Restaurant Execs Explain the Disastrous Economic Environment: "Government [is] the greatest single threat we have"

Restaurant News Magazine explains why the industry is shrinking despite a growing population. Restaurant owners are afraid to hire, unwilling to invest, and incapable of expanding because they are terrified of what Democrats -- at every level of government -- will do next.

The increase of government legislation targeting the foodservice industry, on the federal, state and local levels, is one of the largest challenges restaurateurs face, industry executives and operators said Monday during the International Restaurant & Foodservice Show of New York.

Jon Luther, chairman of Canton, Mass.-based Dunkin Brands Inc., the parent to Dunkin Donuts and Baskin-Robbins, said the intrusion of government through such proposed legislative measures as menu labeling, card check and health care reform, would have the most profound effect on the industry’s future cost of doing business.

“Government, that’s the greatest single threat we have,” Luther said Monday during a panel discussion at the New York State Restaurant Association’s trade show. "Every time something happens, it affects the bottom line... The venerable CEO of Coca-Cola... was once asked why [the company had] a huge government relations office overlooking the White House. He said, ‘government could put me out of business.’"

Rick Sampson, chief executive of the New York State Restaurant Association, also weighed in on the subject of increased legislation during a presentation on environmentally friendly restaurant initiatives within the New York restaurant community... “It’s coming,” he said. “We’re already starting to see [mandated] deposits and sales tax on bottled water. You will be paying higher taxes, fees and on and on. The last thing we want is mandates on how to run our business.”

He suggested that restaurants that work to initiate green programs now will get ahead of the legislation curve, as well as manage to do something good for the environment... [and] initiating green practices before many become law is the smartest way to circumvent future problems.

“California is legislating left and right,” he said. “The question is, do you want to [make changes] now when you can or wait until 2013 when you have to do it? I don’t know of any restaurant [company] that wants to be mandated to by government.”

Here's another idea: keep government out of the restaurant business and let the free market decide. But, in the case of California, I recommend that the state continue creating new regulations, agencies, boards, commissions, fees and taxes. It's been working out so well for them thus far.