Angus Barn Pavilion 9401 Glenwood Avenue | Raleigh, NC Enjoy
NCRLA BOARD OF DIRECTORS
EXECUTIVE COMMITTEE:
JASON SMITH, CHAIR 18 Restaurant Group
SHERI ERHART, VICE CHAIR CMC Hotels
VINAY PATEL, TREASURER SREE Hotels, LLC
TAD DOLBIER, SECRETARY Tar Heel Capital Corporation
LANCE TRENARY, NATIONAL RESTAURANT ASSOCIATION LIAISON Golden Corral Corporation
AMBER MOSHAKOS, NATIONAL RESTAURANT ASSOCIATION LIAISON LM Restaurants
TOM PASHLEY, IMMEDIATE PAST CHAIR Pinehurst Resort
LYNN MINGES, PRESIDENT & CEO FRANK GRAY, GENERAL COUNSEL
BOARD MEMBERS: JEFF CHANDLER Chandler Foods, Inc.
Sign up today to strengthen your team
How this new legislation will impact your business
Future of Hospitality Golf Classic raises nearly $100K
ANDY CLARK US Foods
SABRINA BENGEL Bengel Hospitality
BURNEY JENNINGS
Biscuitville Fresh Southern
CHEETIE KUMAR Ajja
JULIA MCGOVERN Poppyseed Market
SEAN POTTER Built on Hospitality
GONZA SALAMANCA Gonza Tacos Y Tequila
STEVE THANHAUSER Angus Barn
DEAN WENDEL
Concord Hospitality
PETE BYERS Summit Hospitality
BRENDA DURDEN South Asheville Hotel Associates
JAMES L GRATTON Charlotte Marriott SouthPark
KELLY HARRILL Koury Corporation/Koury Hospitality
RUSS JONES
LODEN Hospitality
DAVID MARS The Umstead Hotel and Spa
PAUL NISWONGER First Carolina Management Hotels
NISHITH “NISH” PATEL Beacon IMG, Inc.
PINKESH PATEL Ex-Officio, AAHOA liaison GOVERNMENT
Welcome New NCRLA Members
Allied
AX Carolinas, Matthews
CAI Insurance, Asheville
Fabian Couture Group, LLC, Kinston
Filta of North Carolina, Durham
RestuaRent
Toast
Lodging
Fairfield Inn & Suites Greensboro
Hilton Garden Inn Asheville South
Leath Company
-Hampton Inn Benson
-Holiday Inn Express Benson
Opal Hotels Group
-Hampton Inn & Suites CLT Airport
-Hampton Inn Greenville
-Hampton Inn Wilson
-Hampton Inn Wilson I-95
-Holiday Inn Express Blowing Rock
Go
-TownePlace Suites by Marriott
Charlotte Mooresville
-Tru by Hilton Wilson
The Hive, Raleigh Inn on Turner, Beaufort
Topaz Management
TownePlace Suites by Marriott Charlotte Mooresville
Trailborn, Highlands
Restaurants
Birdies, Emerald Isle
Micas Mountain Kitchen, Sapphire
Nickyo’s Rodeo, Charlotte
Schmidt Family Restaurant Group
Wendy's #601—Randleman Rd.
Wendy's #602—High Point Rd.
Wendy's #603—Asheboro 1
Wendy's #604—Thomasville
Wendy's #605—Chapel Hill
Wendy's #606—Carrboro
Wendy's #607—RTP
Wendy's #608—Lee St.
Wendy's #609—HWY 68
Wendy's #611—Asheboro 2
Wendy's #612—Cotton Grove
Wendy's #613—Archdale
Wendy's #614—Martin Luther King
Wendy's #615—Airport Blvd.
Wendy's #616—South Church
Wendy's #617—Graham
Wendy's #618—Eric Lane
Wendy's #619—Randleman
Wendy's #620—Hickory Ridge
Wendy's #621—Elmsley Square
Wendy's #622—S Main St.
Wendy's #623—N Main St.
Wendy's #624—Graham-Hopedale
Wendy's #625—Adams Farm
Sweet Old Bill’s, High Point
The Wrong Number, Winston-Salem
Micas Mountain Kitchen, Sapphire
Photo: @MicasSapphireValley
Birdies, Emerald Isle
Photo: Birdies at Star Hill
Nickyo’s Rodeo, Charlotte Photo: @nickyosrodeo
Sweet Old Bill’s, High Point Photo: sweetoldbills.com
A Season of Change
As we transition from the warmth of summer to the crispness of fall, NCRLA is also in transition, embarking on an exciting new chapter. We are thrilled to welcome Allen Thomas, a native North Carolinian, seasoned business leader, and policymaker, as he steps into the role of CEO for our association.
Allen brings a wealth of experience in public service, economic development, and community engagement. We look forward to working together with all of you during this strategic transition through the end of the year to ensure NCRLA continues to thrive.
In this issue of At Your Service, you’ll find highlights from one of our favorite annual traditions—the Grand Finale of NCRLA’s Chef Showdown. The energy, creativity, and culinary talent on display were nothing short of inspiring, and the photos in these pages capture the magic of the evening.
