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Menu Labeling
Hoff Hospitality Law
Charles Hoff JD, MBA
By PresenterMedia.com
State & Local Menu Labeling Laws Introduced,
Passed, and Implemented
Inconsistent Local Regulations & Compliance
Who Needs to Comply:
a) 10 locations nationally
b) 15 or more locations nationally
c) X within the state
Beverage Counts:
a) Only Non-alcohol beverages
B) ALL beverages including Alcohol
Exemptions: Promotional Items, Test Items, and Buffet Service
a) Specials that appear on menus for less than thirty (30) days per year.
b) Specials that appear less than 60 days/year or is a test market item that appears less than 90
days/year
c) Foods sold by weight or custom order quantity.
d). Foods at a buffet, salad bar, or other self-serve
Penalties:
Montgomery County, MD – up to $500 per day; Shut down for three days
NYC – Up to $2,000
California – Fines of no less than $50, and no more than $500.
Evolution of Menu Labeling
1/2006: FDA requires Trans Fat to be listed on the Nutrition Facts panels of food
labels; Followed by cities banning trans fat
1/2007: NYC is the first city to pass menu labeling law
1/2008: Industry lawsuit filed (New York State Restaurant Assoc v NYC Board of
Health)
2008: NYC wins – Opening the door to state Menu Labeling legislation (i.e. New
York State, Maine, Mass, Oregon, New Jersey, and Tennessee
3/2010: Passage of Section 4205 of the Patient Protections and Affordable Care
Act . (ACA, aka Obamacare)
6/2012: Supreme Court upholds ACA
FDA Timeline & Anticipated Effective Date
• FDA Federal Register notice for Public Commentary - July
2010 to October 2010
• Proposed implementation date April 2013
• Delayed as a result of Pizza Restaurants, supermarkets,
convenience stores and other retailers that sell prepared
food.
• Restaurant Chains will have 6 months to comply from date of
implementation.
Menu Labeling - Public Polling Data
Question Poll % Support/Agree
National Polls
Fast-food and other chain restaurants should list
nutritional information, such as calories, fat,
sugar or salt content on menus and menu boards
Caravan Opinion Research
Corp., 2008
78
Menu boards should list nutrition information for
all items served
Technomic Inc., 2007 74
Restaurants should make nutrition information
available for all menu items
ARAMARK Corp., 2005 83
Restaurants should be required to provide
nutrition information, including calories, on
menus
Global Strategy Group,
2003
67
Statewide Polls
Support requiring fast-food and chain restaurants
to display calorie content on menus or menu
boards
End Hunger Connecticut,
2007
82
Support requiring fast-food and chain restaurants
to post nutrition information on their menus
California Center for
Public Health Advocacy,
2007
84
SUMMARY OF POLLS ON NUTRITION LABELING IN RESTAURANTS
Why the Restaurant Industry Supports the
Federal Guidelines
We are deeply disappointed by the
Montgomery County Council’s passage
of this legislation. While politically
popular, local menu labeling laws
contribute to a growing patchwork of
inconsistent regulations that confuse
both restaurateurs and their
customers. We believe that nutrition
disclosure laws are best handled at the
federal level to insure a uniform,
nationwide standard for chain
restaurants that operate in multiple
jurisdictions. -- Restaurant Association
of Maryland
“Having a uniform, national standard allows
us to take a consistent approach to providing
nutritional information, rather than having to
react to inconsistent state and local
regulations,” Jeffers said. “This will ensure our
guests see the same information, presented in
the same manner, no matter where they dine
with us.”
“The primary cost will come from printing
new menus,” he said. “Having a single, national
standard will allow us to minimize cost by
printing uniform materials for each of our
brands.”
--Rich Jeffers, Darden Restaurants Inc.
