5 Benefits of Outsourcing Your Restaurant’s CFO

5 Benefits of Outsourcing Your Restaurant’s CFO

In the restaurant business, the Chief Financial Officer (CFO) is responsible for managing the financial aspects of the restaurant, from financial reporting and projections to compliance and overseeing finance team members, with many functions in between. The CFO role is a critical one—however, the cost of hiring a full-time in-house CFO is significant, especially for small and medium-sized businesses. For many restaurants, outsourced CFO services provide a much more practical and flexible solution to financial management. Below are five benefits of outsourcing your restaurant’s Chief Financial Officer functions.

  1. Cost Savings

One factor a restaurant owner must consider when deciding whether to outsource CFO functions to an accounting firm is the real cost of hiring a new full-time employee. In addition to an employee’s salary, the business also bears the costs of recruitment, training, office space, medical benefits, FICA taxes, and payments into a pension fund. New hires also require time to adjust to the role, learn the ropes, and reach full productivity. Outsourcing eliminates many of the costs associated with in-house hires. Additionally, outsourcing allows businesses to pay only for the services they need rather than paying an employee for full-time work.

  1. Expertise and Accuracy

Besides cost savings, access to expertise is the most significant advantage of outsourced accounting. Accounting firms are equipped with seasoned professionals well-versed in financial management best practices and the latest regulatory changes. Outsourced accountants can provide you with advice on financial decision-making and ensure compliance with legal requirements, minimizing the risk of costly errors and penalties. They can also help you identify ways to operate more efficiently and cost-effectively. Services an outsourced accountant can provide include but aren’t limited to: strategic tax and financial planning, cash flow management, budgeting, forecasting, financial reporting, cost control, and guidance on maximizing profitability.

  1. Continuity of Service

CFOs who leave their positions can be difficult to replace. While in-house CFOs or accountants can resign, fall ill, or go on vacation, leaving your restaurant with operational gaps, accounting firms have staff available consistently to ensure uninterrupted service.

  1. Access to the Latest Technology

Another advantage that comes with outsourcing is access to up-to-date accounting technology. Most accounting firms employ the latest accounting software and tools, facilitating efficient, accurate, and timely financial reporting. Since outsourced accountants typically come equipped with their own software and technology, the restaurant is also spared the cost of purchasing these (often expensive) programs itself.

  1. Focus on Your Priorities

By delegating financial management tasks to outsourced accountants, restaurant owners can concentrate on their primary purpose of running their business. When working with experienced and reliable experts, business owners can also be assured that all financial and regulatory requirements are being met.

Thinking of Outsourcing?

RBT CPAs offers outsourced accounting and CFO services to restaurants in the Hudson Valley and beyond. Our experienced professionals understand the unique factors and challenges impacting the restaurant industry. Whether you are looking to outsource your restaurant’s accounting functions or seeking guidance related to tax, accounting, or audit matters, RBT CPAs is here to support you. Get in touch with our experts today to find out how we can be Remarkably Better Together.

How POS Systems Help Restaurants Optimize Efficiency and Financial Performance

How POS Systems Help Restaurants Optimize Efficiency and Financial Performance

Restaurant point-of-sale (POS) systems serve as command centers where numerous functions come together, streamlining everything from order taking and payment processing to sales monitoring and inventory management. Beyond helping restaurants optimize their everyday operations, point-of-sale systems also help promote long-term success by providing critical insights for decision-making. While features vary by system, most POS platforms offer a wide range of benefits for restaurants, including the following:

Efficiency

One of the most noticeable advantages of a POS system is improved efficiency in day-to-day operations. POS systems cut down on ordering and processing times, allowing staff to take and update orders quickly. Menu items and prices can be updated easily, with changes reflected immediately in the system. POS systems also allow for better communication between servers and cook staff, sending order information directly to the kitchen and minimizing delays. In addition, these systems automate essential processes such as order entry, payments, and inventory tracking, saving time and reducing errors.

Improved Guest Experience

POS systems help facilitate a positive and smooth guest experience by tracking and updating reservations, offering table mapping capabilities, and making it easier for hosts to seat guests quickly. Faster service reduces wait times, while automated systems lower the risk of order and billing errors. The ability to accept multiple forms of payment—including credit cards and mobile payments—adds convenience and flexibility for customers. In addition, POS technology allows restaurants to monitor the visits and preferences of repeat customers and to establish rewards or loyalty programs to incentivize guests to return.

