The Senate Passed Trump’s No Tax on Tips Act
Here’s what it could mean. The Senate unexpectedly passed the No Tax on Tips Act in a unanimous vote Tuesday, giving weight to the prospect of eliminating federal income tax for cash tips, which picked up political traction during Donald Trump’s presidential campaign. The “No Tax on Tips Act” proposes amending the Internal Revenue Code to exempt “cash tips” — which include tips given in cash, credit and debit card, and checks — from federal income tax. Eligible employees will be allowed to claim a 100 percent deduction in their tax filings for amounts of up to $25,000 per tax year. The exemption would only apply to tips “received by an individual … in an occupation which traditionally and customarily received tips on or before December 31, 2023,” according to the text of the legislation, which states that the treasury secretary must publish a list of eligible occupations no later than 90 days after the bill’s passage. In a statement, Senate Minority Leader Charles E. Schumer (D-New York) cited waiters, bartenders and delivery drivers as examples of the types of employees who could become eligible for the tax exemption. Only employees who were compensated less than $160,000 in the 2024-2025 tax year — an amount that would be adjusted annually for inflation — would be eligible for the exemption, and they would have to report their tips to their employers for purposes of withholding payroll taxes, according to the legislation. Schumer said in his statement that “working Americans” who receive tips “work hard for every dollar they earn and are the ones who deserve tax relief, not the ultra-rich.” Cruz said in a statement the bill “will have a lasting impact on millions of Americans by protecting the hard-earned dollars of blue-collar workers, the very people who are living paycheck-to-paycheck.” The bill would also expand the business tax credit “for the portion of payroll taxes that an employer pays on certain tips to include payroll taxes paid on tips received in connection with barbering and hair care, nail care, esthetics, and body and spa treatments,” according to its congressional description page. The No Tax on Tips Act still needs approval from the House. If it passes there, it heads to Trump to be signed into law…
What to Know About ICE Enforcement in Restaurants
What’s happening and who is affected. More than 100 restaurants in Washington, D.C., were visited last week by agents from several federal agencies, in a sweep led by U.S. Immigration and Customs Enforcement. They arrived unannounced, some wearing tactical gear, to serve papers that notified the businesses that their employees’ immigration status was being audited. The targets included high-profile restaurants like José Andrés’s Jaleo, Chang Chang and Chef Geoff’s, whose owner, Geoff Tracy, is married to the CBS News correspondent Norah O’Donnell. The action was part of a broader sweep in the district that led to nearly 200 arrests, according to ICE. In a statement, the agency said it had “targeted the most dangerous illegal offenders” in the capital. “These arrests make clear that violating our nation’s immigration laws will not be ignored.” None of the arrests resulted from the agents’ visits to restaurants, an ICE spokesman said. Still, the broad scope and unusual nature of the action (such audits are usually conducted by mail or email) has sent fear throughout the restaurant business, which relies heavily on the labor of undocumented workers. Lawyers from the National Immigration Law Center, private firms and local and national restaurant associations have been producing “Know Your Rights” documents, and contacting clients with guidelines on how to respond. All said that they expect these actions to increase nationally as the Homeland Security Department, which includes ICE, increases enforcement. (ICE declined to say whether similar actions were planned around the country, citing the safety of its employees.) The lawyers offered these basics about federal laws and guidelines. ICE did not respond to requests for comment on that information. Agents entered each restaurant to deliver a notice of inspection, which compels the business to show an I-9 form for each employee. It is the beginning of a process known as an ICE audit or I-9 audit. Since 1986, employers have been required to collect the form from every new employee, even temporary workers. The form is used to verify identity and authorization to work in the United States, and must be supported by documents such as a passport, a work visa, or a green card. The form must be retained by the employer and provided to ICE in the event of an audit…
Bielat Santore & Company – Restaurant Industry Alert
NEW JERSEY CLASS “C” – TYPE “33”LIQUOR LICENSES FOR SALE
RECENT LEGISLATION IN NEW JERSEY ADVOCATES
FOR THE DISPOSITION OF INACTIVE “POCKET” LICENSES
CURRENT ECONOMIC MARKET CONDITIONS, ALONG WITH THIS LEGISLATION
ARE CONTRIBUTING TO A DECLINE IN THE PRICE OF NJ LIQUOR LICENSES
Wall Township -Was $600,000 – Now $400,000
Long Branch – Was $350,000 – Now $300,000
Neptune City – Was $350,000 – Now $250,000
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Old Bridge – Was $425,000 – Now $375,000
Middletown – Asking $450,000
Jackson – Asking $400,000
Call 732.531,4200 for additional information.
