Tax Relief for American Families and Workers Act of 2024 What just happened: The Tax Relief for American Families and Workers Act has momentum coming into the Senate, following sweeping bipartisan votes in both the House tax committee (40 – 3) and on the floor (357 – 70). The Senate has an opportunity to push forward this legislation that supports restaurant and Main Street business growth. What supports restaurant operators: 1) Restoring business interest deductibility based on the earnings before interest, taxes, depreciation, and amortization (EBITDA) standard rather than earnings before interest and taxes (EBIT).
2) Allowing 100% bonus depreciation for equipment purchases like kitchen ovens, furnishings, a catering vehicle, and other capital assets that are common in restaurants.
Why support it? While the Senate may want to explore improvements to H.R. 7024, this legislation is the best way to deliver badly needed tax relief to Main Street businesses – including restaurants.
Child tax credit: The bill increases the amount of the child tax credit (CTC) for lower-income families with multiple children, creates an automatic inflation adjustment, expands refundability, and other changes.
Why pass this bill now? If the Senate does not advance this legislation, solving the challenges of expiring tax rates and measures in 2025 will become even more difficult. The 118th Congress has the chance now to set a baseline for pro-growth tax measures that will make the U.S. economy more competitive globally and to support local restaurant owners in small towns and big cities.
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CHEERS Act Passes U.S. House, Heads to U.S. Senate: Offers Tax Relief for Hospitality Revival3/21/2024 The CHEERS Act, also known as the "Creating Hospitality Economic Enhancement for Restaurants and Servers Act," has passed the U.S. House of Representatives and is now awaiting consideration in the U.S. Senate.
This bipartisan legislation, introduced by Representatives LaHood and Horsford, seeks to provide tax deductions for bars, restaurants, and entertainment venues with draft beer systems, aiming to revitalize the struggling hospitality sector post-pandemic. The bill has garnered widespread support from various industry stakeholders, including the Beer Institute, National Restaurant Association, Independent Restaurant Coalition, and Brewers Association, who recognize its potential to stimulate job creation, economic growth, and sustainability in the beer and hospitality industries. "The CHEERS Act would give restaurant and bar owners new tools to innovate how they serve beer to customers,” said Sean Kennedy, executive vice president for public affairs of the National Restaurant Association. “The result would be more consumer choice, strengthened sustainability options, and needed support for restaurant owners in every neighborhood." The U.S. Dept. of Labor's (DOL) new overtime rule is poised to affect millions of workers across various restaurant types, not just quick service.
Now’s the time to proactively adjust your pay practices in anticipation of the DOL's proposed increase in the exempt salary threshold. Fisher Phillips (LRA General Counsel) provides this 8-step plan to effectively prepare for these changes. In the realm of fine dining, a shadowy online marketplace has emerged, promising prime reservations at top-tier restaurants for exorbitant prices.
Dubbed Appointment Trader, this platform has sparked outrage among restaurateurs and industry insiders alike, as it capitalizes on the scarcity of coveted dining experiences while leaving eateries in the lurch. Led by entrepreneur Jonas Frey, Appointment Trader has raked in $1.2 million in reservation sales over the past year, much to the dismay of restaurant owners struggling to combat the scourge of no-shows. This black market for dining reservations not only undermines the integrity of the dining experience but also poses significant financial challenges for establishments already grappling with the aftermath of the pandemic. Traditional reservation platforms like Resy, Tock and OpenTable are up in arms over Appointment Trader's brazen exploitation of the dining industry, with legal battles looming on the horizon. From cease and desist letters to legal threats, restaurant owners are fighting tooth and nail to curb the proliferation of this nefarious marketplace, which siphons revenue and distorts the delicate balance of supply and demand in the culinary world. Amidst the controversy, Frey defends Appointment Trader as a boon for diners, conveniently overlooking the detrimental impact on restaurant operations. As the battle rages on, the future of dining reservations hangs in the balance, with the fate of restaurants and the integrity of the dining experience at stake. Protecting Your Restaurant: What to Do If You’re Listed on Appointment Trader If a restaurant discovers that they are listed on Appointment Trader without their consent, it's crucial for them to take immediate action to protect their brand and reputation. Here are steps they can take:
By taking these proactive steps, restaurants can assert control over their reservations and protect their business interests from unauthorized third-party platforms like Appointment Trader. By Fisher Phillips, Authors Steve Bernstein, Josh Nadreau and John Polson
In an 11th-hour decision, a federal court judge in Texas just struck down the Labor Board’s controversial joint employer rule right before it was set to take effect on Monday. The NLRB had aimed to make it far easier for workers to be considered employees of more than one entity for labor relations purposes – a move that would have resulted in increased union organizing and collective bargaining efforts across the country – but Friday’s decision halted it in its tracks. The fight will continue, however, as there is little doubt the agency will appeal the decision in hopes of resurrecting the rule in the near future – and a whole separate court battle over the same issue takes place in D.C. While employers will once again be left to navigate an uncertain future while the court battles wage, we have a blueprint to guide you through the tumultuous times ahead. Read more here. The LRA Education Foundation presented the Louisiana Seafood ProStart Invitational on March 6-7 at the New Orleans Morial Convention Center. ProStart is a two-year culinary arts and restaurant management curriculum in nearly 60 Louisiana high schools, with 2,000 juniors and seniors participating. Sixty-three percent of Louisiana’s ProStart program attended the Invitational.
