​What are the opportunities and challenges that will shape the restaurant industry in 2026? Please take a few minutes to provide your input as part of the National Restaurant Association's annual Restaurant Business Conditions Survey.

Your participation is critical! This vital information will be used to show policy makers how current business conditions are impacting the restaurant industry.

How the IRS is going to implement the tax deductions is quickly unfolding. There are now guidelines for which employees are eligible, a better understanding of how tip reporting could be impacted, and if the IRS is going to change withholding tables in 2026.

The National Restaurant Association held a one-hour webinar on October 15, where they unpacked the new IRS rules on No Tax on Tips and No Tax on Overtime.
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The recording of this webinar is available for Free.

Recently, the National Restaurant Association released the 2025 Restaurant Operations Data Abstract. Based on financial and operational data from more than 900 restaurants, the report includes a range of insights across key cost centers. These include food and beverage costs, salaries and wages, occupancy, utilities, marketing, and general operating expenses.  
 
The report is a valuable tool to help operators identify potential financial risks, sharpen performance strategies, and better understand how similar types of businesses are navigating today’s economic environment. It presents results by average check size, annual sales volume, restaurant location, and community size to provide a more tailored view of performance across different types of businesses operating throughout the United States. 

Operators can use this report to: 

• Compare performance with similar businesses by check size, sales volume, location, and community size 
• Identify financial risks and areas for cost control 
• Strengthen business strategies in today’s economic environment  

 
Key findings from the report include: 

• Full-service restaurants reported a median income before taxes of 2.8 percent of sales while limited-service restaurants reported a median income before taxes of 4.0 percent 
• Prime costs including food, beverage, and labor were a median of 65 cents of every sales dollar in the limited-service segment 
• Labor remains the largest single operating expense, with payroll and benefits representing a median of 36.5 percent of sales in the full-service segment 

 
The Abstract also includes the popular “Analyze Your Operation” worksheet, which allows users to compare their own income and expense figures against the data in the report. The tool helps operators identify emerging trends and make proactive adjustments. 
 
The 2025 Restaurant Operations Data Abstract is $99 for WRA restaurateur members and $199 for non-members. WRA restaurateur members wishing to access the report at the discounted rate, need to log into the National Restaurant Association Store. There’s a login link in the bar at the top. If you experience difficulties accessing the discounted rate, email [email protected] to request to be linked to your company's membership record. Download the webinar and receive 25% discount promo code.

Recently, President Trump issued an Executive Order imposing new tariff rates on goods from over 67 countries. The EO includes charts which show the new tariff rates of all countries. Countries not listed in Annex I will continue to face a baseline 10% tariff. The new tariffs will take effect on August 7, 2025. Goods already in transit before this time are exempt from the new rates. There is also a transshipment penalty, meaning that goods determined to be transshipped to evade tariffs will face an additional 40% tariff, along with other penalties.

Restaurant Impact and Engagement
The National Restaurant Association issued a press release, which emphasizes that while addressing trade deficits is a valid objective, food and beverage products are not major contributors and should be excluded from tariff negotiations. It urges the administration to exempt these items to protect small businesses, preserve jobs, and keep dining affordable for families. It also highlights that these tariffs are expected to further disrupt access to essential ingredients, increase costs, and place additional pressure on both operators and consumers.

Last week, the National Restaurant Association also sent a letter to the United States Trade Representative (USTR) expressing concerns about increased tariffs on our major trading partners and urging the administration to exempt food and beverage products from tariffs negotiations.

NEW TARIFF RATES
Canada & Mexico

• The Canadian tariff rate has increased from 25% to 35% starting August 1 (see Fact Sheet). Importantly, USMCA-compliant goods will remain exempt from the tariffs.
  
• Mexico has an additional 90-day pause as negotiations continue. USMCA compliant goods will remain exempt during this time. All other goods will remain under a 25% tariff.

European Union

• The US and EU reached a framework deal which will result in a 15% tariff starting on Aug. 1. European food, wine and spirits are not exempt, though we are advocating for an exemption of these products.

Brazil

• A 50% tariff on Brazilian goods will be effective Aug. 6 based on a new Executive Order. There were some exemptions for items such as aircraft and energy. However, beef and coffee were not included in the exemptions. The EO provides a "goods on the water" exception if an exporter can ship goods before August 6, they can avoid the 40% tariff if they arrive before October 5.