Data and Insights

POS systems provide valuable data and insights for restaurants, including sales numbers, inventory levels, customer information, and consumer trends. This data can then be used for important financial and operational processes such as budgeting, revenue forecasting, financial reporting, and inventory management. Restaurants can also use this information to assess their performance and make key business decisions.

Increased Profitability

By streamlining restaurant operations across the board, POS systems expand opportunities for cost savings and increased sales. POS systems also allow restaurants to track the profitability of different menu items and to optimize menus and pricing based on that data. Using a POS system, restaurants can identify their most profitable items and then direct employees to promote those items to customers.

Employee Management

POS systems simplify employee management by tracking staff performance, which in turn improves employee accountability and informs training efforts. Managers can track what menu items individual employees are selling, who is pushing the most profitable items, who is selling the most add-ons, and how quickly staff are turning over tables. Using this information, management can identify high performing employees and utilize them to train other staff. In addition, by monitoring busy periods and table turnover times, POS systems help to inform staffing decisions. Managers can decide how many staff are needed at different times of the day or week based on this information. This creates a more efficient system of staffing, ensuring sufficient service during busy times and preventing overstaffing during quiet periods. POS technology can also aid in staff scheduling and automate payroll processes, saving significant time for restaurant managers.

Security

POS systems accurately track restaurant sales, reduce the opportunity for human error, and help to prevent theft and fraud. Features like data encryption, regular updates, customized user permissions, multi-factor authentication, and real-time monitoring help to keep data secure.

Integration with Other Programs

POS systems integrate with other essential business tools such as accounting software, online ordering platforms, inventory management systems, and payroll systems to share information, reduce manual data entry, and increase efficiency.

In Need of Financial Expertise?

A POS system is a powerful tool for optimizing your restaurant’s efficiency and profitability. For additional guidance on maintaining the financial health of your business, you can depend on RBT CPAs. Our accounting experts, familiar with the distinct challenges and opportunities facing the restaurant industry, can help you manage the financial side of your business while you focus on running your restaurant. Reach out to RBT CPAs for all your accounting, tax, audit, and advisory needs—and find out how we can be Remarkably Better Together.

Do You Have a Succession Plan in Place?

Do You Have a Succession Plan in Place?

You’ve put countless hours—and likely many years—of hard work, dedication, and passion into your restaurant business. To ensure that the legacy you have worked so hard to build continues after you step away, you need to formulate a plan for the future of your business. Creating a succession plan is crucial for ensuring business continuity and enabling a smooth transition of ownership when the time comes.

When is the best time to create a succession plan? The answer is, as soon as possible. A succession plan often takes years to develop and execute, as you will need time to identify, prepare, and mentor your chosen successor(s). You should begin planning for succession long before you expect to retire or sell your restaurant. Life is unpredictable, and you never know when circumstances may demand a transition of ownership. The absence of a succession plan can have devastating financial and operational consequences for your business. In the case of an unexpected event such as injury, illness, or even death, you’ll want to ensure that the management of your business is left in trusted hands.

Not only does a detailed succession plan provide a blueprint for the future of your company, but it also earns the confidence of your employees, investors, customers, and other stakeholders by assuring them that a plan is in place for the inevitable transition of leadership. As such, you should communicate your plan, as well as any changes or updates, to all relevant stakeholders. Your succession plan should be regularly reviewed and adjusted if necessary to ensure alignment with the business’s goals and needs.

A key element of any succession plan is, of course, the selection of a successor. Since many restaurants are family-run businesses, succession plans often involve selling or gifting ownership to the next generation. Other possible strategies include identifying and developing a non-relative successor, selling to an outside party, or establishing buy-sell agreements in the case of multiple owners. You may choose to sell the building if it is owner-occupied, or you may decide to sell the business, hold the real estate, and rent to the new business owners.

As you can see, there are several different ways to approach the issue of succession. But how do you know what the best course of action is for you and your business? That depends largely on your personal goals and individual situation. A trusted team of advisors—including an accounting professional—becomes a critical resource when making these kinds of decisions.