The Invitational consisted of the BRG Hospitality Culinary Competition on Day 1, where 24 ProStart teams showcased their culinary talents Iron Chef-style, creating a three-course gourmet meal in just one hour using two butane burners. The top five winning BRG Hospitality Culinary Teams were:
The Raising Cane’s Management Competition on Day 2 featured 11 ProStart teams presenting their restaurant concepts to a series of industry professionals as if pitching to a group of investors. The teams were judged on their menus, concepts, critical thinking skills, operations, and marketing. The top five Raising Cane’s Management Teams were:
The top five teams in each category were awarded nearly $900,000 in scholarships to top culinary arts and management programs in Louisiana and across the nation. Also, the top team in each competition will represent Louisiana at the National ProStart Invitational on April 26-28 in Baltimore, Maryland. Airfare, lodging, and apparel will be covered at no cost to the teams thanks to the National Travel Team Sponsor – TABASCO Brand. In addition, judges awarded a series of awards to teams based on their exceptional skills and techniques. The following are the categories and the top judges’ selected teams: Raising Cane’s Management Competition Judges’ Picks:
BRG Hospitality Culinary Competition Judges’ Picks:
This event was made possible thanks to our generous sponsors: Louisiana Seafood Promotion and Marketing Board; BRG Hospitality (August, Luke, Domenica, Pizza Domenica, Shaya, Tavi, Willa Jean, Larder and Eunice Restaurants); Raising Cane’s Chicken Fingers; Sysco; Natco Food Service; Republic National Distributing Company, Sodexo Live!; New Orleans Morial Convention Center; and Freeman. A special thank you to the National Travel Team Sponsor: TABASCO Brand. The National Restaurant Association is assessing the implications of President Biden's State of the Union address for the restaurant industry, paying close attention to key points that demand our attention.
First, President Biden underscored his commitment to eliminating so-called “junk fees” throughout the U.S. economy. Why it matters: His administration is proposing a rule targeting “junk fees” that is so expansive it would ban widely accepted restaurant fees, such as delivery and large-party service fees. Learn more here.
Additionally, President Biden mentioned the PRO Act—legislation supported by labor unions, which would make radical changes to settled workplace policies. This bill faces many obstacles in Congress and is unlikely to move forward this year. The President also proposed tax policy changes. As these proposals unfold, we will continue to monitor their impact on our industry and advocate for policies that support the growth and prosperity of restaurant operators. In conclusion, the National Restaurant Association remains dedicated to representing our members' interests and supporting the restaurant industry's success. Through advocacy, collaboration, and proactive engagement, we will navigate the evolving regulatory and legislative landscape to champion policies that advance our industry and support the success of our members. Thank you for your ongoing support and participation. The LRA Education Foundation (LRAEF) is pleased to announce the 2024 ProStart Educator of Excellence – Patricia Cooke of Istrouma High School. For over 20 years, Cooke has inspired students in her ProStart classes and many of her students have gone on to own or work in the restaurant industry.
