For Restaurants That Rely on Imports, the Tariff News Is Scant Relief
Confusion and uncertainty hang over an industry. Every waiter knows the type: the volatile diner who barges in with a list of demands, orders an off-the-menu item that sends the kitchen into a panic and then at the last-minute changes his mind and decides he’ll just have the steak. So if anybody knows how to handle President Trump’s stunning reversal on tariffs, it’s people in the restaurant business. Still, it’s safe to say that they’ve had a rough week. Chefs who had been furiously calling their suppliers, stockpiling imported ingredients ahead of what seemed certain to be drastic price jumps, got a temporary reprieve on Wednesday. Hours after they’d gone into effect, Mr. Trump put on hold a patchwork of tariffs that targeted 57 countries with rates ranging from 11 to 51 percent. For three months, he declared, all imports would be hit with a flat 10 percent tariff except products from China, which face tariffs that have vaulted to 145 percent. Nobody knows what will happen after the three months are up. If you are a restaurateur, none of this makes it easier to sleep at night, or to decide how much to charge for dan-dan noodles. The National Restaurant Association has brought in supply-chain experts to advise restaurateurs on handling disruptions in the flow of imported seafood and vegetables. Owners who drew up their business plans in the era of free trade are asking whether they still make sense when governments around the world are using shrimp and wine as chips in a high-stakes poker game. “Restaurants are the least profitable businesses on any Main Street in America,” said Sean Kennedy, the group’s executive vice president for public affairs. “With razor-thin profit margins, we are not equipped to deal with dramatic changes in food prices. Long-term tariffs leave us with no margin for error in holding menu prices as low as possible”…
Restaurants Panicking Over Plan for Tipped Workers to Earn Full Minimum Wage
A bill impacting how tipped workers collect income was under intense testimony in Trenton Thursday. A bill that would increase tipped workers’ pay to full minimum wage in New Jersey was met with much opposition Thursday, as most state lawmakers seemed ready to say no after a heated testimony. The specific proposal, A5433, sponsored by state Assemblywoman Verlina Reynolds-Jackson, D-Mercer, suggests increasing tipped workers’ pay to the current minimum wage of $15.49 without using their tips to do so. Right now, tipped workers earn $5.62 an hour plus tips, and employers often use a portion of those tips to make up the difference. Many servers already make well above minimum wage with their tips. Additional tipping from customers would still be allowed under the proposed law, but it would be on the restaurants themselves to pay their workers the full minimum wage. Proponents of the wage increase said that it will put more money in workers’ pockets, but opponents said it would do precisely the opposite — and cause more businesses to let workers go. A two-hour hearing was held on the bill Thursday at the Statehouse in Trenton. It was a discussion hearing, meaning the bill wasn’t being voted on. Lawmakers often do this for controversial bills where heavy pushback is expected. An overwhelming amount of testimony was lodged against the measure by businesses and workers. “You’ve made your point — which is good,” said Assembly State Local Government Committee Chair Robert Karabinchak, D-Middlesex. “Please talk to more people. Talk to other assembly people, talk to other senators about this. Share your stories because they’re astounding.” Other lawmakers also voiced their opposition to the bill by the end of the meeting…
Bielat Santore & Company – Restaurant Industry Alert
Bielat Santore & Company Sells Riverview Restaurant, Burlington, NJ
BURLINGTON CITY: The Riverview Restaurant & Bar, located at 219 High Street in Burlington, New Jersey, has been sold, as confirmed by Bob Gillis, a real estate salesperson with Bielat Santore & Company, Allenhurst, New Jersey. This multi-level establishment, situated in the heart of the picturesque and historic Burlington City Opportunity Zone, offers stunning views of the Delaware Riverfront. The new restaurant named REVELL HALL is planning to open in June 2025. Revell Hall is envisioned as a dynamic venue that seamlessly combines a lively bar and lounge, an upscale à la carte restaurant, and a versatile event space. It is equipped to host a wide range of occasions, from weddings to private gatherings and corporate events…
Contact Robert Gillis, 732.673.3436 for additional information.
