NYC’s New Added Sugar Rule: What Restaurants Need to Know

Beginning in January, New York City will be the first U.S. city to require chain restaurants with more than 15 locations to disclose when menu items contain more than 50 grams of added sugars. 

This regulation is expected to affect nearly 4,000 restaurants and aligns with FDA labeling requirements for packaged foods. Calorie information and sodium warnings are already on menus and menu boards across New York City chain restaurants.

Restaurants must now post an icon on their menus next to any prepackaged food or drink or non-packaged equivalent that contains 50 grams or more of added sugars, the daily recommended limit for a 2,000 calorie diet. The rule also requires chain restaurants to warn consumers of the health dangers associated with eating and drinking too many added sugars over time, such as an increased risk of type 2 diabetes, weight gain, and tooth decay. 

To learn more about the implications of this regulations for restaurants, Modern Restaurant Management reached out to Michael Schwab, Chair of the Food & Beverage group for Moritt Hock & Hamroff. Schwab has more than  20 years of experience in the food, beverage alcohol, and dietary supplement industries and has counseled clients on matters that include federal, state, local, and international regulatory compliance, distribution agreements, label approvals, advertising standards, trade practices, and customs procedures.

What are the main challenges for restaurants of implementing added sugar notification requirements? How cumbersome is this for restaurants?

The primary goal of all affected organizations between now and January should be to ensure that they understand which of the food items they sell are covered by the requirement and to ensure that they have created the appropriate labels for the products that will be affected. This requirement shouldn’t be particularly burdensome to NYC franchises as there is an existing New York State rule that requires them to mark any product that contains a large amount of sodium.

What are the specific requirements for displaying added sugar information on menus and in other marketing?

If a food item falls within the obligations of the rule, the restaurant has to include an added sugar warning icon next to the affected item, which states that this item contains a higher amount of added sugar than the daily recommended sugar intake for a person on a 2,000 calorie diet, and that these sugars can contribute to Type II diabetes and weight gain.

What do operators need to know about the penalties for non-compliance?

Businesses who fail to comply will receive a $200 fine for each violation. Perhaps more importantly, they will also receive negative marks on their health rating and may be susceptible to additional inspections.

How will this regulation impact online menus and third-party delivery platforms?

Online menus are considered the same as regular menus under the law so they will have to be updated as well. However, third-party delivery platforms such as DoorDash, Uber Eats, and Grubhub are not covered establishments under the law, so they are not required to comply. However, given that these platforms typically copy their menus over from the restaurant’s website, they’ll most likely comply anyway.

While this is only impacting chain restaurants now, do you anticipate, the disclosure will be expanded to other restaurants? Do you expect other jurisdictions will follow suit?

I don’t expect this rule to be expanded to non-chain restaurants, as they likely lack the resources to maintain compliance and could be overburdened by the requirements. Given that New York City tends to lead in implementing these types of regulations, it’s possible that other states or local jurisdictions may follow suit.

How can staff be trained to answer customer questions about added sugar content?

Given that most of the affected businesses are larger companies, they likely already have the training programs in place through their own internal compliance systems. If a business doesn’t already these programs in place though, I’d strongly recommend they consider developing one.

How might this regulation influence customer choices and dining habits?

Businesses should understand the legal rationale behind compliance with food labelling laws. At their core, these regulations are designed to empower consumers with informed choice. The intent of current and proposed rules at the federal, state, and local levels is to ensure that consumers have access to clear information about what’s in their food, enabling them to make healthier decisions. Research has shown that added sugars are linked to increased risks of diabetes and weight gain. By requiring transparency, these laws aim to help mitigate such health risks through better consumer awareness. Local rules can layer on top of federal rules. The baseline for all of these regulations comes from existing FDA rules, which apply to franchises with 20 or more locations.