The Fork CPAs

"Are there industry-specific benchmarks I should be aiming for?" This is one of the most common questions we hear from restaurant owners. Here's what top-performing restaurants are targeting: Sales per square foot: ? Full-Service: $300-$500 for moderate profit ? Quick-Service: $400-$600 for moderate profit ? Best-in-Class: Over $500 (Full-Service), Over $600 (Quick-Service) Occupancy costs (as % of sales) ? Low: < 6% ? Average: 7-9% ? High: > 10% Prime costs (COGS + Labor, as % of sales) ? Full-Service: 60-65% average, 55% best-in-class ? Quick-Service: 55-60% average, 50% best-in-class Remember: These are guidelines. Your specific targets may vary based on your concept and location. Want to learn how to achieve these benchmarks and unlock more industry-specific insights? Download our free Ultimate Guide to Financial Success in Restaurants > https://bit.ly/3Zga1hr #RestaurantBenchmarks #RestaurantKPIs #RestaurantMetrics #RestaurantPerformance #RestaurantFinancials #FoodServiceIndustry #RestaurantOperations

If you're using a third-party aggregator (Checkmate, Chowly, etc.) to consolidate third-party sales channels, we suggest assessing your sales tax calculations to ensure the appropriate amounts are paid. Some aggregators do not capture promotions and pricing differences when pushing sales to the POS, resulting in a sales tax miscalculation in the POS reports. For example, you issue a 50% promotion on a $100 UberEats order, so the discounted total is $50 plus $5 sales tax. The aggregator may not push the 50% discount through so that the sale will get rung up in your POS at $100 with $10 sales tax owed. You will file sales tax based on the POS numbers and overpay sales tax by $5 for that order. The Toast direct integration may resolve this, but you should do a transaction-level review to confirm. Discrepancies between amounts received from third-party sales channels and the corresponding payment tender, as shown in the POS after considering the fees, are usually a good indicator that something might be wrong. #accountingtips #reconciling #thirdpartydelivery #restaurants #restaurantmanagement #accounting #bookkeeping #POS

Shall we talk retirement plans? There are 3 top plan options for restaurant groups. In our latest blog you can find a deeper analysis with our verdict of the BEST one. Check the full article: https://bit.ly/4fvNRxl #RestaurantGroup #MultiUnitRestaurants #RestaurantManagement #HospitalityIndustry #EmployeeBenefits #RetirementPlanning

Unsurprisingly, the food service industry is behind other industries in offering retirement plan benefits to employees. It's hard enough to keep labor costs low, so the idea of providing retirement plan benefits is a fantasy for most operators. Plan participation is the lowest of all industries, and average account balances place second to last, according to a 2022 Defined Contribution Plan benchmarking survey conducted by PlanSponsor. Nonetheless, restaurants can offer employees a retirement benefit plan to attract top talent, set themselves apart from their competitors, and receive some tax credits. The ideal retirement benefit plan varies for every industry, business size, and owner. The goal is to choose the most straightforward retirement benefit plan that attracts and retains top talent while providing a return on investment for owners. A 401(k) plan is the most suitable retirement plan for restaurants due to various factors we’ll explain in this newly published article below. #cfotips #retirementplan #cpatips #restaurants #restaurantfinance #401k #benefits #payroll #laborcosts https://lnkd.in/eHdNmQZE

Restaurant group owners: We need to talk retirement plans. Did you know? The restaurant industry lags behind in retirement benefits, with the lowest plan participation across all sectors. Yet, offering these benefits can attract top talent, set you apart from competitors, and can even provide tax credits. Let's break down the top 3 retirement plan options for restaurant groups: 401(k) Plans: Pros: ? Highest contribution limits ($23,000 in 2024) ? Flexible employer contributions ? Vesting schedules (ideal for high turnover industries) Cons: ? More complex administration ? Potentially higher costs (though modern solutions are changing this) SIMPLE IRAs: Pros: ? Easier setup ? Lower administrative costs Cons: ? Lower contribution limits ? Mandatory employer contributions ? No vesting schedules SEP IRAs: Pros: ? High contribution limits ? Straightforward administration Cons: ? Employer funds all contributions ? Must contribute equally for all eligible employees The verdict? 401(k)s often provide the best balance for most restaurant groups, especially those looking to scale. Want a deeper analysis? Our latest blog post offers a comprehensive guide to choosing the right plan for your restaurant business. Check it out https://bit.ly/4fvNRxl ?? #RestaurantGroup #MultiUnitRestaurants #RestaurantManagement #HospitalityIndustry #EmployeeBenefits #RetirementPlanning

