New Jersey CBT Surtax
As part of FY2025 State Budget. “In June, Gov. Phil Murphy was asked at a press conference if he would rule out raising taxes at a time of softening revenues to fund the Stay NJ program. “I think I can say definitively, yes, we rule it out – because it’s kind of crazy to raise taxes to deliver tax relief,” he said with his legislative leaders at his side. “Just two weeks ago, the governor was asked on “Ask the Governor” if he was having second thoughts about sunsetting the Corporate Business Tax surtax that had earned New Jersey the highest CBT rate in the nation. “Said the governor: ‘We are top four in the country on corporate tax rates. So, we’re already a very expensive state…My heart, if you will, is not bleeding (for corporations), but we also have to be cold blooded about our economic development strategy. We need the jobs that those big companies bring to New Jersey.’ “Yet, just days later, we are here with another new and unnecessary corporate business tax of a different name, returning New Jersey to its extreme outlier status for business taxes after seven weeks – retroactive to Jan. 1, to add insult to injury. “We note that the added $10 million revenue threshold of the new CBT tax in his budget proposal changes almost nothing about the negative impact on New Jersey’s business competitiveness in attracting corporate job creation and capital investment. It is an unfair and undeniable negative that delivers another serious blow to our business reputation. “Simultaneously, our neighbors in Pennsylvania are lowering their top CBT rate to 4.9% – and funding its transportation system without using corporate taxes. Go figure.
Nation’s Restaurateurs Urged to Apply for Credit Card Fee Claim
As part of lawsuit settlement. What would you do with part of a $5.5 billion lawsuit settlement? In 2005, a trio of national law firms helped set more than 16 million American merchants on the path to answering that question. Minneapolis, MN-based Robins Kaplan LLP, Philadelphia, PA-headquartered Berger Montague, and Robbins Geller Rudman & Dowd of San Diego, CA, teamed to sue payment card conglomerates Visa and Mastercard, as well as card-issuing banks such as JPMorgan Chase and Bank of America, for charging grossly inflated and monopolistic transaction fees. The settlement of that lawsuit marks a win for restaurateurs and retail merchants across the US that can now apply for their piece of the $5 billion settlement fund. For restaurateurs nationwide, it marked the conclusion to nearly two decades of legal strife and the largest private antitrust class-action settlement in American history. In addition to the potential reward of the settlement, the lawsuit helped spark many reforms. Restaurants and retail merchants can now incentivize customers to pay with methods other than payment card, often achieved by offering cash-paying customers a small discount or by restricting use of certain branded cards. Additionally, the litigation led Visa and Mastercard to remove banks from their executive boards, eliminating anti-competitive influence over fee pricing. These banks, many of whom populated the executive boards of payment card companies, instituted price fixing agreements that preyed upon merchants’ conception that they had to take credit and debit cards as payment forms to maintain business. Most importantly, however, is the payout: to help alleviate the fee burden shouldered by merchants between 2004 and 2019, the Court of Appeals finally approved a $5.54 billion settlement fund in March of 2023.
Bielat Santore & Company – Restaurant Industry Alert
FULL-SERVICE BURLINGTON COUNTY, NJ – RESTAURANT & BAR FOR SALE
A COMBINATION OF BOTH CASUAL AND ELEGANT OFFERING AN UNFORGETTABLE DINING EXPERIENCE
AND AN AWARD-WINNING SPORTS BAR ATMOSPHERE!
Photo used to illustrate a “Sports Bar/Restaurant” and not actual representation.
This expansive 9,300 square foot venue on 8 acres of land, includes a main dining area seating (175); a spacious bar area with seating for (100); a unique (175) seat additional dining room & bar with retractable windows offering a true “open air” dining experience; an outdoor patio with fire pit seating (150) as well as private dining areas for parties and banquets.
For detailed information contact Robert Gillis, 732-673-3436.
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Optimizing Payment Processing Strategy Can Mitigate Financial Challenges
Facing restaurateurs. Restaurants and franchises face numerous financial challenges that can hinder their success, however, by optimizing their payment processing strategy, these businesses can overcome some of the major obstacles faced by restaurants in their early start, helping them to achieve greater stability and ultimately profitability. Payment processing pricing structures often used by restaurants allow providers to layer their processing fees on top of other underlying debit and credit card fees. This can significantly impact a business’s bottom line. By choosing the best payment provider, negotiating the best rates, and pricing structure, and auditing your monthly merchant statements, businesses can increase their profitability and improve their financial health for long-term success. Through streamlining and improving the payment process, restaurants and franchises can reduce costs and labor, while increasing revenue in many ways. Payment processing can be complicated, but with the right partner and pricing structure such as flat rate, interchange plus, or tiered, unnecessary costs can be eliminated. The following pricing structures provide restaurants and franchises with specific options that better meet their business needs. he flat rate pricing structure is one of the most commonly used pricing structures, in part due to its simplicity and clarity; however, it is not ideal for restaurants. Restaurateurs are sometimes stuck using this pricing structure because it is the only one offered by their point-of-sale (POS) software provider. This should be a crucial element in deciding your business’s POS. With a flat rate pricing structure, restaurants pay a specific, fixed fee percentage for the majority of their debit and credit card processing fees. This pricing structure provides restaurants with the ability to estimate exactly what rate they will pay for their card processing fees.