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Food Inflation Replaces Labor as Top Concern for Restaurants
About 40 percent of operators kept their labor costs between 20–25 percent of revenue. The restaurant and bar industry tacked on roughly 29,800 jobs in March after back-to-back soft months (decline of 28,300 in February and 27,000 in January). Those opening periods of 2025 marked the slowest stretch for restaurants in more than four years, per the National Restaurant Association. But after March’s rebound, the workforce settled about 0.4 percent higher than February 2020 levels, ahead of the COVID dip. So from a pure numbers perspective, the pool isn’t all that different from the pandemic inflection point a few years ago. Yet much has changed within the lines. 7shifts, in its 2025 Restaurant Labor Cost & Profitability survey, collected responses from north of 500 restaurant professionals across segments. One clear difference emerged from past reports: food inflation ousted labor as the top concern. This could, in all likelihood, become only more pressing as tariff issues loom. Kura Sushi CEO Jimmy Uba said on the brand’s earnings call he was shocked by the magnitude and he imagined certain mom-and-pop sushi restaurants felt similarly, if not more so. Chipotle has skirted the impact in its calls thus far and other brands are holding fort. William Blair, in a recent note, labeled Dutch Bros as a chain with “minimal tariff exposure” since coffee represents less than 10 percent of its commodity basket. The overall point being, there is not a lot of concrete realities in the forecast, only questions—something restaurants are rather familiar with. According to The New York Times, the National Restaurant Association has brought in supply chain experts to advise restaurateurs on handling disruptions in the flow of imported seafood and vegetables. “Restaurants are the least profitable businesses on any Main Street in America,” Sean Kennedy, the Association’s executive vice president for public affairs, told the Times. “With razor-thin profit margins, we are not equipped to deal with dramatic changes in food prices. Long-term tariffs leave us with no margin for error in holding menu prices as low as possible.” While the industry awaits the next swing, pressure with food inflation has mounted for months, especially as the ceiling on price continues to push down…
Elevating Experience for Better Guest Engagement
Vibe check. Flight These are just a few examples of ways restaurants across the country are hoping to attract guest by elevating the dining experience and creating a vibe highlighted by superior food and presentation. inKind’s CEO Johann Moonesinghe noted this trend toward immersive, quality-focused experiences prioritizing ambiance and exceptional food. “After COVID, people are craving social dining experiences where the detail is leveled up.” Moonesinghe said guests are embracing restaurants that offer both high-quality food and an authentic, curated experience inspired by social media, citing establishments such as Nobel 33’s Toca Madera and Medusa Miami—popular “vibe dining” spots. Unique tableside services at a variety of restaurants are taking the experience factor to the next level. A caviar service at Costa in Charleston, South Carolina, top photo, features Regiis Ova Ossetra, served in its pure form alongside a chilled shot of Costa gin. “This offering enhances the sense of luxury and hospitality while also allowing guests to enjoy a more interactive and personalized moment at their table,” said Alessandro Piliego, Costa* General Manager. “It’s not just about the caviar—it’s about the experience, the storytelling, and the attention to detail that make a meal at Costa special.” Nisos Prime in Chicago offers its signature Tableside Prosciutto Cart, which delivers a show-stopping experience with Prosciutto di Parma sliced fresh right at your table. “Showcasing the WOW factor is key,” Lucas Bumba, General Manager of Nisos Prime, explained. “We offer tableside prosciutto carts with three different prosciuttos. We train the staff through a combination of practical and technical training. We bring in our purveyors to discuss the product, where it’s from, how it’s produced and any other fun facts we can use when interacting with guests. From there we moved to the technical aspects of trimming and slicing the ham using our hand powered slicing machine. It has real gravitas as it moves throughout the room and always turns heads. Guests really enjoy learning about the subtle differences between regions, aging processes and how it ultimately affects the flavor”…
How to Really Build Strong, Locally Rooted Restaurant Teams
Develop from the inside out.. After decades in the QSR industry with Chicken Salad Chick and Zaxby’s, I’ve learned that making a profit isn’t the only recipe for running a successful franchise—it’s about building a strong, dedicated team and creating a culture that further fuels ownership. Success lies not just in the food you serve, but in the people who serve it. By providing opportunities for employees to take control of the business, you lay the foundation for the long-term growth of your restaurants and support from the community. With that in mind, here are three strategies that have helped me navigate the challenges of the QSR landscape while building a thriving, community-focused business. Create Pathways to Ownership. Employee turnover is one of the biggest challenges for franchisees in the QSR industry. One strategy that has worked well for me is promoting from within. This approach encourages you to identify and develop talent that already understands your brand, core values, and the franchise model. More importantly, it creates a clear pathway for growth—both for your employees and your business. Investing in the people who know your business best sets the stage for sustained success and ultimately drives profitability. Offering long-term employees the opportunity to become co-owners of a franchise builds loyalty, creates a personal investment in the brand, and strengthens the team’s connection to the community. When I opened my first Zaxby’s, I partnered with my dad, and his support was crucial in getting me started. From that early foundation to the strong partnerships I’ve developed with my family and dedicated team members, I’ve learned the importance of business relationships. These partnerships have become the backbone of my success. Over the years, I’ve had the privilege of working alongside former managers and team members who have grown with the business. I make it a priority to mentor employees, encourage them to work their way up within the business, and help them see the opportunities for growth and ownership. The value of having co-owners who are genuinely invested in the business cannot be overstated—they bring passion, commitment, and a shared vision for success that is unmatched.
