WASHINGTON —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
Meanwhile, as industry lobbyists acknowledged that President-elect Barack Obama will have his hands full with the troubled U.S. economy in the early stages of his new administration, they are concerned that business-unfriendly issues also could emerge during his first 100 days in office. —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
Obama’s plan to rescue the middle class—a much-touted centerpiece of his platform—could encompass such critical industry issues as union card check, said David French, vice president of government relations for the International Franchise Association. In addition to the much-feared card-check method of rapid unionization, a minimum-wage hike, paid sick leave and a national health care program with employer mandates also could be introduced under the plan’s umbrella, he said. —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
However, French added, “the reality is, nobody knows for sure what’s next.” —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
Scott Vinson, director of government relations for the National Council of Chain Restaurants, agreed, observing: “The interesting thing about Obama is that he is something of a blank slate even though he has a liberal voting record. As a campaigner he showed he can be very pragmatic and shift position when politically necessary.” —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
In fact, the president-elect vowed in a recent policy speech about implementing a middle-class rescue plan that his new administration also would “address the spreading impact of the financial crisis on the other sectors of our economy—small businesses that are struggling to meet their payrolls and finance their holiday inventories.” —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
And while many in the industry are hopeful the new president will pursue a business-friendly agenda when he takes office Jan. 20, they also are counting on the influence of congressional members with restaurant or hotel experience. Of the 28 incumbent or first-time candidates with some form of connection to the foodservice or hospitality industries that ran for federal office, 22 won. —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
The 111th Congress will include such industry-backed senators as former Virginia Gov. Mark Warner, a Democrat who is co-owner of the Majestic Café in Alexandria; and Roger Wicker, R-Miss., whose wife is a hotelier and whose father ran the Mississippi Restaurant Association. Wicker won re-election. —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
Ned Monroe, the National Restaurant Association’s vice president of political affairs, said one of the bigger wins for the industry was the election to the House of Representatives of Parker Griffith, D-Ala., who previously owned a chain of restaurants called The Mill Bakery in Alabama and Florida. —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
Also winning re-election to the House were three Republican incumbents from Florida: Ginny Brown-Waite, a former Mr. Donut franchisee; Connie Mack IV, a former Hooters consultant; and Cliff Stearns, who owned five hotels and three restaurants. In California, two former restaurateurs, Reps. Kevin McCarthy and Dennis Cardoza, Republican and Democrat, respectively, won re-election. —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
Other restaurant operators returning to Capitol Hill include Reps. John Yarmouth, D-Ken., a co-owner of Sonny’s BBQ chain, and Dan Boren, D-Okla., co-owner of two Roly Poly outlets. —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
In Louisiana, John Fleming, a doctor who owns Subway and Dairy Queen franchises, won his Republican Party runoff in Louisiana’s 4th Congressional District. He will move on to the general election Dec. 6. —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
The foodservice industry also could find a politically powerful friend in legendary investor and businessman Warren Buffet. The Obama economics adviser, who has been seen by some as a potential pick to head the Treasury Department, is chief executive of Berkshire Hathaway Inc., which owns International Dairy Queen. —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
The industry sustained some losses in the election, too. One of the biggest disappointments was the defeat of New Mexico rancher Ed Tinsley in the state’s 2nd Congressional District. Tinsley, a former chairman of the NRA and franchisor of the K-Bob’s Steak-house chain, had generated considerable support from within the restaurant industry, with the NRA alone contributing more than $200,000 to his campaign. —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
“Clearly, we would have loved to see Ed elected to Congress,” Monroe said. —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
“It was a bad year to be a Republican,” Vinson acknowledged. —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
Jay Love, a Subway area developer in Alabama, and Robert Straniere, the New Jersey-based founder of The New York City Hot Dog Co., both Republicans, also were defeated in their home states. —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
But while the industry logged some defeats, Monroe said overall the NRA PAC had a good election cycle. It donated some $1.4 million to 182 different federal candidates and reported a success rate of 78 percent. —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
In the meantime, industry lobbyists are gearing up to work with a Democratic White House and a newly solidified Democratic majority in the House and Senate. While Obama certainly is expected to address the global economic meltdown in the early days of his administration, French predicts he also will characterize his presidential victory as a call to action to protect the middle class. —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
As a result, it is anticipated that he will push for the passage of a middle-class rescue plan that could embrace a wide range of business-related issues, including union card check, a hike in the federal minimum wage with future increases indexed to inflation, paid sick leave, and a plan for national health care reform with employer mandates. —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
While Washington insiders debate which issues are likely to come up, and which ones can be afforded by a government strapped for cash, French said: “Card check is almost certain to be on the agenda. Our source in the House says proponents want to bring it up before the end of January.” —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
Also known as the Employee Free Choice Act, the measure, which many believe would help organized labor step up unionizing efforts by ending private-ballot elections, was passed by the House of Representatives in 2007 by a vote of 241 to 185. It failed to pass in the Senate, though, where it won only 51 of the 60 votes needed. —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
One bright spot in the upcoming card-check debate, Vinson pointed out, was the Democrats’ inability to win a filibuster-proof majority in the Senate. —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
Industry observers also are monitoring other planks of the Obama platform that could impact business. In addition to seeking legislation that would help buoy the middle class, Obama, during his campaign, also touted his recovery plan to help small businesses. As part of the plan, Obama proposed that employers be given a $3,000 tax credit for each new full-time employee hired by a small business over the next two years. —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
In addition, he proposed eliminating capital gains taxes on investments in small businesses. The program would grant operators a write-off of up to $250,000 on the investments made through next year. —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
Others also maintain that Obama’s promise to cut taxes for families making less than $250,000 a year will help to spur an increase in restaurant traffic. In an earlier interview, Daniel Halpern, chief executive and president of Atlanta-based Jackmont Hospitality Inc, the operator of 10 T.G.I. Friday’s locations, said: “If I’m trying to grow my business, I need middle-class customers, and Obama is better to grow the middle class.” —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
But while foodservice operators may express concern about the direction the new White House will take, most, nevertheless, are hanging on to their optimism. “Although restaurateurs may be concerned with some of Obama’s economic plans, [it is] an industry wired for constant change,” said Carrie Leishman, president and chief executive of the Delaware Restaurant Association. “The restaurant industry never looks backwards, and I believe they are hopeful that our new president will bring fresh ideas to help our struggling economy.” —The restaurant community celebrated some wins and lamented some losses as voters weighed in Nov. 4 on the fates of a record number of congressional candidates with ties to the foodservice and hospitality industries.
