National Restaurant Association

The National Restaurant Association (NRA) is the world’s largest foodservice trade association. With nearly 750 employees, the group claims to represent 500,000 restaurant across the United States, but their membership list suggests these are mostly giant chains such as McDonalds. The NRA’s annual budget is around $30 million, and the group spends a little over $2 million every year on lobbying. In 2012-2013, NRA has worked with ALEC, major food service corporations, and PR firms to counter local campaigns to achieve paid sick days for workers and has backed bills to preempt paid sick days ordinances for low-income workers. (See below).

Budget and lobbying
According to the NRA’s 990 filing with the IRS, the organization generated $91.4 million in revenue and spent $26.3 million in 2011. According to Open Secrets, the NRA spent $2.7 million on lobbying in 2012 and $2.5 million on lobbying in 2011. Top issues for lobbying were taxes, labor and workplace, healthcare, and tourism.

Besides its in house experts, the NRA has also hired outside lobbyists in 2013, including Capitol Tax Partners, K&L Gates, Mehlman Vogel Castagnettie Inc., and Prime Policy Group.

Political Contributions
Across all years in the database, Influence Explorer reports that the NRA has spent $14,476,504 on political campaigns, with 76% going to Republicans and 15% going to Democrats. Top recipients include Heather A. Wilson (R-NM), John Kline (R-NM), Anne M. Northrup (R-KY), and John Boehner (R-OH).

The majority of NRA PAC contributions (84%) go to federal entities. Top PAC recipients include: Coalition to Save Florida Jobs, Republican Party of Florida, and the National Republican Congressional Committee.

Ties to the American Legislative Exchange Council (ALEC)
The NRA is a member of ALEC. According to the NRA’s 990 filling with the IRS, they gave $7,000 to ALEC in 2011.

Opposition to Paid Sick Days
In recent years, the NRA has fought hard against new laws and regulations on paid sick days policies, which would allow workers to stay at home when sick without risking their paycheck or their job. Forty percent of all workers do not have paid sick days; existing federal law covers only employees working 25 hours or more at businesses with at least 50 workers, applies only to serious and not routine illnesses, and is unpaid.

Bills to stop localities from allowing workers to earn paid sick days have been introduced in at least 14 different state legislatures across the country, a process coordinated in Washington, D.C. by the restaurant industry and ALEC. These bills are designed to preempt local governments or voters from enacting paid sick days ordinances.

The preemption concept was promulgated in August 2011 at an ALEC meeting in New Orleans. A member brought in a bill passed in Wisconsin that year thanks to a lobbying effort by the restaurant industry and the local Chamber; the bill overturned a Milwaukee paid sick days ordinance that had passed with nearly 70 percent of the vote in 2008.

At the ALEC meeting, the Wisconsin bill was the center of a special session where it was presented to other states’ legislators as a model. Legislators attending the meeting were also handed a target list and map of state and local paid sick days policies prepared by the National Restaurant Association (NRA). After that meeting, similar paid sick days preemption bills spread across the country, in most cases introduced and co-sponsored by ALEC member legislators.

Alabama: the Alabama Restaurant Association is pushing a preemption bill to stop local paid sick days ordinances.

Arizona: Arizona media reported that the restaurant industry is behind preemption bill. The Arizona Restaurant Association testified in support of the bill.

Connecticut: the Connecticut Restaurant Association lobbied vigorously against a paid sick days law passed in 2011.

Florida: the preemption bill was written with the help of Darden, the parent company for Olive Garden and Red Lobster.

Indiana: the Indiana Restaurant and Lodging Association pushed to pass the preemption bill.

Kansas: the Kansas Restaurant & Hospitality Association (KRHA) wrote a letter to governor asking him to support preemption bill.

Louisiana: the Louisiana Restaurant Association gave $2,750 to preemption bill sponsor. The LRA is a sponsor of ALEC and the LRA CEO spoke at the ALEC meeting in 2011 where a preemption model bill was distributed.

Michigan: The Michigan Restaurant Association commended passage of preemption legislation in the House and testified in favor in a Senate hearing.

Mississippi: while there is no confirmed link to the restaurant industry, the bill’s sponsor on preemption, Representative Turner is a confirmed member of ALEC and has received campaign donations from ALEC.

Oklahoma: State Senate sponsor for paid sick days and minimum wage preemption bill received campaign donations from the Oklahoma Restaurant Association.

South Carolina: The sponsor of a state preemption bill has been on multiple ALEC committees.

