Hot Off the Grill Edition #7
"Hot Off the Grill" - Edition #7
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:
- New York State Passes Bill to Address Reservation Black Market
- Upcoming Webinar with DOL on Child Labor
- Congressional Letter to FTC
New York Bill Would Address Reservation Black Market
What’s Happening: Last week, the New York State Legislature passed the Restaurant Reservation Anti-Piracy Act, SB 9365 and AB 10215, legislation requiring third-party reservation services to obtain permission from restaurants to book on their behalf. The bill now awaits Governor Hochul’s signature.
Why it’s Important: This is the first bill of its kind, and it addresses a growing problem—predatory online bots capturing reservations and reselling them at exorbitant prices. Third-party online reservation platforms will now be required to enter into a written agreement with restaurants before being able to list reservations on their website, mobile application, or other platform.
Go Deeper: The New York State Restaurant Association spearheaded this legislation and OpenTable and Resy applauded its passing.
Register for Youth Employment, Compliance Webinar
Mark Your Calendar: The National Restaurant Association and the U.S. Department of Labor's (DOL) Wage and Hour Division (WHD) are hosting a webinar, "Child Labor Law Compliance in the Foodservice Industry: Keeping Teens Safe This Summer," Tues., June 18 at 2 p.m. ET.
Why Attend: Make sure your team has the knowledge to successfully navigate federal child labor laws this summer.
What to Expect: The hour-long webinar will help you to ensure a safe and productive summer season.
- An overview of federal child labor laws: Ensure you're up to date with the basics.
- Permissible work hours: Learn the legal working hours for 14- and 15-year-olds.
- Prohibited jobs: Understand the jobs deemed hazardous for 14- and 15-year-olds and jobs prohibited for all workers under 18.
- Common violations: Avoid the most frequent pitfalls.
- Q&A session: Get your questions answered by WHD specialists.
Don’t Miss Out: Register here to secure your spot or watch a recording after.
Get Ready: Check out this DOL factsheet, Child Labor Rules for Employing Youth in Restaurants, or try the DOL’s employer self-assessment tool on child labor in restaurants
Tell Congress to Help Block FTC Fee Ban
Call to Action: Help the Association build congressional opposition to the Federal Trade Commission’s (FTC) proposed ban on restaurant service fees and surcharges by adding your name here.
Association POV: EVP of Public Affairs, Sean Kennedy, breaks down the Association’s latest effort to block the FTC proposal—and lays out how you can help—in his latest 90-Second Update. Watch here.
Why it Matters: The FTC’s proposed rule would force restaurant operators to raise menu prices, rewrite how servers are paid, and create multiple menus with different pricing. Additionally, the FTC’s proposal would cost operators $3.5B over 10 years to comply.
Take Action: Urge lawmakers to support the Association-backed letter to the FTC by clicking here.
In the news…
Restaurant service fees strike a new nerve: How they’re taxed
Some restaurant owners are adding service charges to customer checks to boost employee wages, but face tax penalties under the current system, prompting a proposed bill by Rep. Earl Blumenauer to provide tax parity for service charges and tips, drawing support from both the National Restaurant Association and labor groups. The powerful National Restaurant Association is sympathetic to Blumenauer’s proposal, said Sean Kennedy, EVP of public affairs. “We support policies that allow restaurants to have as much choice as possible in the operation of their businesses—from the tip credit to the use of service fees. We appreciate Rep. Blumenauer starting this discussion,” Kennedy said in a statement.
New bill would allow restaurants in California to continue using service fees and other surcharges
The sponsor of a California law banning most add-on restaurant charges is pushing a follow-up bill, backed by the California Restaurant Association and Unite Here, to allow service fees and surcharges as long as customers are informed beforehand, aiming for transparency rather than elimination of these fees.
Tip credit stays alive in Michigan and Illinois
Full-service restaurants in Illinois and Michigan have seen a reprieve from potential legislative changes affecting tip credits, with the failure of a statewide discontinuation law in Illinois and the Supreme Court of Michigan refusing to intervene in a union-backed initiative aimed at phasing out the tip credit.
Restaurants are having their biggest year ever
The U.S. restaurant industry is set to reach record sales of $1.1T in 2024, surpassing pre-pandemic levels despite financial pressures, driven by technological investments and evolving consumer trends. What we're saying: They're trying to balance "high touch and high tech," as Michelle Korsmo, CEO of the National Restaurant Association, tells Axios. "There's no doubt the future looks like more robotics in the kitchen," Korsmo said in an interview following the National Restaurant Association's annual trade show in Chicago last month. "It's a question of whether robotics are in the dining room itself."
Restaurant job openings cooled in April
Job openings int he accommodation and foodservices sector remain above pre-pandemic levels but are gradually normalizing, with April seeing 937K job openings, a decline from March's 1,034,000, and a 6-month average of 955K.
If you are seeing a lot of tech in restaurants now, just wait
Stepping into a restaurant today feels futuristic with tech like ordering kiosks, digital food lockers, and robots, and according to the National Restaurant Association's 2024 Restaurant Technology Landscape Report, both operators and consumers are increasingly valuing and investing in these advancements to enhance the dining experience. “More than 3 in 4 operators say technology gives them a competitive edge,” said Michelle Korsmo, president and CEO of the National Restaurant Association.
Hill Runners keep industry front and center in Congress
The National Restaurant Association's "Hill Runner" initiative recruit’s restaurant operators to build personal relationships with Congress members, sharing firsthand how legislation affects the industry, with the goal of pairing each operator with a representative and equipping them with necessary advocacy tools.
The advent of travel and leisure season fuels demand for staff
In May, job growth beat expectations in several sectors, including leisure and hospitality. The Bureau of Labor Statistics said the U.S. added 42K jobs in that category—up about 0.2% from the previous month. We are well into leisure and hospitality season with summer travel increasing and more folks going out to restaurants and bars. That fun-seeking, plus the rising wages nationwide that were also highlighted in Friday’s numbers, translate into more jobs