Why Menu Innovation and Authenticity Help Restaurants Thrive in Bad Economies
Opportunities amid unpredictable tariffs and waning consumer confidence. It’s no secret that the restaurant industry is facing serious economic headwinds: at the end of 2024, traffic dipped to -0.8% year-over-year—the lowest traffic rate since before the pandemic, according to the latest Technomic data. Technomic presented its annual State of the Industry report at the 2025 Restaurant Leadership Conference in Phoenix, Ariz., which presented a mixed outlook on the restaurant industry’s challenges related to low consumer confidence and the recent rollercoaster tariffs news, as well as surprising bright spots amid the downturn. For example, while February 2025 traffic, which is down by 4.9%, represents waning consumer confidence amid economic uncertainty, inflation is actually in a fairly healthy place, at 2.7%, especially if restaurant operators don’t raise prices above that level, Rich Shank, senior principal and vice president of innovation at Technomic said. In contrast to low consumer confidence, Shank said Technomic data shows that operator confidence is “historically high” at 67.7%. “The question I always had was, ‘why are they so confident, given the uncertainty that consumers are feeling?’” Shank said, giving credit to operators that have pre-emptively protected themselves from the tariff situation. “Because we’ve been here before. We’ve had a lot of economic uncertainty in our careers, and we’ve shown that we can navigate through this. Typically, when there’s a downturn in the market, this market actually performs better than most others because no matter what’s going on, everyone still needs to eat, and we also need distraction and experience.” Technomic data revealed that the key growth drivers now, more than ever before, are brand identity, cultural relevancy, and innovation. “The KPIs that measure innovation and strength of brand identity show that the brands that scored significantly higher than average grew their sales last year by 7.5% and those that scored average underperformed the market,” Shank said…
For Restaurants and Tech, the Focus Shifts from Volume to Refinement
Unified data is setting the foundation for future innovation, like AI and other changes. Restaurant technology is a cycle. If you trail back pre-COVID, the industry was (rightfully) accused of lagging retail peers on adoption. It was a sector built on gut calls and intimate, personal knowledge of the customer. Another reality was many innovations launched during the pandemic weren’t inventions as much as sped-up reactions. The timeline was compressed on changes guests were already asking for. And that’s held into the future. However, one of the other fallouts from this fire hose stretch of tech was brands rushed to turn on every switch they could to locate customers, resulting in fragmented tech stacks and solutions that often didn’t speak to one another. There was also a question of profitability beyond expanded reach. So the evolution has looked something like this: innovation to optimization to efficiency. Where we are today, as Qu put it in its most recent State of Digital report, is a drive toward holistic, integrated tech. There were six main trends identified from the survey—the company’s sixth yearly edition.
- Shift from third- to first-party ordering
- Consolidating tech systems to unlock efficiency and prepare for AI
- Data-driven personalization to boost engage engagement
- Kiosks continuing to ease labor strains
- Smart kitchens to drive accuracy and productivity
- Digital sales leveling off and brands shifting focus to profitability
On the first, it’s unsurprising given the increasing access to tools and capabilities to offer delivery and ordering through owned channels. Forty percent of brands said first-party digital ordering will drive the highest revenue growth in 2025.
Did You Know?
Daily, Weekly, Biweekly? What’s the Best Pay Schedule for My Restaurant? After a rough few years due to the pandemic, restaurant workers now have a reason to celebrate: Their average hourly earnings have grown 66% from 2017 to April of 2024, according to data from the Square Payroll Index, compared to 40% growth for retail workers. This is a positive development for the restaurant industry, which has been battling higher rates of turnover compared to other industries. Pay of course is the most important element of most jobs, and in the restaurant industry specifically, not getting paid enough is the top factor in an employee’s decision to quit, according to 7shifts data released this past summer. But it’s not just the amount of money that employees care about—when they are paid is also an important factor for restaurant staffers…
Employee Tip
How To Optimize Your Restaurant’s Labor Force for Success. The restaurant industry has always been dynamic, but this year presents a unique set of challenges and opportunities when it comes to labor. Rising wages, shifting demographics, and evolving guest expectations are reshaping how restaurants hire, train, and retain employees. As a restaurant owner, optimizing your labor force isn’t just about cutting costs — it’s about building a sustainable, high-performing team that supports your brand’s long-term success. Employee retention is often overlooked when discussing labor costs. Restaurants that invest in their people through training, recognition, and career development see lower turnover and higher productivity…
