# Restaurants in Tucson, AZ: a founder's guide to running & growing your business

ITEX brings your restaurant new customers from a local trade network and lets you cover real expenses without spending cash — growth in the busy months, a cushion in the slow ones. This guide covers running and growing a restaurant in Tucson, AZ; ITEX is one option woven inside it.

> ITEX — Turn unused business capacity into trade dollars — without discounting.

## The Tucson, AZ market for restaurants
Tucson, Arizona anchors a metro of roughly 1.09 million people (about 1,093,761 in 2025), and the area continues to grow slowly and steadily1—recent annual gains near 0.7%1, driven almost entirely by net in-migration as natural increase (births minus deaths) has turned negative.1 For restaurants, the standout signal is demand4: Tucson was the first U.S. city named a UNESCO City of Gastronomy (December 2015)3, and visitor spending at Pima County restaurants reached roughly $797 million in 2022, close to a third of the county's total visitor spending.2 About two-thirds of the metro's 1,200-plus restaurants and bars are locally owned—well above the roughly 40% national average.3 Operators should note that overall Tucson metro payroll employment dipped about 0.5% month-over-month in the December 2025 Arizona employment report (the second-largest over-the-month decline among the state's metros, behind Flagstaff),5 so plan for a cooling but still-competitive labor market. Local support is available through the City of Tucson's Small Business Center.6

- [City of Tucson Small Business Center (free startup & navigation help)](https://www.tucsonaz.gov/Departments/Small-Business-Center)
- [Startup Tucson (Southern Arizona entrepreneur support)](https://www.startuptucson.com/)
- [Arizona Department of Revenue — Transaction Privilege Tax (licensing overview)](https://azdor.gov/business/transaction-privilege-tax)
- [MAP AZ Dashboard — Tucson population & demographics (University of Arizona)](https://mapazdashboard.arizona.edu/workforce-demographics/population-profile)
- [Visit Tucson — Research & Data](https://www.visittucson.org/about-us/research-and-data/)
- [Arizona Office of Economic Opportunity — employment reports](https://oeo.az.gov/sites/default/files/data/press-release/slides.pdf)

**Is Tucson a growing market for opening a restaurant?** Yes, steadily. The Tucson metro is near 1.09 million people and grows about 0.5-1.3% a year, driven by in-migration. As the first U.S. UNESCO City of Gastronomy with strong visitor dining spending (about $797 million at Pima County restaurants in 2022) and a heavily locally-owned dining scene, demand fundamentals are solid — though food-service employment softened in late 2025, so budget for a competitive labor market.

**What licensing or tax do I need to think about for a Tucson restaurant?** Plan for a state Transaction Privilege Tax (TPT) license, plus county food-establishment health permits and local zoning compliance. Rates, fees, and timelines change, so confirm current requirements directly with the Arizona Department of Revenue and Pima County, and use the City of Tucson Small Business Center for free, bilingual navigation help. This is general information, not tax or legal advice.

## Taxes for a restaurant in Tucson, AZ
A restaurant in Tucson, Arizona typically works with tax and licensing authorities at three levels: state, city, and county. At the state level, prepared food and drink sold by restaurants fall under the Arizona Department of Revenue's Transaction Privilege Tax (TPT) "restaurant" classification, and owners register for a TPT license.7 Because Tucson participates in Arizona's Model City Tax Code as a program city10, the city applies its own restaurant and bar tax provisions9 and requires a City of Tucson business license; the city's Taxpayer Assistance Division provides taxpayer support.11 Separately, Pima County's Consumer Health and Food Safety Division requires a food establishment permit before you operate.12 How specific items and charges — such as gratuities, service charges9, and different categories of food sales8 — are handled can vary, so confirm your current obligations, and any applicable requirements, directly with each authority linked below. This is general information, not tax advice.

