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The Voice of the Restaurant
& Foodservice Industry

Our Shared Vision

Local restaurants are the cornerstone of communities across the country. We are the nation’s second-largest private sector employer, creating first time jobs and careers in big cities and small towns. Restaurants are a place for people to gather and celebrate special moments with loved ones.

Restaurant operators face a number of challenges and opportunities in Congress and in state governments across the country. As the voice of the restaurant and foodservice industry, the National Restaurant Association advocates for federal policies that help restaurant operators and their employees thrive in a customer-driven business environment.

Lowering Swipe Fees

The Credit Card Competition Act (CCCA), is bipartisan legislation that would drive down the high swipe fees restaurant operators pay on every credit card transaction by creating competition in the broken credit card processing market.

  • American swipe fees are among the highest in the world.
  • Unchecked by competition, U.S. swipe fees have more than doubled over the past decade and increased by over 50% since 2020.
  • Two companies control 80% of the U.S. credit card processing market.
  • Processing credit cards is a top operating expense for restaurant operators.
Person paying for a meal by tapping their credit card to the credit card reader

Take Action Now on CCCA

Swipe fees are one of the highest operating expenses for restaurant operators, just behind food and labor. Tell Congress to pass the Credit Card Competition Act to stem rising swipe fees.
Take Action Now

Dive Deeper:

PDF

The Credit Card Competition Act

Webinar

Overview of the Credit Card Competition Act

PDF

JUST THE FACTS on CCCA

Pro-Growth Tax Deductions

The Accelerate Long-term Investment Growth Now (ALIGN) Act (S. 187/H.R. 574) restores permanent full accelerated depreciation, enabling operators to enhance the dining experience and maintain viability, while the American Investment in Manufacturing and Main Street (AIMM) Act (H.R. 1347) reinstates depreciation and amortization, providing restaurant owners with capital to grow, expand, and hire.

  • For maximum efficiency and hospitality, restaurant operators must invest in modernization and maintenance.
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  • Small business restaurants operate with only about 16 days cash on hand and pre-tax income of around $60,000 annually.
  • Many small and medium-sized restaurant groups rely on debt financing to make long-term investments.
  • When the calculation changed from EBITDA to EBIT, many small and medium-sized restaurant groups experienced unexpected increases in their taxes.

Qualified Business Income Deduction

The Main Street Tax Certainty Act (S. 123/H.R. 703) can help ensure that small business restaurant operators have the resources to invest in their business success, their workers, and their communities. The deduction also helps create small business parity with corporate tax treatment.

  • Most small business restaurants operate as family-owned, pass-through businesses (partnerships, LLCs, S-Corps, or sole proprietorships).
  • The average small business restaurant has a 3–5% pre-tax profit margin.
Main Street
  • For an average restaurant operator, the QBI deduction reduces the business’ top effective tax rate from 37% to 29.6%.

Protecting the Tip Credit

Restaurant employees, operators and a majority of customers nationwide support the tip credit. However, in Congress, and in communities around the country, there are efforts to eliminate tipped incomes through legislation and the ballot box.
  • The tip credit model maximizes server earnings, allows operators to hire ample waitstaff, and keeps menu prices affordable.
  • Tipped workers never make less than the prevailing minimum wage -- they usually make much more.
Tip left on counter with salt and pepper shakers holding the money in place.
  • Nationally, tipped servers take home a median of $27 an hour, and the highest- paid earners make more than $41 an hour.

Dive Deeper:

Webpage

ISSUE OVERVIEW: Tipping

PDF

POLICY BRIEF: Maintaining the Tip Credit and Tipping System

Securing Tax Relief for Restaurants

New bipartisan legislation would restore expired tax deductions for many operators who are investing in their restaurants.

  • The Tax Relief for American Families and Workers Act, H.R. 7024, restores business interest expensing, which would help many restaurant operators lower their tax burden when investing in building upgrades, dining room remodels, expansions, and refurbishments.
  • The bill also accelerates “bonus depreciation” for the immediate expensing of investments, providing small businesses with more cash on hand.
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  • These changes are essential for many restaurant operators to thrive, create jobs and support economic growth in their communities.

Take Action Now

The Association is pushing the Senate to pass this critical tax relief. Restaurant operators can help by using their voice to the Senate to pass new tax legislation benefiting restaurants.

Take Action Now

Dive Deeper:

PDF

Restaurant Jobs by State 2022-2023

PDF

FACT BRIEF: Tax Relief for American Families and Workers Act

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As the voice of the restaurant and foodservice industry, the National Restaurant Association advocates for federal and state policies that help restaurant operators and their employees thrive in a customer-driven business environment. 

Restaurants Act is the grassroots action site of the National Restaurant Association.

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