Wingstop’s Expansion Runs Hot as Comps Cool
Wingstop adds 382 U.S. units to 3,056 total as comps dip; 2026 outlook hinges on loyalty, Smart Kitchen, and category tailwinds.
Jul 20, 2026
Wingstop adds 382 U.S. units to 3,056 total as comps dip; 2026 outlook hinges on loyalty, Smart Kitchen, and category tailwinds.
Jul 20, 2026
Topgolf Media Networks turns 100+ venues into an ad platform with 42M visits and 28,000 screens, tapping retail media tactics for measurable brand activations.
Jul 20, 2026
Domino’s leverages rising order volumes to boost revenue and market share despite industry challenges in Q2 2026, offering key lessons for restaurant owners.
Jul 20, 2026
Discover how Fresh off the Boat in Santa Ana has built a thriving, health-focused Mexican-Mediterranean fusion restaurant. Explore operational insights, business strategies, and the customer experience that set this unique concept apart.
Jul 20, 2026
If your restaurant is busy but profits feel thin, food cost is usually the first place to look. Not because it is always the problem, but because it is the most controllable variable in your P&L.
Jul 20, 2026
Burger King launches its “Your Way Champion” managerial role, focusing on guest experience, order customization, and staff engagement. Restaurant operators can glean insights for elevating hospitality in their own venues.
Jul 20, 2026
Thomas Keller Restaurant Group will pay $2M to settle an EEOC harassment and retaliation case tied to Bouchon Las Vegas, closing a long-running action from 2018.
Jul 19, 2026
Fresh Kitchen names Bill Knopf and Matt Livingston to lead operations and development as the clean-label bowl brand targets growth beyond 100 locations.
Jul 18, 2026
Hardee’s franchisee Superior Star filed Chapter 11 after a 2023 deal revealed unpaid taxes, costly repairs, and lease burdens; plans to reject leases and refocus.
Jul 18, 2026
Cinnabon posted a net gain of 308 U.S. units in 2025 and launched Seattle’s Best Coffee in 2026 to boost beverage mix, margins, and franchise-driven expansion.
Jul 18, 2026
Explore the implications of recent tax code changes on restaurant operations, focusing on service charges, gratuity-based income, and potential effects on minimum wage and economic growth.
Photo by Alexander London
The differentiation between service charges and tips has been a contentious issue in the restaurant industry. While tips are generally considered voluntary payments made by customers to service staff, service charges are often automatically added to the bill by the establishment. Recent tax code changes have brought this demarcation into focus, with debates arising on the fairness of excluding service charges from certain tax exemptions.
Erika Polmar's assertion regarding the impact of not counting service charges on line cooks, dishwashers, porters, and prep staff sheds light on the potential disparities created by the new tax provisions. In many cases, these behind-the-scenes workers are vital to the functioning of independent restaurants, yet they may not receive the same tax relief as front-of-house staff who rely heavily on tips for income.
The warning issued by the IRC about employers incentivizing tip prompting and worker reclassification to evade minimum wage requirements underscores the complexity of the new tax laws. By potentially shifting the burden of compensation onto customer gratuities, there is a fear that some workers may face reduced wages or altered employment classifications.
The broader economic impact of the tax code modifications cannot be ignored. With the enforcement expansion and potential rise in deportations of undocumented workers, industries like restaurants could witness a significant disruption in their workforce. This shift might not only affect operational efficiency but could also have repercussions on economic growth, as highlighted by the Economic Policy Institute.
The ongoing legislative process in the House of Representatives offers a window for potential revisions that could address some of the concerns raised by industry stakeholders. Restaurant operators may need to strategize and adapt to mitigate the possible adverse effects of the tax code changes. This could involve reevaluating business models, employee compensation structures, and compliance mechanisms to navigate the evolving regulatory landscape.