The work ahead will require collaboration, creativity, and a shared commitment to making North Carolina’s hospitality industry stronger than ever.”
We also take a closer look at the “Big Beautiful Bill” from the Trump administration and its implications on the hospitality industry. From regulatory changes to tax implications, this overview breaks down the key provisions that could affect your business operations now and in the future. The overview also includes the latest updates, providing a comprehensive understanding of the bill's impact.
Finally, our legal partners at Cranfill Sumner provide an important follow-up on tip pooling—a topic that continues to generate questions for operators. Their expert insights will help ensure you remain compliant and confident in your policies.
We are excited to step into this next season together. The work ahead will require collaboration, creativity, and a shared commitment to making North Carolina’s hospitality industry stronger than ever. With Allen Thomas stepping into the CEO role, we look forward to working alongside him—and all of you—to strengthen and grow our industry in the years ahead.
NCRLA is turning the page to an exciting new chapter, and together we will continue building a bright future for hospitality in North Carolina.
Vice President of Communications & Business Development CHRIS MACKEY
Vice President of Government Affairs
ISABEL VILLA-GARCIA
Vice President of Finance and Operations
SHELLY EUBANKS
Director of Membership
NATALIE COX
Director of the NCRLA Foundation COURTNEY HAMM
Digital Communications Manager NATE ROBERTS
Executive Assistant DANA TOBIN
Food Safety and Lodging Regulations Specialist
CAROLYN K. GRIFFIN
Editor
SHANNON FARLOW
Designer TRACIE EUBANK
BUSINESS OFFICE
222 North Person Street, Suite 210 Raleigh, NC 27601
Phone: (919) 844-0098
Website: NCRLA.org
For advertising and sponsorship inquiries, contact Chris Mackey, Vice President of Communications & Business Development, at cmackey@ncrla.org.
Lynn Minges NCRLA President & CEO
Jason Smith NCRLA Board Chair
UPCOMING EVENTS
Network with hospitality industry leaders at one of NCRLA’s upcoming events. Learn more at NCRLA.org
October 27
NCRLA Board Meeting The Westin Raleigh-Durham Airport
October 27
Manteo to Murphy PAC Fundraiser The Pavilion at the Angus Barn Raleigh
November 4
NCRLA Foundation Board Meeting Virtual
November 18–20
CSRA National Restaurant Association
Fall Gov. Affairs Conference The Hilton Anatole Dallas, TX
December 3–5
ISHA Winter Conference
Mission Pacific Beach Resort Oceanside, CA
Offer your customers what they want...
Provide a menu that promotes N.C. products & supports N.C. Agriculture.
• Enhance the “locally sourced in N.C.” message on your menu.
• Identify N.C. ingredients on your menu.
• Feature & promote seasonal N.C. products.
• Align purchasing decisions with N.C. product availability.
For inspiration & resources contact Chad Blackwelder Food Service Marketing Specialist
N.C. Department of Agriculture & Consumer Services Office 919-707-3150 • Cell 919-971-4352 • chad.blackwelder@ncagr.gov
Apprenticeships Offer NC Hospitality Businesses a Smarter Way to Build Talent
North Carolina hospitality businesses have a new opportunity to strengthen their workforce through Registered Apprenticeship programs offered by the Restaurant & Hospitality Leadership Center (RHLC), a division of the National Restaurant Association Educational Foundation (NRAEF).
These employer-driven programs provide a structured, low-cost way to train employees for key roles such as line cook, kitchen manager, assistant restaurant manager, and more. Apprenticeships combine on-the-job learning with related classroom instruction and offer a clear career pathway for team members—helping businesses reduce turnover and improve retention.
WHAT EMPLOYERS GAIN
Participating restaurants and hospitality businesses can access:
• Free training through NRAEF and NC Community Colleges
• National, industry-recognized credentials
• Technical assistance and customization support
• Connections to state and federal resources, including tax credits and funding opportunities
Workforce challenges are one of the biggest barriers facing our industry. These apprenticeships are a sustainable talent pipeline for your business and for North Carolina’s entire hospitality sector.
Apprentices can be existing team members or new hires, and the programs are stackable which means that one employee can complete multiple apprenticeships to keep advancing their skills.
WHY THIS MATTERS
Workforce challenges are one of the biggest barriers facing our industry. These apprenticeships are a sustainable talent pipeline for your business and for North Carolina’s entire hospitality sector. They also complement youth workforce programs, including opportunities for ProStart high school students to transition into paid, hands-on roles.
BUT THERE’S ONE IMPORTANT CATCH:
These programs can’t launch in North Carolina until employers sign up.
LET’S MAKE IT HAPPEN
NCRLA Foundation Director Courtney Hamm is available to help walk you through the process. You can learn more and register by calling her at 919-844-7883 or at chamm@ncrla.org.
IMPLICATIONS OF THE FOR NC'S HOSPITALITY INDUSTRY
One Big Beautiful Bill
TAX BENEFITS AND DEDUCTIONS
• No Tax on Tips – Beginning in 2025, workers can deduct up to $25,000 in qualified cash tips from their federal taxable income, provided these tips come from positions that customarily received tips as of December 31, 2024.