RBT CPAs’ accounting experts are available to work with you to create a succession plan that best meets your goals. Our firm has been supporting restaurants at all stages of their business lifecycles for over 55 years, and our professionals are deeply familiar with the unique challenges and opportunities facing the restaurant industry. You can count on our CPAs to help you navigate the tax implications and other financial considerations of transferring ownership of your business.

Don’t leave your legacy up to chance. Protect the future of your business by developing a succession plan today. Call RBT CPAs to speak with one of our experts, and find out how we can be Remarkably Better Together.

The Importance of Revenue Forecasting for Restaurants

The Importance of Revenue Forecasting for Restaurants

Our last article discussed the rising costs facing restaurants due to factors such as increased tariffs, higher minimum wages, and the bird flu. During times of economic uncertainty, financial planning becomes even more critical to the survival of small and medium-sized businesses. This is especially true in the restaurant industry, where profit margins are already small. Revenue forecasting is a key element of financial planning, but can be difficult for restaurants due to the multitude of factors that affect consumer behavior and revenue stream. Even so, revenue forecasts are crucial tools that allow restaurants to assess and predict financial performance, optimize operations, and make informed business decisions.

Revenue forecasting is the process of estimating a business’s future revenue over a certain period using historical data, trends, economic conditions, and other factors as a basis for analysis. The first step in revenue forecasting typically looks at a restaurant’s historical data, which can be gathered through Point of Sale (POS) systems, inventory management systems, reservation systems, and other tools. The data obtained from these sources provides valuable insight into sales numbers, best-selling menu items, inventory usage, dining patterns, and more. Historical data should not be relied upon as the only source of information for predicting future revenue, as many other factors play a role. However, this data provides a basis upon which restaurant management can assess past sales activity and predict future sales.

Another component of revenue forecasting involves identifying trends, consumer behaviors, and external influences on revenue. Restaurant owners and managers should consider the impact of seasons, holidays, and weather on consumer behavior and sales. Examining these influences can help guide the revenue forecasting process as well as key operational decisions.

Also important to consider when revenue forecasting is economic climate. A range of variables—some predictable and some not—impact the economic conditions under which restaurants operate. Inflation, government policies (i.e., tariffs), natural events (i.e., bird flu, droughts, vegetable blights), and other factors can affect ingredient availability, prices, consumer sentiment, and revenue significantly.

Despite the challenges restaurants face in forecasting revenue, these forecasts remain critical to the financial planning process for several reasons. Revenue forecasts provide valuable information and help restaurants to:

  • Make key decisions: Revenue forecasts guide management in making important financial and operational decisions related to budgeting, ordering, renovations and improvements, staffing, and more.
  • Manage inventory: By studying historical data and predicting future sales, restaurants can more accurately estimate inventory needs and thus prevent wasted inventory or ingredient shortages.
  • Meet staffing needs: Revenue forecasts help restaurants determine which periods will be busiest, and therefore how many staff members are needed at different times to meet consumer demand. Management can then hire and schedule staff strategically to ensure the business runs smoothly without overstaffing.
  • Increase profitability: Optimizing inventory, staffing, and operations helps to streamline processes and increase profitability.
  • Improve investability: Investors are more likely to have confidence in restaurants with data-supported revenue forecasts.
  • Enhance customer experience: Adequate staffing, organized processes, and sufficient inventory all result in an improved experience for restaurant guests. Positive customer experiences build a restaurant’s reputation and drive growth.

Revenue forecasts are important tools that allow restaurants to gain insight into their financial performance and prepare for the future. These forecasts enable management to make informed business decisions and optimize operations using data-driven strategies. RBT CPAs is here to guide you through the process of revenue forecasting and financial planning for your restaurant. RBT’s experts are intimately familiar with the financial challenges and opportunities facing the restaurant industry. We are prepared to help you navigate the complexities of financial planning in the face of an ever-changing economic landscape. For more information on our services, visit our website or call us today.

How the New Tariffs Will Impact the Restaurant Industry—and What Restaurants Can Do to Prepare

How the New Tariffs Will Impact the Restaurant Industry—and What Restaurants Can Do to Prepare

It’s no secret that costs are rising for just about every industry these days. The restaurant industry in particular is facing increasing financial pressure due to a variety of factors. The recent bird flu outbreak has led to shortages of egg and chicken supplies, causing a steep rise in prices for these products. New York restaurant owners are also dealing with higher labor costs due to the increase in New York State minimum wage rates as of January 1.

