A federal ban on the drinks set to take effect in November would eliminate this $1.6 billion market opportunity for restaurant operators
WASHINGTON, June 17, 2026 /PRNewswire/ — The National Restaurant Association today called on Congress to delay a federal ban on hemp-derived THC beverages set to take effect in November, and urged 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 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,” said 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.”
Why Consumers Are Choosing Hemp-Derived THC Beverages
Consumer interest in hemp-derived THC beverages is real and growing. 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,” said Kennedy. “For operators – especially those running high-volume beverage venues – these products offer an alternative for guests who want a social drinking experience without alcohol.”
Why Hemp-Derived THC Beverages Matter for Restaurant Operators
Restaurants operate on razor-thin margins. In 2024, the median fullservice 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. But, for operators already offering hemp-derived THC beverages, the revenue loss from a federal ban could be the difference between profit and loss.
The Association is asking 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.
What Congress Needs to Do on Hemp-Derived THC Beverages
Banning these products without offering a regulatory alternative does not eliminate demand; it simply removes the opportunity for responsible operators to meet it safely. By contrast, providing regulatory clarity and avoiding abrupt market disruption will help restaurants maintain stable operations, meet evolving consumer preferences, support responsible and safe service environments, and continue contributing to local economies and job creation.
“Time is short—the existing market will shut down in November due to legislation enacted last year,” said Kennedy. “We urge Congress to act now: delay implementation and commit to the deliberate, safety-focused regulatory process which this emerging market deserves.”
About the National Restaurant Association
Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry, which comprises more than 1 million restaurant and foodservice outlets and a workforce of 15.7 million employees. Together with 52 State Associations, we are a network of professional organizations dedicated to serving every restaurant through advocacy, education, and food safety. We sponsor the industry’s largest trade show (National Restaurant Association Show); leading food safety training and certification program (ServSafe); unique career-building high school program (the NRAEF’s ProStart). For more information, visit Restaurant.org and find @WeRRestaurants on Twitter, Facebook and YouTube.
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SOURCE National Restaurant Association