• No Tax on Overtime Premiums – Employees can deduct the premium portion of overtime pay up to $12,500 for individuals and $25,000 for married couples. Only overtime mandated by the Fair Labor Standards Act qualifies. These provisions aim to boost take-home pay for hourly and tipped workers while giving employers new tools to attract and retain staff. However, payroll systems will need updates to accurately track and report eligible tips and overtime on W-2
OVERVIEW OF THE LEGISLATION
The One Big Beautiful Bill (OBBBA), enacted on July 4, 2025, introduces sweeping tax and labor provisions with significant effects on North Carolina’s hospitality industry. Key highlights include permanent bonus depreciation, expanded Section 179 expensing, and a stabilized Qualified Business Income (QBI) deduction—all designed to support business investment and growth. Additionally, new deductions related to tips and overtime pay could directly affect both employees and employers in restaurants, hotels, and other service sectors.
forms. Unless extended by Congress, these deductions are set to expire after 2028.
INVESTMENT INCENTIVES
OBBBA’s permanent bonus depreciation, expanded Section 179 expensing, and stabilized QBI deduction offer strong incentives for business investment. Restaurants and hotels can more easily upgrade kitchens, renovate facilities, or expand operations while benefiting from immediate tax relief.
LABOR COSTS AND BUSINESS INVESTMENT
By raising take-home pay for employees, the new deductions could increase labor costs for employers. At the same time,
improved after-tax cash flow may allow businesses to reinvest in capital improvements, staff training, or new locations.
REPEAL OF CLEAN ENERGY INCENTIVES
The bill repeals certain clean energy incentives, potentially slowing adoption of energy-efficient technologies for hospitality businesses. This change may increase long-term operating costs for companies that had planned to modernize through green upgrades.
STATE-LEVEL IMPLICATIONS
North Carolina does not automatically conform to federal tax changes, so whether the state will adopt these new deductions remains uncertain. A similar proposal did not pass during the most recent legislative session, leaving state-level tax treatment unresolved.
COMPLIANCE AND PAYROLL REQUIREMENTS
OBBBA introduces stricter documentation standards for tips and overtime. Hospitality businesses will need precise payroll systems to determine which portions of compensation qualify under the updated federal rules. While these requirements add administrative complexity, they are intended to ensure workers receive the full benefit of the new tax provisions.
SPECIFIC PROVISIONS AND EFFECTS
• Full Expensing for Capital Equipment – Immediate write-offs for equipment like ovens, refrigerators, or POS systems.
• 20% QBI Deduction – Lowers effective tax rates for many small restaurants and hotels.
• Expanded Business Interest Expense Deduction –Frees up capital for debt reduction or expansion.
• Tax Deductions for Tips and Overtime – Likely to increase disposable income for workers and boost consumer spending.
• Permanent Family and Medical Leave Tax Credits –Encourages businesses to offer competitive paid leave benefits.
CONCLUSION
The OBBBA represents both opportunities and challenges for North Carolina’s hospitality industry. On one hand, enhanced tax incentives and higher employee take-home pay could drive growth and strengthen the workforce. On the other, rising labor costs, increased compliance requirements, and the loss of clean energy incentives may complicate operations. NCRLA will continue to monitor these developments and provide updates as federal and state guidance evolves.
GOLF TOURNAMENT RAISES NEARLY $100K
Future of Hospitality Golf Classic Supports Scholarships and Workforce Development
The NCRLA Foundation hosted the annual Future of Hospitality Golf Classic, presented by US Foods, at Cary’s Prestonwood Country Club on August 18.
This year’s tournament was a sell-out success, drawing 31 teams and raising more than $92,000 to support the foundation’s mission of preparing the next generation of hospitality leaders through scholarships, school-to-career programs, and professional development opportunities.
Players and industry partners hit the Meadows course for a day filled with golf, interactive contests, food and beverage tents, and a celebratory awards luncheon.
Congratulations to Our Top Teams!
FIRST PLACE: ALSCO UNIFORMS
(Derek Ray, Mike Brewington, Chris Strickland, Chris Luck)
SECOND PLACE: MARSH MCLENNAN AGENCY
(Matt Horney, Kristin Redmond, Todd Reider, Ryan Nagy)
THIRD PLACE: CONCORD HOSPITALITY
(Jason Ressman, Billy Cease, Mitch Freeland, Trey Hardesty)
Thank You to Our Sponsors
This event would not have been possible without the support of our sponsors, players, and volunteers.
PRESENTING SPONSOR
• US Foods
ACE SPONSORS
• Capital Games
• Ecolab
• Kitchen Guard
• Sysco
EAGLE SPONSORS
• Charlotte Regional Visitors Authority
• Golden Corral
• Marsh McLennan Agency
• Pepsi Bottling Ventures
Additional support came from Birdie Sponsors Alpaca Chicken, Butterball, DirecTV, DoorDash, Pinehurst Resort, Salsarita’s, and Toast.
