Breaking News

Governor Newsom Signs Bills to Support Restaurants in California

• California Gov. Gavin Newsom recently signed two new laws and is weighing two others to help restaurants in the state.
• The legislation includes AB 592, which removes parking requirements for outdoor dining and allows open windows or folding doors, and AB 671, which would permit licensed professionals to self-certify restaurant building plans to speed approval.
• Additional bills in play would expand small business recovery funds and adjust liquor licensing for neighborhood eateries. SOURCE | LA EATER

Industry

Industry’s 2025 Sales Forecast Cools on Select Segments

• Technomic’s latest outlook projects 2025 sales growth of ~2.8% among the top 1,500 chains, down from 3.1% in 2024. Burger, sandwich, and pizza categories face a slower year, while chicken, Mexican, and coffee concepts show relative strength. Operators should align 2025 budgets and promotions to segment-specific demand patterns. SOURCE | NATION’S RESTAURANT NEWS

Consumers Expect More Menu Price Inflation — and Operators Agree

• Technomic surveys indicate 62% of consumers expect restaurant prices to rise over the next six months. Operators also plan price actions amid tariff risks and commodity volatility. Restaurants should scenario‑plan for multiple CPI and COGS paths, balancing value with margin protection. Transparent pricing and targeted offers can mitigate traffic erosion. SOURCE | RESTAURANT BUSINESS

Labor

BJ’s Restaurants Workers in California Vote Against Unionizing

• Employees at BJ’s Restaurants’ Modesto, CA location voted not to unionize. The organizing drive was sparked in part by a tip‑sharing policy and broader wage debates.
• For operators, the outcome underscores location‑by‑location differences in organizing momentum. Review tip policies, training, and communication to reduce legal exposure and workplace friction. SOURCE | RESTAURANT BUSINESS

Regulatory

GLP-1s and Tariffs Impact Dining Behavior

• Rising tariffs and the growing use of GLP-1 weight-loss drugs are weighing on restaurant traffic, as more consumers—particularly those with lower incomes—cut back on dining out.
• Despite the slowdown, a BTIG analyst sees bright spots for chains like Wingstop and Chipotle, citing their investments in smart kitchen technology and healthier menu options. Still, industry pressures from tariffs and changing consumer behavior could persist well into 2026. SOURCE | MARKETWATCH

US Asks Restaurant Companies to Promote Healthier Foods to Children

• The U.S. federal government, via the “Make America Healthy Again” Commission, is requesting restaurant companies voluntarily promote healthier menu options and reduce marketing of “unhealthy” foods toward children, rather than imposing strict regulatory mandates. The approach draws criticism from some public health experts who feel voluntary measures may lack enforcement teeth. Restaurant groups see it as a balancing challenge between brand, menu flexibility, and social responsibility. SOURCE | REUTERS

Texas Standardizes Local Health Department Fees and Rules for Restaurants

• Texas implemented statewide standards on Sept. 1 to reduce ‘fee stacking’ and bring consistency to health department costs. The rule aims to simplify compliance across 200+ local health jurisdictions.
• For operators, this could streamline permitting timelines and reduce unpredictable expenses. Restaurants should verify city‑specific changes and update budget assumptions for 2025–2026. SOURCE | RESTAURANT BUSINESS

Technology

Square Launches a Restaurant Ordering Network in Cash App

• Square introduced ‘Neighborhoods’ inside Cash App, letting users order pickup and delivery from local restaurants. The launch connects Square’s restaurant clients to Cash App’s large user base and unified rewards. Operators on Square gain an additional owned-channel alternative to marketplaces, with loyalty layered at the wallet level. Consider menu/price parity and fulfillment capacity as incremental off‑premise demand is activated. SOURCE | RESTAURANT BUSINESS

Restaurant Delivery is Coming to ChatGPT

• DoorDash and Uber Eats integrations will allow users to start food orders from within ChatGPT. This adds a new discovery surface where AI prompts route consumers to marketplace ordering flows. Operators should review menu data accuracy and pricing across connected catalogs to avoid mismatches. Expect incremental demand from AI-native users and new search behaviors. SOURCE | RESTAURANT BUSINESS