Payroll and Why You Can’t Control It
Every restaurant owner and operator, large and small, feels the pain of payroll every two weeks. Struggling to control costs, this area seems to be a black hole that they can not work their way out of. Instead of attacking this issue like any other on their financial statements, every time payroll has to be funded it creates a visceral emotion in the owner "why is payroll so high?" Contributing 30% to 40% of the total expenses… » Read More
Profiting From Employee Tax Credits
Another contributing factor to payroll cost is the associated tax burden. Savvy operators understand the employee component of payroll, but often neglect related decisions that can help mitigate such payroll costs. For example, a sizeable portion of labor overhead can be indirectly recouped through wage-based income tax credits. These incentives turn labor expenditures into tax savings. » Read More
Third Party Inspections: A Good Idea?
I understand why an owner of a restaurant would decline the services of a 3rd Party Health and Food Safety Inspection. After all, the executive chef runs a tight ship and the Health Department (HD) has always given them an A grade. Moreover, each manager is fully trained and ServSafe Certified and the entire kitchen staff now have their Food Handler’s card. To quote one restaurant owner, "Why let strangers… » Read More
Gift Card Revenue – Gift or Grief?
Over the last five years, gift cards have attracted a lot of attention, from consumers, retailers, and regulators. A 2010 holiday season survey conducted on behalf of the National Retail Federation (“NRF”) found that more than 77 percent of shoppers had in fact purchased, or intended to purchase gift cards. The survey also estimated total gift card purchases to total almost $25 billion. » Read More