"Hot Off the Grill" - Edition #12
Introducing our sizzling new edition of newsletters: "Hot off the Grill"! We're fired up to bring you the latest and greatest industry updates, straight from the grill to your inbox. Curated by the National Restaurant Association and industry leaders, "Hot off the Grill" is your go-to source for the hottest industry topics happening across the county. So, sit back, relax, and let us serve you the freshest updates straight from the grill!
In This Issue:
|
Dispatch From the National Conference of State Legislatures
|
|
The News: The Association recently participated in a panel hosted by the National Conference of State Legislatures’ State and Local Tax(SALT) Task Force regarding interchange (swipe) fees on sales tax and tips. The panel also included a representative of the Electronics Payment Coalition. It was attended by state legislators from around the nation.
What Happened: The panel explored whether and how other states could follow Illinois’ example of prohibiting the collection of interchange fees on sales tax and tips.
Quick Context: Earlier this year, Illinois enacted first-of-its-kind legislation, called the Interchange Fee Prohibition Act (SB 2083), to exempt sales tax and gratuities from credit and debit card swipe fees. The law aims to help alleviate one of the highest costs of doing business. Opponents of such legislation have several “red herring” arguments, including claiming that it would negatively impact card transaction processing and/or be technologically challenging to implement.
Key Takeaway: Policymakers were interested in finding middle ground on the issue. Conversely, when asked, the Electronic Payments Coalition, which is backed by the credit card duopoly and big banks expressed a strong preference for keeping the status quo.
|
|
|
Uncertain Future for Minimum Wage, Tip Credit in Michigan
|
|
The News: Last week, the Michigan Supreme Court handed down a ruling that starts the clock on a higher minimum wage and elimination of the tip credit. The change is set to begin Feb. 2025 but leaves open the possibility that the legislature can intervene.
National Association POV: “The Michigan Supreme Court decision makes clear that the legislature can listen to tipped workers and once again take action to stop the elimination of the tip credit. The National Restaurant Association supports the efforts of the Michigan Restaurant and Lodging Association to protect the state’s tip credit and will continue to work closely with them in the weeks ahead.” – Mike Whatley, VP of State Affairs and Grassroots Advocacy
How We Got Here: Michigan voters approved a ballot initiative in 2018 to raise the state’s min. wage to $12/hr. and eliminate the tip credit by 2024. In response, the state legislature passed legislation that pushed the min. wage increase to 2030 and preserved the tip credit at 48% of the min. wage.
The Ruling: The Michigan Supreme Court struck down those laws, asserting that they were unconstitutional.
The Impact: Starting on Feb. 21, 2025, in Michigan,
-
The min. wage will increase to approximately $12.40/hr. ($2.07 more than the current min. wage)
-
The tip credit will increase to 48% of the min. wage—approximately $5.95/hr. ($2.02 more than the current tip credit)
-
By 2028, the min. wage will rise to approximately $13.50/hr. and subsequent increases will be tied to the rate of inflation
-
By 2029, the tip credit will be phased out completely
What’s Next: The Michigan Restaurant & Lodging Association is working to secure a legislative solution that will offset the ruling’s most damaging impacts to the hospitality industry.
Take Action: Visit Save MI Restaurants. Share Save MI Tips, a server-led initiative where restaurant employees can learn more and get engaged to protect their income
|
|
In the News...
Tomorrow’s Chefs Drop in on the Bidens
The high school team that won the culinary component of this year’s National ProStart Invitational competition had a chance to visit the home of some well-known fellow Delawareans when they were invited to the White House recently by First Lady Jill Biden. They had a chance to meet with White House Executive Chef Cristeta Comerford, the first woman to ever hold that job.
Two More U.S. Restaurant Chains File for Bankruptcy
Two smaller U.S. restaurant chains filed for bankruptcy protection, not long after Red Lobster and Rubio’s Restaurants declared Chapter 11. After closing 13 restaurants, Bucadi Beppo said on Aug. 5, it filed for bankruptcy. World of Beer filed for Chapter11 on Aug. 2.
Budget Conscious Diners Cut Back on Takeout as App Fees Climb
Restaurant owners and delivery apps are facing a challenge as rising costs and added fees from third-party delivery services are discouraging consumers from ordering takeout, with inflation and varied local regulations complicating efforts to offer discounts or lower prices.
National Restaurant Association and National Restaurant Association Educational Foundation win 2024 Power of Associations Awards
The National Restaurant Association and National Restaurant Association Educational Foundation are celebrating winning two 2024 American Society of Association Executives (ASAE)Power of Associations Awards. The Association received the program’s highest honor, the Summit Award, for the Educational Foundation’s HOPES program, and a Silver Award in the Advocacy category for its Hill Runner program.
