We all know how important restaurant taxes are to restaurant owners. Last week, our own tax counsel, David Gair, outlined his Top Ten Tax Mistakes for Restaurant Owner on TexasTaxTalk.com, so TexasRestaurantLaw.com decided to share it as well. Here is the list in its entirety: Employee Classification – Misclassifying workers as independent contractors and not… Continue Reading
Category Archives: Recent Law Trends
Subscribe to Recent Law Trends RSS FeedSugar And Horses: How To Deal With Restaurant Supply Issues?
Posted in Commentary, Liability, Litigation, Negotiation, News, Recent Law Trends, VendorsTwo recent news stories present the issue of how restaurants should deal with supply issues. The first story is the infamous horse meat scandal that has plagued Burger King in the United Kingdom since January. Click here for that story. The second story appeared in today’s Wall Street Journal. It deals with the fact that… Continue Reading
How To Avoid Taxes From Your Restaurant LLC
Posted in Corporate Entity, Legislation, News, Recent Law TrendsFor years, I have recommended that all restaurants should be operated as limited liability companies – that is no more! Recent tax changes have now made LLCs much less attractive. Instead, we now suggest that our restaurant clients should consider forming “S-corporations,” except in rare instances. See below for the details and for a way… Continue Reading
Ouch! The Payroll Tax Takes Its Toll!
Posted in Commentary, Legislation, News, Recent Law TrendsAs many of you know, the payroll tax cuts recently expired, which reduced 2% of consumers’ take-home pay. That recently caused many retailers, including restaurants, to scale back prior expectations for revenue this year. Recall that in January in this article (click here to see it), we discussed the great outlook for restaurants for 2013… Continue Reading
Biggest Legal Causes Of Restaurant Failures
Posted in Acquisitions, Commentary, Franchises, Franchising, Liability, Litigation, Negotiation, Real Estate, Recent Law TrendsJust this week, two of my favorite restaurants in Dallas closed operations. This led me to consider the biggest issues I have seen that factored into a troubled restaurant. A few of these may not be a surprise, but you may be shocked at others. Consider this list of top legal reasons why restaurants fail:… Continue Reading
Can An Email Bind Your Restaurant Like A Contract?
Posted in Acquisitions, Commentary, Contracts, Employees & Waitstaff, Liability, Litigation, Negotiation, Recent Law Trends, VendorsWe all think of email as a convenience. The same is true for text messages. These are just easy ways to communicate. They don’t really mean anything. Right? Wrong! Email and text messages are some of the most dangerous tools created. They are powerful. They are permanent. And in Texas, they are binding. Don’t believe… Continue Reading
How To Spot Good Restaurant Investments
Posted in Acquisitions, Contracts, Franchises, Negotiation, News, Recent Law TrendsBy all accounts, 2013 should be a great year for the Texas restaurant industry. For just one example, click on this link, which is an article by Teresa Gubbins from austin.culturemap.com. According to the article: A report by the National Restaurant Association says that the Texas restaurant industry will lead the country in sales growth… Continue Reading
How To Handle Alcohol Liability Claims
Posted in Alcohol, Liability, Litigation, Recent Law TrendsWith the tragic death of Dallas Cowboy’s player Jerry Brown, Jr. still fresh in our minds, it is more important than ever to be wary of potential liability from alcohol distribution. (For the latest on that story, see this link from an article written by Elissa Repko and Selwyn Crawford at the Dallas Morning News)…. Continue Reading
The Top Five Consumer Myths About Restaurant Law
Posted in Employees & Waitstaff, Legislation, Liability, Recent Law TrendsOne of the more entertaining aspects of restaurant law is dealing with consumer myths. We are consistently challenged by consumers over seemingly insignificant issues. However, for these restaurant customers, these issues are indeed significant, so we thought we would share their concerns. Whether you have dealt with these issues or not, this post should let… Continue Reading
Restaurant Non-Competes: Are They Worth It?
Posted in Contracts, Employees & Waitstaff, Employment, Liability, Litigation, Recent Law TrendsA funny thing happened recently. When Lauren Drewes Daniels at The Dallas Observer featured TexasRestaurantLaw.com last week at this link, a controversy ensued between folks that commented on the article. The dispute involved whether non-competes were valid and enforceable in Texas. Apparently, it is a common myth that non-compete agreements are not enforceable in Texas,… Continue Reading
A Fight Broke Out At My Restaurant – Am I Liable?
Posted in Liability, Litigation, Real Estate, Recent Law TrendsWhether a restaurant or its owner is liable for restaurant fights depends. “Depends on what?” you ask. Let me tell you by asking and then answering the following questions: What Did The Police Say? No one can escape personal liability for their own, direct actions. No amount of insurance, legal maneuvering, or other actions will… Continue Reading
To Partner Or Not To Partner: Top Things To Consider Before Bringing On A Restaurant Partner
Posted in Acquisitions, Corporate Entity, Franchising, Litigation, Recent Law TrendsMany of my clients think that partners and shared ownership are great. They are right, to a point, but there are often times that partners are more a pain than a benefit. With that in mind, I thought I’d share some of the benefits and drawbacks of partnering your restaurant business. Benefits of A Restaurant… Continue Reading
Are Texas Restaurants Required To Serve Free Water?
