Joanna Fantozzi - 10 Minutes News for Hoteliers - Page 8

2 min

Mas Mex’s CEO on expansion plans for the CapitalSpring-backed restaurant group

🌮 CapitalSpring's Mas Mex group, under CEO John Iannucci, acquired Escalante’s Fine Tex Mex & Tequila in Houston in June 2023 and Fat Rosie’s Taco and Tequila Bar in Chicagoland in October 2023. Escalante’s, with a 30-year history and seven Texas locations, makes tortillas and sauces from scratch, planning two Houston openings in 2026. Fat Rosie’s opened its sixth location with 4.9 average online reviews, aiming for four to five new locations annually. Expansion targets include Ohio and Nashville for Fat Rosie’s, and Austin for Escalante’s, alongside modernization efforts.

4 min

Policy on the Menu: How a federal immigration crackdown could impact restaurants

📌 Since President Donald Trump's second term began, he has enacted numerous executive orders tightening U.S. immigration policy. Approximately 1 million undocumented immigrants work in the U.S. restaurant industry, per the U.S. Center for Migration Studies. The White House declared a National Emergency at the Southern border, enabling federal agencies to detain and remove undocumented immigrants with a daily arrest quota of 1,200-1,500 for ICE. Trump signed the Laken Riley Act on Jan. 29 mandating detention for undocumented immigrants accused of serious crimes. The National Restaurant Association reports 21% of restaurant workers are legal immigrants, but these policies may also affect them. Trump's attempt to end birthright citizenship was blocked by a Maryland federal judge. Industry experts warn of complications and a tougher labor market for restaurants if immigration restrictions tighten. Employers are advised to prepare for ICE audits and consult legal counsel.

2 min

New York state tries to ban the tipped wage again

💸 Five years past former NY Gov. Cuomo's legislation, NY lawmakers propose bills to remove tip credit for restaurant workers, led by Assemblywoman González-Rojas and State Sen. Jackson. The tip credit ranges $5.15-$5.50/hr for foodservice and $2.60-$2.75/hr for other services. Federal minimum wage is $7.25/hr. Salon workers and doormen/women to see subminimum wage end by Dec. 31, 2025, but not restaurant workers. Seven states and cities like Chicago have banned tip credits, with Chicago phasing it out in Oct 2023.

3 min

How this former hair salon owner built a thriving brunch brand in Atlanta

🍴 Teneshia Murray, previously a hair stylist and salon owner in Atlanta, pivoted to the restaurant industry in 2020 due to the COVID-19 pandemic. Without prior food service experience, she now successfully runs T’s Brunch Bar, a Southern comfort food-themed brunch brand with four locations. Murray encountered initial losses, spending $1 million in her first year and selling her original concept, Gritz Brunch Bar. However, she adapted, converted another concept (Red Velvet Bistro) into a T’s Brunch Bar, and intends to expand to 10 locations in the future, targeting markets like Las Vegas, Miami, Charlotte, N.C., and Houston, with plans for franchising. T’s Brunch Bar's popularity is partly due to its 38,000 Instagram followers, social media-savvy marketing, and unique menu by executive chef Jamarious Gilmere, featuring dishes like chicken and waffles, catfish, and Cajun pasta. No new openings are planned for 2025 as Murray strategizes for future growth.

2 min

Restaurant industry pushes back against new link between cancer and alcohol consumption

🍻 On Jan. 5, U.S. Surgeon General Vivek Murthy linked alcohol consumption to increased cancer risk, advocating cancer warnings on alcohol bottles. A report by the ICCPUD supports moderate drinking, 6-9 drinks per week, increases cancer and alcohol-related death risks. Murthy highlighted alcohol as a preventable cause of cancer, with 100,000 cases and 20,000 deaths annually in the U.S. The restaurant industry rebuked these findings, citing bias and conflict of interest. The National Restaurant Association and similar groups protested. Last month, a NASEM report associated moderate alcohol with lower mortality and cardiovascular disease risks. Public comments on these studies will inform the next "Dietary Guidelines for Americans.

2 min

Call Your Mother receives investment from private equity firm behind CAVA’s growth

💰 Washington, D.C.-based deli Call Your Mother partnered with Invus through Artal Group for an undisclosed investment to expand its footprint. The company maintains leadership with cofounders CEO Andrew Dana and executive chef Daniela Moreira, featured in NRN's Power List in 2022. Call Your Mother operates 17 locations offering Jewish deli classics with a modern twist. Plans include a new commissary in D.C., technology upgrades, an app, and expansion to a third market. Invus previously invested in CAVA Group in 2015 and partners with SeoulSpice and Hattie B's. Advisors for the deal were Harrington Park Advisors and Blank Rome for Call Your Mother, and Patterson Belknap and BDO for Invus.

2 min

Palisades and Eaton fires devastate the Los Angeles restaurant community

🔥 Wildfires in Los Angeles' Palisades and Eaton areas since Tuesday morning have burned over 27 square miles, claimed at least five lives, caused hundreds of thousands to evacuate, and destroyed several eateries, including Reel Inn, Cholada Thai Cuisine, Rosenthal Wine Bar & Patio, and a McDonald’s. Reel Inn, operating for 36 years, launched a GoFundMe for staff. Other closed restaurants listed on Eater include Rancho Bar, Side Pie, and Fox’s. The blaze is now LA’s deadliest fire, with expectations of a rising death toll.

2 min

California Restaurant Association sues to challenge ban on mandatory ‘captive audience’ meetings

📌 California sued by business organizations over Senate Bill 399, signed 3 months prior by Gov. Gavin Newsom, banning retaliation against employees who skip mandatory meetings on religious/political matters. The California Chamber of Commerce and California Restaurant Association argue the law infringes on First and Fourteenth Amendment rights. The National Labor Relations Board, in November, ruled such meetings violate labor law, overturning the 1948 Babcock & Wilson Co. precedent. Proponents argue SB 399 prevents intimidation during unionization. Labor advocates fear President Trump's administration may reverse labor protections.

1 min

Look Who’s Franchising Now: Winter 2024 Edition

📖 Joanna Fantozzi, Senior Editor at Nation’s Restaurant News and Restaurant Hospitality since August 2021, previously held roles as Associate Editor (July 2019-August 2021) and Assistant Editor (October 2018-July 2019) for Informa’s Restaurants and Food Group. She freelanced from February to October 2018, reported for Insider between June 2017 and February 2018, and edited for The Daily Meal from January 2014 to June 2017. Fantozzi has a bachelor's in English literature and creative writing and a master's in arts and culture journalism.

3 min

Grubhub to pay $25 million settlement after FTC investigation finds ‘unlawful practices’

📦 Grubhub to pay $25 million settlement after U.S. Federal Trade Commission and Illinois Attorney General investigation into deceiving consumers on delivery fees, misleading drivers on pay, and listing restaurants without consent. Must now fully disclose delivery costs to customers, advertise driver pay transparently, and get restaurant consent for listings. FTC Chair Lina M. Khan says the action ends illegal practices and secures compensation for those affected. Settlement follows President Biden's fall 2023 crackdown on junk fees. Grubhub denies allegations but agrees to comply.

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