GRA Weekly

September 26, 2024

This week's newsletter is brought to you by GRA Corporate Partner, DoorDash

HURRICANE HELENE

Hurricane Resources for Restaurant Owners and Operators

In light of Hurricane Helene and it’s path across Georgia, the Georgia Restaurant Association strongly encourages restaurant owners and operators to stay informed about and prepare for hurricane season.

Please be aware that in the instance of water or power loss, restaurants with pre-approved Emergency Operations plans must notify the health department if opting to continue operations. Restaurants who do NOT have a pre-approved Emergency Operations Plan and lose water, electricity, or gas MUST contact the health department to discuss requirements for continued operation.

For more information regarding emergency operation plans and operating during a water interruption please see the following resources:

2024 GRACE AWARDS

You're invited to join us in celebrating the restaurant industry's best and brightest at this year's GRACE Awards Gala!

When: Monday, December 9 l 6:00PM - 10:00PM

Where: Georgia Aquarium

Interested in sponsoring the event? Please contact Sarah Thorson.

FIFTH GROUP RESTAURANTS FOCUS ON BALANCING BUSINESS WITH ART

Fifth Group Restaurants Focus on Balancing Business with Art

Restaurant Hospitality - Steve Simon and his partners opened South City Kitchen in 1993 in Atlanta. A year in, they tried to emulate a Starbucks-like experience and opened three coffee shops in the market. Three years later, they pulled out of their coffee experiment. Continue reading .

ANOTHER ‘NO TAX ON TIPS’ PIECE OF LEGISLATION INTRODUCED TO CONGRESS

Another 'No Tax on Tips' Piece of Legislation Introduced to Congress

Two months after a group of Republican senators, led by Sen. Ted Cruz, introduced the “No Tax on Tips Act,” which would exempt cash tips from federal income tax requirements, Congressman Steven Horsford (D-Nev.) introduced his own version to the House of Representatives. The Tipped Income Protection and Support (TIPS) Act would not only end the income tax on gratuities tipped workers receive, but would also eliminate the subminimum wage for... continue reading.

DARDEN RESTAURANTS PARTNERS WITH FEEDING AMERICA

Darden Restaurants Partners with Feeding America

ORLANDO, Fla. (September 25, 2024) – For the fourth consecutive year, Darden Restaurants is partnering with Feeding America® to ensure food reaches people facing hunger. Through a $2 million grant from the Darden Restaurants, Inc. Foundation and support from Penske Truck Leasing, 26-foot refrigerated trucks are being donated to 10 additional Feeding America member food banks. Read more.

NATIONAL FOOD SAFETY MONTH

This year ServSafe is getting smart about foodborne illnesses by understanding, managing, and preventing outbreaks. To kick things off, they are examining common culprits of foodborne illnesses like Norovirus, Salmonella, E. coli, Hepatitis A, and Shigella.

Download their eBook, "The Science of Foodborne Illnesses and Outbreaks," to learn about these pathogens and how to prevent contamination in your operation.

To celebrate NFSM2024, GRA members can save 20% off on popular ServSafe products all month with code NFSM2024.

DOORDASH ASSISTS RESTAURANTS WITH THEIR OWN MOBILE APP

DoorDash Now Helps Restaurants Build Their Own App

Restaurants can now build their own mobile apps with DoorDash. The customizable, branded apps will allow customers to order and pay, with orders appearing on the restaurant’s tablet or POS system. The apps will integrate with loyalty programs and will allow restaurants to send push notifications and promotions. Read more.

WEBINAR: INSIGHTS FROM THE U.S. TREASURY

Insights from the U.S. Treasury - Beneficial Ownership Reporting Deadline Is Near

The deadline is fast approaching for operators to file required information about their beneficial owners—the individuals who ultimately own or control their company—to the Financial Crimes Enforcement Network (FinCEN). Restaurant owners with 20 or fewer full-time employees + less than $5M in annual sales will likely need to file. This webinar can help determine if your small business is impacted by this rule.

During the webinar, two representatives from FinCEN will answer questions like:

Why beneficial ownership reporting is important to protect legitimate business owners.
What type of information a company may need to file.
How business information will be protected by FinCEN.

The webinar is scheduled for Thursday October 10, 2:00PM. Register here.

THE IMPORTANCE OF PROPERLY HANDLING RESTAURANT SLIP AND FALL INCIDENTS

Properly Handling Restaurant Slip and Fall Incidents

Slip and fall incidents in the hospitality industry are common, and while most don’t result in serious injury or a claim, the potential is always there. That’s why it’s crucial to train staff to respond to all incidents consistently and effectively. The small details in handling such an event can make a significant difference in the long-term impact on the business. Here’s a closer look at the steps a restaurant operator should take if someone falls in their restaurant. Continue reading.

FEDERAL UPDATE

Supply Chain Speed at Risk as Labor Negotiations Continue at East Coast Ports

Top Line: The labor contract for workers at more than 30 ports along the East and Gulf Coasts is set to expire on Sept. 30. Talks between the workers and port operators have stalled over issues like wages and benefits, and automation. The association was one of 177 trade groups that sent a letter to President Biden expressing concerns for a possible strike and the supply chain disruptions it would cause.