Alsco Uniforms, Angus Barn, Best Day Brewing, Big Ed’s, Biscuitville, Bojangles’, Crank Arm Brewing, Ferguson, FS Food Group, Relay, Happy Dad Brewing, Fullsteam Brewing, Long Beverage/Southern Wine & Spirits, Raleigh Marriott Downtown, Service Master, Trophy Brewing, Tarheel Linen Service, Tito’s Handmade Vodka, Oaklore Distilling
MORE TIME TO CATCH YOUR BREATH
After a day on your feet prepping and cooking and serving and managing, you’re ready for a break. With Ecolab Labor Savers, a collection of nine products designed to save you up to 4 hours a day*, you can get through the nightly sanitizing, labeling and grill cleansing faster. And that means more time for you. Start Your Customized Labor Savings Plan Today!
A NIGHT OF CULINARY BRILLIANCE:
NCRLA’S 2025 CHEF
SHOWDOWN GRAND FINALE CROWNS NEW CHAMPIONS
North Carolina’s most celebrated culinary and mixology competition reached its sizzling conclusion on August 4, as more than 500 guests gathered at Bay 7 in Durham for the grand finale of the 2025 NCRLA Chef Showdown, presented by Got To Be NC
Now in its ninth year, the highly anticipated finale sold out to record crowds, spotlighting the state’s most talented chefs, pastry chefs, mixologists, and distillers. The evening marked the
culmination of a four-month, statewide competition that began in April and spotlighted 72 contenders in 11 preliminary and semifinal rounds.
“The talent on display at this year’s Chef Showdown reflects the very best of North Carolina’s hospitality industry,” said Lynn Minges, President and CEO of NCRLA. “These chefs, pastry chefs, mixologists, and distillers are not only masters of their craft, but they are also leaders shaping the future of our industry.”
Photos by Emily Bennett Creative
Chef Mauricio Huarcaya
The coveted title of NCRLA Chef of the Year was awarded to Chef Mauricio Huarcaya of Gustu Peruano in Wilmington, whose inventive, globally inspired cuisine impressed judges and guests alike.
SIP, SIP, HOORAY!
In the beverage categories, Sarah McCabe from The Longleaf Hotel in Raleigh was named NCRLA Mixologist of the Year, partnering with Cook’s Mill Whiskey in Raleigh, who won the title of Distiller of the Year.
Best Mocktail of the Year went to Travis James of Julep Contemporary Kitchen in Greenville.
First runner-up recognitions included:
• Chef Kevin Stratton, The Depot on First, Knightdale – Chef of the Year Runner-Up
• Chef Josh Dobson, Peppervine, Charlotte – Pastry Chef of the Year Runner-Up
Pastry Chef of the Year honors went to Chef Luis Rojas, representing the Charlotte Marriott City Center, for his elevated and artful desserts. Chef Rojas is pictured here with NCRLA President & CEO Lynn Minges and Chad Blackwelder,
Attendees played an active role in shaping the competition. As guests sampled their way through the array of sweet and savory bites, creative cocktails, and handcrafted mocktails—each one rooted in locally sourced North Carolina ingredients—they voted through a live app to select the winners of the 2025 People’s Choice Awards, sponsored by Sysco
This year’s favorites were:
• Best Mocktail: Mixologist Natalie Takacs, End of Days Distillery, Wilmington
• Best Cocktail: Mixologist Natalie Takacs, End of Days Distillery, Wilmington
• Best Dessert: Pastry Chef Luis Rojas, Charlotte Marriott City Center, Charlotte
• Best Savory Dish: Chef Mauricio Huarcaya, Gustu Peruano, Wilmington
Sarah McCabe Natalie Takacs
UNDENIABLY DELICIOUS DAIRY AWARDS
Sponsored by The Dairy Alliance, the Undeniably Dairy Awards went to chefs and mixologists who creatively incorporated North Carolina dairy into standout dishes and drinks. This year's Undeniably Dairy Awards went to:
Best Use of Dairy in a Savory Dish:
Chef Bobby McFarland, Glasshouse Kitchen, Durham
Best Use of Dairy in a Dessert:
Chef Michael Beers, River Run Country Club, Davidson
Best Use of Dairy in a Cocktail:
Natalie Takacs, End of Days Distillery, Wilmington
Best Use of Dairy in a Mocktail:
Natalie Takacs, End of Days Distillery, Wilmington
Presenting Sponsor
Got to Be NC
Grand Finale Venue
Bay 7
Undeniably Dairy Sponsor
The Dairy Alliance
People's Choice Sponsor
Sysco
Pinnacle Chef Sponsor
Cheney Brothers
Sip & Swirl Sponsor
NC Wine & Grape Council
Born in the Carolinas
Sponsor
Pepsi Bottling Ventures
Chef's Toque Sponsor
US Foods
Eat & Drink Local Sponsor
Tabletop Media Group
Guests also enjoyed selections from the NC Wine Bar, featuring medal-winning varietals from the 2025 NC Wine Competition, presented by the NC Wine and Grape Council—a perfect pairing with the night’s bites.
Throughout the competition season, chefs and mixologists collectively supported more than 600 local farmers and food producers, sourcing more than 650 unique North Carolina ingredients. Their dishes didn’t just represent culinary excellence, they also told the story of North Carolina’s farms, dairies, distilleries, and artisan producers.
