This month we look at: lime prices, how the recently passed One Big Beautiful Bill may impact restaurants, how to lower your electric bills in the summer, inflation and national restaurant sales trends from June.

July started off with a bang, and no, I don't just mean the fireworks from the Fourth of July. With the One Big Beautiful Bill Act signed into law, there are quite a few changes our industry can expect in the coming months and years (more on that below!), but that's not the only big industry news since I last visited your inbox.

Season four of The Bear premiered on Hulu and FX, signaling the reemergence of a time-honored industry debate: should they have stopped while they were ahead at the end of season two? As a die-hard Matty Matheson and Jamie Lee-Curtis/DD Berzatto fan, my stance is no, but it's a hot topic nonetheless.

Speaking of hot, this month's Board edition has some tips on how to reduce your electricity bill in the summer and which summer citrus staple has seen a price drop over the last few months, so scroll down to read more. And if you need a laugh (who doesn't?), we've got you covered there, too, in our What We're Laughing At section below.

Wishing you all a profitable July and we'll see you in August!

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- Rachel & the MarginEdge team

P.S. If you took our very, very accurate Restaurant Personality Type quiz, your July mantras are here!

MONTHLY SALES METRICS & UPDATE

The trailing 4-week (28-day) average of year-over-year (YOY) sales for Fast Casual came in at +1.72% and Full Service at -0.46% at the end of June compared to 2024 sales.

Food costs averaged 28% of sales last month, reflecting a 1% increase from May's average.

Dig into the full report.

ITEM TO WATCH

Limes

Limes have been on a steady price decline over recent weeks, which may come as a surprise given that 80-85% of limes imported to the US come from Mexico. That is, until recent weeks.

Compared to the first week of May 2025, MarginEdge clients saw a roughly -29% median price drop on limes.

Between January and May 2025, Peru stepped up its exports by 50% from the previous year. The influx, paired with a lower 10% tariff rate, helped increase supply in the US market and lower prices for consumers. Mexican growers also noted that larger limes should be available in the coming weeks as long as their recent rainy weather continues. They expect prices to stay low into August, so keep the margaritas flowing (not that we needed encouragement!). 

Cranes | Washington, D.C.

ASK [me] ANYTHING

How does the One Big Beautiful Bill (OBBB) impact restaurants? 

Earlier this month, the OBBB was passed, making some key impacts on US financial policy over the next few years. Keeping up with the latest tax law changes is a must for restaurants looking to save smart and stay compliant, and these updates can mean new opportunities or tweaks to your current strategies. Here’s a quick breakdown of what’s changing for individuals and restaurant operators, courtesy of our friends at Harmony CPA and the NRA. Check out their full blog and be sure to sign up for their newsletter here to stay up to date!

13 key impacts on restaurant operators from the One Big Beautiful Bill:

1. Reduced income tax rate extension: The bill permanently extends the individual income tax rates from the 2017 Tax Cuts and Jobs Act, ensuring long-term tax savings.
2. Higher standard deduction: Starting in 2025, deductions increase to $15,750 (individuals), $23,625 (head of household), and $31,500 (married filing jointly [MFJ]).
3. SALT deduction cap raised: The State and Local Tax deduction cap increases to $40,000 in 2025, with annual 1% increases.
4. Charitable deductions for non-itemizers: From 2026, non-itemizers can deduct up to $1,000 in cash donations.
5. No tax on tips: Up to $25,000 of tips can be deducted starting in 2025 and through 2028, with income limits starting at an adjusted gross income of $150,000 (single filer) or $300,000 (MFJ). 
6. No tax on overtime: Up to $12,500 in overtime pay for single filers, and $25,000 for MFJ can be deducted starting in 2025 through 2028, with the same income phaseouts as the tips tax provision. In order to claim the $25,000, married couples must file jointly. 
7. Vehicle loan interest deduction: Deduct up to $10,000 in interest paid for purchasing U.S.-made personal vehicles, with income-based restrictions beginning at $200,000 for joint filers and $100,000 for others. This does not apply to interest paid on leased vehicles.
8. Improved child and dependent care credit: The credit is available on up to $7,500 of child and dependent care expenses and starts at 50% of the cost of child care and decreases as income increases, but cannot fall below 20%. Income tiers start at $75,000 for a single filer and $150,000 for MFJ.
9. Full expensing for capital equipment purchases: Makes the 100% bonus depreciation for the cost of qualified new and used assets permanent, for property acquired after January 19, 2025.
10. 20% qualified business income (QBI) deduction: For the 77% of restaurants that are pass-through businesses (such as partnerships, limited liability companies and S corporations), this will support investments in their operations and bring down their effective tax rate.
11. Business interest expense deduction: This restores depreciation and amortization to the calculation of interest payment deductibility, freeing up capital to pay off debt, expand, or make additional investments.
12. Permanent family and medical leave tax credits: Continues support for operators who choose to offer paid family and medical leave.
13. Estate tax relief: Prevents the often-overwhelming tax hurdles that force families to sell or close a restaurant rather than the next generation continuing to operate it.

As always, it's worth it to speak with a restaurant accounting and tax professional about how these changes impact your income, your business and how you can optimize your finances when tax season rolls around every year.