Restaurant Industry Urges Congress to Halt Hemp-Derived Beverage Ban

Low-dose THC beverages, derived from hemp legalized under the 2018 Farm Bill, have emerged as a popular alternative for diners seeking social experiences without alcohol. Sean Kennedy, the Association’s Chief Advocacy Officer, warned that the current legislative path threatens to dismantle a growing business sector that already accounts for 5% of alcohol-serving restaurants. Instead of a shutdown, the group is calling for federal standards covering age verification, production quality, and clear labeling, mirroring the existing regulatory structure for alcohol.

For many restaurant owners, the stakes are financial rather than ideological. With median pre-tax margins for full-service restaurants sitting at just 2.8% in 2024, operators view these beverages as a necessary tool to stay competitive. The Association contends that a ban will not stop consumer demand but will instead force the market underground, stripping businesses of the ability to serve customers in a controlled environment. By delaying the enforcement, lawmakers would gain the time required to establish safety protocols that protect both the public and the thin margins of small business owners.