What Impact Will the Election Have on the Restaurant Industry The impact of elections on the restaurant industry can vary depending on the political climate, the policies that are put in place and the broader economic environment. Here are some of the key ways elections can affect the restaurant industry: Political leaders often debate raising the federal or state minimum wage, which directly impacts the restaurant industry, especially given the high number of employees in low-wage roles like servers, cooks, dishwashers, and other front- and back-of-house staff. If the minimum wage increases, it could lead to higher labor costs for restaurant owners. Minimum Wage and Labor Laws Raising the minimum wage Some politicians advocate for eliminating the "tip credit" system (where tipped employees can be paid below the minimum wage as long as their tips bring them up to the minimum wage). If such policies change, restaurants may face higher labor costs, potentially leading to price increases or other adjustments. Tip Credit Policies Expanding paid sick leave, family leave, or health benefits can increase operational costs for restaurant owners, especially smaller independent operators who may already operate on thin profit margins. Paid Leave and Benefits
small businesses can be beneficial for restaurants, while higher taxes might result in increased prices for consumers or cuts in operating expenses.
Deductions for Restaurants
Specific tax policies, like those for restaurant equipment or renovations, could be adjusted, affecting how easily restaurants can invest in upgrades or expansions. Some policies may incentivize restaurant development in certain areas (urban or economically distressed zones) via tax breaks. Healthcare and Benefits Affordable Care Act (ACA) Reforms Depending on the party in power, there may be efforts to strengthen or repeal parts of the ACA, which could affect restaurants that employ a large number of workers. For instance, if the ACA is expanded, restaurants may need to comply with new healthcare requirements for employees. A focus on lowering healthcare premiums or expanding Medicaid can have indirect effects on the restaurant industry, where many employees may be part-time workers who rely on government- supported healthcare programs. Healthcare Costs
Tax Policies and Incentives Tax Cuts or Increases
Tax policies proposed by political candidates can impact restaurant owners' bottom lines. Lower corporate taxes, tax credits, or deductions for
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