Thomas Keller Group Settles EEOC Case for $2 Million
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
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
Craveworthy taps master franchisee Unisan Bowls to launch Genghis Grill and Dirty Dough in India, targeting Hyderabad first amid tight U.S. financing.
Jul 17, 2026
Buffalo Wild Wings launches Poppin’ Ranch, a 99-cent popping-candy ranch add-on, designed to spark sensory buzz and impulse trials ahead of Wing Day.
Jul 17, 2026
Wonder closed a $650M Series D at a $9B valuation to expand locations and invest in robotics, AI, and delivery tech, accelerating its automation-first restaurant model.
Jul 17, 2026
Understand sports bar startup expenses, including location, construction, kitchen equipment, televisions, licenses, insurance, staffing, supplies, and cash reserves for operations.
Jul 16, 2026
Learn how to increase restaurant sales during the World Cup final through smarter planning, staffing, promotions, inventory, menus, and operations.
Jul 16, 2026
Mother-daughter duo Ciara Boyce and Tracey Pidge bring Hotworx to Wasilla, the first of four Alaska studios, extending a fast-growing 800+ location brand.
Jul 16, 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.