IF YOU ARE LOOKING FOR A LICENSE NOW IS A GOOD TIME TO BUY
IF YOU ARE HOLDING A LICENSE, NOW MAY BE A GOOD TIME TO SELL
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The Perfect Storm
How rising wages are reshaping the restaurant industry. “The restaurant industry is experiencing its most dramatic shift in labor economics since Ray Kroc standardized the QSR model in the 1950s,” said Luke Fryer, Founder and CEO of Harri, which released its first-ever 2025 Wage & Labor Cost Index. Based on a study of 300 QSR locations, including McDonald’s, Wendy’s and Burger King, the research offers analysis of the growing disparity in restaurant labor costs and its impact on operational viability across U.S. markets. Fryer sheds light on the “perfect storm” brewing and offers Modern Restaurant Management (MRM) magazine readers insights into how restaurants can navigate these turbulent times. His analysis covers key challenges from wage disparities and franchising implications to the vital role of technology in building a sustainable future for the industry. What is the perfect storm you see brewing for the restaurant industry and what factors are fueling it? The phrase “perfect storm” describes restaurant operators’ situation as they grapple with rising wages and labor costs. If the forces at play don’t ease up, we’ll continue to see operational failures throughout the industry. We launched our first-ever Wage and Labor Cost Index research this year, analyzing data from 300 QSRs nationwide. We found that while menu prices vary only 38 percent across markets, wages fluctuate up to 90 percent. Key locations like Denver and Los Angeles are the most unstable, with wage-to-price ratios exceeding 164 percent. What’s fascinating is how market forces are superseding regulatory minimums, like Philadelphia, where market-driven wages exceed the statutory minimum by 164.40 percent. This gap suggests a fundamental shift in how operators approach labor cost management. The data clearly shows we’re in uncharted territory. Is there anything that can be done to prevent this? Prevention isn’t the correct term here. This transformation is already underway. The question is how restaurants can understand, adapt, and thrive. I can speak to what we’re seeing at Harri. The most forward-thinking operators are shifting focus from minimum wage compliance to comprehensive market rate analysis. In some states, like California, the minimum wage has increased to $20. This means the traditional $3-4 difference between minimum and market wages is compressing. What is now more important than ever for restaurant operators is managing labor costs effectively. This means finding the balance between optimizing labor deployment in efficient ways and ensuring the guest experience is terrific…
How Intentional Design is the Key for Restaurant Operators to Stand Out
The real power of design is its ability to influence flow, comfort, and revenue. When a design is grounded in the realities of daily operations, the outcome is a space that performs well against the demands of the environment. It’s no exaggeration that running a restaurant today is not for the faint of heart. Honestly, it’s one of the toughest businesses to break into, let alone sustain. Competition is everywhere while guests are more selective, budgets are tighter, and loyalty is harder to earn. That leaves many restaurant operators wondering: What’s going to make us stand out? How do we not just survive, but thrive? From my perspective as a designer who has spent decades working with commercial restaurant clientele, the answer lies in intentional design. When people think of design, they usually picture the colors, lighting, décor, and maybe what we’ve dubbed the “Instagrammable” corner. Intentional design in restaurant spaces goes far deeper than appearances. It’s the strategic integration of how a space looks, how it functions, and how it supports the entire guest experience from the moment someone enters your restaurant to the moment they leave. Intentional design is always grounded in substantial research. What resonates with diners in one city or neighborhood might turn people off in another. I strongly encourage all my clients to study the local demographic, understand their preferences, and truly understand their new consumers. Together, we evaluate what design elements might feel foreign or overly familiar. The research requires a deep dive into who lives and works nearby, what other restaurants are doing, and how your concept can offer something new. A designer will then extract these findings and use them to influence design choices, ensuring the space feels like it belongs while still offering something fresh. Most operators already know all too well one of the ingredients for success—location, location, location! You may have the best concept and food in the world, but if no one can find you or access you easily, you’re at a disadvantage. Your exterior design can be just as important as your address. It’s the first visual cue that tells someone what your brand is about, whether they’re driving by or browsing OpenTable photos. Naturally, it should be inviting, clear in identity, and reflective of what guests can expect inside. A well-designed façade influences a potential guest’s decision to come in or to walk past. In my experience, I’ve seen restaurants with excellent menus that get skipped because their curb appeal wasn’t compelling enough to make someone stop…