Disregarding Digital ADA Compliance
Could cost brands more than litigation. Many restaurant brands and agencies shirk the responsibility of a fully ADA compliant digital experience, but the risk of litigation looms ever stronger and it’s not the only negative effect from an out of compliant experience. In the ever-evolving landscape of restaurant technology, the allure of crafting a compelling and effective digital experience is paramount. However, amidst the rush to captivate audiences with stunning visuals and seamless user experiences, a crucial element often gets sidelined—ADA-compliance. The oversight not only puts brands at risk for costly litigation as awareness around digital accessibility grows, but it also eliminates the opportunity for inclusivity of all guests and realizing maximum revenue. The Americans with Disabilities Act (ADA) extends beyond physical spaces, encompassing the digital realm to ensure that all users, regardless of their abilities, can access, enjoy, and utilize experiences whether it’s a website, an app, kiosk, or other digital interface. While little is heard about digital platforms outside of the brand’s website, it’s not a far stretch to posit ADA laws and litigation won’t apply to all digital interfaces. Despite the benefits of ADA compliance, many restaurant brands and their partnering agencies often shirk the full breadth of responsibilities required to design and build fully accessible and compliant digital experiences. This negligence stems partly from a lack of understanding and partly from some misconceptions surrounding compliance. Leaders may feel it’s not that important, or that compliance may compromise aesthetic appeal and brand identity standards. Yet, the reality is starkly different—ADA compliance not only mitigates legal risks but also enhances brand reputation by fostering inclusivity and expanding customer reach. There are two major considerations brand leaders must consider immediately in order to embark on realizing the benefits of compliance while avoiding the negative consequences of being out of compliance.
Hungry for Change
Understanding consumer perception and demand for sustainable packaging. The restaurant industry has recognized the need for innovative packaging solutions to meet growing consumer demand and contribute towards sustainability targets. Traditional restaurant packaging has a significant negative impact on the environment as common materials used, such as Styrofoam and single-use plastics, are not compostable. The high reliance on plastics for food packaging has led to a buildup of landfill waste and ocean pollution. This unsustainable packaging harms the environment and has cost implications for the future as the production and disposal of these materials are becoming prohibitively expensive. Restaurants that opt for more sustainable packaging materials can save money and significantly reduce waste and environmental impact. A range of innovative packaging types including materials, such as compostable paper products and plant-based plastics, are now available to restaurants to reduce environmental impact. Consumer demand for sustainable packaging is increasing as consumers are increasingly aware of environmental footprints, so they perceive restaurant products with sustainable packaging in a much more positive way. This can lead to increased turnover for those more socially responsible restaurants. So, if restaurants want to thrive, it’s time to make the change and embrace sustainable packaging.
Staying Ahead of the Next Big Menu Moves
Actions operators can take to move their menus forward this year. Industry forecasters had a lot to say about potential 2024 trends as 2023 wrapped up. And no doubt some of them will pan out. But now that we’re two months into the new year, Technomic has released its annual State of the Menu 2024 report—a definitive look at the future of menus based on data and insights from Top 500 chain restaurants. The report points out three big trends moving menus this year and five recommended actions operators can take to stay ahead of the curve.” Menu size steadies after the downsizing and streamlining of the pandemic years. Both limited- and full-service menus saw steady year-over-year menu mention increases (from 1.9% to 4.7%.) But the more extensive growth happened around LTOs. Between 2020 and 2023, limited-time item counts went up by 52.7%, a sign that more innovation is taking place in that space rather than with additions to the permanent menu. Menus embrace more, getting more generous with portions, bold flavors, premium ingredients, and detailed menu descriptions. Technomic cites “more is more” as a continuing trend, whether it’s ramping up spicy heat, elevating dishes with luxurious ingredients or taking mashups in unique directions. The pricing conundrum is impacting restaurant traffic. Menu prices skyrocketed in 2023, but consumers may be saying “enough is enough.” There are indications that customers are trading down from full-service to quick-serve restaurants or trading out of foodservice entirely. Operators are finding they have to adapt to consumers’ changing definition of value—both in terms of price and the value they place on a unique experience.
Did You Know?
Why one Chicago restaurant did away with traditional waitstaff. Gramercy Tavern veterans Tom Rogers and Adam McFarland worked at Michelin-starred kitchens from New York to D.C. to San Francisco for decades. Over the years, their paths veered, as chefs often do, before crossing again in Chicago, the city they met in 2008 at Le Lan. After catering pop-up gigs, the pair decided it was time to make a run at opening their own spot. They found a location a couple of blocks from McFarland’s home in the residential neighborhood of Lincoln Park. They bootstrapped the design, painted the façade, called in a handyman, and leaned on McFarland’s carpentry skills and the advice of his father, who has a contracting background. In October, the Chicago City Council voted to eliminate the subminimum wage for tipped employees working within the Windy City by July 1, 2028.
Employee Tip
Cultivating diversity, equity, and inclusion in the restaurant industry. Restaurants are increasingly becoming spaces that celebrate different cultures, perspectives, and experiences, and this extends beyond the culinary realm, impacting both staff dynamics and the overall customer experience. Fostering diversity and inclusion in the restaurant industry is crucial for success, impacting both staff dynamics and the overall customer experience. By focusing on the workforce, customers, community, and suppliers, businesses can create an environment that not only thrives on diversity but also promotes inclusivity and equality.