- [Arizona Department of Revenue — Transaction Privilege Tax](https://azdor.gov/business/transaction-privilege-tax)
- [Arizona Model City Tax Code — Restaurants and Bars](https://azdor.gov/model-city-tax-code/articles-and-sections/restaurants-and-bars)
- [Arizona Model City Tax Code — City of Tucson Profile](https://azdor.gov/model-city-tax-code/city-profile/tucson)
- [City of Tucson — Business License and Tax Information](https://www.tucsonaz.gov/Departments/Business-Services-Department/Taxpayer-Assistance-Division/Business-License-and-Tax-Information)
- [Pima County — Consumer Health and Food Safety](https://www.pima.gov/2024/Consumer-Health-and-Food-Safety)

**Which tax authorities does a Tucson restaurant need to work with?** Three main ones. The Arizona Department of Revenue administers state Transaction Privilege Tax (TPT) and requires a TPT license. The City of Tucson requires a business license and collects its own city business tax. Pima County's Consumer Health and Food Safety Division handles food establishment permitting. Confirm current requirements directly with each office.

**Is all food a restaurant sells taxed the same way in Arizona?** Not necessarily. Arizona generally exempts food for home consumption from state TPT but treats prepared food for on-premises consumption as taxable, and gratuities or service charges can be treated differently depending on how they are recorded and distributed. Review the Department of Revenue guidance and consult a tax professional for your situation.

## How to start a restaurant in Tucson, AZ
Opening a restaurant in Tucson, Arizona involves several offices.14 Most owners first choose a legal structure and, for an LLC or corporation, file formation paperwork with the Arizona Corporation Commission's Corporations Division;13 a trade name or trademark is registered separately with the Arizona Secretary of State.15 The City of Tucson requires a local business license through its Business Services Department before you operate.16 Because you handle food, Pima County's Consumer Health and Food Safety Division reviews plans, permits, and inspects food establishments, so a permit is required before serving.1217 Requirements, fees, and processing times change, so confirm current details directly with each office. The Pima Community College SBDC offers no-cost guidance on licensing and startup steps.18

- [Arizona Corporation Commission – Corporations Division (LLC/corporation formation)](https://azcc.gov/corporations/home)
- [Arizona Secretary of State – Trade Names & Trademarks](https://azsos.gov/business/tntm)
- [City of Tucson – Apply for a Business License](https://www.tucsonaz.gov/Departments/Business-Services-Department/Apply-for-a-Business-License)
- [Pima County – Consumer Health & Food Safety (food establishment permits)](https://www.pima.gov/2024/Consumer-Health-and-Food-Safety)
- [Pima Community College SBDC (Arizona SBDC Network)](https://www.arizonasbdc.com/pima-community-college/)
- [Arizona Corporation Commission – 10 Steps to Starting a Business](https://azcc.gov/corporations/10-steps-to-starting-a-business-in-arizona)

**Which office forms my restaurant's LLC or corporation in Arizona?** The Arizona Corporation Commission's Corporations Division handles LLC and corporation formation. A trade name or trademark is registered separately with the Arizona Secretary of State. Confirm current requirements with each office.

**Do I need a county health permit to open a restaurant in Tucson?** Yes. Food establishments in the Tucson area are permitted and inspected by Pima County's Consumer Health and Food Safety Division. Contact them before opening to confirm the applicable permit and current requirements.

## Marketing a restaurant in Tucson, AZ
Marketing a Tucson, Arizona restaurant starts with the city's distinctive food identity. In 2015 Tucson became the first UNESCO City of Gastronomy in the United States19, and a local certification program recognizes independently owned restaurants that use regional ingredients and honor Southern Arizona traditions.20 Foundational channels: claim and maintain a Google Business Profile and Yelp listing, keep hours, menus, and photos current, and respond to reviews. Local food media cover new openings and dishes, including Tucson Foodie, the Arizona Daily Star (tucson.com), Tucson Weekly, and TV outlets like KGUN9.22 High-traffic community events such as Tucson Meet Yourself, a free downtown folklife festival held annually since 1974, draw large crowds and offer vendor and visibility opportunities.21 Visit Tucson also promotes local dining to travelers.24

- [Google Business Profile (create/manage your listing)](https://www.google.com/business/)
- [Visit Tucson (destination marketing organization)](https://www.visittucson.org/)
- [Tucson City of Gastronomy (UNESCO certification program)](https://tucson.cityofgastronomy.org/)
- [Tucson Foodie (local food media)](https://tucsonfoodie.com/)
- [Tucson Meet Yourself festival](https://tucsonmeetyourself.org/)
- [Arizona Daily Star / tucson.com dining coverage](https://tucson.com/)

**Which local media should a Tucson restaurant approach for coverage?** Tucson Foodie (a food-focused publication founded in 2009), the Arizona Daily Star at tucson.com, Tucson Weekly, and TV stations like KGUN9 regularly cover new openings and local dishes. Visit Tucson also promotes area restaurants to travelers.

