Weekly Wrap March 17: Restaurant Bathrooms, Tariffs on European Alcohol, and More
The most important hospitality industry news right now
Dave Foss
March 17, 2025
In this Weekly Wrap, we’re looking at big restaurant company layoffs, the power of a clean bathroom, hot dog towers, and more.
2025 Restaurant Corporate Layoffs
The Headline: “These 6 restaurant companies have laid off thousands in 2025”
The Source: Restaurant Dive
What You Need to Know:
Less than three months into 2025, and the restaurant industry is still stuck in the doldrums thanks to sluggish traffic and high borrowing costs — a situation that has triggered major layoffs at many brands.
New forms of disruption could further destabilize companies. The U.S. government’s plans to implement steep tariffs will likely inflate supply costs as U.S. trading partners retaliate. On Thursday, The Federal Reserve Bank of Atlanta slashed its Q1 GDP forecasts from 3.9% growth in early February to a 2.4% contraction — a swing of 6.3%.
But the possible impact of trade wars is still in the future. In the present, at least six major restaurant firms have slashed their payrolls. Here’s who and why.
[Starbucks, Grubhub, Bloomin’ Brands (Outback Steakhouse, Carrabba’s Italian Grill, Fleming’s Steakhouse), Dine Brands (Applebee’s, IHOP), Denny’s, Topgolf]
Our Take:
When the big brands start laying people off, it’s never just noise — it’s a signal of what’s on the horizon. And this latest wave of cuts — Starbucks, Grubhub, Denny’s, Dine Brands, Bloomin’ Brands, and Topgolf — is concentrated at the corporate level. That’s important. These aren’t FOH or BOH cuts; they’re strategic layoffs. Starbucks is in the middle of a full realignment, Grubhub was recently acquired by Wonder, and the rest have been riding the struggle bus for years. Topgolf’s inclusion raises some eyebrows, considering their aggressive growth plans.
The throughline here is clear: these companies see the storm clouds gathering and are trimming the fat in advance. High interest rates, uncertain consumer confidence, and flat traffic in many markets have put everyone on edge. Even companies that aren’t hurting right now are leaning down before things tighten further. These moves are less about immediate crisis and more about preparing to weather the storm that may be on the horizon.
For smaller operators, this is your cue. If corporate is making moves now, you should already be looking into your own house. Keep a sharp eye on labor, cost of goods, and vendor relationships. It’s not panic mode like March 2020 — it’s vigilance. Big brands can afford to eat profits — at least in the short term. But independents can’t. Pay attention to what the giants are doing, not because they’re always right, but because their behavior tends to preview what’s to come.
More Tariffs
The Headline: “Trump threatens retaliatory 200% tariff on European wine after EU proposes American whiskey tax”
The Source: AP News
What You Need to Know:
President Donald Trump on Thursday threatened a 200% tariff on European wine, Champagne and spirits if the European Union goes forward with a planned tariff on American whiskey.
The European import tax, which was unveiled in response to steel and aluminum tariffs by the U.S. administration, is expected to go into effect April 1, just ahead of separate reciprocal tariffs that Trump plans to place on the EU.
But Trump, in a morning social media post, vowed a new escalation in his trade war if the EU goes forward with the planned 50% tax on American whiskey.
“If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES,” Trump wrote. “This will be great for the Wine and Champagne businesses in the U.S.”
European Commission President Ursula von der Leyen said Thursday that the EU trade commissioner would be having a phone call Friday with his U.S. counterpart.
“We don’t like tariffs because we think tariffs are taxes and they are bad for business and they are bad for consumers,” she said. “We have always said at the same time that we will defend our interests. We’ve said it, and we’ve shown it, but at the same time I also want to emphasize that we are open for negotiations.”
The U.S. president has defined his opening weeks in the White House with near daily drama regarding tariffs, saying that taxing imports might cause some economic pain but would eventually lead to more domestic manufacturing and greater respect for America. The S&P 500 stock index fell 1.4% on Thursday, while European alcohol stocks also tumbled.
