The coffee house of the future comes into focus. A chain may reach into its pocketbook to accelerate growth. Small business owners share their outlook. These stories and more This Week in Foodservice.

While there was much debate on both sides of the aisle regarding this historic piece of legislation, there’s no question where the National Restaurant Association stands when it comes to the “One Big Beautiful Bill.”

“The pro-growth tax policy in this bill will make it easier to start a restaurant and to continue to improve and modernize as the business grows. It lays the groundwork for long-term innovation, job creation, and economic growth, ensuring restaurants can continue to meet evolving consumer needs and power the U.S. economy,” said Michelle Korsmo, president and CEO of the National Restaurant Association, in a press release.

One notable aspect of the bill gives restaurants and foodservice operators the ability to fully expense capital equipment purchases, per the NRA’s release. It also includes a provision that allows businesses to deduct expenses, restoring “depreciation and amortization to the calculation of interest payment deductibility, freeing up capital to pay off debt, expand, or make additional investments,” the NRA notes.

The bill also includes provisions that provide tax deductions for tipped servers and bartenders, and hourly employees who earn overtime premium pay, the NRA points out. “This recognition of valuable restaurant staff will put cash back in the pocket of a significant number of these hard-working people and could help restaurant operators recruit needed additional talent,” said Korsmo.

Foodservice News

• While a location may not work for one concept, that does not mean it won’t be successful for another one. That’s the case with Twin Peaks, which has converted two Smokey Bones locations to its sports bar format. This is all part of a strategy to accelerate Twin Peaks’ growth. The strategy is working so well, in fact, that Twin Peaks may acquire another change specifically for conversion, per a FSR Magazine story.
• Starbucks is rolling out its vision for the coffee house of the future. Part of the chain’s “Back to Starbucks” initiative includes adding cozier seating, warmer lighting and locally inspired art, per a Yahoo! Finance story. The redesigned locations seek to make customers want to spend more time at Starbucks. Earlier this year, Starbucks implemented several other parts of this plan, which include offering ceramic mugs for in-house beverage orders and bringing back the condiment bar so customers can add their own cream and sugar.
• Restaurant tech company Olo will continue its evolution in private. Thoma Bravo has agreed to acquire Olo for $2 billion in cash and take the publicly traded company private, per multiple published reports, including this one from Food on Demand. Founded in 2005, Olo is a platform restaurants use to manage digital ordering, payments, and guest data. The company works with a variety of high-profile restaurant chains, including Denny’s, P.F. Chang’s, and Cold Stone Creamery.
• As another indication of how challenging the restaurant industry is at the moment, a series of longstanding, often high-profile restaurants continue to close. The latest examples come from Los Angeles and New Orleans. After 117 years in operation in Los Angeles, Cole’s French Dip will close on August 3, 2025. When asked why the restaurant was closing, the owner cited a “litany of reasons,” per an LA Eater story, including ongoing impacts from the COVID-19 pandemic, the 2023 writers and actors strikes as well as rising labor and rent costs. In New Orleans, Palace Café closed its doors on July 7, 2025, on the city’s Canal Street, capping a 34-year run, per multiple published reports. “This moment comes not by choice but by circumstance,” the company said in a statement.

Economic News

• The U.S. economy added 147,000 jobs in June, per data from the U.S. Bureau of Labor Statistics. This is 3,000 more jobs than were added in May, per a CNN story. Most of the job gains came from three industry segments: local government, which added 80,000 jobs; healthcare, which added 58,600 jobs and hospitality and leisure, which added 20,000 jobs. The labor force participation rate dropped to 62.3%, its lowest level since late 2022, owing to an increase of 329,000 of those not counted in the labor force, per CNBC.
• Private employers shed 33,000 jobs in June, per the ADP Employment report. Economists polled by Dow Jones had expected private sector employers to add 100,000 positions, per a CNBC story. Professional/business services was the hardest hit segment, losing 56,000 positions. In contrast, leisure and hospitality added 32,000 positions. “Though layoffs continue to be rare, a hesitancy to hire and a reluctance to replace departing workers led to job losses last month,” said Dr. Nela Richardson, chief economist, ADP. “Still, the slowdown in hiring has yet to disrupt pay growth.”
• The economic outlook among small business owners held steady in June. The NFIB Small Business Optimism Index came in at 98.6 for the month, which is 0.2 less than May and slightly greater than the 51-year average of 98. The Uncertainty Index decreased by five points from May for a June reading of 89. A total of 19% of small business owners say taxes are their biggest challenge, which is up 1% from May and the highest level since July 2021.