MN Hospitality Advocate

New Statute Regarding Pharmaceutical Reps

Posted in Restaurant Issues, State Laws, Tourism Issues, Uncategorized by hospitalityminnesota on September 3, 2009

During our Kitchen Cabinet meetings, we’ve learned of a new statute apparently passed this most recent legislative session that limits the amount of money pharmaceutical company sales representatives can spend on doctors in a given year to $50. We are told there is a further limitation on the amount spent per day or event on a doctor.

This has had an immediate and perhaps unintended consequence for Minnesota’s restaurant industry. We have been amazed to learn the large number of restaurants across the state that used to gain business from these pharmaceutical reps who have seen that spigot essentially shut.

As a result, fewer meals are being purchased for these doctors and others at restaurants and the state is collecting substantially less tax revenue from our industry. The law couldn’t have come at a worse time – Technomic is one of the leading forecasters for our industry and reports that this is the worst environment for restaurants since they began tracking some 30 years ago.

We’ll look into this new statute and see what action might be taken to help our state’s restaurants regain this business. The reps will spend the money somewhere, why not here in Minnesota?

David Siegel, CAE, IOM
Minnesota Restaurant, Lodging and Resort & Campground Assocations

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