Latest news with #NationalRestaurantAssociation
Yahoo
7 days ago
- Business
- Yahoo
Menu prices increase for the fifth straight month
You can find original article here Nrn. Subscribe to our free daily Nrn newsletter. Federal data released Tuesday morning from the Bureau of Labor Statistics shows that inflation accelerated to 2.7% on an annual basis in June, and is up 0.3% versus May, marking the fastest monthly jump since January. The monthly overall food index increased 0.3%, matching May's increase. Grocery prices rose 0.3%, also matching May's increase, with coffee, beef, and fruits and vegetables ticking up. On an unadjusted 12-month basis, grocery prices are up 2.4%, under-pacing overall inflation, as well as menu prices. Those menu prices rose 0.4% in June, marking an increase for the fifth straight month. On a 12-month basis, menu prices are up 3.8%, driven largely by the full-service category, which was up 0.5% in June. Limited-service meals, meanwhile, were up 0.2%, the slowest rate of increase in three months. The index for full-service meals rose 4% year-over-year, while limited-service meals are up 3.5% over the same period. While menu inflation remains stubbornly high, it remains well below the 8.8% peak from March 2023, according to the National Restaurant Association. Regionally, the West posted the fastest menu price growth in June, with a 4.1% year-over-year increase, followed by the South, with 3.9% growth, according to the association. Menu prices increased 3.5% year-over-year in the Northeast, and 3.7% in the Midwest. Notably, June marked the 27th month in a row in which restaurant prices outpaced grocery prices, according to Kalinowski Equity Research. However, the gap between restaurant inflation and grocery inflation decreased by 20 basis points in June and is now 140 basis points in favor of grocery stores. Kalinowski notes that this is double the historical gap between the two categories, likely weighing on restaurant sales throughout the past year and with little relief expected throughout the duration of 2025. 'On an absolute basis, the +3.8% year-over-year increase for restaurant pricing is plus-40 basis points higher than the 23-year historical average of +3.4%,' president and CEO Mark Kalinowski wrote in a note. 'Compared to the last 1 to 3 years, inflation is gradually becoming less of a problem for the U.S. restaurant industry as a whole. So, while the current dynamic isn't favorable for restaurants, it isn't the largest challenge facing the restaurant industry and its sales trends, either.' Contact Alicia Kelso at
Yahoo
15-07-2025
- Business
- Yahoo
Menu prices increase for the fifth straight month
You can find original article here Nrn. Subscribe to our free daily Nrn newsletter. Federal data released Tuesday morning from the Bureau of Labor Statistics shows that inflation accelerated to 2.7% on an annual basis in June, and is up 0.3% versus May, marking the fastest monthly jump since January. The monthly overall food index increased 0.3%, matching May's increase. Grocery prices rose 0.3%, also matching May's increase, with coffee, beef, and fruits and vegetables ticking up. On an unadjusted 12-month basis, grocery prices are up 2.4%, under-pacing overall inflation, as well as menu prices. Those menu prices rose 0.4% in June, marking an increase for the fifth straight month. On a 12-month basis, menu prices are up 3.8%, driven largely by the full-service category, which was up 0.5% in June. Limited-service meals, meanwhile, were up 0.2%, the slowest rate of increase in three months. The index for full-service meals rose 4% year-over-year, while limited-service meals are up 3.5% over the same period. While menu inflation remains stubbornly high, it remains well below the 8.8% peak from March 2023, according to the National Restaurant Association. Regionally, the West posted the fastest menu price growth in June, with a 4.1% year-over-year increase, followed by the South, with 3.9% growth, according to the association. Menu prices increased 3.5% year-over-year in the Northeast, and 3.7% in the Midwest. Notably, June marked the 27th month in a row in which restaurant prices outpaced grocery prices, according to Kalinowski Equity Research. However, the gap between restaurant inflation and grocery inflation decreased by 20 basis points in June and is now 140 basis points in favor of grocery stores. Kalinowski notes that this is double the historical gap between the two categories, likely weighing on restaurant sales throughout the past year and with little relief expected throughout the duration of 2025. 'On an absolute basis, the +3.8% year-over-year increase for restaurant pricing is plus-40 basis points higher than the 23-year historical average of +3.4%,' president and CEO Mark Kalinowski wrote in a note. 'Compared to the last 1 to 3 years, inflation is gradually becoming less of a problem for the U.S. restaurant industry as a whole. So, while the current dynamic isn't favorable for restaurants, it isn't the largest challenge facing the restaurant industry and its sales trends, either.' Contact Alicia Kelso at
Los Angeles Times
11-07-2025
- Business
- Los Angeles Times
What to know -- and what isn't known yet -- about tax deductions for tips and overtime pay
