Fast Casual: Menu-Labeling Enforcement Finally Takes Effect

An oft-ignored piece of legislation tied to the Affordable Care Act became law on Friday, sending the franchise industry racing to comply.

Fast Casual reported on Friday that restaurant chains with 20 or more stores must now post nutritional information, including calorie-counts, on all menus. The regulation is one of the final components of the Affordable Care Act to take effect, eight years after the signature legislation of the Obama administration passed through Congress.

Enforcement of the regulation was initially scheduled to begin last year before the FDA delayed the compliance date by a year to refine details regarding the implementation and enforcement of the regulation.

The regulation extends beyond the foodservice segment and applies to all chains that sell food, including grocery stores, movie theaters and vending machine vendors.

Though many franchisors will now have to redesign menus for their entire franchise system, the FDA has assured merchants that regulators are seeking to work with them to implement the changes in the first year, rather than force compliance through fines.