Riley Lagesen’s Post

GT attorneys Alan Greenfield, Alice Kessler, Adil Khan, Riley Lagesen, and Magaly Zagal have written the #GTAlert titled, "SB 478 May Require Significant Shifts in Pricing Practices for California Restaurants." The piece covers: 💡 DOJ interpretation of SB 478 may impact long-established and common restaurant business practices 💡 Consequences of noncompliance are potentially significant 💡 The law goes into effect July 1, 2024 Read the full alert here: https://buff.ly/4aDKf9d. #CaliforniaRestaurants #RestaurantIndustry #GTRestaurantIndustry #CaliforniaGovernment

Curious about California's SB478, the "Junk Fee" bill? Learn how this new law impacts your restaurant in our video. ➡ https://lnkd.in/eNfminYX Starting July 1st, #California requires all non-optional fees, excluding tips and gratuities, to be included in menu item prices. This change affects restaurants managing increased costs from wages, staff retention, and tech partnerships. Ongoing legislation may exempt restaurants, allowing fees if clearly noted on menus. At TipHaus, we're dedicated to keeping you informed and helping you navigate these changes seamlessly. Our tailored solutions are designed to save you time and money in compliance with California's new regulations. If you need assistance navigating these changes, we're here to help. Contact us here or email us at [email protected] #california #junkfeebill #laws #tippinglaws #servicecharge #tips

Scoop: There's hope restaurants still have time to impact SB478, which would make surcharges (so-called 'junk fees') illegal in California starting July 1. The CA Attorney General's statement today seemed to confirm restaurants' worst fears, but stakeholders cling to hope there's still room for changes during the budget process. Tomorrow an FAQ from the AG's office will provide some clearer language on how this law — originally designed to stop the junk fees tacked onto concert tickets, for instance — will be enforced when it comes to restaurants. Some food businesses fear the law will upend the precarious balance of cost-offsetting surcharges which restaurants (especially in San Francisco) have implemented to transition away from traditional tipping practices, pass-through some costs to consumers and make group events and catering profitable. Restaurateurs acknowledge most customers don't like encountering these fees at the end of their bill. But they would also not like the sticker shock of higher prices across the menu were this law to go into effect as is, and the ensuing consequences that would lead to more restaurants closing, they say. #sb478 #sanfrancisco #california #restaurants #restaurateurs #tipping #surcharges #junkfees #bars #foodbusinesses #hospitality #legislation

Rubio's Coastal Grill’s recent bankruptcy filings is an example of how California’s high-cost business environment is impacting companies who may already be feeling some distress.  Newpoint’s Ken Yager weighed in, stating "there are three major factors at play for restaurants like Rubio's Coastal Grill,” citing changing consumer preferences, rising competition and increases in wages.  Wondering how market factors like these may impact your business? Contact us here: https://lnkd.in/e_skkZn7  Read the full article to learn about these insights and the industry outlook on fast casual restaurant chains. https://lnkd.in/gFK-7rWf

Did you miss our webinar? 5 Costly Compliance Mistakes Restaurants Should Avoid: Don't let compliance mistakes harm your restaurant business. Join top industry experts and gain the confidence to protect and grow your operation. Learn from the best as they share strategies for success and reveal critical compliance mistakes to avoid.The presentation covers: - The root causes of compliance errors in the restaurant sector - 5 common and costly restaurant industry compliance mistakes across federal, state, and local regulations - Strategies to ensure your restaurant thrives amidst the ever-changing legal landscape  https://lnkd.in/edJsM-Tg

Food/labor costs, changes in labor supply, new regulations, and rules around wages are top of mind post-election for hospitality business owners/leaders. Check out this article as a starting point as you consider the landscape for your business going into the EOY/2025.

Do you have customers who own or operate a restaurant or food service business? Utica First writes more types of restaurants than anyone. Our restaurant business owner policy conveniently bundles coverage to protect business owners from financial loss should the what-if occurs. To find out more about our restaurant BOP, visit https://bit.ly/4aE5lFz #KeepingInsuranceSimple

### New Legislation Allows California Restaurants to Continue Charging Service Fees Governor Gavin Newsom has signed Senate Bill 1524 into law, allowing California restaurants and bars to continue charging service fees, healthcare costs, and other surcharges. This emergency measure exempts food and beverage vendors from Senate Bill 478, which was set to ban these fees starting July 1. #### Key Points: - **Transparency Requirement**: Restaurants and bars can charge these fees as long as they are clearly listed for customers to see. - **Industry Relief**: Complying with SB 478 could have led to significant operational changes, potential reductions in staff benefits, or even closures for numerous establishments across California. - **Purpose of Service Fees**: - Balancing wages between front-of-house and back-of-house staff. - Helping cover employee benefits like healthcare. #### Industry Reactions: - **Supporters**: Argue that these fees create transparency and support equitable pay and employee benefits. - **Critics**: View them as potentially deceptive and harmful to consumer trust. - **Support**: The California Restaurant Association and labor union Unite Here back the bill, emphasizing the importance of these fees in supporting equitable pay and benefits. The passage of SB 1524 has sparked mixed reactions within the industry, highlighting the ongoing debate surrounding tipping culture, service charges, and consumer transparency. What are your thoughts on the impact of this new law on the restaurant industry? Read more about this update by clicking the post. https://lnkd.in/gSqN2gXK

Red Lobster Faces Financial Setback Due to Endless Shrimp Promotion New York, NY – April 17, 2024 – Red Lobster, a renowned name in fast-casual seafood dining, has recently encountered a significant financial setback following its ambitious Endless Shrimp promotion. Despite its longstanding reputation for quality seafood and customer satisfaction, the company's decision to offer unlimited shrimp servings to patrons has resulted in unforeseen challenges. The Endless Shrimp promotion, a staple in Red Lobster's menu for decades, aimed to provide customers with an unparalleled dining experience. However, the overwhelming response from seafood enthusiasts across America led to unexpected consequences. Patrons consumed an unprecedented amount of shrimp, far surpassing initial projections and causing a substantial financial burden on the company. As a result, Red Lobster reported a staggering loss of $11 million attributed directly to the Endless Shrimp promotion. This unforeseen expense has prompted the company to reevaluate its marketing strategies and operational approaches to ensure sustainable growth and profitability moving forward. In light of these developments, Red Lobster remains committed to delivering exceptional seafood offerings while maintaining fiscal responsibility. The company expresses gratitude to its loyal customers for their continued support and looks forward to navigating this challenge with resilience and determination. ML HARRIS Nautical Mile Strategies LLC Text Tel: 347.669.5523 - 818.714.0590 Email: [email protected] https://lnkd.in/eAvsKMR3