Industry: Congress off to a good start

Nation's Restaurant News, April 17, 1995 by Robin Lee Allen

WASHINGTON -- As the 104th Congress huffs and puffs its way over the finish line of its whirlwind first 100 days, foodservice operators stand ready to hand out accolades but no medals yet.

Although the House covered much ground in its Contract with America, most of the hurdles that can win it Olympic gold from operators lie ahead when issues more pertinent to the industry are addressed.

"In terms of the first 100 days of the House, the action was pretty pre-planned, and the ability of the restaurant industry to play a substantive role was limited," said Brian Riendeau, director of government affairs for KFC Corp.

"From KFC's point of view some of the more important issues, like the targeted-jobs tax credit, health care ... and perhaps franchising legislation, look like they'll all be dealt with after the Easter recess," he noted.

But while several industry issues remain to be tackled, many operators said the contract's importance lies in indirectly helping the industry by directly helping America.

"I think we'd almost have to rate the first 100 days by what the House of Representatives has done for the political system," said Bruce C. Cotton, president of the National Council of Chain Restaurants and senior vice president of public affairs for Long John Silver's Inc.

"They brought hard issues before the people and Congress, and whether they pass or not is immaterial," he continued. "I don't think everybody expected all 10 points to pass, but they made national issues a point of discussion and I have been amazed that they have moved as much legislation as they have."

Unveiled before last November's elections, the Contract with America was a blueprint for change proffered by Republicans to win votes.

Written in large part by House Speaker Newt Gingrich, R-Ga., the contract promised to take action on both congressional and legislative reforms within the first 100 days of the new congressional session.

Despite criticism from the White House and other Democrats, claiming that the reforms help the wealthy and hurt children, Gingrich's team kept its promise, introducing issues onto the House floor at an exhausting pace.

Except for term limits and the balanced-budget provision -- defeated in the House and Senate, respectively all other contract issues have now been moved on to the Senate and President Clinton.

"I really think there's a revolution going on," said Elaine Z. Graham, senior director of government affairs for the National Restaurant Association.

"People want change, and they want it at both the state and the federal level,' she continued. "Lawmakers are more business-minded than they were before Nov. 8, and the business people are hitting them from all sides."

The NRA's biggest efforts to date have been made pro7 moting the contract's tort-reform and tax-cuts provisions, Graham said. To do that, the association financed radio spots and took a leadership role in trade-group coalitions.

"Tax cuts mean a strong economy, and that will really help foodservice," Graham said. "It also includes beneficial expensing provisions we've always supported and a cut in the capital-gains tax."

She added: "But there are not only business-related benefits. There are things that are good for families and seniors as well."

Tort reform as approved by the House would limit punitive damages, eliminate joint-and-several damages and require the loser to pay in some instances.

"We want to expand the actual reforms beyond product liability to make sure restaurateurs get relief from frivolous lawsuits," Graham noted. "But the bill passed in the House provided some assistance to the industry."

Also beneficial to foodservice is the crime-prevention bill intended to reduce crime by, among other things, increasing prison construction and limiting death-row appeals, NCCR's Cotton said.

Proposed changes to Social Security also would be helpful, he noted. Raising the Social Security earnings cap would make it easier for operators to hire seniors, who are often reluctant to work at the risk of losing benefits.

Welfare reform included in the contract eventually could help the foodservice industry in several ways, including expanding the work force by giving recipients the incentive to work.

"Personally, I am for welfare reform," said Bill Leichsenring Jr., president and owner of the Ox Yoke Inn in Amana, Iowa. "As a businessman, when you're losing money, you have to cut back. And the deficit is spiraling way out of control."

In addition to reining in the deficit, however, welfare reform would end many abuses to the system, Leichsenring claimed. One he said he witnesses often is welfare recipients who apply for jobs simply to keep their benefits coming, not to actually work. There's no question that some people can earn more on welfare than working," he said.

NCCR's Cotton agrees.

If the general public feels we are all on an even playing field, you will have a different attitude in the work force," Cotton said.

"A greater problem in the fast-food industry is that i you pay $6 per hour quit because they can make more on welfare and get better benefits," he added.