Menu Labeling Law Will Harm Small Companies

Republicans say the new regulations will unfairly burden small businesses.

June 16, 2011

WASHINGTON - Some Republicans believe the new menu labeling rules to that will take effect next year will hurt small companies, The Hill reports. The regulations will make restaurant chains with 20 or more locations to place calorie counts on menus, which could also include convenience stores.

The lawmakers and industry groups want the U.S. Food and Drug Administration to prolong the deadline for gathering public comments another 30 days. "While this provision was designed to spare small business restaurant operators from the substantial costs associated with redesigning their menu boards, franchise owners will continue to face a significant economic burden by the proposed regulations," wrote Reps. Cory Gardner (R-CO), Sam Graves (R-MO), Blaine Leutkemeyer (R-MO) and Jean Schmidt (R-OH) in a letter to the agency.

The representatives want the FDA to change some of the rules to make it simpler for restaurants to comply, such as allowing nutritional pamphlets beside drive-thru menu boards. Local zoning rules could restrict the size of outdoor menu boards, which could impact compliance.

"While the goals of the FDA in this case are admirable when it comes to the health of Americans, the additional costs associated with these government regulations is going to end up costing jobs and hinder the economic well-being of these critical small businesses," said a spokesman for Leutkemeyer.

The restaurant industry said the new rule is too complicated to decipher and form comments within the original 60-day window the FDA gave. "The proposed rule will have a sweeping effect on the restaurant and retail food industry," said the National Restaurant Association in a statement. "It will affect a wide array of establishments including chain restaurants, coffee shops, grocery stores and convenience stores??The affected industries and other stakeholders need more time to analyze the proposed rule, conduct consumer research if appropriate, and coordinate a consistent response."

NACS has a fact sheet on the new menu labeling regulations.

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