**Is Tucson's UNESCO food designation useful for marketing my restaurant?** It can be. Tucson was the first U.S. UNESCO City of Gastronomy (2015), and its local City of Gastronomy certification recognizes independently owned restaurants that use regional ingredients and traditions—useful differentiation you can highlight if your restaurant qualifies.

## Customer service & reputation for restaurants in Tucson, AZ
For a Tucson restaurant, Google is the review platform that matters most: BrightLocal's 2024 Local Consumer Review Survey found 81% of consumers used Google to read local-business reviews.23 Reviews move revenue too. A Harvard Business School study found a one-star rise in a Yelp rating lifts an independent restaurant's revenue 5-9%.24 Claim and maintain profiles on Google, Yelp, TripAdvisor, and OpenTable, whose reviews come only from verified diners who completed a reservation.27 Google's own guidance says replying to reviews builds trust with new and returning customers, so respond to praise and complaints promptly and by name.25 Never offer discounts, gifts, or other incentives for reviews; Google prohibits this and may remove reviews or suspend the profile.26

- [BrightLocal Local Consumer Review Survey 2024](https://www.brightlocal.com/research/local-consumer-review-survey-2024/)
- [Google Business Profile Help: Manage customer reviews](https://support.google.com/business/answer/3474050?hl=en)
- [Google Maps UGC Policy: Prohibited & restricted content](https://support.google.com/contributionpolicy/answer/7400114?hl=en)
- [HBS: Reviews, Reputation, and Revenue (Luca)](https://www.hbs.edu/ris/Publication%20Files/12-016_a7e4a5a2-03f9-490d-b093-8f951238dba2.pdf)
- [OpenTable: Ratings and Reviews](https://help.opentable.com/s/article/Ratings-and-Reviews-1505261056054?language=en_US)

**Can my Tucson restaurant give a free appetizer in exchange for a Google review?** No. Google's policy prohibits offering any incentive (payment, discounts, or free goods and services) in exchange for a review, and violations can lead to review removal or profile penalties. You may invite genuine feedback, just without conditions or rewards.

**How should I respond to a negative restaurant review?** Respond promptly, address the reviewer by name, acknowledge the specific issue, apologize sincerely, and offer to continue privately by phone or email. Google notes that public replies build trust with new and returning customers.

## Financing & cash flow for a restaurant in Tucson, AZ
Tucson restaurant owners can access capital and cash-flow support through several public and community-based channels.34 The SBA Arizona District Office, which maintains a Tucson location at 300 W. Congress St., Suite 7N28, connects businesses to SBA 7(a), 504, and microloan programs and to lenders.29 SBA microloans run up to $50,000 (averaging roughly $13,000) through nonprofit intermediary lenders.29 Certified CDFIs serving Southern Arizona include Community Investment Corporation (CIC Tucson)31, Prestamos CDFI32, and Growth Partners Arizona, which offer microloans, working-capital loans, and commercial real-estate financing.33 The state's Arizona Microbusiness Loan Program funds loans from $2,000 to $50,000 for businesses with five or fewer employees through CDFI partners.30 Free counseling on access to capital is available from the Arizona SBDC at Pima Community College.18

- [SBA Arizona District Office](https://www.sba.gov/district/arizona)
- [SBA Microloan Program](https://www.sba.gov/funding-programs/loans/microloans)
- [Arizona Microbusiness Loan Program (OEO)](https://oeo.az.gov/microbiz)
- [Community Investment Corporation (CIC Tucson)](https://cictucson.org/)
- [Prestamos CDFI - Tucson](https://prestamoscdfi.org/tucson/)
- [Growth Partners Arizona / Kiva Tucson](https://www.growthpartnersaz.org/loan-programs/kiva-tucson/)
- [Arizona SBDC at Pima Community College](https://www.arizonasbdc.com/pima-community-college/)
- [Treasury SSBCI award to Arizona](https://home.treasury.gov/news/press-releases/jy2585)

**Where can a Tucson restaurant owner get a small business loan if the bank says no?** Beyond regional and community banks, Tucson-area CDFIs, including Community Investment Corporation (CIC Tucson), Prestamos CDFI, and Growth Partners Arizona, offer microloans, working-capital loans, and community-backed financing for businesses that may not qualify for conventional bank credit. The SBA Arizona District Office and the Arizona SBDC at Pima Community College can also match you to SBA-backed lenders and free counseling on access to capital.