China

• US and Chinese officials recently agreed to seek an extension of their 90-day tariff truce. However, it will not be final until President Trump signs off on the plan. Deadline for that is August 12.

Other Key Countries

• United Kingdom -10% - trade deal
• Vietnam ­- 20% - trade deal
• Indonesia - 19% - trade deal
• South Korea – 15% - trade deal
• Japan – 15% - trade deal
• Philippines – 19% - trade deal
• India - 25%
• Thailand – 19%
• Taiwan – 20%
• Cambodia – 19%
• Costa Rica – 15%
• Ecuador – 15%
• Venezuela – 15%
• Nicaragua – 18%
• Myanmar – 40%
• Laos: 40%
• Iraq: 35%
• Switzerland: 39%
• Norway: 15%
• Syria: 41%

 
See the Executive Order for other countries. 
 
Questions? Contact us!

​Last week, the House passed tax legislation that includes policies that will strengthen the restaurant and foodservice industry, enabling restaurant owners and operators across the country to create jobs, invest in their businesses, and provide certainty for their local economies. The bill also includes President Trump’s signature No Tax on Tips and No Tax on Overtime provisions, which will provide additional tax deductions for tipped servers and bartenders, and hourly employees who earn overtime premium pay.
 
Key issues that restaurant operators, the State Restaurant Associations and the National Restaurant Association have been advocating for the past two years were all included and are permanent. The tax deductions on tips and overtime premium pay expire at the end of 2028.
 
The key provisions:

• Full expensing for capital equipment purchases: Operators will be able to meet payroll and other expenses while investing in capital equipment or refurbishing their dining rooms.
• 20% qualified business income (QBI) deduction: For the 77% of restaurants that are pass-through businesses, this will support investments in their operations and bring down their effective tax rate from 37% to 29.6%, creating parity with larger businesses.
• Business interest expense deduction: This restores depreciation and amortization to the calculation of interest payment deductibility, freeing up capital to pay off debt, expand, or make additional investments.
• Permanent family and medical leave tax credits: Supports operators who choose to offer paid family and medical leave.
• Estate tax relief: Prevents the often-overwhelming tax hurdles that force families to sell or close a restaurant rather than the next generation continuing to operate it.
• No Taxes on Tips and No Taxes on Overtime: This priority of President Trump’s includes a $25,000 tax deduction for servers and bartenders earning tips, and a $12,500 tax deduction of overtime premium pay for hourly earners. Both provisions will be available for workers from 2025 to 2028. 

​Now that the One Big, Beautiful Bill has passed, the National Restaurant Association will be working closely with the Administration as they develop guidance for putting these policies into action. At the same time, we’ll be creating clear, easy-to-use resources to help restaurants understand what these changes mean for their business and their team.

On occasion the Department of Revenue's Alcohol and Tobacco Enforcement Unit confiscates contraband alcohol beverages. The DOR is authorized to sell the confiscated product to the highest bidder. Many times, bottles sell well below wholesale price.

This sale consists of 4,142 bottles of Taxed Intoxicating Liquor.

Bids for the entire lot will be accepted from either a wholesale permittee or persons licensed to sell wine at retail (Class A or B Liquor License). Items within the lot may NOT be bid on separately.

Sealed bids may be sent via email with subject “SEALED BID” to [email protected]. Bids may also be mailed to S.A. Erin Dorn at 819 N. 6th St., Room 408, Milwaukee, WI 53203 no later than July 25, 2025. 

Bid opening at 9:00 am on July 29th, 2025.
Successful bidder must pick up product by August 22, 2025.

The US Senate held a procedural vote on Monday that begins Floor consideration of the GENIUS Act (S. 394)—legislation focused on regulating payment stablecoins. An agreement was reached to allow amendments, which will allow the Credit Card Competition Act (CCCA)—sponsored by Senators Roger Marshall (R-KS) and Dick Durbin (D-IL)—to be introduced as an amendment to the bill.

What is the CCCA?
The CCCA would increase competition in the credit card processing market to drive down exorbitant swipe fees, improve credit card security and innovation, and save US businesses and consumers more than an estimated $16 billion a year.

Interchange fees—set by just two dominant networks (Visa and Mastercard) that control over 80% of the market—have more than doubled in the past decade. Today, swipe fees are one of the highest operating costs for restaurants, behind food and labor.