FDA Menu Labeling Basic Regulations
• Must use the word “Calorie” or “Cal”
• Must be in a color that has the same level of visibility as
the color of the menu item itself; does not have to be the
same exact color
• Must be the same font size
• Must appear on or adjacent to the menu board; may not
be listed on a separate board in a different area of the
restaurant
Menu Labeling Basic Regulations
• Must cover all standard menu items (food and
beverages); test items appearing on a menu for up to
90 days are exempt.
• Standard menu items include food that is routinely
listed or offered as a self-service food or food on
display.
• Combo meals must list standardized ranges of calories
for combinations unless, if there are specific
alternatives, specific related calorie info must be listed.
Menu Labeling Basic Regulations
• Must include the following notification:
Consuming 2,000 calories per day is generally recommended. Consider how menu
items fit within your total daily needs, which may be higher or lower depending on
age, gender and level of physical activity; or
A 2,000-calorie daily diet is used as the reference point for general nutritional advice.
Calorie needs vary depending on age, gender and level of physical activity
• Must include notification that more nutrient
information is available in writing upon request.
Additional information to be available to consumers: calories, calories from fat, total
fat, saturated fat, trans fat, cholesterol, sodium, total carbohydrates, dietary fiber,
sugars, and protein
The FDA will enforce “strict liability”, no exceptions whether the
violation is intentional or a mistake.
All penalties are:
a) likely to be civil in nature,
b) if repeated or deemed intentional or fraudulent, they could
lead to criminal liability.
•Enforcement & Penalties
Protection from Regulators & Lawsuits
• Preemption from state and local laws
• All nutrient content disclosures must have a REASONABLE basis.
Nutritional information could be determined using nutrient databases, cookbooks,
laboratory analyses, labels on packaged foods, or “any other reasonable means.”
• Practical issues come into play, i.e.
a) How the required information will be incorporated into the menu structure (and
updated when required),
b) The source of the information used and related accuracy issues,
c) How franchisee training and compliance will be monitored by restaurant
companies’ legal, marketing, training and other departments.
Emerging evidence suggests that
menu labeling does not impact
revenue, and could have positive
effects on the reformulation of
menu items and other aspects of
the restaurant environment (e.g.,
promotion and signage).*
*Impact of Menu Labeling on Consumer Behavior: A 2008–2012 Update
University of Minnesota, School of Public Health
Impact on Revenue
Photo credit: Eric Zelz | BDN
• A study with college students showed that
calorie labeling on entrees led to selection of
entrees with lower calories without reducing
overall sales revenue.¹
• In Washington, adding caloric and nutrient
information on the menus at full-service
restaurants resulted in consumers purchasing
entrees lower in calories, fat, and sodium.²
• Menu labeling may lead to parents choosing
lower-calorie restaurant meals for their
children.³
• Some studies suggest that the food service
industry may respond to mandatory labeling by
producing healthier options to expand their
customer base and increase sales.⁴
Impact on Revenue
• Girz, L, Polivy, J, Herman, CP, & Lee, H. The
effects of calorie information on food selection
and intake. International Journal of Obesity, 2011;
36:1340–1345
• Pulos E, Leng K. Evaluation of a voluntary menu-
labeling program in fullservice restaurants. Am J
Public Health. 2010;100:1035-1039.
• Tandon PS, et al., Nutrition menu labeling may
lead to lower-calorie restaurant meal choices for
children. Pediatrics. February 2010. 125(2):244-
248.
• Vadiveloo, MK, Dixon, LB, & Elbel, B. Consumer
purchasing patterns in response to calorie
labeling legislation in New York City. International
Journal of Behavioral Nutrition and Physical
Activity, 2011, 8(1), 51.
• Research in NYC about the impact on consumer
behavior and industry response has provided
valuable information. Initial consumer reaction
to the NYC regulation was very promising:
• • Eighty-six percent of consumers thought it
was a positive move;
• • Eighty-four percent said they read the calories
on menus;
• • Ninety-seven percent said that calories were
higher than they expected; and
• • Seventy-seven percent said that restaurants
have a responsibility to respond to consumers’
nutritional concerns.
