Good morning. Why do seagulls fly over the sea? If they flew over the bay, they’d be bagels. Sending a big shout-out to all the fathers with a joke from our dad-a-base. 

Wondering if the new tax laws will actually help you or if it’s just more headline hype?

The No Tax on Tips Bill passed, and the Big Beautiful Bill has some pretty rad credits and deductions for restaurants baked right in. Let’s get into it.  ⬇️

What’s on tap in this issue:

• No tip tax + tax breaks
• Early bird dinners on shoestring budgets
• Keep a chill vibe in your kitchen

Industry news

What’s cookin’ in the industry? 

Between Uncle Sam loosening his grip on tips and consumers clutching their wallets for dear life, restaurants are cruising toward a summer of lighter foot traffic and early bird specials. 🍽️

Tipped employees could get a potential $25K tax break

A tax break or just table talk?

Rocco’s a server hustling on a packed Friday night. He’s upselling, running orders, and charming his customers. He banks $300 in tips for the night, and Uncle Sam used to take a big cut.

Maybe not for long, though…

• 💸 The No Tax on Tips Act sailed through the Senate, and if it becomes law, tipped workers earning under $160K could deduct up to $25K in tips from their federal taxes. That’s a big win for servers, bartenders, and bussers…on paper.
• But some economists argue the likelihood of a significant impact on the lowest-earning workers is low because they don’t earn enough to pay federal taxes in the first place.

It’s not all employee-focused, operators nab a few wins too 👇

• 🍳 The bill also includes expanded tax credits for employers, particularly around payroll taxes on tipped wages, which could ease pressure for full-service restaurants already grinding on razor-thin margins.
• 📜 There’s more to come with the Big Beautiful Tax Bill. Proposed business deductions and credits could sweeten the pot for restaurants, like accelerated depreciation to offset higher costs from inflation and tariffs.

The 2025 summer intel report for restaurants

While the weather’s heating up, your reservation book might not be. 

A successful Summer of ‘25 will be measured by how smartly you adapt to diners who want maxed-out value at minimum cost, and apparently, want it before the sun sets.

Here's what's reshaping summer dining dynamics 👀

• 💲 Consumers plan to spend 7% less a month on dining out this summer compared to last year. The economic squeeze is driving behavior shifts toward home cooking and more selective restaurant visits.
• 😎 The NRA projects 490,000 new summer jobs across the industry (up 6.8% from last year), fueled by teens and college students.
• 🕔 The dinner rush shift. Recent data shows 51% of Gen-X diners prefer earlier evening reservations between 5:00 & 6:30 PM during summer. Meanwhile, 57% of Gen-Z and 52% of Millennials maintain their preference for the 7:00-8:30 PM window.

Timely tips 

Don’t get beat by the heat this summer and keep things chill (literally) with this checklist 👇 

☑️ Confirm all HVAC units are humming along. This includes filter changes, cleaning, and inspections by qualified technicians.

☑️ Regularly inspect freezers and walk-in coolers to ensure they’re functioning correctly and maintaining optimal temperatures. IoT-enabled sensors automatically monitor all your equipment and send an alert if temps are off.

☑️ Keep your team happy and healthy with: 

• 🌬️ Cooling stations - Give your team access to walk-in coolers or set up designated break areas with fans, AC, and cooling towels.
• 🥵 Heat exhaustion awareness - Teach staff about the signs of heat exhaustion and how to prevent it.
• 💦 Hydration - Encourage staff to stay hydrated by keeping water and other beverages flowing.

From the community

Luke’s Lobster swapped vendor management chaos for clarity in a single swoop

Luke’s Lobster CFO Steve Song had a raging back-of-house headache. With about 25 locations nationwide and a small army of vendors, each with their own payment preferences and paperwork demands, managing R&M felt more like herding turtles than running a finance team.

Restaurant managers were juggling local plumbers and electricians, while the finance team was drowning in W-9s, insurance certifications, and cash-only vendors.

Finally, Luke’s Lobster chose to cut the chaos and simplify.

By partnering with ResQ, Luke’s consolidated 30 vendors into one platform. Now, all vendor onboarding, payments, and communication flow through ResQ. 

Managers submit work orders in one place, and the finance team approves and pays ResQ directly. No more chasing checks, fixing invoice errors, or manually tracking down vendors.

“It’s like having an extension of my accounting team in the software,” says Steve.

ResQ handles tax forms, payment instructions, and vendor communications. And Steve can instantly see when repairs have been made and what still needs approval.

The result is operational clarity. Managers are no longer distracted by vendor logistics. Instead, they’re focused on stellar service. 🦞

Break time

How I feel when I hear about the Big, Beautiful Tax Bill

If we’re not talking about tariffs, then we’re talking about tax bills.

- Kareem at ResQ 

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Shameless plug

What does ResQ do?

ResQ is the most trades-friendly facilities management platform that streamlines restaurant R&M operations, while providing value to the trades industry.

Operators can efficiently track assets, create work orders quickly, and choose from a network of quality vendors to work with.

Love free samples? Same here. Schedule a FREE demo to learn more about ResQ.