This duopoly uses its market power to block alternative routing options, leaving businesses with no ability to negotiate the fees they must pay. Swipe fees now range from 2% to 4% of every transaction, making them the highest in the industrialized world. In 2024 alone, US businesses and consumers paid more than $187 billion in swipe fees, costing the average American family approximately $1,200.

The bipartisan, bicameral CCCA would require the nation’s largest banks to enable at least two credit card processing networks—one from the existing duopoly, and one from an alternative, independent network—to facilitate credit card payments.This would empower operators to choose between more secure and cost-effective networks when processing credit card transactions. This bill has been heavily opposed by the credit card companies and banking industries.

What’s Next?
The Wisconsin Restaurant Association, along with the National Restaurant Association and other state restaurant associations, have sent a letter to all US Senators encouraging them to support the CCCA amendment to the GENIUS Act. Watch the National Restaurant Association's 90-second video update here.

You can help make this change happen! Click here to reach out to Wisconsin's two US Senators to encourage their support.

Questions? Contact us!

Efforts to eliminate state and federal income taxes on tips are moving forward at both the state and federal level. Provisions to eliminate income taxes on tips are included in the House of Representatives budget reconciliation bill and earlier this week the Senate passed the No Tax on Tips bill authored by Senator Ted Cruz, R-Texas. On the state level, SB 36, a bill authored by Senator Andre Jacque and Representative Ron Tussler, to eliminate state income tax on tips had a hearing in Senate Agriculture and Revenue Committee.

Eliminating income taxes on tips would put cash back in the pocket of a significant number of workers in the restaurant and hospitality industry and could help restaurant operators recruit the industry workforce. A no tax on tips bill is sensible legislation that will support our employees.

What is in the two federal bills?
US Senate unanimously passed a bipartisan federal No Tax on Tips bill, which includes protections for both restaurants and employees relating to the FICA tip tax credit, as well as still requiring employee contributions to Social Security, unemployment insurance and Medicare. All tips would need to be reported, even though income tax would not be deducted.

This is a very important component for our industry. It is critical for employees to demonstrate income to build credit and pay into federal benefit programs through FICA contributions. The Senate passed bill’s “no tax” provision applies to the first $25,000 earned in tips and restaurant operators must continue working with the Internal Revenue Service (IRS) to accurately report tips through current compliance efforts. The FICA tip credit (Sec. 45B of the federal tax code) and federal tip pooling requirements do not change.

The current House reconciliation bill also has a “no tax on tips” provision, but it sunsets in 2028 and there is no income limit until a person earns more than $151,000.

Two key components of both federal bills relate to how tips are defined and what occupations can take advantage of exemption.  The US Treasury Department will determine the traditionally tipped industries, which will include restaurants and hospitality. Cash tips are defined to include all voluntary tips received from customers, including charged tips (for example, credit and debit card charges) and tips received from other employees under any tip-sharing arrangement. Service charges, which are not voluntary payments by customers, are currently not counted as tips and that will continue under both bills.

​How about the state bill?
SB 36 simply eliminates state income tax on tips, by striking the word "tips" in state statutes relating to income tax. The definition of tips is not the same as the federal bills and other provisions in the federal bill are not addressed. At the state committee hearing, the WRA testified in support of SB 36, but asked the committee to consider amendments to the bill to mirror the federal tax treatment in Wisconsin. Having two different tax treatments would overcomplicate payroll calculations and create problems for restaurant operators.

WRA will keep update this alert page as these bills move forward at the state and federal level.

The Wisconsin Restaurant Association's Top 20 Women in Hospitality to Watch program will recognize the creativity, leadership and contributions of women across all hospitality industry sectors and career levels. This award program is an opportunity to celebrate women and highlight role models. 
 
From front of house to back of house to supplier partners. Executives to entrepreneurs. Emerging leaders to experienced leaders. Eligibility is open to professionals employed across all segments of this vibrant and diverse hospitality industry including restaurants, coffee shops, hotels, event spaces, educators, suppliers and beyond.

Nominees can be self-nominated or nominated by someone else. The Top 20 Women in Hospitality to Watch is in conjunction with the Women in Hospitality Conference on October 20, 2025.

The submission deadline is August 1, 2025