Regulatory

Ballot Initiative to Raise D.C. Minimum Wage to $25

• A coalition of labor advocates in Washington, D.C., has introduced a ballot initiative seeking to raise the city’s minimum wage to $25 an hour. The proposal, which would set the highest minimum wage in the nation, is positioned as a response to rising living costs for workers.
• It also follows backlash to the D.C. Council’s recent decision to reinstate a subminimum wage for tipped employees. SOURCE | NATION’S RESTAURANT NEWS

Michigan Minimum Wage Will Rise to $13.73/Hour in Jan 2026

• Michigan’s minimum wage is set to increase in 2026 following a state policy adjustment tied to inflation and annual wage formulas.
• Officials say the increase aims to help workers keep pace with rising living costs. Business groups, however, warn that higher wages could further strain restaurants and small businesses already facing slim margins. 
• Economists note the raise will be one of several occurring nationwide. SOURCE | MIDLAND DAILY NEWS

19 U.S. States to Raise Minimum Wage On January 1, 2026

• Nineteen states will enact minimum wage increases on January 1, part of a multi-year wave of wage reforms across the country. Worker advocates say the hikes will offer relief amid persistent inflation and high housing costs.
• Restaurant and retail groups caution that mandated increases may accelerate closures or push operators further toward automation. The adjustments will affect millions of workers across both low- and high-cost regions. SOURCE | NATION OF CHANGE

Industry

Outback Steakhouse Owner Abruptly Shutters 21 Restaurants in Sweeping Overhaul

• Outback Steakhouse has suddenly shuttered 21 restaurants in a sweeping operational overhaul. Parent company Bloomin’ Brands said the closures target chronically underperforming units as part of a broader cost-cutting plan.
• Employees and local patrons were caught off guard by the abrupt nature of the shutdowns. The company is now focusing on strengthening profitable markets and upgrading kitchen and dining technology. SOURCE | NATION’S RESTAURANT NEWS

Diners Flocking to Happy Hour, Ordering Appetizers and Skimping on Entrees

• Restaurants across the U.S. are seeing a surge in happy-hour traffic as consumers look for cheaper ways to dine out amid rising food costs. Many guests are opting for discounted drinks and appetizers rather than full entrées, leading operators to rethink menus and pricing strategies.
• Industry analysts say the shift reflects broader economic anxiety and tighter household budgets. Some chains are now leaning more heavily on value promotions in an effort to maintain foot traffic. SOURCE | NEW YORK POST

Denny’s to Close 150 U.S. Diners by End of 2025

• Denny’s announced it will shutter 150 locations nationwide as part of a strategic realignment. Executives attributed the closures to rising operating costs, underperforming units, and shifts in consumer dining behavior.
• The company emphasized that franchisees will be heavily impacted, as most affected stores are independently operated. Despite the cuts, Denny’s says it plans to invest in technology and remodels to strengthen remaining stores. SOURCE | PEOPLE

K&W Cafeteria Restaurant Chain Closes All Locations After 88-Year Run

• K&W Cafeteria, a 90-year-old Southern cafeteria chain, has permanently shut down all remaining locations. The brand, once a regional institution, struggled with pandemic recovery, inflation, and declining foot traffic.
• Leadership cited an inability to maintain profitability despite attempts at restructuring. The closure marks the end of one of the last major U.S. cafeteria-style dining chains. SOURCE | BUSINESS INSIDER

Labor

Starbucks to Pay $39M in New York City Labor Settlement

• Starbucks has agreed to pay $38.9 million to settle allegations that it violated New York City’s Fair Workweek Law at roughly 300 locations. City officials reported more than 500,000 infractions between 2021 and 2024, including failure to provide predictable schedules and unlawful reductions in employee hours.
• Approximately 15,000 workers are expected to receive compensation under the settlement. The agreement marks the largest worker-protection settlement in the city’s history. SOURCE | RESTAURANT DIVE

Technology

White Castle Debuts Burger Kiosk at Boston Logan Airport

• White Castle has introduced its first fully automated, branded kiosk at Boston Logan International Airport, expanding its push into nontraditional locations. The kiosk, developed with technology and vending partners, can dispense hot beef or chicken sliders in roughly two minutes.
• The company says the new format caters to high-traffic travel environments where speed and convenience are critical. The launch underscores White Castle’s broader strategy to incorporate automation into its growth plans. SOURCE | RESTAURANT DIVE

How AI is Reshaping the Restaurant Labor Model

• Artificial intelligence is rapidly reshaping how restaurants manage staffing, according to industry leaders from Taco Bell and Jack in the Box. Operators say AI-driven systems can forecast demand with greater accuracy, helping build more precise, restaurant-specific schedules.
• Rather than simply cutting labor, the technology is being positioned as a tool to optimize shifts and boost profitability. Executives emphasized that AI is shifting the industry’s mindset from headcount reduction to smarter workforce allocation. SOURCE | NATION’S RESTAURANT NEWS