Texas Border Business
By Roberto Hugo González / Texas Border Business
Joe Monastero’s keynote at the Rio Grande Valley chapter of the Texas Restaurant Association’s annual chairman’s dinner centered on transparency, data, and practical guidance for restaurateurs navigating a turbulent period.
He opened by expressing gratitude for the Valley’s hospitality, saying, “It is a pleasure to be back down in the valley with you all again.” He then acknowledged the challenges facing the industry: “It’s been some interesting times the last few months… this year feels a little different.” He reminded attendees that TRA has “always told you from day one, we’re going to tell you the truth and we’re going to be transparent.”
Monastero began with what he called “good news and breaking news out of Washington, DC,” reporting that “the president has repealed the tariffs” on several food-related imports, including tea, juices, cashews, cocoa, spices, tomatoes, coffee, and “beef,” effective November 17, 2025.
He then turned to the economic landscape. He noted that prices have fluctuated “in a way never before seen.” Still, he emphasized Texas’s strength: “There is absolutely no other place in this country better to operate and own a restaurant than the state of Texas.” He cited “between 57 and 58,000 food service establishments,” “1.4, almost 1.5 million employees,” and “138 billion in gross revenue,” adding, “For every $1 spent in a restaurant, we generate more than $2 into the economy.” Texas diners also rely heavily on restaurants: “Nationally, 51% of food spending goes to restaurants. In Texas, it’s 54%.”
Monastero presented findings from TRA’s economic survey: “88% of restaurateurs… have watched their costs go up,” with food cited as the leading driver. “Two-thirds said that their labor costs had also gone up,” while “two-thirds said margins went down,” which he called “the part that scares me the most.” Margins, he explained, “came out of the pandemic… half as large as they were before 2020.”
He linked these pressures to the federal shutdown, price instability, and tariffs. “Tariffs are math… one and one equals two, and tariffs raise prices on the end consumer,” he said, noting that some suppliers raised prices “whether the tariffs happen or not.” He also addressed immigration, saying the industry needs “common sense solutions” like an H1B-style visa, but fear-driven politics hinder progress. He referenced a UT study showing that in neighborhoods, “40% or more Hispanic… your customers aren’t going out.” He added, “I have not seen fear like that… since 9/11.”
Despite the challenges, Monastero stressed resilience. “Our economies are always cyclical,” he said, encouraging restaurateurs to focus on value and experience.
He emphasized marketing and reputation: “If you aren’t thinking about every day how you are perceived publicly… marketing really does matter right now.” He urged operators to nurture loyalty, recalling his father’s words: “It takes five minutes to lose a customer… might take you 10 minutes to make a good customer, but they’ll tell 10 more friends.”
He closed by highlighting TRA’s resources, including Restaurant Insurance Solutions, and partnerships like Auto-Chlor and Ecolab, which provide “the best service possible and discounts and special incentives.”
Throughout his address, Monastero combined candor, data, and encouragement—urging restaurateurs to stay informed, adaptable, and united as they navigate both current hardships and future opportunities.
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