U.S. restaurants now face an added challenge as the country’s economic policies rapidly change under the new administration: additional tariffs on imported goods. The newly imposed tariffs will likely affect the restaurant industry in significant ways. However, there are measures restaurants can take to adapt their business to the changing economic landscape and remain resilient in the face of increasing logistical challenges.

What Tariffs Have Been Announced?

So far this year, the U.S. has announced tariffs on goods imported from Canada, Mexico, and China. China and Canada have responded with retaliatory tariffs of their own; Mexico has announced plans to do the same. Tariffs on goods from the European Union are expected to be announced soon. The U.S. has also reinstated a 25 percent tariff on steel imports and increased the tariff on aluminum imports to 25 percent.

How Will Restaurants Be Impacted by Tariffs?

Higher costs for imported foods:

Restaurants can expect to face higher costs for imported food products. This includes produce from Mexico (a significant supplier of produce for the United States), and other imported foods such as olive oil, cheese, seafood, coffee, spices, beer, wine, and spirits. Additionally, any foods or beverages packaged in aluminum cans will likely be affected by the higher aluminum tariffs.

Higher costs for non-food products:

Restaurants may also see increased costs for other non-food products and materials. Kitchen equipment, furniture, and construction materials (i.e., lumber from Canada and steel) are some of the categories that may be impacted.

Supply chain disruptions:

Supply chain issues caused by tariffs could lead to delayed shipments or supply shortages.

Changes in consumer behavior:

During periods of economic uncertainty, consumers tend to reduce discretionary spending. Since eating out at restaurants is typically considered a luxury, this may be one of the areas in which people decide to cut back.

What Can Restaurants Do to Counter the Impact of Tariffs?

Reassess your sourcing:

Determine the country of origin of the ingredients and products you currently use. Look at your sources and assess which ones will be affected by current and potential tariffs. Diversifying your suppliers will help to improve supply chain resilience. Another option is to negotiate with suppliers to arrange deals on bulk orders or long-term contracts. You may want to explore alternative sourcing options—either domestic or in regions not affected by tariffs. Consider a move towards local sourcing, leaning into consumers’ desire for locally produced foods and products.

Raise prices cautiously:

The obvious solution to higher operations costs is to raise prices. The James Beard Foundation in its 2025 Independent Restaurant Industry Report warns of the negative impact of raising prices by too much, so restaurants should do so cautiously while considering the potential effect on consumer demand. The report also discusses alternative sources of revenue to offset higher operation costs, including pop-ups and event spaces. If raising prices, communicate with your customers about the reason for the changes in order to maintain transparency and trust.

Modify your menu:

Consider including more local and seasonal ingredients on your menu. Focus on your most profitable, high-margin dishes and think about reducing portion sizes.

Optimize your operations:

Restructure your operations to minimize waste as much as possible by optimizing inventory management, utilizing technology, and streamlining your systems.

Build customer loyalty:

Make sure that you are providing a high-quality consumer experience that people will be willing to pay for. Consider implementing a rewards or loyalty program, offering customers points or discounts for recurring visits.

Stay informed:

Restaurant owners should stay up to date on the latest tariff developments. The National Restaurant Association is currently appealing to the White House for exemptions for food and beverage products, but future policies are uncertain. For now, the tariff situation is developing rapidly, and restaurant owners should be prepared for change.

Summary

The new tariffs may present significant challenges to the restaurant industry in the coming years, but the changing economic landscape offers business owners an opportunity to rethink their processes, streamline operations, and innovate their business strategies. Planning ahead—and adjusting your business strategies accordingly—will help to mitigate the impact of tariffs on your business.

While you work on strategies for adapting your business to the new tariffs, please know that RBT CPAs is here to support your business’s accounting, tax, audit, and advisory needs. Visit our website or give us a call to learn more.

2025 Updates: Minimum Wage for Tipped Employees and NYS Tip Credit

2025 Updates: Minimum Wage for Tipped Employees and NYS Tip Credit

Despite some controversy, the minimum wage for tipped employees in New York State remains in place as of early 2025, with wage rates increasing from last year.

