The CHEERS Act: A Sustainable Boost for the Hospitality Industry

As the hospitality industry continues to climb back from the challenges of recent years, there’s a new legislative push that could give it a significant boost. Enter the CHEERS Act—a bipartisan initiative that could reshape how bars, restaurants, and breweries operate, both economically and environmentally.

Why the CHEERS Act Matters

Draft beer has always been a staple of the hospitality industry, delivering that fresh, on-tap experience that can’t be replicated at home. Beyond the delicious taste, draft beer served from reusable steel kegs offers substantial benefits for businesses and the environment. Yet, this cornerstone of hospitality is under threat from economic pressures, including high inflation, labor shortages, and a shift in consumer behavior. This is where the CHEERS Act comes into play. Officially known as the Creating Hospitality Economic Enhancement for Restaurants and Servers Act, this legislation is more than just a lifeline—it’s a pathway to a more sustainable and economically viable future for the hospitality sector.

Supporting Sustainability and Economic Growth

The CHEERS Act, introduced by Representatives Darrin LaHood (R-IL) and Steve Horsford (D-NV), is designed to help the hospitality industry thrive by extending tax benefits to investments in energy-efficient systems, including those integral to draft beer operations. This means businesses that invest in keg and tap systems can reap the rewards of tax incentives, making it easier to adopt sustainable practices while saving on costs. Reusable steel kegs are highlighted as a key element in this shift towards sustainability. Unlike single-use bottles and cans, steel kegs drastically reduce waste and the carbon footprint associated with beverage service. By encouraging the use of these systems, the CHEERS Act not only promotes economic growth but also aligns with broader environmental goals.

A Push Toward a Sustainable Future

Draft beer, often served in reusable steel kegs, is a win-win for both the environment and the bottom line. According to data, a staggering number of single-use containers still end up in landfills despite recycling efforts. In contrast, steel kegs can be used repeatedly, significantly cutting down on waste. The Environmental Protection Agency (EPA) reports low recycling rates for beverage containers, which underscores the need for change. The CHEERS Act supports this change by incentivizing the use of draft systems that are not only sustainable but also cost-effective for business owners.

The Bigger Picture: Economic and Environmental Impact

The pandemic hit the hospitality industry hard, with thousands of establishments closing their doors permanently. The CHEERS Act is a critical step toward revitalizing this essential industry, providing financial relief that could make all the difference for struggling bars, restaurants, and breweries. By incentivizing sustainable investments, the Act paves the way for a more resilient industry, where businesses can thrive while also contributing to environmental preservation. As the industry adapts to new consumer behaviors and market dynamics, the CHEERS Act offers a beacon of hope for a more sustainable and prosperous future.

What’s Next?

The CHEERS Act has already passed the U.S. House of Representatives and is now awaiting consideration in the U.S. Senate. If you’re a business owner in the hospitality industry, now is the time to get familiar with this legislation and how it could benefit your operations. Learn more about the CHEERS Act and consider reaching out to your local representatives to advocate for its passage. By supporting this Act, we can collectively raise the bar for sustainability and economic resilience in the hospitality industry. Cheers to a brighter, more sustainable future!