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.

📌 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).

🍜 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.