Beginning January 1, 2025, the minimum wage rate for tipped food-service workers increased from $10.65 to $11.00 per hour in New York City, Westchester, and Long Island, and from $10.00 to $10.35 per hour in the rest of the state. The new wage rates will apply through December 31, 2025.

The State continues to see push-back from lawmakers and restaurant workers advocating for an end to the tiered wage system for tipped workers in New York. Last month, a group of restaurant workers gathered at the State Capitol in Albany to campaign for “One Fair Wage” legislation, a bill that would require employers to pay tipped workers the full minimum wage. Proponents of the bill have expressed concern about workers’ reliance on unpredictable tips to support themselves and their families. Under the proposed legislation, any tips earned by employees would be earned in addition to full minimum wage.

Seven U.S. states currently require that tipped employees be paid full minimum wage before tips, while the others—including New York—maintain a tiered wage system.

Hospitality employers in New York State are able to pay less than the full state minimum wage because of tip credits. Employers can satisfy minimum wage requirements through a combination of employer-paid wages and a tip allowance, or tip credit.

For example, the current minimum wage for food service workers in New York State is $15.50 per hour. Employers can satisfy the minimum wage by combining a cash wage of at least $10.35 with a tip allowance of no more than $5.15 per hour.

Below is some important information about tips and tip credits in New York:

What is a tip?

Any amount of money a customer voluntarily leaves above the ticket price plus tax is considered a tip.

What is a tip credit?

A tip credit allows employers to pay food service workers a rate that’s lower than minimum wage by including tips or a portion of them in wage calculations. Foodservice workers’ combined wage plus tips must equal at least the full minimum wage; otherwise, the employer must make up the difference.

Who owns a tip?

A tip belongs to an employee–not an employer. An employer is not entitled to take any part of a tip, except for a percentage of tips for a valid tip pool.

Who is considered a tipped worker?

The Fair Labor Standards Act (FLSA) defines a tipped employee as “an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.”

Are there tip recordkeeping and reporting requirements?

Yes, reporting requirements help ensure compliance with state and federal wage and hour laws and provide proof that employers are upholding minimum wage requirements. Under New York Labor Law Section 196-d, employers are required to maintain daily records of the tips received by employees, records which are subject to DOL inspections. Employee wage statements must also clearly show how much of an individual’s pay is comprised of tips and how much is comprised of employer-paid wages. In addition, written notice must be provided to new employees informing them of wage rates and tip credits. Accurate recordkeeping and reporting are crucial, as employers not complying with New York tip laws can face serious penalties.

Have questions?

As mentioned at the start of the article, the future of tip credits in New York is unknown—but as of right now they still exist, and accurate recordkeeping is imperative. More information can be found in the Department of Labor’s Tips and Gratuities Frequently Asked Questions. If you have any further questions about the laws governing tips in NYS, we encourage you to seek legal counsel.

And remember, for all of your accounting, tax, audit, and advisory needs, RBT CPAs is here to help. Give us a call today and find out how we can be Remarkably Better Together.

Eight Tax Questions Restaurant Owners May Want to Consider in the Last Four Months of 2024

Eight Tax Questions Restaurant Owners May Want to Consider in the Last Four Months of 2024

In the blink of an eye, it will be September and there will be just four months left in 2024 to maximize tax credits and deductions for your business.

Here are some questions you may want to think about to make the most of the time left in 2024.

Have you been thinking about purchasing equipment, machinery, certain software, or furniture?

Under Section 179 of the tax code, you can deduct the full purchase price (up to certain thresholds) if you put the item purchased into service this year. As an alternative, you may be eligible for bonus depreciation under Section 168, where you can deduct 60% of a qualified expenditure this year and 40% over the remainder of the item’s useful life. (Bonus depreciation will decrease to 40% in 2025 and 20% in 2026; then, it phases out in 2027.) Before making any purchases, you may want to explore how  energy-efficient equipment can help you reduce ongoing operating expenses.

Are you considering updating your restaurant?

Section 168 bonus depreciation can also be used for certain interior improvements. A cost segregation study may help identify fixed assets that qualify for faster depreciation (just give yourself enough time, as they usually take four to eight weeks to complete). If you own the building where your restaurant operates, additional tax deductions may be available for energy-efficient improvements.