**What state loan programs are available to a small Tucson restaurant?** The Arizona Microbusiness Loan Program, run by the Arizona Office of Economic Opportunity, offers loans from $2,000 to $50,000 to businesses with five or fewer employees through regional CDFI partners such as CIC Tucson. Program terms and eligibility change, so confirm current details on the official OEO page before applying.

## Finding & keeping restaurant staff in Tucson, AZ
Restaurants are a major employer in the Tucson, AZ metro. Food preparation and serving related occupations made up 9.4% of area employment in May 2024 — the second-largest occupational group35 — with a mean wage of $18.29 per hour35, below the Tucson metro all-occupation average of $29.9135 (BLS Occupational Employment and Wage Statistics). For hiring, Tucson operators commonly recruit through ARIZONA@WORK Pima County business and recruitment services36, plus community-college hospitality programs and staffing referrals. Wage-and-hour, minimum wage, tip, earned paid sick time, and youth-labor requirements are set and enforced by the Labor Department of the Industrial Commission of Arizona; consult that office directly before setting pay, tip, or scheduling policies. This is general information, not legal or tax advice.

- [Labor Department — Industrial Commission of Arizona (state wage & labor authority)](https://www.azica.gov/labor-department)
- [BLS: Occupational Employment and Wages in Tucson — May 2024](https://www.bls.gov/regions/west/news-release/occupationalemploymentandwages_tucson.htm)
- [ARIZONA@WORK Pima County — employer/recruitment services](https://arizonaatwork.com/locations/pima-county)
- [Arizona Office of Economic Opportunity — Labor Market Information](https://oeo.az.gov/labor-market)

**How large is the restaurant labor market in Tucson?** Food preparation and serving related occupations made up about 9.4% of Tucson metro employment in May 2024 — the second-largest occupational group — with a mean wage of $18.29 per hour, below the metro all-occupation average of $29.91 (U.S. Bureau of Labor Statistics).

**Where do I check Arizona labor rules before hiring restaurant staff?** The Labor Department of the Industrial Commission of Arizona (azica.gov) sets and enforces state minimum wage, tip, earned paid sick time, and youth-labor requirements. Consult it directly for current rules; for recruiting, ARIZONA@WORK Pima County offers employer services. This is general information, not legal advice.

## Giving back in Tucson, AZ
Tucson restaurants have several established, verifiable nonprofit partners for giving back. The Community Food Bank of Southern Arizona (founded 1975) distributes more than 63,000 meals a day across five counties (over 23,000 square miles) through 400+ partner agencies.37 Gospel Rescue Mission has served Tucson for more than 70 years and supports up to 350 guests each night with shelter and hot meals from its Tucson campus39, and Interfaith Community Services (founded 1985) runs a food bank and mobile food bank reaching neighborhoods citywide.40 The Primavera Foundation (founded 1983) addresses housing and workforce needs.38 Restaurants can donate surplus wholesome food, host fundraiser or "dine-out" nights, sponsor meal drives, or contribute staff volunteer hours. Federal law provides liability protection for good-faith food donations.41 Confirm handling, tax, and any Arizona Qualifying Charitable Organization details with the authoritative offices before committing.

- [Community Food Bank of Southern Arizona](https://www.communityfoodbank.org/)
- [Interfaith Community Services (Tucson) - Food Bank](https://icstucson.org/what-we-do/emergency-assistance/food-bank/)
- [Gospel Rescue Mission (Tucson)](https://www.grmtucson.com/who-we-are/)
- [The Primavera Foundation](https://primavera.org/our-story/)
- [USDA - Good Samaritan Act food donation liability protection](https://www.usda.gov/about-usda/news/blog/good-samaritan-act-provides-liability-protection-food-donations)
- [Arizona Dept. of Revenue - Qualifying Charitable Organizations](https://azdor.gov/tax-credits/contributions-qcos-and-qfcos)

**Which Tucson nonprofits can a restaurant partner with to give back?** Established options include the Community Food Bank of Southern Arizona, Interfaith Community Services, Gospel Rescue Mission, and The Primavera Foundation. Restaurants commonly donate surplus food, host fundraiser or dine-out nights, sponsor meal drives, or organize staff volunteer shifts.

