Proposed Tax Would Add 2% To Restaurant Patrons’ Bills:
By Dan Ping
A proposal by a local hotel lobbyist to put a 2 percent tax on all food and beverage sales is drawing the ire of restaurateurs.
That’s because they’re already dealing with rising food costs and fewer diners due to the nation’s slow economy, and fear such a move would put many of them out of business. A new food and beverage tax “would bury us right now,” said Brian Costello, owner of Oscar’s Waterfont Bar & Grill in Sanford. “I don’t know how we could survive.”
However, the tax would provide a new revenue stream to fill a projected $3.5 billion state budget shortfall, said Stuart Blumberg, president and CEO of the Greater Miami and the Beaches Hotel Association, who made his proposal March 11 before the Florida Senate Commerce Committee.
It also resolves an inequity between hotels and restaurants, he said. “By agreeing to a bed tax, the hotels have been carrying the burden for 30-plus years. Our partners in the restaurant industry haven’t contributed anything except sales tax.”
Not so fast, Florida Restaurant and Lodging Association President and CEO Carol Dover argued. In 2007, restaurants paid $3.9 billion in taxes. Furthermore, bed tax revenue must be used for tourism-related activities, such as ad campaigns and convention center expansions, not budget shortfalls, she said.
And, unlike hotels, where the customer base is most likely from out of state, it is locals who fuel the restaurant industry. “Stu’s contention that this will only affect tourists is just wrong,” Dover said.
Restaurant Prices On The Rise
Meanwhile, soaring fuel prices incurred by suppliers have been passed along in the form of steep increases for basic supplies, Costello said. For instance, the price of a 50-pound bag of flour has more than doubled in recent months, from $16 to $40. Costello said he has been forced to increase his menu prices to cover rising expenses.
And restaurant owner Pom Moongaukoang expects to raise prices soon at Pom Pom’s Teahouse & Sandwicheria in Orlando. “It seems everybody is taking money out of the restaurants — the credit card fees, the impact fees,” she said. “It’s getting tougher and tougher.” Others in the industry have varying takes on the idea.
Craig Miller, president and CEO of Lake Mary-based Ruth’s Chris Steak House, said guest traffic has been soft at his firm’s 120 restaurants nationwide. “I can’t image how raising taxes and putting more pressure on the consumer can be positive, given the current economic environment,” he said. But Bar Harbor Lobster Co. President Jeffery Hazel doesn’t think the tax will harm his business.
“If it goes to make up the budget shortfall, I’m definitely in favor of it,” said Hazel, whose enterprises include Boston Lobster Fest, Jeffery’s Restaurant & Piano Bar and Bar Harbor Seafood. “At Jeffery’s, the average check is $70, so you’re only talking about an extra $1.40.”
‘Not A Consensus Builder’:
The Central Florida Hotel & Lodging Association has yet to take a position on the proposed tax, but it has opposed similar food and beverage taxes in the past, President Rich Maladecki said.
Further, he is critical of his South Florida colleague’s approach. “Whether you think this is a good idea or not, announcing this plan without first having discussions within the industry is not the way to proceed,” he said. “I have worked with Mr. Blumberg in the past, and he is not a consensus builder. On this issue, he has alienated the entire industry.”
Meanwhile, Blumberg’s proposal has yet to be adopted by a Florida lawmaker and formally presented as a bill. But Dover is concerned the proposal could gain momentum.
“This is a year where we’re looking at a possible $4 billion shortfall,” she said. “If there aren’t a lot of alternatives as the end of the session nears, I’m afraid this could be a real possibility.”
Marriott Aims For Audubon Standards:
Marriott Golf is requiring 34 of its managed golf courses in North America and the Caribbean to become certified by the Audubon Cooperative Sanctuary Program by the end of the year.
To be granted certification, a golf facility is required to demonstrate that it is maintaining the highest degree of environmental quality in several areas, including environmental planning, wildlife and habitat management, outreach and education, chemical use reduction and safety, water conservation and water quality management, a release from Marriott said.
The certification is part of a systemwide commitment by Marriott International (NYSE: MAR) to promote environmental stewardship, the release said. Marriott Golf is already operating six courses in accordance with the Audubon standards, including the Doral Golf Resort & Spa in Miami, the Ritz-Carlton Golf Club in Jupiter, two courses in Orlando and one in Sarasota.
Marriott International's energy conservation measures include replacement of 450,000 light bulbs with fluorescent lighting, linen reuse programs and installation of 400,000 low-flow showerheads and toilets at its hotels worldwide. Marriott operates more than 3,000 lodgings in 69 countries and territories. Marriott Golf manages 62 golf courses at 46 locations in 13 countries.
