Full-Service Restaurants NAICS 722511

Nov 14, 2025 - Mandatory Gratuities Ineligible for Tax Break

• As a result of “no tax on tips” becoming law, many restaurants may need to rethink service fees on large groups, CNBC reports. That’s because mandatory gratuities, typically the 15% to 20% that restaurants often impose on parties of six people or more, aren’t eligible for the tax deduction under President Trump’s new law because tips must be voluntary to qualify. The exclusion is a sore point for many full-service restaurants. Research from the National Restaurant Association shows that 54% of full-service operators, including 67% of fine-dining operators, say their restaurants sometimes add a service charge or automatic gratuity to customer checks. Among this group, 12% add the service charge or automatic gratuity to all checks, while 88% only add it to parties that exceed a specific number of people (typically six or more) or to banquets, private events or catering events.
• Restaurant operators increasingly are turning to social media channels to evaluate and purchase technology, according to Belle Communication’s 2026 Evolving State of Foodservice report. The report, which gathered input from a panel of industry experts, Food Network chefs, and award-winning operators, found that rather than relying solely on distributor recommendations or sales reps, busy restaurant operators are increasingly researching tools via Instagram posts, chef endorsements, peer reviews, and online content first. Moreover, food service buyers now consult 8-9 sources before engaging a vendor, nearly twice what they did just a few years ago. Decision-making is becoming more fragmented, faster and self-led, so independent operators and chains alike must be proactive in sourcing tech, vetting solutions via digital channels, and prioritizing brands that demonstrate peer-based validation and ease-of-integration. Like other consumers, restaurant operators are researching products online before consulting vendors and relying on fellow chefs and peers for product advice.

• A coalition led by the Restaurant Law Center, along with the National Fisheries Institute and various seafood suppliers, is suing the National Oceanic and Atmospheric Administration (NOAA) over a new import ban tied to the Marine Mammal Protection Act (MMPA). The rule, slated to begin January 1, 2026, would ban imports from certain fisheries critical to the US restaurant supply chain. The coalition argues NOAA implemented the ban hastily, without adequately assessing the economic consequences to more than one million restaurants, especially seafood-focused ones. Because US fisheries can’t match the volume or variety of imports, restaurants risk menu cuts, price hikes, contract disputes, and even closures. The suit, filed in the US Court of International Trade, asks the court to void the ban and force NOAA to reconsider in a way that balances conservation goals with industry realities.
• Taking a page from the limited-service restaurant playbook, full-service restaurants are offering lower-priced menu items and small portions to boost traffic in a challenging environment, Restaurant Dive reports. Full-service Asian chain P.F. Chang’s, which has seen traffic decline this year, launched a new nationwide menu in September featuring $8.99 cocktails, half-sized appetizers, and a choice between medium or traditional entree sizes, according to a company press release. Chang’s is the latest full-service casual chain to focus on value, joining Olive Garden, Chili’s, and IHOP, which have all expanded their menus to include lower-price entrees and smaller portions. In September, Olive Garden announced it’s testing various entrees in smaller portions at reduced prices, while IHOP made its $6 value menu available daily. Chili’s value proposition, including menu items like 3 for Me, has helped drive record-breaking sales and traffic the past few quarters, according to Restaurant Dive.