Texas restaurant operations span everything: legendary BBQ joints selling brisket by the pound and running a full restaurant from the same kitchen, Tex-Mex chains with modifier menus longer than most operators' entire SKU lists, Austin's food truck parks where 8 trucks share a single bar, and the steakhouse / fine-dining scene that's emerged in Dallas and Houston as the state's wealth has compounded.
Texas tax setup is comparatively clean: 6.25% state sales tax plus local jurisdictions up to 2%, with most major cities running 8.25% total (Houston, Dallas, Austin, San Antonio all hit the cap). Mixed beverage permit holders also pay a 6.7% gross receipts tax on alcohol sales (and collect an 8.25% mixed beverage sales tax on drinks), reported separately — Katalyst tracks the alcohol and non-alcohol lines independently for clean Texas Comptroller filings.
Texas restaurants benefit from no state income tax, which simplifies tip distribution and shifts more of staff comp into base + tips. Federal minimum wage applies; no statewide paid sick leave law (Austin, Dallas, and San Antonio passed local ordinances, but courts blocked them and a 2023 state law, SB 14, preempts them). Katalyst's tip pooling handles the federal DOL distinction between tipped and non-tipped staff cleanly.