But with the EU and Trump now tussling over alcohol tariffs, the impact of a trade war could surface directly in ways consumers could quickly see. It’s unclear how the import taxes would be absorbed among vintners, distillers, brewers, distributors, retailers and consumers.
Because of Trump’s threat, a previously untariffed $15 bottle of Italian Prosecco could possibly increase in price to $45. Similarly, Europe’s response to Trump’s steel and aluminum tariffs means that the cost of a 30-euro bottle of bourbon in Paris could increase to 45 euros.
Our Take:
There’s a lot to unpack here — and it all sucks.
Look, Trump’s proposed 200% tariff on wine and spirits from the EU is a political stunt. But for the hospitality industry, it’s a landmine. Importers, distributors, and retailers are all in peril of catastrophic results. Every Italian restaurant that’s ever built a menu around Italian wine and amaro, any French bistro with French wine and aperitifs, any tapas bar that carries Spanish wine and vermouth…..you get the point. They’re all screwed.
According to IBISWorld, there are over 60,000 Italian restaurants in the U.S. alone. That’s obviously not counting any of the thousands of other European independent spots that lean on beverages from their specific cuisine.
What exactly would these tariffs do to their selections?
That affordable everyday glass of Chianti? No longer “everyday” — now it’s probably the most expensive glass pour on the list.
That splurge worthy special occasion Barolo? It's now priced strictly for the folks pushing these tariffs in the first place.
That Aperol Spritz? Try $25-$30 — if it stays on the menu at all.
The Aperol Spritz is actually a perfect example of what gets lost here. It’s a high-margin cocktail that’s a staple across the country, not just at Italian restaurants. It’s simple: Aperol, Prosecco, and a little soda. Sure, you can sub in a California sparkling wine. But let’s be honest, people want the Aperol and will notice if it’s missing.
What’s the alternative? All domestic wines by-the-glass — which will most likely mean grocery store wines. There are exceptions, but a majority of U.S. wines that come in at those by-the-glass margins are big-brand, mass-produced, and in 75% of grocery and liquor shops across the U.S. There’s nothing wrong with those wines, but they’re not a great way to differentiate yourself.
It leaves restaurant owners with somewhat of a nightmare scenario: shrinking options, shrinking margins, and shrinking customer patience. All at the same time we’re still dealing with labor shortages, rising rents, and higher cost-of-goods.
This is policy at its worst, and it does nothing to help the already challenged sit-down dining sector.
Restaurant Bathrooms
The Headline: “Gross bathroom? It can cost your customer experience”
The Source: Restaurant Dive
What You Need to Know:
Every customer has had the experience. You’re at a concert, restaurant or airport, you walk into the bathroom, and it’s gross.
The stalls have gaps, the sinks don’t work, the paper towel machines are out of paper. You hold your breath and leave feeling like your skin is crawling.
“The restroom actually plays a surprisingly large role in shaping the overall customer experience, especially after COVID,” said Yang Clark, senior business development manager at Bradley.
A survey from Bradley, released last week, backs that up. More than 4 in 5 consumers report that an unclean or unpleasant restroom has a negative impact on their overall impression of an establishment, the survey of over 1,000 U.S. consumers found.
Businesses that ignore the restroom’s impact on overall customer experience may be losing out on loyalty and sales.
The survey found that 7 in 10 say they are more likely to return — and even spend more — at a business with clean, maintained bathrooms.
The restroom experience is particularly significant for restaurants and cafes, hotels, retail businesses, airports and offices, Clark said.
Customers want cleanliness, functionality, privacy and comfort, and accessibility, according to Clark. Their perception contributes to overall satisfaction — and brand image, too.
Our Take:
It’s wild how many operators obsess over heirloom tomatoes and bespoke cocktail syrups, but completely ignore one of the most basic parts of the guest experience: the bathroom. This isn’t rocket science. If your bathroom is filthy, broken, or clearly neglected, you’re telling your guests that hospitality stops at the dining room door.
