By Dale J. Venturini
President/CEO, Rhode Island Hospitality Association
There are a lot of good ideas out there that turn out to be not quite as good as they first seemed. Take the menu labeling law under consideration in Rhode Island; it has good intentions, but in reality, it would be needlessly confusing for customers and costly for small Rhode Island entrepreneurs.
The bill would mandate posting food calorie counts on all menus, menu boards, and drive-thrus for any restaurant that is part of a chain with 15 or more locations nationally. On the surface, that doesn’t sound ridiculous, right?
Well, put yourself in the position of a consumer stopping in at a small chain restaurant owned by a local entrepreneur. Our guest could be coming from Boston or Miami or even Tuscaloosa. Rhode Island’s unique labels may mean little – or worse, actually cause confusion – in that case. So there’s limited value customers will receive.
And now imagine, for a moment, putting yourself in the shoes of a Rhode Islander who saved up to start his or her own small franchise that is part of a national brand. They may only have one or two locations, but are now subject to a law essentially designed for major companies. Consider the experience of one New Jersey franchisee, who consulted a nutrition expert and estimated it could cost around $1 million to comply with the law and generate nutrition labeling for the 63 core items on his menu.
In short, our local franchisees will incur major costs, even though that is clearly not the intention of our elected officials. Good intentions or not, though, the impact to restaurant franchisees will be immense, given that approximately 29% of all restaurants are owned by franchisees (and that number jumps to more than 50% for the quick-service segment).
These economic concerns are heightened by the important role in that restaurants play in our State’s economy. Restaurants and foodservice companies are expected to employ 52,000 Rhode Islanders this year, which represents 11% of the State’s total employment. Now is not the time to target our State’s restaurants for costly new laws that could impair the ability to keep or grow jobs.
These problems, however, should not be construed as a roadblock to expanded menu labeling; rather, consider them a roadmap for a better route to informing consumers.
Instead of relying on a patchwork of State-based laws, which will drive up costs for our local businesses and further confuse customers who are looking for further nutrition labeling, Congress is already considering a federal law that would provide clear rules for restaurants nationwide.
Even better, the plan is already supported by businesses that know which regulations will best help consumers and keep local establishments competitive. Last October, more than 30 companies and associations that represent restaurant owners and franchisees, manufacturers, distributors, suppliers, business organizations and health organizations launched the Coalition for Responsible Nutrition Information. It supports federal legislation, known as the Labeling Education and Nutrition (LEAN) ACT, that would provide consumers in all 50 states with detailed nutrition information in chain restaurants and other foodservice establishments using a uniform, national standard.
The LEAN act is based on the Nutrition Labeling Education Act (NLEA). Just like the NLEA was enacted almost 20 years ago to meet consumers’ need for nutrition information on packaged foods and beverages, expanding NLEA to include food sold by chain food service establishments will give consumers what they want: more detailed nutrition information when they want it no matter where they are in the country.
The good news on menu labeling is that customers already have access to a wealth of information and federal officials are looking at ways to further expand these options. We should not let the good intentions of our local leaders to unintentionally harm our local entrepreneurs and job creators.
The bill would mandate posting food calorie counts on all menus, menu boards, and drive-thrus for any restaurant that is part of a chain with 15 or more locations nationally. On the surface, that doesn’t sound ridiculous, right?
Well, put yourself in the position of a consumer stopping in at a small chain restaurant owned by a local entrepreneur. Our guest could be coming from Boston or Miami or even Tuscaloosa. Rhode Island’s unique labels may mean little – or worse, actually cause confusion – in that case. So there’s limited value customers will receive.
And now imagine, for a moment, putting yourself in the shoes of a Rhode Islander who saved up to start his or her own small franchise that is part of a national brand. They may only have one or two locations, but are now subject to a law essentially designed for major companies. Consider the experience of one New Jersey franchisee, who consulted a nutrition expert and estimated it could cost around $1 million to comply with the law and generate nutrition labeling for the 63 core items on his menu.
In short, our local franchisees will incur major costs, even though that is clearly not the intention of our elected officials. Good intentions or not, though, the impact to restaurant franchisees will be immense, given that approximately 29% of all restaurants are owned by franchisees (and that number jumps to more than 50% for the quick-service segment).
These economic concerns are heightened by the important role in that restaurants play in our State’s economy. Restaurants and foodservice companies are expected to employ 52,000 Rhode Islanders this year, which represents 11% of the State’s total employment. Now is not the time to target our State’s restaurants for costly new laws that could impair the ability to keep or grow jobs.
These problems, however, should not be construed as a roadblock to expanded menu labeling; rather, consider them a roadmap for a better route to informing consumers.
Instead of relying on a patchwork of State-based laws, which will drive up costs for our local businesses and further confuse customers who are looking for further nutrition labeling, Congress is already considering a federal law that would provide clear rules for restaurants nationwide.
Even better, the plan is already supported by businesses that know which regulations will best help consumers and keep local establishments competitive. Last October, more than 30 companies and associations that represent restaurant owners and franchisees, manufacturers, distributors, suppliers, business organizations and health organizations launched the Coalition for Responsible Nutrition Information. It supports federal legislation, known as the Labeling Education and Nutrition (LEAN) ACT, that would provide consumers in all 50 states with detailed nutrition information in chain restaurants and other foodservice establishments using a uniform, national standard.
The LEAN act is based on the Nutrition Labeling Education Act (NLEA). Just like the NLEA was enacted almost 20 years ago to meet consumers’ need for nutrition information on packaged foods and beverages, expanding NLEA to include food sold by chain food service establishments will give consumers what they want: more detailed nutrition information when they want it no matter where they are in the country.
The good news on menu labeling is that customers already have access to a wealth of information and federal officials are looking at ways to further expand these options. We should not let the good intentions of our local leaders to unintentionally harm our local entrepreneurs and job creators.
