Texas Border Business
By Roberto Hugo González
The Texas Restaurant Association (TRA) Annual Meeting, celebrated at the University Draft House in McAllen located at Fireman’s Park in the heart of McAllen, TX. on October 11, 2024, was a key gathering that offered deep insights into the current state of the Texas restaurant industry while addressing key challenges restaurant operators face. The meeting, led by prominent industry figures, brought together local restaurateurs, sponsors, and members of the TRA, presenting a comprehensive view of the industry’s health, legislative priorities, and future outlook.
The event began with Jerry Maddox, President of the Restaurant Association for the Rio Grande Valley, setting the tone for the evening by offering a light-hearted yet serious take on restaurant owners’ challenges. “Our industry is full of trials and tribulations,” Maddox acknowledged, highlighting the ongoing struggle with fluctuating food costs, regulations, and labor shortages. His remarks underscored the critical role that the TRA plays in supporting the industry, stating, “It’s the Texas Restaurant Association. And they’ve had our back for a long, long time.”
The keynote speakers, including Tony Abruscato, the Chief Marketing Officer of the TRA, and TRA Chairman Skeeter Miller, owner of County Line BBQ, a veteran of the restaurant industry, emphasized the importance of advocacy and legislative work in ensuring the success of Texas restaurants. Tony’s presentation was mainly focused on the association’s financial health, advocacy wins, and upcoming events like the Texas ProStart Invitational. He noted that the TRA is financially ahead of budget, focusing on supporting educational programs and expanding membership outreach. Tony proudly shared that “financially, we’re ahead of budget. Our investments are at a record level,” reflecting the TRA’s strong financial management.
Maddox also pointed to the crucial role of industry partnerships, particularly with sponsors who are key in sustaining the TRA’s efforts. Sponsors such as L&F Distributing, F & P Brands, Delgado Collective, Fazoli’s, Santa Fe Steakhouse
and Komori/Mori were acknowledged for their contributions. This joint approach between restaurateurs, allied members, and the TRA has allowed for continuous support for the industry through challenging times, including navigating the legislative landscape. Title Sponsor Auto-Chlor Services representing them CMHS Kirk Greenwood, Senior VP
A significant portion of the meeting was dedicated to discussing the legislative landscape and how recent advocacy efforts have protected the interests of restaurant operators. Skeeter highlighted some key wins at both the state and federal levels, such as blocking the local government from banning natural gas and passing bills that invest in career and technological education for high school students. Skeeter emphasized, “The TRA just came so far in the last few years as far as creating relationships at our state capital, federally, state, and locally.” His anecdote about his experiences testifying at the state capitol reminded him of industry leaders’ sacrifices to ensure the industry’s well-being.
Workforce development was a recurring theme, with both Tony and Skeeter stressing the importance of expanding programs like ProStart, which provides culinary training to high school students. This initiative, along with second-chance hiring programs and outreach to students aging out of foster care, aims to address the labor shortages plaguing the restaurant industry. Tony pointed out that the sector’s future lies in “continuing to build our workforce and bringing more young people into the fold.”
The meeting also addressed the significant impact of fluctuating food costs, credit card fees, and regulations on restaurant margins. Skeeter’s detailed account of credit card swipe fees exemplified the financial burdens that restaurant owners face. He revealed that his business paid “$2.5 million in credit card fees” between 2018 and 2023, a figure that starkly illustrates how external costs can erode already thin profit margins in the restaurant business.
Additionally, introducing The Michelin Guide restaurants to Texas in Austin, Dallas, Fort Worth, and Houston was discussed as an opportunity to enhance the visibility of the state’s culinary scene. However, concerns were raised about ensuring that smaller regions like the Rio Grande Valley are included. A call for broader inclusion of regions outside the main metropolitan areas was voiced to ensure that “our visitors from Mexico…continue to drive to the Valley” rather than focus solely on the cities with Michelin recognition.
The fundraising portion of the evening, which supported the TRA’s Traction Fund, demonstrated the community spirit within the organization. Albert Rego and others pledged their support, contributing to ensuring the TRA can continue its lobbying efforts and advocacy for the industry.
The meeting concluded with a focus on the future. The TRA remains committed to its advocacy work, workforce development, and building stronger relationships with legislators to continue protecting the interests of restaurant operators in Texas. The participation and dedication of members like Albert and Sony Rego, who also advocate for the industry’s growth, illustrate the collaboration effort that is essential for the continued success of the Texas restaurant industry.
The 2024 TRA Annual Meeting was informative and engaging, highlighting the challenges and opportunities facing the Texas restaurant industry. Through advocacy, workforce development, and strong community partnerships, the TRA supports restaurant owners and operators across the state, ensuring their voices are heard and their businesses thrive in an ever-changing landscape.
