Why trade, swipe fees are NRA’s political priorities for restaurants
NRA prioritizes swipe fee reform as restaurants face rising costs and tight margins.
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The National Restaurant Association is focusing on political issues such as the U.S.-Mexico-Canada Agreement and swipe fee reform. These efforts aim to alleviate financial pressures on restaurants due to rising operation costs, with swipe fees being a significant burden on operators.
Why It Matters
Understanding these regulatory issues may influence multi-unit operators' decisions on cost management and pricing strategies as they navigate tight margins and competitive pressures.
The National Restaurant Association (NRA) is focusing on key political priorities that affect the restaurant industry, particularly concerning trade agreements and swipe fees, as discussed by Sean Kennedy, the NRA's chief advocacy officer. With climbing consumer price sensitivity and rising energy costs, the NRA aims to manage these burdens to prevent restaurants from operating on low margins.
A primary concern for the NRA is the upcoming reconsideration of the U.S.-Mexico-Canada Agreement (USMCA) in July. The agreement is crucial for the restaurant sector as it facilitates essential imports of food products, such as tomatoes, avocados, and coffee, from Canada and Mexico. Kennedy emphasized the need for the administration to maintain the current trade arrangements without adding tariffs to protect input costs for restaurants and mitigate inflation.
In addition to trade issues, the NRA is advocating for swipe fee reform, which has emerged as one of the highest operating costs for restaurants, trailing only behind food and labor expenses. Swipe fees have reportedly doubled in the last decade, making them a significant financial strain on U.S. restaurants, which face the highest fees among industrialized nations due to the dominance of Visa and Mastercard in the credit card processing market. Kennedy stated, “We are calling for common sense legislation that does not regulate credit card companies—we support open markets.”
