Regulatory and Legal Affairs

🔔 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).

🍜 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.

📚 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.

💸 Base wages for restaurant servers reached 43% of their average paycheck, up 35% since January 2020. From 2019 to 2024, their hourly earnings, including base pay and gratuities, jumped from $18.61 to $23.88, a 28% increase. The pandemic sparked wage spikes, influenced by tip credit laws. The Biden-era 80/20 labor rule was overturned in September 2024. Labor shortages during 2021 and 2022 significantly drove up labor costs. Chicago saw the fastest four-year wage growth for servers, while Boston had the highest tipped wages, with tips comprising 76% of wages. Conversely, Los Angeles and San Francisco had tips under 40% due to a raised minimum wage to $20 an hour. ADP Research analyzed wages across 50 states from data of 100,000 restaurant servers.

🍷 A potential 25% tariff on European wines could severely impact the U.S. restaurant industry, particularly independent businesses. Harry Root of Grassroots Wine noted a significant profit comes from European wines. U.S. restaurants may have to raise prices or reduce margins, as seen during the 2019 tariffs on wines with ≤14% alcohol from France, the UK, Germany, and Spain, which later expanded to include most imported wines. The tariffs, originally due to a dispute over aircraft subsidies, were suspended for five years starting March 2021. Restaurants like Le Pigeon in Portland and Celebrations in Missouri, known for their European wine pairings, could face challenges, with wine prices potentially rising from $45 to $60 per bottle. Alex Kroblin of Thirst Wine Merchants experienced decreased sales and profits due to the previous tariffs. The industry is on alert for the new administration's 2025 promise of additional import tariffs.

📍 Key European travel and tourism organizations met in the European Parliament with Commissioner Apostolos Tzitzikostas and MEP Daniel Attard to advance sustainability and resilience in the sector. The meeting builds on the April 2024 Joint Declaration made in Rhodes, aiming for decarbonisation and cross-sector collaboration. Commissioner Tzitzikostas plans to introduce a Sustainable Tourism Strategy for climate change adaptation. The organizations, including A4E, ACI EUROPE, CLIA, ECTAA, EEIA, ERA, HOTREC, IAAPA, IRU, and RURALTOUR, seek policy support and targeted funding for sustainable transformation.