Source - Technomic, Inc. Executive Summary. Consumer
Reaction to Calorie Disclosure on menus/menu boards in
New York City. Project Number 13109.September 2008.
What the Public Thinks
Benefits
Technological Innovations:
• Tablets
• Mobile Applications
• Nutrition Calculators
• Electronic Menu Boards
Potential for new offerings:
• Smaller Portions = better food costs
• Healthy Options
Anticipated Costs
The FDA estimates a cost of $269 per item to determine
this information, while some industry groups have
determined it will cost as much as $500 to $1,000 per
item. (66)
Congressional Research Service - Nutrition Labeling of Restaurant Menus
Amalia K. Corby-Edwards
Analyst in Public Health and Epidemiology
November 19, 2012
(66) Regulatory Counsel, Food Marketing Institute, Menu Labeling: Did FDA Overreach?, Food and Drug Policy Forum, Vol. 2 (13), Washington,
DC, July 11, 2012, http://www.fdli.org/resources/resources-order-box-detail-view/menulabeling-did-fda-overreach-.
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Franchise Roll-out???

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Hbh draft presentation

  • 1. Menu Labeling Hoff Hospitality Law Charles Hoff JD, MBA By PresenterMedia.com
  • 2. State & Local Menu Labeling Laws Introduced, Passed, and Implemented
  • 3. Inconsistent Local Regulations & Compliance Who Needs to Comply: a) 10 locations nationally b) 15 or more locations nationally c) X within the state Beverage Counts: a) Only Non-alcohol beverages B) ALL beverages including Alcohol Exemptions: Promotional Items, Test Items, and Buffet Service a) Specials that appear on menus for less than thirty (30) days per year. b) Specials that appear less than 60 days/year or is a test market item that appears less than 90 days/year c) Foods sold by weight or custom order quantity. d). Foods at a buffet, salad bar, or other self-serve Penalties: Montgomery County, MD – up to $500 per day; Shut down for three days NYC – Up to $2,000 California – Fines of no less than $50, and no more than $500.
  • 4. Evolution of Menu Labeling 1/2006: FDA requires Trans Fat to be listed on the Nutrition Facts panels of food labels; Followed by cities banning trans fat 1/2007: NYC is the first city to pass menu labeling law 1/2008: Industry lawsuit filed (New York State Restaurant Assoc v NYC Board of Health) 2008: NYC wins – Opening the door to state Menu Labeling legislation (i.e. New York State, Maine, Mass, Oregon, New Jersey, and Tennessee 3/2010: Passage of Section 4205 of the Patient Protections and Affordable Care Act . (ACA, aka Obamacare) 6/2012: Supreme Court upholds ACA
  • 5. FDA Timeline & Anticipated Effective Date • FDA Federal Register notice for Public Commentary - July 2010 to October 2010 • Proposed implementation date April 2013 • Delayed as a result of Pizza Restaurants, supermarkets, convenience stores and other retailers that sell prepared food. • Restaurant Chains will have 6 months to comply from date of implementation.
  • 6. Menu Labeling - Public Polling Data Question Poll % Support/Agree National Polls Fast-food and other chain restaurants should list nutritional information, such as calories, fat, sugar or salt content on menus and menu boards Caravan Opinion Research Corp., 2008 78 Menu boards should list nutrition information for all items served Technomic Inc., 2007 74 Restaurants should make nutrition information available for all menu items ARAMARK Corp., 2005 83 Restaurants should be required to provide nutrition information, including calories, on menus Global Strategy Group, 2003 67 Statewide Polls Support requiring fast-food and chain restaurants to display calorie content on menus or menu boards End Hunger Connecticut, 2007 82 Support requiring fast-food and chain restaurants to post nutrition information on their menus California Center for Public Health Advocacy, 2007 84 SUMMARY OF POLLS ON NUTRITION LABELING IN RESTAURANTS
  • 7. Why the Restaurant Industry Supports the Federal Guidelines We are deeply disappointed by the Montgomery County Council’s passage of this legislation. While politically popular, local menu labeling laws contribute to a growing patchwork of inconsistent regulations that confuse both restaurateurs and their customers. We believe that nutrition disclosure laws are best handled at the federal level to insure a uniform, nationwide standard for chain restaurants that operate in multiple jurisdictions. -- Restaurant Association of Maryland “Having a uniform, national standard allows us to take a consistent approach to providing nutritional information, rather than having to react to inconsistent state and local regulations,” Jeffers said. “This will ensure our guests see the same information, presented in the same manner, no matter where they dine with us.” “The primary cost will come from printing new menus,” he said. “Having a single, national standard will allow us to minimize cost by printing uniform materials for each of our brands.” --Rich Jeffers, Darden Restaurants Inc.