This year’s winners will now serve as Got To Be NC Culinary and Beverage Ambassadors for 2025–2026, helping promote the state’s agricultural and culinary treasures both regionally and beyond.
As the lights dimmed on another unforgettable Chef Showdown, one thing was clear: North Carolina’s culinary stars are rising—and the future is delicious.
NC Wine Bar presented by the NC Wine and Grape Council
THANK YOU TO OUR SPONSORS!
Exclusive Cast
Iron Cookware Sponsor
Carolina Cooker
Exclusive Sanitation Sponsor
ECOLAB
NC Beer Sponsor
Fullsteam Brewery
Culinary Sponsors
Kitchen Guard
Visit Jacksonville
AB Tech Community College
Carteret Community College
Central Piedmont Community College
Sandhills Community College
Wake Tech Community College
Lodging Sponsors
Beaufort Hotel
AC Raleigh Downtown
Bramabella Vineyards
CMC Hotels
Pinehurst Resort
Summit Hospitality
The Dunhill Hotel
The Durham Hotel
Mixology Competition
Venues
Chemist Spirits
End of Days Distillery
Native Fine Diner
Piccione Vineyards
Judges' Table Sponsors
Crude Bitters
Charlotte Regional Visitors Authority (CRVA)
Martin's Distribution
Remedy Bitters
Visit Greenville
Visit Raleigh
Hospitality Sponsors
Crystal Coast NC
Pinehurst
Tidewater Grain Company
Pantry Sponsors
Doordash
Employers
Goodnight Brothers
Italian Fork
Friends Sponsors
ALSCO Uniforms
Butterball
Capital Games
Cranfill Sumner, LLP
Haand Pottery
Insurance People
J&J Gaming
Largemouth Communications
Lucky Lincoln Gaming
Lusty Monk Mustard
Marsh McLennan Agency
Miso Masters
Prestige Gaming Solutions
Sea Love
Sea Salt
Visit Wilmington
CVB
Chef Bobby McFarland, Glasshouse Kitchen, Durham
Chef Michael Beers, River Run Country Club, Davidson with Joanne Engelhardt Risko, VP of Strategic Marketing, The Dairy Alliance (left)
CHEF SHOWDOWN:
Travis James
More than 500 guests, partners, judges, farmers, and producers filled Bay 7 for the sold-out grand finale, concluding the ninth season of competition
Chef Tché Carter, Community Matters Café, Charlotte
Chef Kevin Stratton, The Depot on First, Knightdale—Chef of the Year Runner-Up
Travis James, Julep Contemporary Kitchen, Greenville— Mocktail of the Year Recipient
NCRLA Chef Showdown Executive Producer and Host Heidi Billotto addresses the crowd
Chef Trenton Shank, Brier Creek Country Club, Raleigh, serves his finale dish
Don’t miss out! Take advantage of $0 to start by scanning the QR code.
Clean
We
New Federal Tax Deductions for Tips and Overtime
Two new federal tax deductions—one for tips and one for overtime—could offer meaningful tax relief for many workers in North Carolina’s hospitality industry, starting in 2025. While these deductions aim to put more money in the pockets of employees, employers must be mindful of new requirements and potential risks. Here's what NCRLA members need to know.
“No Tax on Tips” New Above-the-Line Deduction
Effective 2025 through 2028, employees in tip-earning positions may qualify for a new above-the-line federal income tax deduction of up to $25,000 per year on “qualified tips.”
What Counts as a “Qualified Tip”:
• Voluntary tips (not mandatory service charges or auto-added gratuities).
• Cash and charged tips, including tips shared through formal tip pools.
• Tips received in jobs that customarily earn them, as of Dec. 31, 2024—primarily hospitality and service industry positions.
• Properly reported tips (e.g., shown on W-2 or Form 4137).
What Doesn’t Qualify:
• Mandatory service charges (e.g., banquet fees).
• “Non-cash” tips like gift cards or movie tickets.
• Tips earned in professions outside the traditional service industries, like law, consulting, or finance.
• Tips not properly reported to the IRS.
Note for Employers: For 2025, Form W-2s must include not only reported cash tips but also the employee’s qualifying occupation. Employers will be allowed to use a “reasonable method” to estimate tips under forthcoming IRS guidelines.
“No Tax on Overtime” New Deduction for Required Overtime Pay
Also beginning in 2025, a new deduction allows employees to write off up to $12,500 per year in overtime compensation required by the Fair Labor Standards Act (FLSA)—or up to $25,000 for joint filers.
What Counts:
• Overtime that exceeds the employee’s regular rate.
• Only FLSA-mandated overtime (typically time-and-a-half for hours over 40 per week).
What Doesn’t Count:
• Overtime paid voluntarily or under state laws (e.g., California's daily overtime).
• Overtime premiums added as part of creative compensation schemes.
Employers must track and report qualified overtime separately on employees’ W-2 forms starting in 2025. Accurate records of both regular pay and FLSA-required overtime premiums will be essential.
Final Thoughts
What This Means for Employers
These new tax benefits could positively impact your tipped and hourly employees—but they come with new reporting obligations and legal gray areas. While it may be tempting to rework pay structures to maximize these deductions, proceed with caution.
