Why It Matters

The National Restaurant Association is fighting on two fronts as Congress shapes the industry’s economic future. Tax policy expiration threatens the small business deduction that restaurants depend on, while tariffs and supply chain disruptions are pushing food costs higher while restaurants operate on razor-thin margins. Success means preserving the 20 percent small business deduction, protecting the new "No Tax on Tips" provision, and preventing tariffs from making food unaffordable for restaurants and their customers.

By the Numbers

The National Restaurant Association is a longtime Capitol Hill player with $57.7 million in lobbying spend across 78 filings since 2003.

For the last quarter of 2025, the Association retained Quill Advisers LLC for $50,000—continuing an engagement that began in June 2022. This modest external spend reflects strategic focus on two critical issues: federal tax policy extensions and trade tariffs on food products.

The Association’s lobbying team includes Michael K. McHugh, a former Legislative Assistant to a senior Senate Finance Committee member, and Joshua Taggart, who focuses on tax and trade matters.

Like competitor McDonald’s Corp., the Association is pursuing parallel advocacy on corporate tax reform and tariff impacts—signaling industry-wide alignment on these pressing issues.

The Agenda

The National Restaurant Association is lobbying on federal tax policy and trade policy. On taxes, they’re focused on extensions and changes related to the Tax Cuts and Jobs Act (TCJA) and the new reconciliation package. On trade, they’re addressing import tariffs on food products and supply chain disruptions.

The Association’s tax advocacy centers on preserving key TCJA provisions set to expire, particularly the 20% small business deduction and eliminating taxes on tips. On trade, they’re responding to congressional concern over tariffs and their impact on food costs, reflecting broader industry alignment with competitors like McDonald’s Corp.

Broader Context

Congress is actively debating TCJA extensions through a major reconciliation package. The House Ways and Means Committee held hearings in May 2025 on preventing tax hikes, while Senate Finance Committee Chairman Mike Crapo stated the reconciliation package includes tax policies to strengthen the restaurant industry. A bipartisan effort led by Senator Ted Cruz seeks to create "No Tax on Tips" to boost workers’ take-home pay.

Simultaneously, Congress is grappling with tariffs and supply chain disruptions. During a Senate Finance hearing on the Customs and Border Protection nominee, Senator Ron Wyden highlighted how border delays "can make or break small businesses" relying on imports. Senator Chuck Schumer met with Central New York restaurant owners to discuss negative tariff impacts.

Between The Lines

Members are championing restaurant-friendly provisions. Senate Finance Chairman Mike Crapo stated the reconciliation package includes policies to strengthen restaurants. Rep. Vern Buchanan and others are pushing to make the 20 percent small business deduction permanent.

Congressional concern over tariffs is mounting. Senator Wyden warned that border delays "can make or break small businesses" during a Senate Finance hearing. Senate Agriculture Committee hearings examined supply chain pressures affecting food availability and prices.

The CHEERS Act provides targeted tax deductions for energy-efficient restaurant equipment, while the Protect American Beef Act proposes a 70% tariff on imported Australian Wagyu beef.

Competitive Landscape

The Association isn’t lobbying alone. McDonald’s Corp. filed parallel third and fourth quarter2025 disclosures focused on identical issues: "corporate, individual, and international tax reform" and "tariff issues affecting the restaurant supply chain." This alignment indicates the broader foodservice industry is presenting a unified front on tax extensions and trade policy impacts.

The Bottom Line

The Association’s $50,000 fourth quarter 2025 engagement with Quill Advisers LLC targeted two immediate priorities: federal tax policy extensions and tariff impacts on food supply chains. The timing proved strategic—the reconciliation package ultimately extended key tax benefits, including a new deduction for tips, while partial tariff relief in November 2025 provided some relief from supply chain pressures threatening restaurant margins.

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