How Will Immigration Crackdowns Affect Restaurants?
The recent termination of workers in New York and Boston highlights the vulnerability. In 2005, Fulton Fish Market, which supplies New York City with nearly half its seafood, left the Seaport for a new location in the South Bronx. The building remained vacant for a decade before developer Howard Hughes Corporation began talks with prolific chef Jean-Georges Vongerichten about opening a food destination in the space. By 2022, after a $194.6 million overhaul of the 53,000 square-foot landmark, the chef and his partners opened a collection of six full-service restaurants, four bars, a handful of counter-service spots, retail, and private dining. At full tilt, it would employ 700 people in the two-story former fish market, renamed the Tin Building. Last week, Gothamist reported that Seaport Entertainment Group, which prepared for a January takeover of the Tin Building, surprised workers with a mandatory background check and discontinued the employment of many workers. (A spokesperson for Seaport Entertainment Group disputes the exact number reported by Gothamist, but did not provide a number of affected employees.) The company used E-Verify, a government tool operated by U.S. Citizenship and Immigration Services (USCIS) in partnership with the Social Security Administration (SSA), to vet employees’ identity and employment eligibility. Kitchen and custodial workers who are in the U.S. without legal status — many of whom immigrated from countries in Latin America — were hit hardest, according to Gothamist’s sources. “I was out for two days, and when I got back half the building was gone,” a worker said to Gothamist. It’s an open secret that the restaurant industry in particular runs on the backs of workers without legal status. There are close to 700,000 undocumented immigrants in New York, according to a 2022 study from the Center for Migration Studies — and that does not account for the over 200,000 migrants who have come to the city since then in what’s now called a “migrant crisis.” Nationwide, according to a study from CMS released in 2024, as many as 8.3 million undocumented immigrants work in the U.S. economy, representing 5.2 percent of the workforce. Of those, around a million people or more work in restaurants…
Restaurant Industry Pushes Back on Report – Cancer and Alcohol Consumption
National Restaurant Association, other organizations say report is ‘tainted by bias and conflicts. As one of his final acts under the Biden presidential administration, U.S. Surgeon General Vivek Murthy released a new warning on Jan. 5 that linked alcohol consumption with increased cancer risk and called for cancer warnings on bottles of alcohol. Dovetailing Murthy’s call for cancer warnings on alcohol, a new report from the Interagency Coordinating Committee on the Prevention of Underage Drinking (ICCPUD) was released, with findings that argue the consumption of six to nine drinks per week (considered within moderate drinking range according to the Dietary Guidelines for Americans), increases the risk of cancer and alcohol-related death. In his Jan. 5 announcement, Murthy called alcohol consumption, “a well-established, preventable cause of cancer responsible for about 100,000 cases of cancer and 20,000 cancer deaths annually in the United States.” The restaurant industry, among other food and beverage-related industries, has pushed back against this report, calling the report from ICCPUD, “tainted by bias and conflicts.” The National Restaurant Association is one of several food and beverage service organizations, including the Independent Restaurant Coalition, American Beverage Licensees, and Wine Institute, who signed a statement protesting the ICCPUD report. The signed statement argues that there is “clear evidence of bias and conflicts of interest in those tasked with conducting the research, including ties to international temperance organizations and anti-alcohol advocacy efforts.” Last month, another report was released on links between alcohol consumption and health risks from the National Academies of Sciences, Engineering, and Medicine (NASEM) Review of Evidence on Alcohol and Health. This report concluded that “moderate alcohol consumption” is associated with lower risks of “all-cause mortality and cardiovascular diseases”…
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Best Practices for Dealing with Fluctuating Food Costs
When necessary items are fluctuating in price? Successfully navigating fluctuating food costs, especially with volatile ingredients like eggs, requires a multi-faceted approach, Mike Stasko Jr., Vice President of Brand Strategy for Sunny Street Cafe, tells Modern Restaurant Management (MRM) magazine. By combining proactive planning, strategic menu adjustments, operational efficiency, and strong vendor relationships, businesses can effectively manage these challenges while prioritizing customer satisfaction and food safety. Since Sunny Street’s inception 16 years ago, Stasko has led various departments – including menu design, product strategy, the move to a bright and fresh restaurant design, and its family-centric marketing focus. These brand improvements have led to both increased revenue and improved prime cost controls. With egg prices increasing by 30 percent over the past year and expected to rise more, MRM asked Stasko for his best advice on what strategies restaurant owners can implement to prevent sharp menu price increases and innovative menu solutions they can implement.