A disgusting bathroom breaks the experience many restaurateurs have labored to create. It doesn’t matter how good the food is, if guests feel like they need a hazmat suit to wash their hands, they’re not coming back. I was recently at a well-known spot in New Orleans, and the bathroom was bad…..real bad, as in I-asked-for-sanitizer-when-I-got-back-to-my-table bad. I won’t be going back and I won’t be recommending it to anyone.
So here’s the strategy: keep it clean, fix what’s broken, and install a StepNpull or other brand of hands-free door opener. That’s it. There’s no excuse for letting something this simple ruin your reputation. The bathroom isn’t just a utility, it’s a reflection of your standards, and your guests notice.
Hot Dog Tower
The Headline: “Move Over Seafood Tower — the Hot Dog Tower Has Arrived”
The Source: Eater
What You Need to Know:
For Trina’s Starlite Lounge, the longstanding bar in Somerville, Massachusetts, 2024 was financially “pretty rough.” And then the election happened. “We felt a little stuck,” says co-owner Emma Hollander. They’d been serving hot dogs, fried chicken sandwiches, and other Southern-inflected bar foods for 15 years. Enter the hot dog tower, a two-tiered assortment of five hot dogs, fries, and sauce that joined the menu in January. It’s served on branded Miller High Life trays, with hot dogs fanned out like a starburst. Visually, it has a playful appeal that fits in with the bar that’s known for its statements spelled out in childlike magnet letters on a fridge.
What began as an easy way to breathe new life into the haunt has become a popular order. Trina’s now sells 40 hot dog towers, which start at $35, in a night — some as casual snacks for big groups, others as the centerpiece of celebrations. The concept fit into the menu of American comfort food that people loved at Trina’s, and since hot dogs and fries were already two of the bar’s best-selling items, the new addition didn’t give the kitchen extra work. “We’re not trying to reinvent the wheel,” Hollander says. “But we really wanted to do something fun.”
As at Trina’s, the hot dog tower at Highroller Lobster Co. in Portland, Maine is a strategic addition. Hot dogs have always been second to lobster rolls on the menu, and since the restaurant also serves seafood towers, the hot dog tower, which it also launched in January, was “a fun way to repurpose some of the stuff we already had and use,” says co-owner Baxter Key. It features six corn dogs in addition to six hot dogs, fries, and sauce. While visitors from out of town gravitate toward lobster rolls, locals tend to lean more toward hot dogs and corn dogs, he explains.
The rise of the hot dog tower, which is an undeniably unserious idea, is further proof of what my colleague Jaya Saxena has dubbed “LOLfood”: that in times of crisis and instability, diners revert to food that doesn’t require thinking too hard. It’s food that draws on the most basic familiarity and cheap thrill — make Goldfish extra-large, serve a tower of hot dogs. “Everybody, post-election, was really looking for something that made them happy,” Hollander says.
Our Take:
Tariffs are looming, egg prices are spiking, and there’s a seemingly never-ending labor crunch, restaurants are being squeezed from every direction. In times like these, creativity isn’t just encouraged — it’s vital. I know, the hot dog tower feels both absurd and absolutely perfect. It’s unserious, a little ridiculous, and also kind of brilliant.
The seafood tower is a known indulgence. It's expensive (if it isn’t expensive I would be suspect), showy, and typically reserved for special occasions. The hot dog tower flips that around. It’s nostalgic, approachable, highly shareable, and most importantly, inexpensive. It invites guests to loosen up and not take themselves so seriously, laugh a little, and post to social — all while keeping food costs low and margins in line. In a market defined by cautious spending and constant uncertainty, that’s the smart play.
No one’s suggesting you overhaul your menu to become a hot dog emporium. But the bigger takeaway here is about presentation, creativity, and the power of surprise. Guests are hungry for something to take them away from the gloom of today's news, and operators need wins. If stacking a dozen hot dogs on a fancy tray gets people talking, posting, and coming back, that’s a win in our minds.