Tennessee: Tennessee Hospitality Association worked to pass preemption bill. Sponsors of the bill received campaign donations from Tennessee Hospitality Association (log in required on TN web page).

Washington: the Washington Restaurant Association fought against the Seattle paid sick days ordinance.

Wisconsin: the Wisconsin Restaurant Association worked to help pass preemption bill against paid sick days.

Paid Sick Leave Preemption Bills and Sponsors, 2011-2013
{| class="wikitable sortable" border="1" ! scope="col" | State (Year) ! scope="col" | Bill(s) ! scope="col" | ALEC Member Sponsors ! scope="col" | Status
 * WI (2011) || AB 41/SB 23 || Kapenga, Stone, Honadel; Vukmir, Grothman, Darling, Lazich || Enacted 2011
 * LA (2012) || SB 521 || || Enacted 2012
 * AL (2013) || HB 628 || || Died
 * AZ (2013) || HB 2280 || Forese || Enacted 4/29/13
 * FL (2013) || HB 655/SB 726 || Precourt, Mayfield; Simmons || Enacted 6/14/13
 * IN (2013) || SB 213 || || Enacted 4/25/13
 * KS (2013) || HB 2069 || Commerce, Labor, Econ Development Committee Chair Marvin Kleeb || Enacted 4/16/13
 * MI (2013) || HB 4249/SB 173 || Lori; M. Green, Meekhoff, Robertson, M. Kowall || Passed House & Senate committees, no floor votes yet
 * MS (2013) || HB 141 || Turner || Enacted 3/25/13
 * OK (2013) || SB 1023 || || Died
 * SC (2013) || H 3941 || Sandifer, Harrell, Bannister || Passed House 4/30/13, died
 * TN (2013) || HB 501/SB 35 || Kelsey, White, Lynn || Enacted 4/16/13
 * WA (2013) || SB 5728 || Padden, Bailey, Benton || Died
 * WA (2013) || HB 1781/SB 5726 || Bailey, Padden, Benton || Reintroduced and retained in present status May 13
 * WA (2013) || SB 5159 || Bailey, Padden; Becker, Carrell (deceased), Parlette, Holmquist || Reintroduced and retained in present status May 13
 * MI (2013) || HB 4249/SB 173 || Lori; M. Green, Meekhoff, Robertson, M. Kowall || Passed House & Senate committees, no floor votes yet
 * MS (2013) || HB 141 || Turner || Enacted 3/25/13
 * OK (2013) || SB 1023 || || Died
 * SC (2013) || H 3941 || Sandifer, Harrell, Bannister || Passed House 4/30/13, died
 * TN (2013) || HB 501/SB 35 || Kelsey, White, Lynn || Enacted 4/16/13
 * WA (2013) || SB 5728 || Padden, Bailey, Benton || Died
 * WA (2013) || HB 1781/SB 5726 || Bailey, Padden, Benton || Reintroduced and retained in present status May 13
 * WA (2013) || SB 5159 || Bailey, Padden; Becker, Carrell (deceased), Parlette, Holmquist || Reintroduced and retained in present status May 13
 * TN (2013) || HB 501/SB 35 || Kelsey, White, Lynn || Enacted 4/16/13
 * WA (2013) || SB 5728 || Padden, Bailey, Benton || Died
 * WA (2013) || HB 1781/SB 5726 || Bailey, Padden, Benton || Reintroduced and retained in present status May 13
 * WA (2013) || SB 5159 || Bailey, Padden; Becker, Carrell (deceased), Parlette, Holmquist || Reintroduced and retained in present status May 13
 * WA (2013) || HB 1781/SB 5726 || Bailey, Padden, Benton || Reintroduced and retained in present status May 13
 * WA (2013) || SB 5159 || Bailey, Padden; Becker, Carrell (deceased), Parlette, Holmquist || Reintroduced and retained in present status May 13
 * WA (2013) || SB 5159 || Bailey, Padden; Becker, Carrell (deceased), Parlette, Holmquist || Reintroduced and retained in present status May 13

Opposition to Nutrition Labeling
In 2011, the Food and Drug Administration (FDA) proposed regulations for national standards for nutrition labeling on menus. Restaurant food is often high saturated fats, trans fat, salt and calories. The National Restaurant Association has fought numerous efforts to introduce calorie and fat content labeling on restaurant menus, defeating thirteen nutrition-labeling bills introduced in eleven states and two cities (Washington, D.C. and Philadelphia). To help in this effort, the NRA offered an "Obesity Issue Kit" that included model legislation, op-ed articles, talking points and other resources designed to assist states in passing legislation and to shield the industry.