  • 8. FDA Menu Labeling Basic Regulations • Must use the word “Calorie” or “Cal” • Must be in a color that has the same level of visibility as the color of the menu item itself; does not have to be the same exact color • Must be the same font size • Must appear on or adjacent to the menu board; may not be listed on a separate board in a different area of the restaurant
  • 9. Menu Labeling Basic Regulations • Must cover all standard menu items (food and beverages); test items appearing on a menu for up to 90 days are exempt. • Standard menu items include food that is routinely listed or offered as a self-service food or food on display. • Combo meals must list standardized ranges of calories for combinations unless, if there are specific alternatives, specific related calorie info must be listed.
  • 10. Menu Labeling Basic Regulations • Must include the following notification: Consuming 2,000 calories per day is generally recommended. Consider how menu items fit within your total daily needs, which may be higher or lower depending on age, gender and level of physical activity; or A 2,000-calorie daily diet is used as the reference point for general nutritional advice. Calorie needs vary depending on age, gender and level of physical activity • Must include notification that more nutrient information is available in writing upon request. Additional information to be available to consumers: calories, calories from fat, total fat, saturated fat, trans fat, cholesterol, sodium, total carbohydrates, dietary fiber, sugars, and protein
  • 11. The FDA will enforce “strict liability”, no exceptions whether the violation is intentional or a mistake. All penalties are: a) likely to be civil in nature, b) if repeated or deemed intentional or fraudulent, they could lead to criminal liability. •Enforcement & Penalties
  • 12. Protection from Regulators & Lawsuits • Preemption from state and local laws • All nutrient content disclosures must have a REASONABLE basis. Nutritional information could be determined using nutrient databases, cookbooks, laboratory analyses, labels on packaged foods, or “any other reasonable means.” • Practical issues come into play, i.e. a) How the required information will be incorporated into the menu structure (and updated when required), b) The source of the information used and related accuracy issues, c) How franchisee training and compliance will be monitored by restaurant companies’ legal, marketing, training and other departments.
  • 13. Emerging evidence suggests that menu labeling does not impact revenue, and could have positive effects on the reformulation of menu items and other aspects of the restaurant environment (e.g., promotion and signage).* *Impact of Menu Labeling on Consumer Behavior: A 2008–2012 Update University of Minnesota, School of Public Health Impact on Revenue Photo credit: Eric Zelz | BDN
  • 14. • A study with college students showed that calorie labeling on entrees led to selection of entrees with lower calories without reducing overall sales revenue.¹ • In Washington, adding caloric and nutrient information on the menus at full-service restaurants resulted in consumers purchasing entrees lower in calories, fat, and sodium.² • Menu labeling may lead to parents choosing lower-calorie restaurant meals for their children.³ • Some studies suggest that the food service industry may respond to mandatory labeling by producing healthier options to expand their customer base and increase sales.⁴ Impact on Revenue • Girz, L, Polivy, J, Herman, CP, & Lee, H. The effects of calorie information on food selection and intake. International Journal of Obesity, 2011; 36:1340–1345 • Pulos E, Leng K. Evaluation of a voluntary menu- labeling program in fullservice restaurants. Am J Public Health. 2010;100:1035-1039. • Tandon PS, et al., Nutrition menu labeling may lead to lower-calorie restaurant meal choices for children. Pediatrics. February 2010. 125(2):244- 248. • Vadiveloo, MK, Dixon, LB, & Elbel, B. Consumer purchasing patterns in response to calorie labeling legislation in New York City. International Journal of Behavioral Nutrition and Physical Activity, 2011, 8(1), 51.
