Regulatory and Legal Affairs

💰 The 80/20 labor rule was abolished by the Fifth Circuit Court of Appeals this month, branded “arbitrary and capricious.” Originally enacted under Obama, rescinded by Trump, and revisited with clarifications under Biden, the rule restricted employers to pay a subminimum wage ($2.13 per hour) for tip-earning tasks. A tipped employee exceeding 20% of their workweek on non-tip tasks, or 30 consecutive minutes, couldn't receive a tip credit. Businesses now revert to the baseline tip credit rule unless state law dictates otherwise. Labor law changes over administrations cause operational complexities for business owners. Six states have their own 80/20 rules. The Department of Labor is unlikely to reintroduce the same rule but may seek other methods to regulate tipped employee pay following legal precedents set by Loper Bright Enterprises v. Raimondo and the overruling of Chevron deference.

🍴 Nourish Scotland, a food policy NGO, proposes a 'national restaurant service' to tackle health inequality, food insecurity, and climate change in the UK. Their upcoming report "Public diners: the idea whose time has come" advocates for state-subsidized eateries offering quality, ethically sourced food. Citing poor diets as a leading cause of preventable ill health, Nourish Scotland draws inspiration from the 2,000+ wartime British Restaurants established by Winston Churchill in 1940. Dr. Christian Reynolds supports the initiative, highlighting positive health, economic, and sustainability outcomes.

🚂 Amtrak to restore Gulf Coast route connecting Mississippi, Alabama, and Louisiana, halted since Hurricane Katrina in 2005. Mobile City Council approved $3 million funding, part of the total $178.4 million budget, including federal grant and state contributions. Service will include twice-daily trips, stopping in four Mississippi cities, with hopes to launch by February 2025, ahead of Super Bowl LIX and Mardi Gras in New Orleans.

🛒 Revolution Bars Group announced a restructuring plan, initially set out in April and launched in May, to close 15 more loss-making sites, adding to the 8 closed earlier in the year. It will also seek rent reductions and amend lending facilities. Post-restructure, the group will operate 27 Revolution Bars, 15 Revolución de Cuba Bars, 22 Peach Pubs, and 1 Founders & Co. site, with an expected annual EBITDA increase of £3.8m. The plan includes a £12.5m fundraising supported by secured lenders and stakeholders.

💲 A new study, "The Future is Now: Technological Transformation in Corporate Travel," by the Global Business Association (GBTA) and Cvent, highlights technology's role in business travel growth. Surveying business travel professionals in North America and Europe, it found that 88% of travel management company respondents, 74% of suppliers, and 59% of travel buyers believe they manage technology well, yet integrating AI and blockchain remains an opportunity. Most suppliers expect increased internal (61%) and traveler-facing (56%) tech investment, while TMCs show even higher expectations (83% for internal, 79% for traveler-facing). Travel program technology spending averages 18% of total budgets, with 36% of buyers foreseeing increased tech spending, particularly in Europe (43% versus North America's 30%). Data for the report was collected from February 6-19, 2024, with 388 participants. The full report is available on the Cvent website, with the complete research report accessible from the GBTA Member Hub.

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🍴 In New York City, the Dining Out NYC program began accepting applications in March and closed them on August 3, receiving only 3,226 submissions from over 12,000 restaurants and bars that used the temporary outdoor dining setup during COVID-19. Approved applicants have 30 days to comply with new standards or face fines starting at $500. Outdoor dining is now standardized with options for partially covered or al fresco roadways and sidewalks, costing a $1,050 four-year license fee or $2,100 for both, plus an annual fee based on size and location. The city aims to create the largest inclusive outdoor dining program in the country.

📦 GMB and Uber Eats have established a partnership to discuss courier issues quarterly in the UK, aiming to enhance health and safety, engagement, and fair pay. Couriers will have GMB representation if they lose app access. The deal builds on a 2021 agreement between GMB and Uber, which resulted in thousands of drivers gaining union representation. Couriers must join GMB separately for representation. Deliveroo made a similar deal with GMB in 2022, covering 90,000 riders.

📌 The Bank of England cut the borrowing rate by 0.25% to 5% from 5.25% on 1 August, following stable 2% inflation in June. The Night Time Industries Association (NTIA) CEO Michael Kill called it a significant step for the hospitality sector, struggling with high interest rates post-pandemic. Bank Governor Andrew Bailey cautioned against expecting large cuts soon, prioritizing low inflation for economic growth. UKHospitality urges further rate reductions and business rate reforms for the sector's recovery.

🌮 Yum! Brands plans to implement Voice AI across hundreds of Taco Bell drive-thrus in the U.S. by the end of 2024. Currently, the tech is in over 100 locations across 13 states. Benefits include improved order accuracy and reduced wait times. A two-year testing phase has shown positive results. KFC Australia is also trialing Voice AI. Yum!'s 2023 digital sales neared $30 billion, with digital channels accounting for over 50% of first-quarter sales in 2024.