**Is a Tucson restaurant protected if it donates surplus food?** The federal Bill Emerson Good Samaritan Food Donation Act provides liability protection for good-faith donations of wholesome food to nonprofits. It is not legal advice; review the USDA guidance and confirm food-safety and any Arizona tax-credit questions with the authoritative offices before donating.

## When things are slow: a cushion for your restaurant in Tucson, AZ
For a Tucson restaurant, the deepest off-peak stretch is summer, when University of Arizona students leave and extreme heat thins foot traffic on University Boulevard and the campus district.42 Empty weekday tables and prepped food that goes unsold turn slow shifts into lost revenue.44 ITEX, the largest marketplace for cashless business-to-business trade in the U.S. and Canada43, lets a restaurant fill some of those seats with ITEX-network diners it might not otherwise reach, earning trade dollars on capacity that would sit idle. Those trade dollars then buy supplies, printing, equipment repair, or advertising from other members, conserving cash during the lean months. Tucson has no local ITEX office, so the ITEX Corporate Office (800.277.9722 / support@itex.com) sets up and supports new restaurant accounts.

- [ITEX Marketplace - how cashless trade works](https://www.itex.com/)
- [IRS Topic No. 420, Bartering Income (tax treatment of trade)](https://www.irs.gov/taxtopics/tc420)
- [KGUN9 - University Boulevard braces for summer slowdown as UA students leave](https://www.kgun9.com/news/local-news/university-of-arizona-news/university-boulevard-businesses-brace-for-fall-semester-as-summer-slowdown-hits)
- [Visit Tucson - Festivals & Annual Events](https://www.visittucson.org/events/festivals-and-annual-events/)

**How can ITEX help my Tucson restaurant through the summer slowdown?** During slow months, ITEX members can send incremental diners your way, paying with ITEX trade dollars and filling tables that would otherwise sit empty. You then spend those trade dollars, instead of scarce cash, on things like food supplies, repairs, or advertising from other members. Because Tucson has no local ITEX office, the ITEX Corporate Office (800.277.9722 / support@itex.com) handles setup and support.

**When business is already down, does trading through ITEX cost me cash up front?** New off-peak sales are paid in ITEX trade dollars rather than cash, so filling otherwise-empty seats brings in spending power without new out-of-pocket cost beyond your normal food and labor. Ask the ITEX Corporate Office (800.277.9722 / support@itex.com) how account terms and fees work for restaurants, and note that barter income has tax implications (see IRS Topic No. 420).

## Resources to scale & grow your restaurant in Tucson, AZ
Start by listing your Tucson restaurant with ITEX to reach the barter network's member directory and mobile marketplace; new businesses register online and transact in ITEX dollars instead of cash.43 Then build core discovery, all free: a mobile-friendly website, a Google Business Profile (add your menu, hours, and dish photos)45, Apple Business Connect for Apple Maps46, and Bing Places.47 Claim your Yelp page and add photos plus a menu link.48 Ask every guest for a Google review, with no incentives and no gating.49 Run geotargeted Google Ads set to a radius around Tucson50, post organic social, and pitch Tucson Foodie for earned local coverage.22 Join the Tucson Metro Chamber52, pursue Tucson City of Gastronomy certification51, add email/SMS, and host community events. Primary CTA: List with ITEX.