  • 15. • Research in NYC about the impact on consumer behavior and industry response has provided valuable information. Initial consumer reaction to the NYC regulation was very promising: • • Eighty-six percent of consumers thought it was a positive move; • • Eighty-four percent said they read the calories on menus; • • Ninety-seven percent said that calories were higher than they expected; and • • Seventy-seven percent said that restaurants have a responsibility to respond to consumers’ nutritional concerns. Source - Technomic, Inc. Executive Summary. Consumer Reaction to Calorie Disclosure on menus/menu boards in New York City. Project Number 13109.September 2008. What the Public Thinks
  • 16. Benefits Technological Innovations: • Tablets • Mobile Applications • Nutrition Calculators • Electronic Menu Boards Potential for new offerings: • Smaller Portions = better food costs • Healthy Options
  • 17. Anticipated Costs The FDA estimates a cost of $269 per item to determine this information, while some industry groups have determined it will cost as much as $500 to $1,000 per item. (66) Congressional Research Service - Nutrition Labeling of Restaurant Menus Amalia K. Corby-Edwards Analyst in Public Health and Epidemiology November 19, 2012 (66) Regulatory Counsel, Food Marketing Institute, Menu Labeling: Did FDA Overreach?, Food and Drug Policy Forum, Vol. 2 (13), Washington, DC, July 11, 2012, http://www.fdli.org/resources/resources-order-box-detail-view/menulabeling-did-fda-overreach-.
  • 18. Stage 1 •Enter Text Here Stage 2 •Enter Text Here Stage 3 •Enter Text Here Stage 4 •Enter Text Here This chart utilizes Smart Art which is feature in PowerPoint 2007. If you wish to make charts like this and don’t have PPT 2007, we have provided the graphical elements to help you build this yourself. Here is the description of the chart. You may change or delete this text as you wish. Here is a placeholder for more text and description of the chart. Changing this text will not interfere with the formatting of this template. Franchise Roll-out???

Editor's Notes

  1. As of January 2006, the Food and Drug Administration requires trans fat content to be listed on the Nutrition Facts panel on all food labels. A number of municipalities in addition to New York City have proposed trans fat bans or asked restaurants to voluntarily switch to trans-fat free cooking oils as of August 2008.  The list includes the following cities:  Tiburon, California; Baltimore; Boston; Chicago; Cleveland; Los ; New York; Philadelphia; Seattle - King County.State Legislation for Menu Labeling or Nutrition Information - 2003-2009New York City passed a law in January 2007 to become the first American city to require restaurant chains to state the number of calories in everything on their menus.June 2008 - NEW YORK STATE RESTAURANT ASSOCIATION v. NEW YORK CITY BOARD OF HEALTHVerdict: For the reasons stated above, we reject NYSRA's challenge to Regulation 81.50 because we conclude that it is not preempted by the NLEA and does not violate NYSRA's member restaurants' First Amendment rights.  Five states California (2008), Maine, Massachusetts and Oregon (2009), New Jersey and Tennessee (2010), have enacted menu labeling legislation. Many other states D.C. and territories had legislative proposals in 2003, 2004, 2005, 2006, 2007 or 2008 related to nutrition information or menu labeling for nutrition or calorie information:March 2010 - Section 4205 of the Patient Protection and Affordable Care Act (aka Obamacare)June 2012 the Supreme court upheld the Affordable Care Act - The court’s ruling was the most significant federalism decision since the New Deal and the most closely watched case since Bush v. Gore in 2000. It was a crucial milestone for the law, the Patient Protection and Affordable Care Act of 2010, allowing almost all — and perhaps, in the end, all — of its far-reaching changes to roll forward.