Restaurant Industry Urges Congress to Delay Hemp-Derived THC Beverage Ban

The National Restaurant Association (NRA) is petitioning Congress to postpone a scheduled federal ban on hemp-derived THC beverages, which is currently set to take effect in November. The association is requesting a two-year delay to allow for the development of a comprehensive national regulatory framework that includes standards for age verification, labeling, and quality control. This move comes as the industry seeks to protect a burgeoning market segment that the NRA estimates could be worth $1.6 billion annually for restaurant operators.

The impending ban stems from legislation signed in November 2025, which aims to close a regulatory loophole created by the 2018 Farm Bill. That bill legalized hemp products containing no more than 0.3 percent delta-9 THC, inadvertently fostering a robust market for low-dose hemp-derived edibles and drinks. In a letter dated June 17, the NRA warned Congressional leaders that the existing market will shut down abruptly in November unless lawmakers intervene to provide a deliberate, safety-focused transition period.

Rather than a total prohibition, the NRA advocates for a regulated market similar to the framework used for alcohol. Their proposed standards include federal requirements for production controls, dosing disclosures, and marketing restrictions, while still allowing state and local governments to implement additional rules. According to NRA research, approximately 5 percent of restaurants that serve alcohol already carry hemp-derived THC beverages, and 26 percent of all restaurant operators have expressed interest in offering these products if a clear regulatory structure were established.

The push for a delay is also driven by significant economic pressure within the hospitality sector. The NRA reported that median pre-tax profit margins for full-service restaurants dropped to 2.8 percent in 2024, down from 4 percent in 2019, with 42 percent of operators reporting no profit at all last year. Removing a high-demand revenue source like hemp-derived THC beverages could further strain these businesses. The NRA argues that a two-year extension would provide the certainty needed for businesses to navigate the emerging market while Congress formalizes safety and impairment-related safeguards.