2025 INDUSTRY WISHLIST
2025: What the industry wants
As we turn the corner to a new year and a change in government, several issues remain in limbo before the new administration takes office. Amelia Levin outlines the hopes and expectations of industry leaders for the new year
INFLATION AND RISING COSTS Te US National Restaurant Association issued a statement about the change in government, noting that the organization remains focused on pressing issues such as inflation, the rising costs of goods and restaurant meals and preserving tips for employees. Regarding rising costs, “the
restaurant industry fuels the nation’s economy, employing more than 15.5 million people and topping annual sales exceeding $1.1trn,” said Michelle Korsmo, president & CEO, in a statement. “Te last five years have been tough, as costs have gone up more than 30% for both food and labor. We continue to engage policymakers on both sides of the political aisle to improve the business vitality of restaurants.”
TARIFFS AND TAXES Trade-based tariffs and taxation continue to spark debates in foodservice. “We’ve become very attuned to tariffs and supply chain issues thanks to the Covid pandemic,” says NAFEM’s Charlie Souhrada, noting both political administrations indicated before the election they intended to keep or expand tariffs on imported goods, which has an impact on manufacturers and businesses that do business with them. “Businesses are caught in a vice as we wait to see what the new administration wants to do.” On taxation, “we’re concerned about the
impact on all businesses... and not just from a manufacturer’s standpoint, but also from an [end-user] customer’s standpoint,” says Souhrada. “We want to be in a position to help our members withstand a potentially strong tax agenda.”
“The last five years have been tough, as costs have gone up more than 30% for both food and labor”
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TIPPED EMPLOYEES Te debate over tips continues on a state-by-state level. Some have eliminated or proposed to eliminate the tip credit, requiring businesses to pay tipped workers minimum wage regardless; others allow tips to go toward those minimum wage requirements. Te Fair Labor Standards
Act (FLSA) allows employers to claim a tip credit, but only if the employee receives enough tips to make up the difference between their direct wage and the minimum wage, with a maximum tip credit of $5.12 per hour. As of 2023, 43 states, the District of Columbia, and Puerto Rico allow tip credits, while Alaska, California, Minnesota, Montana, Nevada, Oregon and Washington prohibit them. Te National Restaurant
Association asserts that the tip credit can benefit servers, customers, and restaurant owners by increasing server earnings and keeping menu prices down. “In Massachusetts, voters overwhelmingly supported tipped employees and restaurant owners by rejecting a proposal to eliminate the tip credit,” said the association's Michelle Korsmo.
THE AMERICAS
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