Episode 615: From Red Tape to Real Help: Emily Williams Knight of the Texas Restaurant Association on Fixing the Squeeze

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

1. TRA at scale: 58k restaurants, 1.4M employees, ~$137B sales—largest private-sector employer in Texas.
   
   
2. Advocacy matters: TRA blocked well-intended but risky mandates (e.g., restaurant staff administering Narcan) by educating lawmakers.
   
   
3. Bipartisan playbook: Results come from working both sides of the aisle and building trust before crises hit.
   
   
4. Pandemic “war room”: Early reopen, nightly updates, and PPP/RRF fixes made TRA a lifeline for operators.
   
   
5. Core problem = uncertainty: Demand patterns, costs, and supply reliability are too volatile for 4–6% margin businesses.
   
   
6. Labor/immigration shock: Shortages ripple from farm to kitchen; near-term ask is work permits for long-time, law-abiding workers.
   
   
7. Protein pressure: Beef relief unlikely until ~2028 due to herd rebuild cycles, import constraints, and disease risks; seafood supply faces stricter import rules.
   
   
8. Cost traps: Swipe fees (often 3–4%+) and delivery chargebacks/penalties are eroding margins; TRA is pushing transparency and policy fixes.
   
   
9. Practical benefits: TRA offers a $9/mo Teladoc (incl. mental health) for employees/families and is advancing childcare solutions to improve retention.
   
   
10. Independents = community infrastructure: They fuel local identity and disaster response—consumer support and association engagement are vital.