In a Wednesday letter to congressional leaders, the nation's leading restaurant industry group urged Congress to delay a looming ban on hemp-derived intoxicating cannabinoid products—especially hemp beverages—and to embrace regulation over prohibition of such products.
Representing more than a million eating establishments and food service outlets, the National Restaurant Association (NRA) is the world's largest foodservice trade association. As such, its voice carries some weight on Capitol Hill.
"On behalf of the National Restaurant Association, we write to urge Congress to delay the impending federal ban on hemp-derived THC beverages and use that time to develop a durable regulatory framework that ensures consumer safety while meeting growing market demand," the letter said.
"The Association supports a regulated market for hemp-derived THC beverages for consumption at restaurants—one built on clear federal standards covering age verification, production and quality assurances, marketing and labeling requirements, dosing disclosures, and operationalizable impairment standards," the NRA continued. "A federal framework that sets baseline standards while empowering state and local governments to tailor market-specific rules – similar to that of alcoholic beverages – would create a safe foundation."
The association is responding to an effective ban on hemp-derived intoxicating cannabinoids set to go into effect on November 12, which the hemp industry has described as apocalyptic. The 2018 farm bill allowed for hemp-derived products containing THC to be sold if the THC was extracted from hemp with less than 0.3 percent THC content. But Congress has been perturbed by the explosion of intoxicating hemp-derived products that followed, ranging from gummies to smokables to drinkables, that followed.
Last fall, Congress passed a law limiting such products to 0.4 milligrams of THC per container, a limit so low it would drive 95 percent of hemp-derived intoxicating cannabinoid products off the market (and could threaten "full-spectrum" CBD products that contain measurable amounts of THC).
"Time is short—the existing market will shut down in November due to legislation enacted last year," the letter states. "The National Restaurant Association urges Congress to act now: delay implementation and commit to a deliberate, safety-focused regulatory process this emerging market deserves."
The hemp ban could well hurt the restaurant industry, the NRA argued. Its own research shows that 5 percent of restaurants that currently serve alcohol also serve hemp-derived intoxicating beverages, and that more than a quarter of restaurants would be interested in serving them under a clear regulatory framework. That market could reach $1.6 billion a year, the group said.
The group also warned that the hemp ban could put added pressure on restaurateurs already facing tight profit margins. The NRA cited industry data showing that the pre-tax profit margin for full-service restaurants had dropped from 4 percent in 2019 to 2.8 percent in 2024. More than 40 percent of operators reported no profit last year, the NRA said.
The group warned that a sudden ban in November would remove a revenue source for hard-pressed restaurants, even though there is strong consumer demand. A two-year delay would give Congress time to craft a regulatory response to hemp-derived THC products while giving businesses some breathing room.