In a Takeout World, Some Dine-In Benefits Still Matter
Consumers may be getting their food to-go more often, but they still demand music and free Wi-Fi. Nearly three-quarters of the time consumers get food from a restaurant, they are consuming the food somewhere else, be it in their car or at home or at work or on a picnic table in a park. But that doesn’t mean they’re not concerned about what the restaurant gives them when they do decide to stay. To wit: According to consumer data from Restaurant Business sister company Technomic, two notable items consumers say they want more of are music and free Wi-Fi. The percentage of consumers who say music selection is important increased from 43% in 2022 to 50% this year. Free WiFi increased to 45% from 41%. “It’s all about takeout and off-premise these days, but those are on-premise elements,” Robert Byrne, director of consumer insights for Technomic, said at the National Restaurant Association Show on Monday. “Consumers still want on-premise elements that are enhanced when they go out to eat.” The survey can help explain certain strategies at chains like Starbucks, which gets most of its visits now through drive-thru and mobile order but has focused as much on the in-store experience since the arrival of CEO Brian Niccol last year. Byrne was talking during a session on strategies for winning in a tough environment. The session was moderated by Technomic Managing Principal Joe Pawlak, and also featured Foodservice Director Editor-in-Chief Tara Fitzpatrick along with Nation’s Restaurant News Executive Editor Alicia Kelso. The restaurant industry has been “pretty sluggish” for the past 15 months or so, Pawlak noted. Total chain sales rose 3% last year, meaning the industry lost customers after accounting for menu price increases and unit growth. Costs are going up. The industry has seen a rash of bankruptcies. This year, weather hurt sales further. And talk of tariffs have hurt consumer sentiment. “The whole uncertainty around tariffs from a consumer standpoint has really spooked them,” Pawlak said. When consumer sentiment declines, he added, “that makes consumers think about spending more judiciously” because they are worried about the future.
Restaurant Delivery: Opportunities, Challenges, and Future Strategies to Watch
A peek into the future of one of the most important service channels I ordered takeout from a wings restaurant on Super Bowl Sunday. Big mistake. The 45-minute wait nearly cost me kickoff. I stood there, surrounded by frantic delivery drivers, flashing hazard lights, and a packed lobby, wondering: Is this really the best we can do? That chaotic scene was likely driven in part by staff trying to manage both delivery and pick-up on the biggest wing-eating day of the year. The moment perfectly captured America’s love-hate relationship with restaurant delivery. It’s convenient, drives higher ticket sizes, and can be a serious revenue booster. But let’s be honest, it also disrupts conventional workflows. And if you choose a third-party platform, you hand over control of customer relationships to someone else. Between clogged kitchens, overwhelmed staff, and commissions that eat into profits, delivery can feel less like an opportunity and more like a necessary evil. Restaurants are stuck in a battle to balance profitability and operational efficiency while trying to reclaim their direct connections with customers. The smartest operators aren’t just accepting the status quo. They’re using technology and strategic delivery models to streamline operations, reduce dependency on third-party platforms, and take back control of their data and margins. There’s no denying the money in delivery. This service is no longer just an extra revenue stream — it’s a core part of the business model. In fact, 70% of consumers ordered delivery in the past month, matching the number who picked up takeout and slightly edging out the 68% who dined in at a restaurant. But here’s the catch: While delivery increases revenue, it also disrupts operations. Many operators have watched their staff juggle delivery and dine-in orders. Handling packaging and driver coordination stretches workers thin. Orders pile up, causing delays that frustrate both in-house guests and delivery customers. On top of that, syncing multiple delivery apps with the restaurant’s system is often a tech nightmare. Using third-party apps delivery service providers (DSPs) like Uber Eats, DoorDash, and Grubhub can help manage logistics, but they come with drawbacks. Those platforms take 20-30% commissions on every order while controlling customer data, pricing and even the restaurant’s brand reputation…
What Has All This Restaurant Food Done to My Gut?