Don’t risk costly compliance mistakes:
• Avoid manipulating tip or wage classifications to fit the new rules.
• Ensure tip pools remain compliant with federal and state regulations.
• Be wary of schemes like lowering base pay to increase “qualifying” overtime—these could violate FLSA rules.
Pro Tip: Converting salaried employees to hourly, or reclassifying wages to boost tips or overtime, without proper legal guidance can open your business to liability.
The “No Tax on Tips” and “No Tax on Overtime” provisions reflect a major policy shift intended to support front-line workers. For NCRLA members, these changes could offer a recruitment and retention tool—if implemented properly. We strongly encourage members to monitor IRS guidance closely, stay in compliance with wage and hour laws, and work with tax professionals or legal counsel before making compensation changes. NCRLA will continue to advocate for and update members on how these new laws impact your businesses and employees. For questions or guidance, don’t hesitate to reach out to our team.
TIP POOLING 101
IMPORTANT DEFINITIONS
Applicable Minimum Wage:
$7.25 per hour of work performed
Tip: A sum of money presented by a customer as a gift or gratuity in recognition of some service performed when both the decision to pay the gratuity and the amount of the gratuity are determined solely by the customer.
For example, in North Carolina, those 20% gratuities that are automatically added to a party of six or more persons do not qualify as tips under the FLSA. Thus, such gratuities could be pooled and shared with typically non-tipped employees.
Tipped Employee: Any employee engaged in an occupation in which he or she customarily and regularly receives more than $30 a month in tips, regardless of what tasks they perform or how much time they spend performing those tasks.
By Attorney Kayla McDaniel, Cranfill Sumner LLP
“Tip pooling” is not a new concept for employers in the hospitality industry. While it’s designed to fairly compensate employees who do not outright receive the federal minimum wage and do not directly collect tips from customers, tip pooling can raise a lot of questions for employers and employees. Here’s how to navigate tip pooling in North Carolina.
The Fair Labor Standards Act and Tip Credits
The Fair Labor Standards Act (FLSA) primarily requires minimum wage for employees and governs when they are entitled to overtime pay. Under the FLSA, an employer must pay a tipped worker at least $2.13/hr., but can take advantage of a “tip credit” towards its minimum wage and overtime obligations for tipped employees, who are defined as employees who regularly receive more than $30/month in tips. This tip credit can equal the difference between the direct or cash wage it pays to tipped employees, and the federal minimum wage of $7.25/hr., provided the employer does not claim a tip credit greater than $5.12/hr.
Tip Pooling
Whether tip pooling is allowed depends on whether the employer utilizes the tip credit. If an employer utilizes the tip credit to pay below minimum wage, that employer may only allow tip pooling for employees who customarily and regularly receive tips. For the pool to be valid, the employer cannot include non-tipped employees, such as cooks and dishwashers, or managers and supervisors, even if they also perform the same job duties as tipped employees during their shift. Employees who can participate in a valid tip pool are all employees who regularly interact with customers and work in an industry where undesignated tips are common, such as servers, bussers, bellhops, bartenders, etc.
On the other hand, employers that do not take advantage of the tip credit, but pay employees full minimum wage or more, may include non-tipped employees such as kitchen personnel in the pool, provided that managers and supervisors are still excluded.
To comply with the FLSA, the employer must provide the following information to the tipped employee before taking the tip credit: (1) the amount of the direct or cash wage the employee is paid (at least $2.13/hr.); (2) the additional amount claimed as a tip credit; (3) that the tip credit claimed cannot exceed the amount of tips the tipped employee actually receives; and (4) that the tipped employee must be allowed to retain all tips they receive, except where a valid tip pooling arrangement exists.
Kayla McDaniel is an attorney at Cranfill Sumner LLP and primarily focuses her practice in working with the employment law, business law, and municipalities and public entities sections.
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"My advice to restaurateurs is to do your research and see what's the best fit for your area. For us — in a smaller town that doesn't have many DoorDash drivers — people still have the app everywhere. So Self-Delivery helps us reach new customers."
- Jeff Robers, Director of Development, Westside Pizza
WANTED: FOOD SAFETY’S BIGGEST OFFENDERS
NATIONAL FOOD SAFETY MONTH 2025
This September, NCRLA is putting Food Safety’s “Most Wanted” in the spotlight. The culprits? Crosscontamination, poor hygiene, unsafe temps, and other repeat offenders threatening kitchens across North Carolina.
Each week during National Food Safety Month, our In the Mix newsletter will deliver the tools you need to catch these violators before they cause trouble — including expert tips, downloadable posters and checklists, and quick “Shift Meeting Briefs” for your team. At month’s end, you’ll also receive a recap toolkit to keep your defenses strong year-round.
Keep your eyes peeled and your kitchens safe. Together, we can bring food safety’s most wanted to justice.
MEMBER SAVINGS PROGRAM
NCRLA Preferred Providers & Partners
Take advantage of these membership perks from NCRLA's partners.
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Affordable electronic invoice payments and data solutions built for retailers who sell alcohol.
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Credit card and payroll processing.
