Restaurants get boost in cutthroat labor competition from no taxes on tips

Published July 10, 2025 7:00am ET



Jobs as a host or waiter are more attractive now that Republicans have cut taxes on tips. This will give full-service restaurants a boost in the stiff competition for labor.

In other words, the One Big Beautiful Bill Act will give a marginal boost to restaurants like Chili’s and Bonefish Grill as they work to lure workers who might otherwise take roles at fast-food joints or in retail, and specifically for “front-of-house” workers who collect wages.

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