Regulatory and Legal Affairs

🍴 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.

🍜 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.

💳 "Hotel Chargebacks Explained: Fight Disputes & Save Revenue," written by Manveen Kaur, was published on Dec 18, 2024. The article outlines methods to minimize disputes, manage Online Travel Agencies (OTAs), and safeguard hotel revenue through transparent policies and technology.

📊 On 5 November 2024, a coalition led by Business Europe including HOTREC and 26 industry partners, co-signed a statement on the Corporate Sustainability Due Diligence Directive (CS3D). They urge the European Commission to prioritize relief from administrative burdens and simplify regulations for competitiveness, especially for SMEs. Key demands: a thorough competitiveness assessment, guidelines and legislation adoption 2 years before mandatory compliance or an extended transition period, and consistent rules across the EU to maintain the Single Market's integrity. The coalition recommends the EU monitor national implementations to align with the Directive.

🏠 One year after Local Law 18 (LL18), New York City hotel prices rose by 7.4%, outpacing the national increase of 2.1%. The city's rent jumped 3.4% in 11 months with downtown Manhattan median asking reaching $5,000, and vacancy rates remained unchanged at 3.4%. Airbnb guest spending averaged $260 per day, but LL18 reduced accommodation options, particularly in outer boroughs. Critics argue LL18 favors corporations over residents and small businesses, suggesting a need to re-evaluate and amend the law.

📚 On 5 November 2024, HOTREC and 26 industry partners advocated for a business-friendly Corporate Sustainability Due Diligence Directive (CS3D), requesting EU support for competitiveness of businesses and SMEs. Their main asks include a competitive assessment of CS3D, adopting guidelines 2 years before mandatory compliance or extending the transition period, and ensuring harmonized rules for the Single Market. The European Commission is urged to monitor transposition measures and coordinate with Member States to align with the Directive.

💸 TikTok Shop, the new online shopping king, launched in the US in September 2023. With an expected revenue of $17.5 billion in 2024, it offers a seamless checkout experience and deep discounts for customers. It features an Affiliate Program, live selling events, and integration with external apps, directly competing with platforms like Shopify. TikTok's parent company ByteDance must sell the app by January 19, 2025, due to US national security concerns, which could impact TikTok Shop's dominance.