- [List your business with ITEX](https://www.itex.com/)
- [Google Business Profile - menu editor](https://support.google.com/business/answer/9455840?hl=en)
- [Apple Business Connect (Apple Maps)](https://www.apple.com/newsroom/2023/01/introducing-apple-business-connect/)
- [Bing Places for Business](https://www.bing.com/forbusiness/)
- [Claim your Yelp Business Page](https://business.yelp.com/products/business-page/)
- [Google - how to get more reviews (policy)](https://support.google.com/business/answer/3474122?hl=en)
- [Google Ads - location/radius targeting](https://support.google.com/google-ads/answer/1722043?hl=en)
- [Tucson City of Gastronomy (restaurant certification)](https://tucson.cityofgastronomy.org/)
- [Partner with Tucson Foodie (earned local media)](https://partner.tucsonfoodie.com/)
- [Tucson Metro Chamber membership](https://tucsonchamber.org/about/)

**What is the first growth step for a new Tucson restaurant?** List with ITEX so you appear in the barter network's member directory and app and can earn new trade sales, then build free listings on Google Business Profile, Apple Business Connect (Apple Maps), Bing Places, and Yelp. Add your menu, hours, and photos to each.

**Can I offer a free appetizer for a 5-star Google review?** No. Google prohibits offering incentives in exchange for reviews and prohibits 'gating' (asking only happy customers). You may ask every guest equally, for example with a QR-code card or a follow-up email or text, with no incentive attached.

## About ITEX
ITEX is one of the longest-running barter communities in North America, with over 30 locations and thousands of member businesses across North America.

## References
1. MAP AZ Dashboard, University of Arizona Eller College. Tucson Population Growth Rate | Age, Race & Ethnicity Demographics. https://mapazdashboard.arizona.edu/workforce-demographics/population-profile (accessed 2026-07-07)
2. Arizona Daily Star (tucson.com), citing Dean Runyan Associates study for the Arizona Office of Tourism. Tucson has seen a dramatic rise in tourism spending on restaurants. https://tucson.com/thisistucson/eat/article_68f323d6-5f1d-11ef-b33d-87094cf09932.html (accessed 2026-07-07)
3. Tucson City of Gastronomy / UNESCO Creative Cities Network. Tucson - UNESCO Creative Cities Network. https://www.unesco.org/en/creative-cities/tucson (accessed 2026-07-07)
4. Visit Tucson (Metropolitan Tucson Convention & Visitors Bureau). Research & Data | Visit Tucson. https://www.visittucson.org/about-us/research-and-data/ (accessed 2026-07-07)
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24. Harvard Business School (Michael Luca). Reviews, Reputation, and Revenue: The Case of Yelp.com (Working Paper 12-016). https://www.hbs.edu/ris/Publication%20Files/12-016_a7e4a5a2-03f9-490d-b093-8f951238dba2.pdf (accessed 2026-07-07)
25. Google (Google Business Profile Help). Manage customer reviews. https://support.google.com/business/answer/3474050?hl=en (accessed 2026-07-07)
26. Google (Maps User Generated Content Policy). Prohibited & restricted content. https://support.google.com/contributionpolicy/answer/7400114?hl=en (accessed 2026-07-07)
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29. U.S. Small Business Administration. Microloans. https://www.sba.gov/funding-programs/loans/microloans (accessed 2026-07-07)
30. Arizona Office of Economic Opportunity. The Arizona Microbusiness Loan Program. https://oeo.az.gov/microbiz (accessed 2026-07-07)
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34. U.S. Department of the Treasury. Treasury Awards Over $7 Million to Arizona to Help Small Businesses. https://home.treasury.gov/news/press-releases/jy2585 (accessed 2026-07-07)
35. U.S. Bureau of Labor Statistics (Occupational Employment and Wage Statistics). Occupational Employment and Wages in Tucson — May 2024. https://www.bls.gov/regions/west/news-release/occupationalemploymentandwages_tucson.htm (accessed 2026-07-07)
36. ARIZONA@WORK (Pima County Workforce Development). Pima County | ARIZONA@WORK. https://arizonaatwork.com/locations/pima-county (accessed 2026-07-07)
37. Community Food Bank of Southern Arizona. Community Food Bank of Southern Arizona. https://www.communityfoodbank.org/ (accessed 2026-07-07)
38. The Primavera Foundation. Our Story - The Primavera Foundation. https://primavera.org/our-story/ (accessed 2026-07-07)
39. Gospel Rescue Mission. About Gospel Rescue Mission | Tucson Homeless Shelter. https://www.grmtucson.com/who-we-are/ (accessed 2026-07-07)
40. Interfaith Community Services. Food Bank - Interfaith Community Services. https://icstucson.org/what-we-do/emergency-assistance/food-bank/ (accessed 2026-07-07)
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