Millions of U.S. workers who earn tips and overtime pay may be eligible for a federal tax break when they file their 2025 income taxes next year. But which workers will qualify for the new deductions is among the details the government has to work out after President Donald Trump's signature spending and policy package won final congressional approval. Under the bill Trump signed into law on July 4, the U.S. Treasury Department must publish a list by Oct. 2 of occupations that qualify for tax-free tips. The department is also expected to publish guidance on how to report tips and overtime pay, and what documentation will be required. The deduction provisions are not permanent but were written to expire after the 2028 tax year. Overtime pay isn't currently separated out on an employee's W-2 tax form, for example, but employers generally keep track of it and itemize it on employees' pay stubs, said Miguel Burgos, a certified public accountant with TurboTax. Employers should continue to withhold taxes while waiting for guidance, Burgos said. The bill doesn't apply to state and local taxes or to federal payroll taxes, which help fund Social Security and Medicare. Here's what we know about tax-free tips and overtime: The bill says eligible workers are those who already regularly received tips before December 2024. In the restaurant industry alone, there are 2.1 million tipped servers and bartenders, according to the National Restaurant Association. Barbers, hairdressers, nail technicians and delivery drivers are also expected to be included. Workers must include a Social Security number when they file their taxes to be eligible, and a spouse's Social Security number if they're married and filing jointly. Workers will be able to deduct up to $25,000 in tips if they make less than $150,000 (or $300,000 if they're married and filing jointly). The amount workers can deduct is reduced by $100 for every $1,000 they make over $150,000. The change will not affect around 40% of tipped workers since they already pay little to no income tax, according to the nonpartisan Tax Policy Center. The other 60% of tipped workers are expected to see an average tax cut of $1,800 per year. Both cash tips and credit cards are included. Tips pooled together and then distributed to a restaurant's employees are also included, although servers may be less inclined to participate in tip pooling now that they are eligible for a tax deduction. Service charges – such as an automatic gratuity for a large party – aren't included because the bill makes clear that eligible tips must be 'paid voluntarily.' The Budget Lab at Yale estimates that 8% of U.S. hourly workers and 4% of salaried workers are regularly paid overtime under the Fair Labor Standards Act, which requires overtime pay of at least time and a half once employees have worked 40 hours in a week. People working in many jobs, including clergy, teachers and executives, are exempt from federal overtime rules. Workers can deduct up to $12,500 in overtime (or up to $25,000 in a joint return). Like the tip measure, the amount workers can deduct is reduced if they make more than $150,000. And they must include a Social Security number when they file. The average worker is expected to see a tax cut of between $1,400 and $1,750 per year, according to the White House Council of Economic Advisers. According to an analysis by the nonpartisan Joint Committee on Taxation, tax-free tips would reduce federal revenue by $31 billion between the 2026 and 2029 fiscal years, while tax-free overtime would reduce federal revenue by $90 billion during the same period. Durbin writes for the Associated Press.
10-07-2025
- Business
What to know -- and what isn't known yet -- about US tax deductions for tips and overtime pay
Millions of U.S. workers who earn tips and overtime pay may be eligible for a federal tax break when they file their 2025 income taxes next year. But which workers will qualify for the new deductions is among the details the government has to work out after President Donald Trump's signature spending and policy package won final congressional approval. Under the bill Trump signed into law on July 4, the U.S. Treasury Department must publish a list by Oct. 2 of occupations that qualify for tax-free tips. The department is also expected to publish guidance on how to report tips and overtime pay, and what documentation will be required. The deduction provisions are not permanent but were written to expire after the 2028 tax year. Overtime pay isn't currently separated out on an employee's W-2 tax form, for example, but employers generally keep track of it and itemize it on employees' pay stubs, said Miguel Burgos, a certified public accountant with TurboTax. Employers should continue to withhold taxes while waiting for guidance, Burgos said. The bill doesn't apply to state and local taxes or to federal payroll taxes, which help fund Social Security and Medicare. Here's what we know about tax-free tips and overtime: The bill says eligible workers are those who already regularly received tips before December 2024. In the restaurant industry alone, there are 2.1 million tipped servers and bartenders, according to the National Restaurant Association. Barbers, hairdressers, nail technicians and delivery drivers are also expected to be included. Workers must include a Social Security number when they file their taxes to be eligible, and a spouse's Social Security number if they're married and filing jointly. Workers will be able to deduct up to $25,000 in tips if they make less than $150,000 (or $300,000 if they're married and filing jointly). The amount workers can deduct is reduced by $100 