- Regular Price Monitoring. Implement a weekly review of ingredient costs to stay informed about market fluctuations. This presents an opportunity to verify recipe accuracy and identify potential cost-saving adjustments.
- Menu Engineering. Feature Stable Ingredients: Highlight dishes with ingredients less susceptible to price swings. Utilize suggestive selling techniques and promote these items through specials and online ordering platforms.
- Strategic Egg Usage: Reimagine egg-centric dishes to utilize fewer eggs without sacrificing perceived value. For example, instead of a three-egg omelet, offer a hearty skillet topped with a single egg and enhanced with other proteins, vegetables, and cheeses.
Are there ways you can lock in prices on some items to deal with fluctuating costs on others?
- Vendor Partnerships: Collaborate with suppliers to explore opportunities for cost savings and potentially lock in prices on stable items to offset fluctuating costs elsewhere.
How can you avoid rising prices on egg-focused menu items?
- Recipe Optimization: As mentioned earlier, re-evaluate egg-heavy dishes. Consider offering smaller portions, incorporating egg substitutes where appropriate, or finding creative ways to add bulk and value with less expensive ingredients.
- Consider entrees with one egg rather than two or three. For example, rather than an omelet feature or LTO, build a skillet that is topped with one egg, made more substantial with other proteins/ingredients…
Restaurants Potentially Face a TikTok-Free Future
The industry could be losing a valuable tool for visibility and engagement. The Supreme Court’s decision on Friday to uphold a ban on TikTok placed the platform’s future in jeopardy. While the long-term outcome remains unclear, the ruling raised serious questions about the app’s viability in the U.S. Back in April, President Biden signed a bipartisan law requiring TikTok to either sever ties with its China-based parent company ByteDance or face a shutdown in the U.S. TikTok challenged the legislation in court, arguing that the ban infringes on the free speech rights of both the company and its users. This legal battle escalated to the Supreme Court, where justices heard the case on January 10. The Court’s ruling to uphold the ban has far-reaching implications. Starting January 19, major tech players like Apple and Google must remove TikTok from their app stores, and web-hosting services are required to cut off access to the platform. Failure to comply could result in fines of $5,000 per user. Although the app won’t be removed from users’ phones immediately, its functionality will deteriorate over time. Without access to app stores, TikTok’s parent company will be unable to provide updates, leaving the platform vulnerable to performance issues and security risks. Friday’s decision now places TikTok’s fate squarely in the hands of President Trump as he begins his second term on Monday, just one day after the ban takes effect. During his first term, Trump made an unsuccessful attempt to ban the app but has since shifted his stance, claiming he now wants to “save TikTok.” He previously urged the Supreme Court to delay the deadline for TikTok’s compliance with the divestiture law. Under the current legislation, one option available to the president is to declare that TikTok’s U.S. operations have undergone a “qualified divestiture,” a determination left to his discretion. This outcome hinges on cooperation from ByteDance, which has publicly stated it has no intention of selling. Recent reports suggest Trump is also exploring unconventional strategies to keep TikTok operational…
Expect Volatile Food Prices and Changing Consumption Patterns
In 2025. Restaurant operators can expect 2025 to bring big changes in the food sector both in the U.S. and globally. The interplay of ongoing inflationary pressures and potential trade disputes, particularly with Mexico and Canada, is likely to keep food prices volatile in 2025—especially for fresh fruits and vegetables, according to agribusiness/food expert Rob Dongoski, a partner and global lead in the Food and Agribusiness practice of global strategy and management consultancy Kearney. “Tariffs could exacerbate affordability challenges for consumers, particularly in lower-income demographics, while reshaping the availability of fresh produce in grocery stores and restaurants,” he said. Widespread adoption of GLP-1 drugs such as Ozempic, used by approximately one in eight U.S. adults, is fundamentally altering food consumption patterns and driving demand for nutrient-dense, smaller portion sizes, and functional foods, Dongoski noted. “What will this mean for food producers and manufacturers? In 2025, food companies will prioritize innovation beyond traditional volume-based models and billion-dollar hero SKUs – the shift has significant impact potential on their product portfolios and marketing strategies.” A broader FDA crackdown on food dyes and manufacturing ingredients is gaining momentum, with multiple synthetic colors facing immediate scrutiny, according to Dongoski. This federal focus, combined with state-level actions, will accelerate food companies’ proactive reformulation of products, removing synthetic additives in response to both changing consumer preferences (bottom-up) and regulatory pressure (top-down). Increased transparency requirements are likely to be implemented, compelling food manufacturers to disclose more detailed information about synthetic additives, their origins, and potential health impacts on product labels and in marketing materials…
How Will GLP-1s Change Restaurant Menus?
