National Restaurant Association Calls on Congress to Delay Federal Hemp Ban
Association argues hemp beverages could boost restaurant profits.
The National Restaurant Association has called on Congress to delay a federal ban on hemp-derived THC beverages set to take effect in November, urging lawmakers to establish a clear regulatory framework that ensures consumer safety and supports restaurant operators serving these products.
Low-dose hemp-derived THC beverages are non-alcohol drinks made with small, precise amounts of THC derived from legal hemp. They deliver a mild, relaxed experience that provides an alternative option to customers interested in engaging socially without consuming alcohol. The 2018 Farm Bill legalized hemp containing no more than 0.3% delta-9 THC, enabling the development of this growing product category.
In a letter to Congressional leadership, the National Restaurant Association outlined its support for a durable regulatory framework that sets baseline standards including age verification, production and quality assurances, marketing and labeling requirements, dosing disclosures, and operationalizable impairment standards. The framework should also empower state and local governments to tailor market-specific rules, similar to how alcohol beverages are regulated.
"Consumers have made it clear that they want hemp-derived THC beverages," says Sean Kennedy, chief advocacy officer of the National Restaurant Association. "The only question is whether Washington will create a way they can enjoy them safely or if they will allow a thriving market supporting small business owners to disappear because they wouldn't create a sensible regulatory framework."
According to National Restaurant Association research, 5% of restaurants that serve alcohol currently offer these beverages, and 26% of all restaurants are interested in offering them under a clear regulatory framework — representing a potential market of $1.6 billion annually.
"Consumer demand for THC beverages is driven by a shift in drinking habits, particularly among younger diners whose lifestyles are diverging from traditional beverage alcohol," Kennedy says. "For operators – especially those running high-volume beverage venues – these products offer an alternative for guests who want a social drinking experience without alcohol."
In 2024, the median full-service restaurant's pre-tax margin fell to 2.8%, down from 4% in 2019, and last year 42% of operators reported no profit at all. Hemp-derived THC beverages are a new, regulated product category that can help operators remain competitive and responsive to consumer demand.
The National Restaurant Association asks Congress for a two-year delay on the ban, which would give operators the predictability they need — especially multi-unit and franchised brands navigating varied state approaches — while Congress develops a national framework.
"Time is short — the existing market will shut down in November due to legislation enacted last year," Kennedy says. "We urge Congress to act now: delay implementation and commit to the deliberate, safety-focused regulatory process which this emerging market deserves."
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