Retailer Groups Wary of SNAP Pilots for Restaurants

MARK HAMSTRA

SAN JUAN, Puerto Rico — Retailers and local growers here are fighting against the expansion of a pilot program that allows recipients of federal food assistance to use their benefits at restaurants — even as similar pilots have been under way on a small scale in some states.

“Our concern is that the government could make this an island-wide program,” said Manual Ryes, executive director of MIDA (the Puerto Rico grocers’ association), in an interview with SN.

The program, currently in test in two municipalities in Puerto Rico, allows certain recipients of Nutrition Assistance Program food benefits — similar to the Supplemental Nutrition Assistance Program in the U.S. — to use their benefits at select restaurants. The test is currently under way at 45 restaurant locations.

In Puerto Rico, where 30% to 35% of the population receives food-assistance benefits, and about 30% of those could be eligible to spend them at restaurants, the impact on food retailers could be severe, Ryes said.

“You can see the impact this would have for the people and their health, and the economic impact on the grocers and on the program itself could be quite large,” he pointed out.

John Motley, a principal of Policy Solutions — Truitt Scher Motley, which has been working with MIDA on the issue, said the restaurant industry, and in particular the global quick-service company Yum Brands, has been lobbying for the program, both in Puerto Rico and the U.S. Three of the Yum Brands chains — KFC, Taco Bell and Pizza Hut — are among those in the Puerto Rico pilot.

Motley said Yum has been “actively pursuing a strategy to get states to request pilot programs of the same nature.”

Officials at Yum were not available for comment.

Michigan, Arizona and some counties in California currently allow certain SNAP recipients to use their benefits at restaurants. The initiatives, part of the Restaurant Meals Program, are targeted at helping the elderly, disabled and homeless, who might not have the ability to prepare foods from the grocery store.

A pilot also has been proposed in Florida.

“As far as I am concerned, these pilots are just the camel’s nose under the tent,” said Tom Jackson, president and chief executive officer, Ohio Grocers Association, which has been lobbying the U.S. Senate against the expansion of such programs. The OGA successfully lobbied against a similar program proposed in Ohio four years ago, he said.

“I think it’s extremely dangerous to allow SNAP benefits to be used in restaurants,” he told SN. “It’s hard enough for recipients to stretch their benefits at the grocery store.”

He said he believes the food retailing industry could work to find solutions for those people who have trouble preparing meals.

Jennifer Hatcher, senior vice president, government and public affairs, Food Marketing Institute, said the economic downturn appears to have brought more restaurants into the program.

“There are some administrative costs to the state, so it is unclear under current budget constraints and potential changes to the structure of SNAP funding, which additional states may choose to participate in the program or run a pilot in the near future,” she told SN. “It is certainly possible that it could come up as part of the Farm Bill debate next year.”

The Puerto Rico program, administered through a block grant, is subject to approval by the U.S. Department of Agriculture in July.
Policy Solutions has been working to get First Lady Michelle Obama to take action on the issue, citing the program’s conflict with her “Let’s Move” campaign to encourage healthy eating.