As a hungry restaurateur, you want to systemize your operations to scale and grow comfortably, quickly, and securely. Yet, you still need agility in purchasing because you’re in a fast-paced industry, and anything can come up last minute. As a result, you have most likely issued corporate cards to your key employees. Corporate credit and debit cards are linked directly to the company’s credit card and bank accounts and serve as modern-day petty cash. For example, the kitchen is short on bananas, so a line cook grabs the corporate card from the GM and runs across the street to a grocery store. Perhaps the executive chef, GM, owner, catering manager, and pastry chef have their cards tied to the business’s account. Corporate cards are convenient but extremely risky if issued directly to employees. They must be monitored proactively to ensure all purchases are authorized and have proper documentation, which is cumbersome. Requesting receipts from restaurant workers is like pulling teeth. Corporate cards also encourage excessive spending because of the psychological effects of spending “someone else’s” money with an unlimited tab. Two alternatives to corporate cards can be implemented in your restaurant group, allowing you to grow and scale with the proper internal controls. We just wrote this article to explain why purchasing cards and accountable plans are a safer and more scalable solution than corporate cards. Check it out and share it with your favorite restaurateur! #restaurants #restaurantfinance #cfo #accounting #restaurantcontrols #internalcontrols #controller https://lnkd.in/erZY6ypd

Here is how costs have increased in restaurants since February 2020: - Food +29% - Labor +31% - Occupancy +12% - Supplies +20% - Swipe fees +32% - Utilities +16% Restaurants' average pre-tax profit margins are 3-5%. Therefore, given the above cost increases, you must have increased your menu prices by 26.2% since February 2020 to maintain your pre-pandemic profit margins. It shouldn't be a surprise that average menu prices increased 27.2% between February 2020 and June 2024. Here is how your menu price increases have affected your profitability, assuming traffic didn't change: - Zero price increase = from 5% profit to -20% loss - 20% price increase = from 5% profit to break-even - 26.2% price increase = maintain 5% profit Check out the complete calculation and explanation from the National Restaurant Association below. #restaurants #financials #cfo #controller #accounting #hospitality #restaurantmanagement

As you grow, you need operational efficiency without sacrificing agility. Corporate cards may seem like a quick fix, but we have a better way. Check out two smarter alternatives in our latest blog: https://bit.ly/3BkWs73 #RestaurantGroups #MultiUnitRestaurants #ExpenseManagement #RestaurantFinance

Myth ?? Corporate cards are the best solution for managing your restaurant expenses. Reality ?? Not for a restaurant group that wants to scale.They can lead to reduced visibility, overspending, and increased fraud risk. It's a really common condundrum. As a growing restaurant group, you want to systemize your operations so that you can scale and grow quickly. Yet, you still need agility in purchasing because you're in a fast-paced industry, and anything can come up last minute. As a result, you've most likely issued corporate cards to your key employees. Thing is, without proper controls, corporate cards can lead to: ?? Unauthorized purchases draining your profits ?? Hours wasted chasing staff for receipts ?? Overspending due to the 'someone else's money' mindset ?? Increased risk of fraud and theft There's a better way to manage expenses. Our new blog post dives deep into two smart alternatives for restaurant groups, explaining: ?? How Accountable Expense Reimbursement Plans can save you money ?? Why P-Cards with built-in controls might be your new best friend ?? The essential safeguards every restaurant needs, regardless of system ?? Strategies to keep your finances tight without losing flexibility We also explore how to seamlessly integrate these systems with your accounting processes. Get all the info on this simple switch here ?? https://bit.ly/3BkWs73 #RestaurantGroups #MultiUnitRestaurants #ExpenseManagement #RestaurantFinance

Investing in a restaurant management system can transform your Ops. If your goal is growing restaurant groups, this is a non-negotiable. We explain everything in our new blog post! https://bit.ly/3TPo1vp #RestaurantManagement #RestaurantOperations #ScalingRestaurants #RestaurantGrowth #MultiUnitRestaurants #HospitalityIndustry