal-seeking diners even in a soft market. Feature a tightly costed prix-fixe, capture emails/SMS at the table, and hand customers a “come-back” incentive valid in September. Treat RW as a lead-gen event, not just a one-off promo.
- Advertise smarter, not just more. Run short-burst radius ads targeting locals within 1–3 miles during key windows (lunch, happy hour). Creative should be simple: a great dish or product, a clear value prop, and an easy CTA (“Reserve now,” “Order pickup in 15 min”). Re-target site visitors with a next-visit offer valid midweek.
- Control your COGS like a hawk. Engineer menus toward dishes with stable, lower-volatility inputs; spotlight profitable add-ons and beverages; trim slow movers. For retailers, bundle complimentary items and offer “build-a-kit” deals that increase the average order value without requiring deep discounts.
- Document everything: losses, cancellations, and operational disruptions. Keep contemporaneous records of reservation declines, event cancellations, and supply delays (screenshots, timestamps, emails). If emergency relief, tax accommodations, insurance claims, or future grant programs become available, this evidence accelerates validation.
- Tap the local ecosystem for support and signal-boosting. Coordinate with your Business Improvement District (BID – DowntownDC, Golden Triangle, Adams Morgan, H Street NE, Georgetown, etc.) on shared campaigns and events. Track funding calendars from local government agencies and citywide opportunities; even when a window is closed, prepping now reduces scrambling later.
- Build institutional demand. Pursue recurring orders from nearby offices, hotels, tour operators, and universities (i.e., boxed lunches, “welcome to D.C.” retail bundles, corporate gifting, or staff appreciation packages). These channels are steadier than tourist walk-ins during uncertain periods.
- Align hours to reality. If late nights are dead but afternoons are active, move labor to the daypart that pays. Pilot “locals’ power lunch,” “early bird,” or “industry night” menus; publish the change boldly and revisit weekly based on point of sale data.
- Advocate…professionally and persistently. Speak with your council member, BID, and industry groups about establishing predictable access routes, implementing signage, and coordinating communications that encourage safe patronage rather than avoidance. Regional business leaders have already urged federal-local cooperation that protects both safety and commerce.
The Bigger Picture
Even brief shocks can leave lasting shadows on perception, especially for a downtown area still climbing back from the pandemic and remote work. That’s why it’s critical to stabilize near-term cash flow, maintain customer relationships, and continue telling the story that D.C. is open, creative, and resilient. Tourism is a major economic engine for the District; safeguarding it requires calm, coordinated, and credible communication alongside evidence-based public safety strategies.
About Ayanna Smith
Ayanna Smith is a D.C. small-business leader, ecosystem builder, and executive communications strategist dedicated to amplifying local businesses. She co-founded Celebrate! D.C., curating programs and events that spotlight small businesses and local creatives, and founded the Journey Together care coordination app (available in app stores), which helps families and communities organize and manage all of their group care in one place. In 2015, she also co-founded the nation’s first live escape room business for children, which was voted Best of D.C. multiple times. Voted D.C.’s Community Builder of the Year in 2022 by Technical.ly readers, Ayanna has spent more than 15 years helping founders and small business owners tell their stories, grow their businesses, and weather disruption. She obtained a Master of Arts in Organizational Communications from Bowie State University and a Bachelor of Arts in English from Temple University.
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