Regulatory and Legal Affairs

🍴 Florida lawmakers proposed a bill amendment to ban automatic restaurant gratuities for parties of five or fewer and allow service charge refusal for poor service. The original bill, HB 535, already passed multiple state committees. State Rep. Demi Busatta (R-Cape Coral) proposed the amendment after experiencing preset gratuities in Miami. The Florida Restaurant and Lodging Association opposes the amendment, citing service charges as vital for success. If the amendment passes, it would take effect on July 1. Former President Joe Biden launched a strike force to eliminate nearly $20 billion in junk fees, while California and Illinois considered similar legislation, but California exempted restaurants.

🍴 Bret Thorn, Senior Food & Beverage Editor at Nation’s Restaurant News and Restaurant Hospitality since 1999, also hosts the podcast "In the Kitchen with Bret Thorn." He wrote for The New York Sun from 2005 to 2008 and was based in Thailand writing for Manager magazine and Asia Times from 1992 to 1997. Thorn, a magna cum laude Tufts University graduate and Phi Beta Kappa member, studied at Le Cordon Bleu in Paris and covered Tiananmen Square protests for ABC News in 1989. His work earned the 2006 Jesse H. Neal National Business Journalism Award and he was president of the International Foodservice Editorial Council in 2005. Thorn was inducted into the Disciples d’Escoffier in 2014 and has written on comfort food and desserts for Oxford publications.

🏡 Grand Sunshine Resort in South Bandung, Indonesia, faced challenges managing room rates, availability, and guest reviews before using STAAH's channel management solution. Engaging STAAH led to a 50% increase in direct bookings, improved operational efficiency, and enhanced guest booking experience. STAAH offered user-friendly interface, dynamic pricing, pooled inventory, and integrated with the resort's property management system, making it an affordable and effective choice for the hotel's revenue management.

💱 After being re-elected, President Donald Trump called for a 25% tariff on goods imported from Canada and Mexico, with an additional 10% on Chinese imports, to address illegal immigration and drug issues. The tariffs on China took effect on February 4. U.S. markets were affected, with fears of accelerated inflation and GDP decline. An 80% consumer concern over financial impact was reported. The National Restaurant Association warned of a potential $12.1 billion cost and a 30% profit loss for independent restaurants. Trump announced the tariffs would proceed as scheduled after a 30-day hold. Industries are exploring options to mitigate the impacts, as the market already feels the effects of tariff threats.

🚨 Boone, North Carolina, located at the southern tip of the Appalachian Mountains, was hit by a hurricane on September 27th, causing significant damage to the community. The region, heavily reliant on tourism, faced challenges with accessibility and the functioning of retail businesses, restaurants, and hotels post-storm. Hospitality played a crucial role in the crisis, providing accommodation and support to affected families and workers. The Boone area, known for its hospitality industry and picturesque landscapes, anticipates visitors to aid in recovery, though certain areas are still not ready. Despite the adversity, local hotels prioritized community support, housing displaced families, and even their staff. FEMA vouchers played a part in the recovery, with hospitality venues offering relief and a sense of normalcy. David Jackson, President and CEO of the Boone Chamber of Commerce, emphasized the importance of community connectedness and the hospitality industry's role in building resilience to recover from such tragedies.

📈 President Donald Trump, after his second inauguration in January, targeted diversity, equity, and inclusion (DEI) programs via executive orders, branding them as "discriminatory." An executive order on January 21 directed federal agencies, including the Federal Aviation Administration, to enforce civil-rights laws and combat "illegal private-sector DEI preferences." Following Trump's orders, major companies such as Goldman-Sachs, Disney, Google, Amazon, Walmart, and Meta have started altering their DEI programs. McDonald's, citing a June 2023 Supreme Court ruling, changed its DEI policies on January 6. Corporate DEI efforts surged in mid-2020 following George Floyd's death, with 83% of 656 companies taking DEI action in 2021, a 13% increase from 2020. The Supreme Court decision and Trump's presidency have prompted a reevaluation of DEI, with a Resume.org survey indicating one in eight American companies are scaling back on DEI in 2025. Despite legal challenges and societal shifts, some companies, like Costco, maintain their DEI commitments.

📌 Since President Donald Trump's second term began, he has enacted numerous executive orders tightening U.S. immigration policy. Approximately 1 million undocumented immigrants work in the U.S. restaurant industry, per the U.S. Center for Migration Studies. The White House declared a National Emergency at the Southern border, enabling federal agencies to detain and remove undocumented immigrants with a daily arrest quota of 1,200-1,500 for ICE. Trump signed the Laken Riley Act on Jan. 29 mandating detention for undocumented immigrants accused of serious crimes. The National Restaurant Association reports 21% of restaurant workers are legal immigrants, but these policies may also affect them. Trump's attempt to end birthright citizenship was blocked by a Maryland federal judge. Industry experts warn of complications and a tougher labor market for restaurants if immigration restrictions tighten. Employers are advised to prepare for ICE audits and consult legal counsel.

💸 Five years past former NY Gov. Cuomo's legislation, NY lawmakers propose bills to remove tip credit for restaurant workers, led by Assemblywoman González-Rojas and State Sen. Jackson. The tip credit ranges $5.15-$5.50/hr for foodservice and $2.60-$2.75/hr for other services. Federal minimum wage is $7.25/hr. Salon workers and doormen/women to see subminimum wage end by Dec. 31, 2025, but not restaurant workers. Seven states and cities like Chicago have banned tip credits, with Chicago phasing it out in Oct 2023.