A new Texas law closes a loophole many restaurants have relied on—and violations can affect your operating permit.
Most Texas restaurant owners don't realize that a provision buried in SB823 is about to change how they label and describe shrimp on menus and to customers. If your restaurant currently markets imported shrimp under domestic-sounding names or descriptions, this law affects you directly.
Effective September 1, 2025, Texas restaurants are banned from labeling imported shrimp as domestic. This applies to menus, signage, verbal descriptions to customers, and any other representation of the product. The law is codified in Section 436.083(c) and authorizes administrative penalties against a restaurant's operating license or permit for violations.
In plain terms: if you're currently calling imported shrimp "Gulf shrimp," "domestic," or using any other labeling that suggests domestic origin when the shrimp was actually imported, you'll need to change that language by the effective date.
Imported shrimp typically costs less than domestic shrimp, making it economically attractive for restaurants managing food costs. Many operators have used ambiguous or domestic-sounding labels as a standard practice. That practice is no longer permitted under Texas law.
The penalty structure is significant: violations can result in administrative action against your operating license or permit—not just a fine, but potential regulatory consequences that affect your ability to operate.
Before September 1, 2025, audit your current shrimp sourcing and labeling:
Identify imported shrimp. Determine which shrimp products in your inventory are imported versus domestically sourced.
Update menus and signage. Any printed or digital menu, board, or sign that describes shrimp must clearly indicate if it's imported. Remove or correct any domestic-origin language.
Train staff. Your front-of-house team needs to know the accurate origin of shrimp they're describing to customers. Verbal misrepresentation counts as a violation.
Review supplier documentation. Keep records from your shrimp suppliers clearly stating origin. This protects you if a question arises about compliance.
SB823's shrimp labeling provision is a straightforward rule: imported shrimp must be labeled as imported. It doesn't prohibit serving imported shrimp—only misrepresenting its origin. Restaurants can continue sourcing imported shrimp; they simply must be transparent about it.
The September 1, 2025 effective date gives you time to make changes, but waiting until the last minute creates operational risk. Reviewing your current practices now allows you to update systems, train staff, and avoid compliance issues when the law takes effect.
For a detailed, restaurant-specific guide to SB823 compliance, contact your local restaurant association or Texas food service regulatory resource.