Association eyes bipartisan policy goals to power growth

The restaurant and foodservice industry will fuel the American economy in 2023, according to new research from the National Restaurant Association.

Its new State of the Restaurant Industry report projects restaurants will contribute $997 billion in sales to the economy and add 500,000 jobs. The Association, to maintain the stability and growth of the industry, will focus on bipartisan issues that not only expand the workforce, but also strengthen the supply chain, and lower costs for operators and consumers alike. 

Expanding the nation’s workforce

To strengthen the industry’s workforce and ensure it remains adaptable, the Association is working on several policies that impact wages, support operators, and promote continued success.  

• Establish a non-immigrant essential worker program. The Association supports the Essential Workers for Economic Advancement Act (EWEA), a non-immigrant temporary worker program that would increase the labor pool in occupations providing growth opportunities and career paths without a college degree, including in the hospitality industry.
• Address immigration reform. Approximately 2.2 million restaurant workers in the United States are foreign born. Additionally, 38% of businesses in the hospitality industry are immigrant-owned. To support these individuals, who are indispensable to the economy, the Association backs providing a pathway to legalization for beneficiaries of existing programs, including DACA and Temporary Protected Status.
• Defend restaurant employees’ tipped income. Research has shown that tipped employees at full-service restaurants earn a median of $27 an hour, and the top percentile earn nearly $41.50 an hour. Tipped employees are fighting to maintain this profitable form of income, and the Association will continue championing their efforts.

Reducing the cost of restaurant operations 

The Association also is focused on legislation promoting growth, fair competition, and clear labor regulations.  

• Promote credit-card processing competition. Credit-card swipe fees are a major expense for restaurants, and the fees continue to rise. The Association supports the Credit Card Competition Act, bipartisan legislation that would allow choice for credit-card processing, increase market competition and lower costs for small business owners and consumers.  
• Protect restaurant operators from overburdensome regulation. Last year, the Fast Food Recovery Act (FAST) passed in California. The law creates an unelected board to determine wages, safety regulations, and other critical oversight of one segment of the restaurant industry. California voters stepped in and stopped the state from enacting the law for now, but proponents are working to create similar legislation in other cities and states. The Association is spearheading a national campaign to fight similar bills across the country. 
• Create a national data security standard. Lawmakers are trying to expand current state and local data privacy laws, and force restaurants to comply with a patchwork of confusing legislation across the country. The Association is strongly advocating for a preemptive federal data privacy law that creates a single, uniform standard as opposed to various state laws, and will work with Congress to ensure that any legislation preserves customer reward programs.
• Permanently restore the business interest deduction to reduce tax burdens. The Association is urging Congress to remedy how business debt is handled for tax purposes and allow restaurants to deduct interest up to 30% of their earnings before interest, taxes, depreciation, and amortization (EBITDA). Without this update, the average restaurant faces both higher interest rates when financing improvements and an increased tax rate.
• Defend clear labor regulations. The National Labor Relations Board (NLRB) announced a proposed change to “joint employer” regulations that hold franchisors responsible for the employment practices of their franchisees. Critical restaurant relationships like janitorial services, linen suppliers, and other onsite relationships would be tied up in legal liabilities under the new rule. In December 2022, the Association submitted comments to the NLRB highlighting consequences of the proposed rulemaking and called on the board to keep the current rule intact. 

Strengthening the food supply chain

The Association supports any policies that expand the food supply chain and lower the cost of materials for restaurant operators. 

• Prioritize crop insurance and commodity programs in the Farm Bill. According to the report, 92% of restaurant operators have reported the cost of food is a significant issue for their operations. The Association will continue to encourage Congress to prioritize funding for crop insurance and commodity programs, expand preparedness programs, and ensure support for specialty crop programs. 
• Bolster the Restaurant Meals Program (RMP). The Association is urging Congress to revamp and streamline the process to increase food access at restaurants across the country. By increasing education and creating guidance, restaurants want to improve RMP and provide meals to those experiencing food insecurity.
• Fight harmful renewable fuel standards. The Environmental Protection Agency is considering updates to the biofuel volumes in the Renewable Fuel Standards Program, which would increase the demand for corn-based ethanol. The Association will engage in highlighting the damaging effects this could have on the supply chain, restaurants, and consumers.
• Unravel cost-spiking tariffs. In January, the Association urged the U.S. Trade Representative (USTR) to disband China 301 tariffs that negatively impact restaurant products. The Association will continue to be focused on supporting actions to remove tariffs, which are contributing to inflation.  

Read the Association's letter to Congressional leaders about these policy priorities here or learn more about the State of the Restaurant Industry findings here.