Restaurants NAICS 722511, 722513, 722514

Sep 14, 2025 - McDonald’s Quits NRA

• McDonald’s has split with the National Restaurant Association over its support for the no-tax-on-tips policy, Nation’s Restaurant News reported in September. The CEO of the fast food giant Chris Kempczinski said in a recent interview that “The issue with no tax on tips is it only benefits those restaurants that have tips.” Instead, he suggested a blanket minimum wage for both tipped and non-tipped employees. Central to the dispute is the tipped minimum wage (just $2.13 an hour under federal law), which allows full-service restaurants like Chili’s and IHOP to rely on gratuities to fill the gap to $7.25. McDonald’s has seen its market share shrink in the face of stiff competition from full-service casual chains that rely on tipped wait staff, creating an uneven playing field. That advantage is helping those chains push cheap burger deals that are cutting into McDonald’s sales.
• New tariffs on food and beverages imposed by the Trump administration threaten to drive menu prices even higher, according to a recent statement from the National Restaurant Association (NRA). The trade association called out coffee and hamburgers as examples of menu items under pressure from tariffs, notably a 50% tax on imports from Brazil, a major provider of coffee and beef. “Operating a restaurant is becoming increasingly difficult due to economic and regulatory pressure and a nearly 5% increase in wholesale food costs since last year,” NRA CEO Michelle Korsmo said in a statement, adding “These new tariffs on food and beverage items will exacerbate the situation,” leaving many restaurants with no choice but to raise prices. The NRA notes that tariffs disrupt supply chains, drive up costs for restaurant operators, and ultimately lead to higher menu prices for consumers, already put off by the rising cost of dining out.

• Consumer spending at small restaurants slowed in June versus May, according to new data from fintech company Fiserv, Nation’s Restaurant News reports. Fiserv’s Small Business Index shows that while small restaurants/independents experienced modest 0.4% year-over-year sales growth in June, month-over-month transactions declined by 2.6% and foot traffic dropped 2.5%. June’s negative monthly comparison followed a 5.6% month-over-month drop from April to May. Just 13 states experienced a positive performance in food service and drinking places in June, versus 34 in May. The spending slowdown signals caution for the restaurant industry where traffic, sales, and hiring trends have been mixed so far this year,” according to the National Restaurant Association’s Economic Outlook for mid-2025. The association’s cautious outlook is supported by recent surveys from PopMenu and KPMG indicating that consumers plan to pull back on their restaurant spending amid ongoing economic concerns.
• An analysis of Labor Department employment data by the National Restaurant Association found that job growth in the restaurant industry ground to a halt during the last two months, as a rise in people leaving their jobs offset hiring activity. Employment at eating and drinking places was essentially flat in June (+400 jobs) and July (-300), according to preliminary data from the Bureau of Labor Statistics. That was a stark contrast to the previous 3-month period during which the industry added nearly 68,000 jobs. Meanwhile, wages at restaurants and other eating places rose 4.1% year over year in July to $18.94 per hour, according to the BLS.