The Ripple Effect of GLP-1s, Today and In the Future. The increased use of glucagon-like peptide-1 (GLP-1) medications such as Ozempic and Wegovy is providing profit opportunities for restaurants and other industries, according to Circana’s The Ripple Effect of GLP-1s, Today and In the Future. The report revealed how users exhibit shifting purchasing habits over time, with weight-loss users making fewer food and beverage purchases during the first three months of use, and returning closer to benchmark levels by the end of the first year of use. There is an opportunity for restaurant operators who want to embrace the GLP-1 movement by focusing on portion sizes and crafting “GLP-1-friendly”menu items, Sally Lyons Wyatt, global executive vice president and chief advisor, Circana, told Modern Restaurant Management (MRM) magazine. “By doing so, they can attract and foster repeat purchases from consumers are who either on GLP-1 medications or taking GLP-1 supplements,” she said. “This could lead to increased traffic for the operators who can be agile and adapt to consumers dietary needs, communicate to them via their preferred social/digital channels, and leverage personalized messaging where possible.” While dining out, GLP-1 users skew their dollar spend toward quick-service restaurants, but they shift toward grocery foodservice, casual dining, and midscale restaurants during their first year on the medications, the report found. At grocery retail, they are spending more on foods that support GLP-1 balance, including vegetables, eggs, and nuts. Conversely, they are making fewer purchases of products they’ve been recommended to avoid, including spicy foods, fatty proteins, and beverages with added sugar. Wyatt advises restaurant owners to focus on educating staff about what GLP-1 medications are, the foods and beverages that align with the recommended diet, and the foods and beverages that users are recommended to avoid. This should include the role of ingredients such as protein, fiber, low/no sugar, etc.), portion sizes, and hydration…
Should Restaurants Ban Smartphones?
More dining destinations argue; phones are atmosphere-destroying, conversation-ending distractions. Let’s face it, most of us probably have an unhealthy relationship with our smartphone. We’re told constantly that technology is ruining our lives; the science says that they shorten our attention spans, diminish our relationships and make us mentally lazy. It’s not the technology itself that’s the problem, but rather how we use it – and the hospitality industry is starting to put its foot down. Restauranteurs and bar owners are done with us staring at our phones instead of being present, and enjoying the very simple pleasure of sitting round a table with people we love. In the past few years, an increasing number of restaurants and bars have begun applying no-phone policies in an attempt to help diners engage in the experience of eating and drinking. The Soho institution French House has long operated a ‘no-phone’ rule, which, as its website says, makes “it a haven for conversationalists.” Another early pioneer, the critically acclaimed St John, which has several outposts across London, has banned devices since its opening in 1994. The Spy Bar at the OWO Raffles London, the Mayfair-based members’ club Maison Estelle, and the 1950s-inspired Italian-American restaurant Louis in Manchester, all ask guests to cover their phone cameras with stickers. Soho House famously discourages members from taking photos in a bid to retain privacy. “It has completely changed the atmosphere,” says Spy Bar’s manager Sotirios Konomi. “We know people can just peel off the sticker and take a picture, but nobody does. Everyone’s really embraced the idea of leaving their phone in pockets and bags. They’re enjoying themselves and it creates a really relaxed atmosphere.” Part of the aim at Spy Bar was to create an ambience in keeping with its subterranean speakeasy setting in rooms once used by MI5, but Konomi thinks the benefits go beyond the concept. “Why do we go to bars and restaurants? We go to eat and drink, but also to relax and have fun. Our phones tie us to work and responsibilities – not looking at them for a few hours helps us to feel less overwhelmed”…
Did You Know?
Best Practices for Dealing with Fluctuating Food Costs. With egg prices increasing by 30 percent over the past year and expected to rise more, MRM asked Stasko for his best advice on what strategies restaurant owners can implement to prevent sharp menu price increases and innovative menu solutions they can implement. What are the best practices for dealing with food costs for recipes when necessary items are fluctuating in price?…
Employee Tip
10 ways you (or your manager) may be harming your restaurant employees. Managing a team isn’t easy, especially in the restaurant business. Between staffing shortages, demanding customers, and long hours, it’s easy to fall into habits that don’t serve your employees — or your bottom line. I’ve reflected on mistakes I’ve made as an employer and seen countless others struggle with the same challenges. As a speaker who works with countless franchises and restaurant operators, I’ve observed a lot of what hurts and what helps. Here are 10 common ways managers unknowingly harm their employees, along with actionable ways to fix them…