As a restaurant owner, I enjoy sharing the rich flavors of my Cuban heritage with customers every day. Whether that’s making the world’s largest croqueta or serving the “hippest sip” of coffee in Miami, my small business is working overtime to compete in the quick-paced hospitality industry that is characterized by long hours and tight budget margins.
But thanks to the recent passage of the One Big Beautiful Bill Act, independent restaurants are poised to thrive – benefiting employees, customers and the community alike. For Sergio’s Restaurants, my family small business, that means moving ahead with plans to open two new restaurant locations and hire approximately 100 new team members over the next year.
How? The new federal law restores 100% immediate expensing for capital equipment, which allows us to fully deduct the cost of appliances like ovens and refrigerators the year we buy it. The policy incentivizes small businesses to invest in operational expansion now, rather than waiting and kicking the can down the road.
Additionally, the law also makes the 20% small business deduction that was set to expire permanent and locks in lower tax rates for pass-through enterprises. (These are entities in which business revenue is taxed as the owner’s personal income.)
TRUMP’S ‘BIG, BEAUTIFUL BILL’ AND ITS PERMANENT TAX CUT WILL CHANGE THE WORLD
The changes give restaurants like ours the long-term tax certainty we need to grow confidently and create jobs, as well as provide existing staff room for career development.
But arguably the most impactful part of the One Big Beautiful Bill Act for restaurants is the “no tax on tips” provision.
Under this new rule, tipped workers can deduct up to $25,000 in tips from their taxable income. In Florida, the average restaurant server earns around $37,000 annually, more than 60% of which comes from gratuity. That means the “no taxes on tips” policy could eliminate a huge chunk of their federal income tax burden. That’s a savings of around $2,000 per year back in the pockets of the restaurant servers and bartenders who power our industry.
This is more than just a win for employees, it’s a game-changer for employers too. This significant savings functions like a raise for workers, without increasing the cost of labor for restaurants and bars. At a time when the service industry is fighting to attract and retain talent, this new tax-savings tool makes our sector more competitive and helps level the playing field against other industries.
With Sergio’s planned expansion in mind, consider also that some 720,000 other restaurants and bars across America are also factoring these new tax provisions into their growth plans. It is easy to see how the One Big Beautiful Bill Act will turbocharge the broader food and beverage service industry and bring major tax savings to millions of tipped workers nationwide.
At Sergio’s Restaurants, we’ve always believed in creating opportunities from the kitchen to the front of house. With pro-growth government policies that reward hard work, encourage investment and reduce unnecessary budget burdens, we’re better equipped than ever to do just that. So let’s raise a glass to President Donald Trump’s tax cuts – preferably with a Cuban-inspired cocktail.
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