What a shutdown could mean for restaurants: A strike would affect food products (seafood, frozen foods, canned foods) and equipment, utensils, merchandise, etc. It will also affect some brands’ ability to supply other markets, like the Caribbean.

Bottom line: Several of the East and Gulf Coast ports have started putting out messages to their stakeholders in preparation for an Oct. 1 strike. The message encourages cargo owners to move their cargo ASAP in advance of a strike. The Association continues to watch for progress in the negotiations and will update members as the contract expiration approaches.

New Study Finds Eliminating the Tip Credit Has No Impact On Earning Gaps

Top Line: The Employment Policies Institute (EPI) recently released a study conducted by University of California-Irvine economists, that finds eliminating the tip credit does not have any discernible impact on eliminating earnings gaps between minority, female, and white male employees.

Zoom in: The study of more than 2 decades of Census data found:

Total weekly earnings for women and minority tipped workers does not increase with tipped minimum wage increases.
For minority tipped employees, the minimum wage increase actually makes the hourly wage gap greater.
Keeping the tip credit is more efficient at raising wages and reducing the earnings gap.

Bottom line: According to the report, eliminating the tip credit, “in fact stands to hurt employees and restaurants by taking away jobs and earnings.” Read the full report here.

Voluntary FDA Sodium Reduction Recommendations Released

What happened: The Food and Drug Administration (FDA) has proposed Phase II voluntary targets to reduce sodium in over 150 categories of packaged foods and restaurant foods.

Why it’s important: The guidance is Phase II of the FDA’s sodium reduction efforts and builds on the Phase I sodium reduction targets issued in Oct. 2021. The new draft targets represent anywhere from a 1%-58% reduction from the current marketplace sodium levels, with the majority of restaurant food categories having a 20%-35% reduction goal over the next 3 years.

Phase I update: The FDA also released preliminary findings on progress toward achieving the 2021 Phase I sodium reduction targets between 2010 and 2022, which called for around 10%-20% reductions depending on food category. They found that since 2010, 35% of restaurant food categories have decreased in sodium while 49% of restaurant food categories have increased in sodium. The agency said it will issue a complete evaluation of the industry’s progress to the Phase I targets when the data from 2024 is available. The FDA has said it anticipates regular evaluations of sodium in the food supply every 3 years.

What’s next: The Association has expressed to the FDA the industry’s concern with these steep Phase II reductions and explained that challenges within our supply chain make it difficult to meet these goals. The Association continues to push for realistic timelines, credible data, and better understanding of restaurant supply chains.

In Big Win for Restaurant Operators, U.S. Court of Appeals Wipes Away 2021 Amendments to the Dual Jobs Regulation

What happened: In a 3-0 decision, the 5th Circuit Court of Appeals vacated the U.S. Department of Labor’s 2021 Final Rule amending the “Dual Jobs” regulation, agreeing with the Restaurant Law Center and the Texas Restaurant Association (TRA) that the Final Rule is arbitrary and capricious because it draws a line for application of the tip credit based on impermissible considerations and contrary to the statutory scheme enacted by Congress. This is a major win for restaurant operators, the Association, the Law Center and the TRA.

What it means: The amendment to the Dual Jobs regulation is now unenforceable. The Court noted in its decision that this case holds no bearing “on the validity of the dual-jobs regulation,” which was not at question. The decision highlights the importance of the restaurant industry having its own legal representative to take cases where others will not.

What they’re saying:

“This decision is a big deal for restaurant owners and for tipped employees. For more than two and a half years, restaurant owners have worked in fear of not being in compliance with the complicated and confusing requirements of the 2021 amendments. Today’s decision will alleviate the confusion and allow operators to focus on the economic challenges that threaten their business viability.” –Sean Kennedy, Executive Vice President of Public Affairs, National Restaurant Association

“We are pleased that the court agreed with us and determined that the Wage and Hour Division overreached and exceeded its proper authority with its amendments to the ‘Dual Jobs’ regulation. The Department of Labor and its agencies had no authority to redraft the laws that Congress enacts, denying businesses the rights conferred by statute. The Restaurant Law Center and the Texas Restaurant Association brought this case because local restaurants would suffer irreparable damage from the illegal and unjust 2021 amendments to the ‘Dual Jobs’ regulation and we’re satisfied to have ultimately succeed in having the new regulation thrown out due to its illegality.” –Angelo Amador, Executive Director, Restaurant Law Center

NLRB Drops Joint Employer Appeal

What Happened: The National Labor Relations Board (NLRB) has officially dismissed its appeal of the Eastern District of Texas decision vacating the 2023 Joint Employer Rule. The 2020 Final Rule, which requires direct and immediate control to establish a joint employer relationship, remains in effect.

Why it Matters: The NLRB's decision to drop its appeal is a significant win for the Restaurant Law Center (RLC), a leading co-plaintiff in the legal challenge against the 2023 Rule, and the industry as a whole.

The RLC-supported 2020 Rule provides clear guidance for employers.
We remain vigilant against future attempts by the NLRB and the Administration to expand joint employer liability.
Go Deeper: For more information, please see the attached press release.