“Patrica exemplifies what we want for all our ProStart educators,” said Mistica Maples-Adams, Louisiana ProStart Manager. “She goes above and beyond for her students and serves as a mentor for her peers also teaching ProStart.” Prior to teaching ProStart, Cooke spent a decade in the restaurant industry as a kitchen and operations manager for Ryan’s Steakhouse and Applebee’s. She attributes her restaurant experience to making the transition from industry to the classroom more assessable. “If I hadn’t had those years working in the restaurants I would have been lost,” said Cooke. “Much of what I was doing was training our staff to read and follow instructions, specifically recipes.” The ability to coach staff then, and now, her students and fellow ProStart educators, is her passion. What drives her is knowing that she is a resource to others in their path to success. “I take great pride in the fact that many of my students work in restaurants or have gone on to own their own catering or restaurant business,” added Cooke. To recognize Patricia Cooke’s dedication to ProStart and the advancement of her students, she will be honored at the LRAEF’s event, “Serving the Future—Celebrating Careers in Hospitality, March 6 at Generations Hall. The news: The Payment Card Settlement is the biggest antitrust class-action settlement in history and sets aside about $6B for millions of U.S. merchants who for years paid artificially inflated Visa and Mastercard interchange fees. If your restaurant accepted Visa and/or Mastercard at any time between Jan. 1, 2004, to Jan. 25, 2019, then you are likely a member of the class settlement and entitled to a share of the settlement.
Learn more: The Association and the Restaurant Law Center recently hosted a webinar on the “Payment Card Settlement: What it Means for Restaurant Operators.” A recording of this webinar and a copy of the power point presentation can be found here. Key takeaways:
By Stan Harris
CEO & president of the Louisiana Restaurant Association This piece was a guest column in the Beltway Beat by LaPolitics, part of the State Affairs network, February 28, 2024. Louisianians love celebrations, and each of these occasions—be it a birthday, anniversary, or the opening of football season—involves our world-famous cuisine. The heritage of the French or Spanish settlers is always noted, but the residents from Europe, Africa, or the Caribbean all impacted the development of our food and traditions. This is one state where if a resident says they can cook it “better,” take them at their word. Our Louisiana restaurants have to serve food better than our average home cook. Many enter the restaurant business with their grandmother’s recipes, their life’s savings, and the entrepreneurial drive to succeed. Operating a restaurant today is more challenging than ever. As the LRA President and CEO, I worked in the industry for almost 30 years. And since joining the LRA in 2010, I’ve advocated for our restaurant industry every day. It is my passion. On the federal level, the LRA partners with the National Restaurant Association on critical issues facing our industry. We engage in federal policies that directly impact restaurants and hospitality businesses. Currently, here are our top three issues: The increase in credit card processing fees continues to burden restaurant operators, affecting their costs. The bipartisan Credit Card Competition Act seeks to lower credit card processing fees. Despite efforts to advance the act, our progress has stalled as larger banks scare consumers with the loss of rewards programs or “points” for rewards. Recently, the Tax Relief for American Families and Workers Act (H.R. 7024) passed the U.S. House with a bipartisan majority. This is a significant step toward providing relief to restaurants grappling with financial challenges lingering from the pandemic. This would restore EBIDTA interest deductions and implement 100% bonus depreciation for equipment and vehicles. These measures would foster economic recovery and sustain local communities. Now in the U.S. Senate, we urge Senators John Kennedy and Bill Cassidy to support the passage of this legislation, underscoring its positive impact on Louisiana's restaurant industry. Finally, our industry was blindsided by the Federal Trade Commission’s (FTC) proposal to ban fees and inclusion of charges to the guest check that aren’t priced into the menu. We advocate for transparency and value in fee structures. Restaurants would be barred from including service charges for group dining, credit card surcharges, or delivery fees. This regulation could increase a restaurant's costs as they consider options that don’t directly raise menu prices. We believe the FTC's proposal exceeds its authority and have provided comments, noting both the rule's potential impact and the diverse needs of restaurants across the nation. The LRA champions policies that encourage growth and sustainability for our unique restaurant industry and culture. We engage with elected officials and industry stakeholders to navigate these complex issues, as well as foster an environment conducive to the success of the hospitality industry. Since 1946, Louisiana’s restaurants have relied on the LRA to be their voice and advocate at all levels of government. |
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