Wil sits down with Emily Williams Knight, CEO of the Texas Restaurant Association (TRA), which represents 58,000 restaurants, 1.4M employees, and nearly $137B in annual sales. Emily explains how the TRA protects a pro-business regulatory environment so operators can focus on guests and teams, not red tape. She shares a pandemic origin story: brand-new in the role, she built a “war room,” forged bipartisan relationships, helped shape PPP/RRF fixes, and pushed for one of the earliest statewide re-opens, becoming a nightly “north star” for Texas restaurants. Today’s headwinds: uncertainty across demand patterns, labor/immigration constraints disrupting the full “plant-it to plate-it” chain, protein inflation (beef unlikely to ease until ~2028 due to shrunken herds, import frictions, and disease risk), and looming seafood import tightening. Emily flags swipe fees (3–4%+), opaque delivery chargebacks/penalties, and rising insurance/rent/cleaning costs that small operators can’t keep passing to guests. TRA’s approach: advocate first by collaboration (then legislate if needed), and deliver practical operator wins—e.g., a $9/mo Teladoc program (including mental health) for employees/families, childcare policy via an Employers for Child Care task force (8 of 9 bills passed), and exploring lower-cost payments (e.g., stablecoin rails) to challenge card duopolies. Throughout, Emily underscores that independents are community infrastructure - first to show up in disasters, central to local identity - and urges owners to engage with their state associations for advocacy, education, and scaled benefits. Her north star: be courageous and pragmatic - simple solutions to complex problems - so small restaurants can survive the current squeeze and keep delivering hospitality. Key Takeaways TRA at scale: 58k restaurants, 1.4M employees, ~$137B sales—largest private-sector employer in Texas. Advocacy matters: TRA blocked well-intended but risky mandates (e.g., restaurant staff administering Narcan) by educating lawmakers. Bipartisan playbook: Results come from working both sides of the aisle and building trust before crises hit. Pandemic “war room”: Early reopen, nightly updates, and PPP/RRF fixes made TRA a lifeline for operators. Core problem = uncertainty: Demand patterns, costs, and supply reliability are too volatile for 4–6% margin businesses. Labor/immigration shock: Shortages ripple from farm to kitchen; near-term ask is work permits for long-time, law-abiding workers. Protein pressure: Beef relief unlikely until ~2028 due to herd rebuild cycles, import constraints, and disease risks; seafood supply faces stricter import rules. Cost traps: Swipe fees (often 3–4%+) and delivery chargebacks/penalties are eroding margins; TRA is pushing transparency and policy fixes. Practical benefits: TRA offers a $9/mo Teladoc (incl. mental health) for employees/families and is advancing childcare solutions to improve retention. Independents = community infrastructure: They fuel local identity and disaster response—consumer support and association engagement are vital.