Public Relations: Rick Berman, and Employment Policies Institute
The NRA operates the National Restaurant Association Educational Foundation (NRAEF), which is set up as the association’s “educational arm.” In 2010, the NRA announced strategic partnership with Nation’s Restaurant News, the main source for business intelligence in the restaurant industry. The NRN regularly carries articles on industry efforts to turn back paid sick days requirements, minimum wage initiatives and legislation, healthcare reform, and employee organizing rights.

One of the main proponents for the NRA is the Employment Policies Institute. According to the National Journal, the Employment Policies Institute (EPI) was started “by a group of restaurant companies” that at the time (1995) got “95% of its budget from corporate sources—primarily restaurateurs and retailers.” EPI operates from the same address (1090 Vermont Ave. NW, Suite 800 Washington, D.C. 20005) as Berman and Company, the PR firm owned by Rick Berman.

Personnel

 * Dawn Sweeney - President and CEO, formerly President and CEO of AARP Services, the taxable subsidiary of the AARP. According to the NRA 990 filings with the IRS, the organization paid Ms. Sweeney $2.2 million in total compensation in 2011.


 * Marvin Irby - CFO, formerly with Shawmut Design & Construction, Walt Disney Word, and PepsiCo. According to the NRA 990 filings with the IRS, the organization paid Mr. Irby $507,000 in total compensation, in 2011.


 * Scott DeFife - Executive Vice President for Policy & Government Affairs, formerly Government Affairs for the Securities Industry and Financial Markets Association (SIFMA), former staffer for Congressman Steny Hoyer (D-MD), Congressman Bart Gordon (D-TN), Congresswoman Karen McCarthy (D-MO), and Congressman Mike Andrews.


 * Sue Hensley - Senior Vice President of Public Affairs and Communications, formerly Chief Spokesperson of the Small Business Administration, Office of Public Affairs at the U.S. Department of Labor, and Spokesperson to Senator Tim Hutchinson (R-AR). According to the NRA 990 filings with the IRS, the organization paid Ms. Hensley $337,360 in total compensation in 2011.

Worker Versus NRA Pay Gap
In 2012, the Economic Policy Institute released a report on the growing income inequality between company executives and their employees. From 1978 to 2011, worker annual compensation rose 5.7%. But the annual income of CEO’s over the same time period rose 726.7%.

According to estimates released by the Bureau of Labor Statistics in early 2012, the annual wage for waiters was bartenders was $20,710 and $21,630. Top pay in the industry is earned by chefs at $46,570.

The following numbers are from the EPI 2012 report. Comparing these salaries to annual compensation of the NRA CEO, Dawn Sweeney finds: NRA CEO-to-waiter compensation equals 106-to-1

NRA CEO-to-bartender compensation equals 102-to-1 NRA CEO-to-chef compensation equals 47-to-1.

 $660.5 billion: Restaurant-industry sales projected for 2013. 980,000: Number of restaurant locations in the United States. 4%: Restaurant-industry sales share of the U.S. gross domestic product. $1.8 billion: Restaurant-industry sales on a typical day in 2013. 13.1 million: Number of restaurant-industry employees. 47%: Restaurant-industry share of the food dollar. 93%: Percentage of eating and drinking places with fewer than 50 employees. 

History with Tobacco
According to a study published in the British Medical Journal, the tobacco industry often used groups such as the NRA to act as fronts for tobacco interests. For instance, in 2000, Philip Morris sent a letter to the NRA regarding a program to create ventilated interiors instead of smoke-free restaurants. The letter mentions a

$250,00 check from Philip Morris to the NRA.

Herman Cain Controversies
A search of the Legacy Tobacco Documents Library at the University of California-San Francisco finds over 6,000 documents that reference the NRA.

From 1996-1999, the NRA was led by Herman Cain. When he ran for President in 2012, controversies swirled about his tenure at the association, including charges of sexual harassment and overspending. Mr. Cain alleged that the sexual harassment leaks were coming from an opponent in the race.

Former employees told Bloomberg News that Cain’s work-related outings involved heavy drinking, lavish spending and large expenses, angering some board members. The NRA released a statement confirming that they agreed to a settlement with one employee regarding allegations that Mr. Cain sexually harassed her.