for every $1,000 they make over $150,000. The change will not affect around 40% of tipped workers since they already pay little to no income tax, according to the nonpartisan Tax Policy Center. The other 60% of tipped workers are expected to see an average tax cut of $1,800 per year. Both cash tips and credit cards are included. Tips pooled together and then distributed to a restaurant's employees are also included, although servers may be less inclined to participate in tip pooling now that they are eligible for a tax deduction. Service charges – such as an automatic gratuity for a large party – aren't included because the bill makes clear that eligible tips must be 'paid voluntarily.' The Budget Lab at Yale estimates that 8% of U.S. hourly workers and 4% of salaried workers are regularly paid overtime under the Fair Labor Standards Act, which requires overtime pay of at least time and a half once employees have worked 40 hours in a week. People working in many jobs, including clergy, teachers and executives, are exempt from federal overtime rules. Workers can deduct up to $12,500 in overtime (or up to $25,000 in a joint return). Like the tip measure, the amount workers can deduct is reduced if they make more than $150,000. And they must include a Social Security number when they file. The average worker is expected to see a tax cut of between $1,400 and $1,750 per year, according to the White House Council of Economic Advisers. According to an analysis by the nonpartisan Joint Committee on Taxation, tax-free tips would reduce federal revenue by $31 billion between the 2026 and 2029 fiscal years, while tax-free overtime would reduce federal revenue by $90 billion during the same period.
Chicago Tribune
10-07-2025
- Business
- Chicago Tribune
What to know — and what isn't known yet — about US tax deductions for tips and overtime pay
Millions of U.S. workers who earn tips and overtime pay may be eligible for a federal tax break when they file their 2025 income taxes next year. But which workers will qualify for the new deductions is among the details the government has to work out after President Donald Trump's signature spending and policy package won final congressional approval. Under the bill Trump signed into law on July 4, the U.S. Treasury Department must publish a list by Oct. 2 of occupations that qualify for tax-free tips. The department is also expected to publish guidance on how to report tips and overtime pay, and what documentation will be required. The deduction provisions are not permanent but were written to expire after the 2028 tax year. Overtime pay isn't currently separated out on an employee's W-2 tax form, for example, but employers generally keep track of it and itemize it on employees' pay stubs, said Miguel Burgos, a certified public accountant with TurboTax. Employers should continue to withhold taxes while waiting for guidance, Burgos said. The bill doesn't apply to state and local taxes or to federal payroll taxes, which help fund Social Security and Medicare. Here's what we know about tax-free tips and overtime: The bill says eligible workers are those who already regularly received tips before December 2024. In the restaurant industry alone, there are 2.1 million tipped servers and bartenders, according to the National Restaurant Association. Barbers, hairdressers, nail technicians and delivery drivers are also expected to be included. Workers must include a Social Security number when they file their taxes to be eligible, and a spouse's Social Security number if they're married and filing jointly. Workers will be able to deduct up to $25,000 in tips if they make less than $150,000 (or $300,000 if they're married and filing jointly). The amount workers can deduct is reduced by $100 for every $1,000 they make over $150,000. The change will not affect around 40% of tipped workers since they already pay little to no income tax, according to the nonpartisan Tax Policy Center. The other 60% of tipped workers are expected to see an average tax cut of $1,800 per year. Both cash tips and credit cards are included. Tips pooled together and then distributed to a restaurant's employees are also included, although servers may be less inclined to participate in tip pooling now that they are eligible for a tax deduction. Service charges – such as an automatic gratuity for a large party – aren't included because the bill makes clear that eligible tips must be 'paid voluntarily.' The Budget Lab at Yale estimates that 8% of U.S. hourly workers and 4% of salaried workers are regularly paid overtime under the Fair Labor Standards Act, which requires overtime pay of at least time and a half once employees have worked 40 hours in a week. People working in many jobs, including clergy, teachers and executives, are exempt from federal overtime rules. Workers can deduct up to $12,500 in overtime (or up to $25,000 in a joint return). Like the tip measure, the amount workers can deduct is reduced if they make more than $150,000. And they must include a Social Security number when they file. The average worker is expected to see a tax cut of between $1,400 and $1,750 per year, according to the White House Council of Economic Advisers. According to an analysis by the nonpartisan Joint Committee on Taxation, tax-free tips would reduce federal revenue by $31 billion between the 2026 and 2029 fiscal years, while tax-free overtime would reduce federal revenue by $90 billion during the same period.
