Staff from the National Restaurant Association brought a pro-restaurant message to attendees of the Republican National Convention this week in Milwaukee, Wisconsin, and will share a similar message at the Democratic National Convention next month in Chicago.
“The restaurant industry is an engine of U.S. economic growth, expected to contribute $1.1 trillion in sales to the economy – or roughly six percent of real GDP – and employ more than 15.7 million people in more than one million locations. The next few months will be pivotal to the business climate restaurant operators will be operating in for the next four years, so there is no better time to encourage support for the pro-restaurant policies essential to growth and vitality of restaurants in every community,” said Sean Kennedy, executive vice president for Public Affairs for the National Restaurant Association.
Policies and regulations topping discussions included:
The Credit Card Competition Act – The Credit Card Competition Act (CCCA) would open up the credit card processing market to competition outside of the two dominant credit card companies. Introducing competition will lower processing fees, introduce greater security and fraud prevention, and allow smaller companies to compete in the processing marketplace.
“Two credit card companies dominate swipe fee processing, pushing costs higher and higher for restaurants. In an industry with an average three-to-five percent margin, the unexpected and constant inching up of swipe fees is unmanageable,” said Kennedy. “The CCCA would empower restaurant owners to choose the most cost-effective and secure network to route a credit card transaction. The impact of this would be significant – saving restaurant operators and consumers billions of dollars a year.”
Federal Trade Commission Proposed Regulation on Surcharges – The FTC proposal, Unfair or Deceptive Fees Notice of Proposed Rulemaking, seeks to eliminate all fees or surcharges, forcing restaurant operators to change menus to reflect a single “Total Price” for each item. The Commission puts the cost for doing this at more than $3.5 billion dollars for the restaurant industry, forecasting a restaurant’s menu redesign will cost almost $5,000.
“The FTC’s proposed ‘junk fees’ rule will unleash nothing but chaos and confusion for restaurant owners and diners alike,” said Kennedy. “Restaurant customers understand that they will pay extra if they are having food delivered or are dining with a large party. Fees for these services aren’t ‘junk fees’ – they add value for the customer and reflect the higher costs that a restaurant is taking on to improve the customer’s experience.”
Support for workforce growth through increased legal immigration – The foodservice industry employs more than 10 percent of the U.S. workforce, and restaurants and accommodations have hundreds of thousands of jobs open each month. To fill these positions, the Association and its members support policies that increase the number of people able to join the workforce.
According to Kennedy: “The restaurant industry creates stable, career-oriented jobs every day and the people who pick these jobs are essential to the flavor and diversity that attract customers to our tables. From immigrants bringing dishes from their cultures to DACA recipients working their way up the management ladder, multicultural influences drive success in communities across the country. The National Restaurant Association is committed to comprehensive immigration reform and supports expanded work visa programs – like Essential Workers for Economic Advancement – and improving legal pathways for immigration while securing safety at the border.”
Tax issues include restoring deductions for accelerated depreciation and business interest expense standards, making 199A deduction permanent, and supporting No Tax on Tips Act – The Association focuses on tax policy that stimulates investments in restaurants of all sizes and helps operators make greater investments in their workforce and communities.
“Tax policy plays a major role in the vitality of the restaurant industry. Challenging tax policy makes it more difficult to start a restaurant and continue improving as business grows. Tax deductions that encourage investment help manage capital expenditures essential for a dynamic industry,” said Kennedy.
Tariff relief – USTR recently proposed maintaining Section 301 tariffs on China this year including on food products, kitchen equipment, food manufacturing preparation equipment, plastics; additionally increasing tariffs on steel/aluminum products by 25%. An exclusion on ten seafood lines expired earlier this summer extending a twenty-five percent tariff on these items.
“The 301 tariffs on consumer goods/business equipment stifle restaurant growth/harmful US businesses/consumers," said Kennedy "We’ve pushed relief from these tariffs five years while managing climbing costs needed supplies keeping consumer prices check."
Learn more about industry policy priorities at RestaurantsAct.com.
