Regulatory and Legal Affairs

🍺 United States Surgeon General Dr. Vivek Murthy issued an advisory last week concerning alcohol and cancer risk, stating alcohol is the third leading preventable cause of cancer in the U.S. after tobacco and obesity. The advisory seeks to raise awareness, suggesting updates to health warning labels on alcoholic beverages to explicitly mention cancer risks, and reassessing consumption guidelines. Currently, alcoholic beverages account for about 21% of sales at full-service restaurants, and 6% at limited-service venues. With less than 50% of Americans aware of alcohol's cancer risk, and the fact that one-third of consumers ages 18 to 24 abstain from alcohol, the recommendation could impact the industry significantly. The original warning label, added in 1988, may need Congressional approval for changes. Stocks of alcohol companies dropped following the advisory.

🔔 In 2024, the American Hotel & Lodging Association (AHLA) showcased significant advocacy victories at federal and state levels. AHLA challenged the National Labor Relations Board's joint-employer rule, contested the Department of Labor's overtime rule slated for 2025, and lobbied for increased federal employee per diem rates, resulting in an $86 million benefit. Additionally, the AHLA secured authorization for double the H-2B visas for FY 2024 and facilitated the HOTEL ACT to prevent human trafficking. They also expanded global alliances and increased their political program by nearly 40%. Looking ahead to 2025, AHLA aims to extend the Tax Cuts and Jobs Act, grow the hotel workforce, and ensure hotel fee transparency.

📍 The UK's electronic travel authorisation (ETA) scheme will expand to 48 countries from January 8, 2025, and to 34 European countries from April 2, 2025. In 2024, over 38 million people visited the UK, with most not requiring visas. Since its November 2023 launch for Qatari nationals, the scheme has seen 393,000 ETA applications by June 2024. ETAs, valid for two years or until the passport expires, will cost £10 and are required for short-term visitors, including those from the USA, Australia, and New Zealand. Travelers from countries like France, Germany, and Italy can apply from March 5. Fragomen advises applying for an ETA at least three days before travel.

📌 California sued by business organizations over Senate Bill 399, signed 3 months prior by Gov. Gavin Newsom, banning retaliation against employees who skip mandatory meetings on religious/political matters. The California Chamber of Commerce and California Restaurant Association argue the law infringes on First and Fourteenth Amendment rights. The National Labor Relations Board, in November, ruled such meetings violate labor law, overturning the 1948 Babcock & Wilson Co. precedent. Proponents argue SB 399 prevents intimidation during unionization. Labor advocates fear President Trump's administration may reverse labor protections.

🔔 Hotels struggle with guest recognition due to GDPR fears, leading to underpersonalization. GDPR, while ensuring data handling, has led hotels to erase guest details to avoid fines, causing a lack of personalization during stays. Multiple databases in hotels don't interact, potentially disregarding loyalty member benefits. Guests can encourage personalization through loyalty programs, opting in for communication, and providing explicit consent for data storage. GDPR doesn't ban personalization but requires permission and secure data handling. Personalization can lead to smoother stays, customized offers, and increased loyalty. Guests can improve personalization by using hotel apps and providing feedback. Responsible data handling can enhance guest experiences without violating GDPR.

🍴 Bret Thorn, Senior Food & Beverage Editor for Nation’s Restaurant News and Restaurant Hospitality since 1999, reports on food and beverage trends and hosts "In the Kitchen with Bret Thorn" podcast. He wrote for The New York Sun from 2005-2008 and lived in Thailand, writing for Manager magazine and Asia Times from 1992-1997. A magna cum laude graduate from Tufts University, he studied at Le Cordon Bleu in Paris and was in Beijing during the 1989 Tiananmen Square protests as an ABC News runner. Thorn won a Jesse H. Neal Award in 2006, joined the Disciples d’Escoffier in 2014, and authored entries in the Oxford Encyclopedia (2012) and the Oxford Companion to Sugar and Sweets (2015).

🏨 The Digital Markets Act (DMA) aims to level the competitive playing field but faces uneven enforcement, especially in travel and hospitality. Google's over 20 changes to European services have removed features like flight information, dropping free direct booking clicks by 30%. This over-compliance has accidentally benefited OTAs, whereas Booking.com's superficial adjustments fail to address key issues, maintaining its dominance. European hotels saw over a 10% traffic drop after Google tested removing hotel search features. Google halted the test due to negative user and business impacts, advocating for balanced DMA compliance to avoid harming the industry.

🏨 In Washington, DC, American Hotel & Lodging Association (AHLA) President & CEO Rosanna Maietta welcomed the inclusion of AHLA-backed fee-transparency legislation in a federal continuing resolution. The Federal Trade Commission (FTC) also announced a fee-disclosure rule for the lodging industry. The legislation aims to create a nationwide standard for up-front, inclusive pricing for hotel stays, countering hidden fees. Presently, only 6% of U.S. hotels charge mandatory fees averaging $26 per night.

🍜 Justin Warner, at age 15, began his two-decade career in restaurants, now famed for his Food Network appearances, including winning 2012's Next Food Network Star. Warner opened Bokujō Ramen in Rapid City, South Dakota, incorporating local bison. In August, a U.S. federal appeals court overturned the Department of Labor's 2021 80/20 tip rule. Chef Brandon Rushing plans to open a new 9,000 sq ft Briny Swine outpost in Chicago's Lincoln Park this spring, featuring local seafood and Southern cuisine at a family-friendly price.

📦 Grubhub to pay $25 million settlement after U.S. Federal Trade Commission and Illinois Attorney General investigation into deceiving consumers on delivery fees, misleading drivers on pay, and listing restaurants without consent. Must now fully disclose delivery costs to customers, advertise driver pay transparently, and get restaurant consent for listings. FTC Chair Lina M. Khan says the action ends illegal practices and secures compensation for those affected. Settlement follows President Biden's fall 2023 crackdown on junk fees. Grubhub denies allegations but agrees to comply.