A new Texas law effective September 1, 2025, requires restaurants to stop calling imported shrimp domestic—and violations can affect your operating license.
Most Texas restaurant owners don't realize that a provision buried in SB823 is about to reshape how they label and describe shrimp on menus and in conversation with customers. Starting September 1, 2025, restaurants across the state will face a direct compliance obligation: imported shrimp cannot be labeled, represented, or described using any domestic-origin language—and violations carry real penalties.
SB823, which relates to labeling and representation of imported shrimp, contains a specific provision in Section 436.083(c) that applies directly to restaurants. The law prohibits restaurants from using four specific domestic-origin labels when selling shrimp dishes made with imported product. This applies to menus, signage, verbal descriptions, and any other form of customer-facing representation.
In plain terms: if your shrimp comes from outside the United States, you cannot tell customers it's domestic, Gulf, Texas, or U.S. shrimp. You cannot imply domestic origin through labeling or description. The restriction covers all four domestic-origin designations listed in the statute.
Any restaurant in Texas that serves shrimp—whether it's a casual seafood spot, a fine-dining establishment, a casual-dining chain, or even a taco shop with shrimp tacos—needs to audit its sourcing and labeling practices. If you use imported shrimp and currently describe it as domestic, Gulf, or Texas shrimp, you're out of compliance as of September 1, 2025.
This includes printed menus, digital menus, website descriptions, staff training materials, and any verbal representations made to customers.
The law authorizes administrative penalties against a restaurant's operating license or permit under subsection (d). This is not a fine paid to a general fund—it's a direct enforcement action against your ability to operate. That makes compliance a business continuity issue, not just a labeling issue.
The law takes effect September 1, 2025. The Texas Health and Human Services Commission (HHSC) executive commissioner is required to adopt rules implementing the provision "as soon as practicable" after that date. Those rules will clarify enforcement procedures and penalties.
Restaurants should begin now by:
If you source shrimp from multiple suppliers, confirm with each whether their product is domestic or imported. If you use both, ensure your menu clearly distinguishes between them.
The provision is found in Section 1, Sec. 436.083(c) of SB823. For a detailed, restaurant-specific compliance guide, contact your local restaurant association or the Texas Food and Drug Administration office.