Posted in Alcohol, Competition, Franchises, Legislation, Litigation, Recent Law TrendsOne of our dedicated blog followers recently asked whether Texas restaurants are required to serve water without charge. I had heard for years that this was a law, but since I did not already know the answer, I looked into this further. The results were surprising. It seems that at least at the state level,… Continue Reading
Is Your Restaurant Business Down? 5 Things Not To Do
Posted in Contracts, Corporate Entity, Employment, Franchises, Litigation, Negotiation, Real Estate, Recent Law Trends, VendorsIt’s no secret that many restaurants are suffering from the current recession, which is hopefully going to end soon. As a result, many restaurant owners are faced with the dilemma of “who to pay” when there’s not enough funds to pay everyone. In situations like these, it’s easy to make a misstep. With that in… Continue Reading
New York To Ban Salt In Restaurants – REALLY?!?!
Posted in Commentary, Legislation, News, Recent Law TrendsI try to avoid ranting, at least in public, but I’m going to give in to my inner four-year-old for a moment for the benefit of your entertainment. A recent article on LoweringTheBar.com found at this link provides details of an actual bill in New York to ban the use of salt in restaurants. Really!?… Continue Reading
The Best of TexasRestaurantLaw.com 2009
Posted in Acquisitions, Alcohol, Commentary, Contracts, Corporate Entity, Employment, Franchises, Immigration, Intellectual Property, Legislation, Litigation, Negotiation, News, Recent Law Trends, VendorsWe couldn’t close out the year without a “Best of 2009″! Here’s the best TexasRestaurantLaw.com content of the year, based on your enthusiasm via comments, links, and retweets. We thank you all for your continued support! Let’s get started: Recent Nutrition Law Trends – This will likely be a continued source of legislation on… Continue Reading
How A Late Night Email Could Put You In Jail
Posted in Commentary, Employment, Litigation, News, Recent Law Trends, VendorsNo matter what industry you are in, many of us are responsible for hundreds of emails per day. Each of those emails can become permanent records of what you are thinking, doing, or planning. Email errors can sometimes cause only minor disagreements, for which you can apologize and move on. However, in the most severe… Continue Reading
The Biggest Contract Mistake & How To Avoid It
Posted in Acquisitions, Alcohol, Commentary, Contracts, Corporate Entity, Franchises, Litigation, Negotiation, Recent Law Trends, VendorsThe ugly truth is that people make mistakes every day when they sign contracts for their companies. What’s worse is that many people don’t even realize that they are making a mistake. This particular mistake can cost your company thousands of dollars in legal fees. This mistake can cost you personally in legal fees and… Continue Reading
How Effective Are Calorie Counting Laws?
Posted in Legislation, News, Recent Law TrendsAs more and more calorie menu labeling laws pop up across the country and the U.S. Senate considers a national law on the matter, the debate over their effectiveness continues. With the goal of reducing American obesity levels, the question remains: Do they really work? The answer depends on whom you ask. The Wall Street… Continue Reading
Is a Celebrity Spokesperson the Right Fit For Your Restaurant?
Posted in Commentary, Contracts, Franchises, Recent Law TrendsCelebrity spokespeople often increase retail brand awareness and, thus, boost sales. However, the extent of this sales boost may come as a surprise. Consider, for example, Troy Aikman’s sponsorship of the Wingstop restaurant group. According to the Dallas Business Journal, Wingstop reported 23 consecutive quarters of same-store sales increases since Aikman first appeared as a… Continue Reading
Could Your Salary Get Slashed by the Compensation Czar?
Posted in Commentary, Legislation, News, Recent Law TrendsIn response to criticism regarding bonus pay for executive officials of companies receiving government pay-outs, the Obama administration recently appointed Kenneth Feinberg to regulate the pay of 175 top executives at seven companies receiving levels of government TARP funds not offered to other institutions. Feinberg, who is being referred to as the “Compensation Czar,” is… Continue Reading
Texas Legislature Leaves Restaurant Industry Alone
Posted in Alcohol, Commentary, Immigration, Legislation, News, Recent Law TrendsEveryone in the restaurant industry should know what new laws affect them. This last legislative session addressed a variety of laws from immigration to fat and smoke, and the this article provides those results. The latest session of the Texas Legislature ended on June 1, 2009. Comprising the 81st Session of the Legislature, Texas lawmakers… Continue Reading
Smoke & Fat: What Texas Restaurants Need to Know in ‘09
Posted in Commentary, Legislation, News, Recent Law TrendsLaws in Texas are changing about what restaurants serve and what they allow from their patrons. Understanding of these trends now could be the difference between prosperity and destruction for Texas restaurants in the coming years. Smoke As reported here several weeks ago in “Where There’s Smoke . . . You’re Not In Dallas ”… Continue Reading
Immigration Survival For Restaurants: Top 5 Tips To Avoid Jail
Posted in Immigration, Litigation, News, Recent Law TrendsCan your business survive a sizable fine by the Immigration and Naturalization Service (“INS”)? Can you survive jail time for failing to adhere to immigration rules? If you answered no to either question, then take the following advice and implement it today. 1. Complete I-9 Forms. This may sound like a “no-brainer,” but it can… Continue Reading