Member Companies Listed on the NRA Website as of January 2014
7-Eleven, Inc. AFC Enterprises dba Popeyes All American Specialty Restaurants American Food & Vending AmRest Applebee's LLC Anthony's Coal Fire Pizza ARAMARK Corporation Arby's Restaurants Arby's/U.S. Beef Beef O' Brady's Family Sports Concepts Inc. Benihana Inc. Bennigan's Franchising Co Big Boy Restaurants International Bloomin' Brands, Inc. Bob Evans Farms, Inc. Bojangles' Restaurants, Inc. Boston Pizza Restaurants, LP Bravo/Brio Restaurant Group Brinker International Buffalo Wild Wings, Inc. Buffalo Wings & Rings LLC Buffets, Inc. Burger King Corporation Cajun Operating Company Cameron Mitchell Restaurants Carlson Restaurants Worldwide TGI Friday's Inc. Centerplate Checkers Drive-In Restaurants, Inc Chick-fil-A, Inc. Chipotle CiCi Enterprises Compass Group Compass Group Concessions International Connor Concepts Corporate Office The Chop House Corner Bakery Cafe Cousins Submarines, Inc. Cracker Barrel Old Country Store, Inc. CraftWorks Restaurants and Breweries, Inc. Culver Franchising System, Inc. Darden Restaurants, Inc. Dave & Buster's Delaware North Companies, Inc. Denny's Domino's Pizza, Inc. Donatos Pizza Dunkin' Brands, Inc. The Dussin Group dba The Old Spaghetti Factory Einstein Noah Restaurant Group, Inc. Elmer's Restaurants, Inc. Emeril's Restaurant Famous Dave's of America Fired Up, Inc. Firehouse Subs of America, LLC First Watch Restaurants Focus Brands, Inc/Roark Capital Group Food Concepts International, Inc. dba Abuelo's Mexican Food Embassy Friendly's Ice Cream Corp. Frisch's Restaurants, Inc. Gosh Enterprises / Charley's Grilled Subs Ground Round I.O.C. Guest Services, Inc. Hard Rock International, Inc. The HBH Franchise Company, LLC HoneyBaked Ham Co. and Cafe Heart of America Restaurants & Inns HMSHost Hooters of America, Inc. Huddle House, Inc. Hyatt Hotels Corporate Office In The Sauce Brands, Inc. In-N-Out Burger International Dairy Queen Investors Management Corporation Golden Corral Jackmont Hospitality, Inc. Jamba Juice Company Kolache Factory, Inc. Krispy Kreme Doughnut Corporation The Krystal Company La Rosa's, Inc. Landry's Restaurants, Inc Le Duff America Ledo Pizza System Inc. Lettuce Entertain You Little Caesar's Enterprises, Inc. Logan's Roadhouse, Inc. Long John Silver's, LLC Luby's Restaurants Macy's Food Division 1143 Mainstreet Ventures, Inc. Marriott International Mazzio's Corporation McCormick & Schmick Management McDonald's Corporation Melting Pot Restaurants Morton's of Chicago National Headquarters Mr. Goodcents Franchise Systems, Inc. Noodles & Company Nordstrom Restaurant Division O'Charley's, Inc. Original Pancake House Franchising Inc. Panera, LLC Papa Gino's, Inc. Papa John's International Inc. Papa Murphy's International, Inc. Pappas Restaurants Perkins & Marie Callender's, Inc PF Chang's China Bistro Phillips Food, Inc. Piccadilly Cafeterias Inc. Pita Pit USA Pizza Fusion Holdings Plamondon Enterprises, Inc. Platinum Corral, LLC Potbelly Sandwich Works Quaker Steak & Lube Best Wings USA Inc Quizno's Master LLC Raising Cane's Red Robin International Romacorp, Inc. Rosati's Pizza Ruby Tuesday, Inc Salsarita's Franchising, LLC Sbarro, Inc. Select Restaurants, Inc. Shari's Management Corporation Smashburger Master LLC Smith & Sons Foods, Inc. Sodexo, Inc. Sonic Industries, Inc. Sonny's Real Pit Bar-B-Q Starbucks Coffee Company Stockade Companies Subway Sandwiches and Salads Taco John's International, Inc. Taco Mayo Franchise Sys., Inc. Ted's Montana Grill LLC Texas Roadhouse Tilted Kilt Pub & Eatery Tim Hortons Inc. Uno Restaurant Corporation Valentino's Viad Corp Waffle House Corp Walt Disney World Company We're Rolling Pretzel Company, WRPC, Inc. Wendy's International Whataburger Restaurants, LP White Castle System,Inc Wingstop Restaurants Inc Yum! Brands, Inc. Zaxby's Franchising, Inc.