The results offer insights for frequent diners. There came a point just a few months ago when I felt I was on the brink of gastrointestinal ruin. As an interim restaurant critic for The New York Times, I had eaten dinner at a restaurant every night for three straight weeks. I felt fine. Yet I’d wake in the middle of the night thinking about all the sugar I’d just ingested, or the steak I’d polished off, distressed over what all this eating was doing to my body — and specifically, what it was doing to my gut. I am obsessed with gut health. I grew up in a family that talked openly about digestion. My father couldn’t live without his daily cocktail of milk and psyllium husks. We believed that gut health was key to our overall well-being. The American public has come to a similar conclusion. Supermarket shelves are lined with prebiotic sodas, probiotic supplements and fiber-rich cookies and bars. Influencers discuss their irritable bowel syndrome openly on TikTok. And today there are services that can analyze a stool sample and tell you what kind of bacteria populate your gut. So, I embarked on a two-month experiment on that microbiome to chart the effects of all of those restaurant meals on my gastrointestinal health. The results surprised me. I also learned that when it comes to the gut, few things are black-and-white. I enlisted the help of two Stanford University scientists who run one of the leading microbiome laboratories in the United States: Justin Sonnenburg, a professor of microbiology and immunology, and his wife, Erica Sonnenburg, a senior research scientist in microbiology and immunology. I chose Zoe, a personalized nutrition app, to do the testing, because the Sonnenburgs said the company had respected microbiome scientists at the helm. (For $294, you get testing kits for your gut health, blood sugar and blood fat.) The Sonnenburgs divided the experiment into three stages: one in which I ate out for every meal and drank alcohol freely, a second in which I ate only at home and didn’t drink, and a third in which I mixed dining out, eating at home and drinking. Each phase lasted two weeks — the longest stretch I could manage given my job, and the shortest in which the Sonnenburgs thought they would detect changes. After each one, I sent a stool sample to Zoe, which then sent data on my gut composition to the Sonnenburgs…
Did You Know?
Google will let restaurants highlight specials on their search profiles. Restaurants can link their social accounts to their Google profile for updates or tweak it manually. Google is preparing to add a new section to restaurant and bar search profiles. The new section will let owners include timely deals or events in search results in a way that they can control, either manually or by linking to a social media profile, the company says in a post spotted by Search Engine Land…
Employee Tip
Boosting Guest Satisfaction Through Faster Staff Responses. In today’s fast-paced dining world, guest satisfaction goes beyond just great food—it’s about delivering a seamless experience. When guest expectations are sky-high and every table turn counts, how quickly a team responds – both to guests and to each other – can significantly shape the dining experience. Internal communication, especially between front- and back-of-house staff, is one of the most overlooked drivers of operational efficiency and lasting loyalty. For restaurants looking to upgrade their service without major overhauls, improving the speed and clarity of internal communication is a practical starting point. After all, when teams are aligned and able to provide quality service almost instantly, guests notice, appreciate the teamwork, and keep coming back.