Streamline operations, accelerate growth, and provide guests with a first-class experience, in-house or online.
Cloud-based restaurant management platform that integrates point-of-sale, online ordering, payroll, and team management into one system.
Certifications & Training
Certifications & Training
Elevate your restaurant's success with exclusive savings on insights, tools, and training for NCRLA members.
NCRLA members receive 20% off ServSafe trainings and certifications.
Foodservice & Beverage
Butterball Foodservice offers chefs superior turkey products and exceptional customer service.
Got To Be NC is a proud partner of NCRLA to connect chefs and restaurants to local products to continue to diversify, innovate, and strengthen NC's food and agriculture businesses.
AHLEI provides a range of resources, including online learning, professional certification, and educational materials for the hospitality industry.
BEST provides free prevention training for NCRLA members to disrupt human trafficking.
Workforce development and training for the hospitality leaders of tomorrow.
Pepsi Bottling Ventures is the largest independent Pepsi-Cola bottler in the nation, operating 12 production and distribution sites in NC. As NCRLA’s Born in the Carolina’s partner, they can help fill your beverage needs.
Shelton Vineyards remains one of the largest vineyards on the East Coast, serving as a new agricultural resource for an area once dependent on tobacco farming.
Sysco is the global leader in selling, marketing, and distributing food products to restaurants, lodging establishments, and other customers who prepare meals away from home.
US Foods provides customers with innovative food offerings, culinary equipment, and a comprehensive suite of e-commerce, technology, and business solutions to help increase your bottom line.
Tax Credits & Lending Solutions
Adesso Capital is NCRLA's partner for lending solutions, Tip Tax Credit eligibility, and FFCRA tax credits for self-employed individuals.
Workers' Compensation
EMPLOYERS is the workers' compensation provider for NCRLA, offering a 5% discount on workers' compensation insurance and services through our network of independent insurance agents.
Legal Solutions
Specializing in Alcohol Legal Issues.
Experts in North Carolina retail, restaurant, and hospitality law.
Entertainment & Music Licensing
BMI makes it simple to use music in your bar, restaurant, or brewery. Save up to 20% on annual fees.
As North Carolina's amusement industry leader, Capital Games is at the forefront of the exciting Video Lottery Terminal (VLT) market.
Lucky Lincoln Gaming, LLC is a licensed Video Gaming Terminal Operator.
NCRLA members save up to 20% on your liquor liability policy with Hospitality Insurance and 5% on your Business Owner Policy.
Cleaning & Sanitation Suppliers
Provides cleaning and sanitation products and services to businesses in foodservice, food processing, and hospitality.
Cleaner, safer commercial kitchens are their mission.
Insurance People of NC will assess your situation and develop a comprehensive, cost-effective solution that fits your needs.
24/7 accessible health benefits for all hospitality employees regardless of fullor part-time status.
Marsh McLennan Agency (MMA) provides business insurance, employee benefits, retirement, and private client solutions through over 15,000 colleagues and 300+ offices across the U.S. and Canada, combining personalized service with the global resources of Marsh McLennan.
Tailor-made health plans for your business.
Helping clients in the hospitality industry take their stories to the next level.
Marketing & Communications Hotel Performance Data
Global data benchmarking, analytics, & marketplace insights.
Member Moments
Proudly Recognizing North Carolina’s Hospitality Leaders
NCRLA Members
Shine on 2025 List of America’s Best Hotel Restaurants
OpenTable and Kayak have named their Top Hotel Restaurants in America for 2025, and three North Carolina standouts made the cut. Asheville’s Omni Grove Park Inn earned double honors with Blue Ridge, known for its farm-to-table buffet and mountain views, and Sunset Terrace, celebrated for hand-cut steaks, seafood, and its award-winning wine list. In Cary, Herons at The Umstead Hotel and Spa impressed with its art-filled setting, seasonal menus, and meticulous attention to detail. With 73% of travelers saying great dining would bring them back to a hotel, it’s no wonder these spots keep guests—and locals—coming back for more.
Bella Monica Celebrates 25 Years
Beloved Raleigh dining destination
Bella Monica celebrates 25 years of authentic Italian-American cuisine, warm hospitality, and deep community roots. What began in 2000 as a small takeout pizza counter has grown into a fullservice trattoria founded by Chef Corbett Monica and his wife, Julie. The eatery was inspired by the family-owned Italian restaurants of their New York and New Jersey upbringing.
Known for its signature pizzas, housemade pastas, and inviting atmosphere, Bella Monica has become a go-to spot for casual dinners, special celebrations, and community gatherings. And the Monicas have supported local causes and welcomed guests like family. Here’s to 25 years of flavor, friendship, and tradition in the heart of North Carolina!
Sunset Terrace at Omni Grove Park Inn & Spa
Herons at The Umstead Hotel
Blue Ridge at Omni Grove Park Inn & Spa
Biscuitville Again Named Nation’s Best Fast-Food Breakfast
North Carolina-based Biscuitville has once again claimed the top spot in USA Today’s 10 Best Readers’ Choice Awards for best fast-food breakfast. This marks the third consecutive year the beloved biscuit chain has earned the No. 1 ranking, with voters praising its fresh, Southern-style offerings made from scratch every 15 minutes.
Biscuitville, which operates more than 85 locations across the Carolinas and Virginia, also secured the No. 2 spot in the category of best regional fast-food restaurants. Founded in 1966 and headquartered in Greensboro, the family-owned chain continues to win fans with its commitment to quality and tradition.
Another North Carolina staple, Bojangles, also earned national attention, ranking No. 8 on the list of top fast-food breakfast spots.
NCRLA Restaurateur of the Year Matt
Kelly Opens Nostalgic New Pizzeria in Durham
Matt Kelly, NCRLA’s 2025 Restaurateur of the Year, has expanded his acclaimed Durham restaurant group with the July 18 debut of Dino’s Pizza at University Hill. Channeling classic New York/New Jersey vibes, the retro-style pizzeria features red-and-white checkered tablecloths, vintage Tiffany lamps, and plenty of old-school charm, all backed by Kelly’s signature culinary expertise. MK Hospitality, Kelly’s restaurant group, is a longtime NCRLA member and key player in Durham’s thriving dining scene.
Hive House Opens in Cary, Blending Extended-Stay Comfort With Boutique Style
CMC Hotels, a Cary-based hospitality innovator and NCRLA member, has launched Hive House—an independent, 45-suite extended-stay hotel that merges the flexibility of long-term accommodations with the flair of a boutique property. Located just minutes from downtown Cary and convenient to RDU and NC State, Hive House opened its doors on July 15. Each suite includes a full kitchen and separate living and sleeping areas, complemented by frictionless tech check-in and striking interior design. Bold patterns, curated vintage touches, and a mural by a local artist create a stay that’s as memorable as it is comfortable. As one of the only independent extended-stay hotels in the Triangle area, Hive House signals a fresh, creative direction in the region’s hospitality landscape.
Photo: Drew Jackson
Did You Know?
Hospitality Industry News Bites
Adé Carrena Shines on National Stage
Adé Carrena, 2023 NCRLA Chef of the Year and Chef Showdown Champion, of iLéwa Foods and Dounou Cuisine in Raleigh, triumphed over challenges on the Food Network's show Chopped to win one of the culinary world’s most intense competitions.
“I didn’t go on Chopped to win,” Carrena said. “I went to uplift the flavors of my birthplace, Benin, and showcase the beauty of West African cuisine.”
Carrena brought heart and heritage into every dish she created despite cutting her hand, burning herself, and confronting mystery ingredients like piña colada mix. In the final round, she crafted a suyainspired dish with peanuts in place of traditional cashews and folded the tropical mix into a sauce that one judge called “bottle-worthy.”
Dining Trends to Watch
A recent report by Placer.ai, “Out of Home Dining 2025: Performance & Consumer Trends,” sheds light on shifting dining habits—and what restaurant operators can expect.
SIX KEY TAKEAWAYS:
1. Dining Traffic is Flat
While dining traffic nationally has remained steady, some western states (Utah, Idaho, Nevada) saw moderate gains. Traffic in the South, Midwest, and DC is on the decline, underscoring the importance of understanding local market dynamics.
2. Expansion Fuels Fine Dining and Coffee Growth
These two categories saw increases in overall visits, but visit-per-location averages dropped, meaning growth is largely due to new store openings.
3. Affluent Consumers Spur Growth
1. RestaurantOwner.com provides resources, tools, and training programs to promote business success. NCRLA members get discounts on subscriptions.
2. RestauRent’s new platform can help you turn missed inquiries into booked events with practical strategies to streamline the booking process, boost conversions, and generate new revenue.
3. NCRLA members can reach industry experts about the NC food code, ABC regulations, occupancy and meals taxes, innkeeper’s rights, and other issues at info@ncrla.org.
4. NCRLA’s partner Adesso helps eligible businesses get back FICA taxes paid on tip earnings that surpass the federal minimum wage. Find out more at AdessoCapital.com/partner/ncrla.
5. With Thanksgiving on the horizon, Butterball has you covered! Check out products and inspiration at ButterballFoodService.com.
Fine dining and coffee chains are attracting guests with higher median household incomes.
4. Remote Work Reshapes Dining
Suburban customers have become more prominent at fine dining restaurants, while coffee shops are seeing fewer commuter visits.
5. Weekdays vs. Weekends
Quick-service and fast-casual restaurants dominate the Monday-toFriday crowd, while full-service and fine dining see most of their traffic on weekends.
6. Time-of-Day Trends
Distinct peak times by category: Coffee: Early morning
Fast Casual: Lunchtime
Casual Dining: Late afternoon
Fine Dining: Dinner
QSR: Late night
Five Tools from NCRLA:
Photo courtesy of Chef Adé Carrena
Get more than a POS. Get more profit.
The SpotOn Restaurant Management System can help your restaurant make more and waste less.
Point-of-sale essentials
Fast payments
Table layouts
Ordering & menus
Reporting
Gift cards
Software integration
Plus powerful software that fits into your workflow
Streamline operations: handhelds, QR & digital ordering, and KDS
Attract more guests: automated marketing, digital waitlist & reservations, and a built-for-you website