Do you need maintenance or repairs performed on equipment?

As long as the maintenance or repair isn’t to a critical or major component, you may be able to deduct the full cost rather than capitalizing and depreciating it over time.

Are you looking for ways to strengthen your ability to attract and retain employees?

If you meet eligibility requirements, you may receive tax credits for certain benefits you provide to your employees, including health care coverage, retirement benefits, childcare, and education or student loan benefits. In addition, any year-end bonuses you give to employees are tax-deductible.

Are you looking to hire additional help for the holiday season?

Hiring members of certain groups, like veterans or public assistance recipients, may make you eligible for the Work Opportunity Tax Credit (WOTC).

With the holiday season approaching, should you step up marketing efforts?

Like other costs of running your business, advertising, and marketing expenses are usually deductible. You may also want to consider selling gift certificates to boost revenues this year (sales tax won’t apply until gift certificates are used).

If you’re hoping for a year-end burst in sales but worried about ending up with extra food, have you considered food donations?

Donating extra food to qualified non-profit organizations benefits the community and provides tax deductions – as long as you keep good records.

Should you stock up on bulk purchases of nonperishable goods?

It can help reduce your taxable income this year and give you some breathing room on purchases going into 2025.

If answering these questions brings up more questions, please don’t hesitate to reach out to the professionals at RBT CPAs for answers. We offer accounting, advisory, audit, and tax services – as well as estate and gift planning. To learn more, give us a call or send us a message. We would love to have the opportunity to show you how we can be Remarkably Better Together.

 

RBT CPAs never offshores work outside of the U.S., so you always know who is handling your financial information.

8 Ways to Counteract Rising Costs in Your Restaurant Business

8 Ways to Counteract Rising Costs in Your Restaurant Business

Wages are up. Health insurance, business insurance, and utility costs are up. Food costs are up…no down…no up. Cost increases and volatility are putting a squeeze on all sectors, particularly restaurants and food services.

Here are eight strategies to consider for counteracting rising costs:

1. Efficient Inventory Management

Poor inventory management can lead to excessive waste, overstocking, and underuse of resources, all of which can contribute to higher costs. By implementing an efficient inventory management system, restaurants can better control spending and reduce unnecessary expenses. This might involve adopting a first-in-first-out approach, using technology to track inventory accurately, or negotiating bulk purchase discounts with suppliers. More frequent monitoring of your most used or most expensive items can also help

2. Strategic Menu Engineering

Menu engineering involves analyzing dish profitability and popularity to create a menu that maximizes profits. For instance, restaurants can highlight high-margin dishes, re-evaluate the pricing of less profitable items, and remove dishes that are neither popular nor profitable.

3. Portion Control

Portion control is an effective cost-cutting measure. Watch your recipe yields to ensure you’re getting what you expect. If you or your staff notice a lot of leftovers of a particular dish, consider adjusting the portion size. When you reduce waste, in addition to managing costs, you operate more sustainably, which can be a marketing point for your business.

4. Energy Efficiency

By implementing energy-efficient practices such as switching to LED lighting, installing energy-efficient appliances, and ensuring regular maintenance of HVAC systems, your business may see a reduction in utility costs.

5. Staff Training

Well-trained staff are more efficient, make fewer mistakes, and provide better customer service, all of which can help to reduce costs. Training should also address the importance of minimizing waste and engage employees in identifying opportunities to cut waste and costs.

6. Leveraging Technology

Technological advancements can help restaurants reduce costs and improve efficiency. For example, a point of sale (POS) system can streamline order taking and billing, while online reservation systems can help manage customer flow and reduce waiting times.

7. Raising Prices Strategically

While it might seem like an obvious solution, raising prices should be done strategically to avoid alienating customers. Instead of applying a blanket price increase, consider raising prices on less price-sensitive items, offering smaller portions at a lower price, or introducing premium items to boost revenues.

8. Shopping around

Especially if it has been a while since you compared costs for insurance, cable/phone, cleaning services, maintenance, food, ingredients, and more, it’s time to do some comparison shopping to see if you can find less expensive suppliers, products, and services.

When implementing any change, be sure to monitor effectiveness, track results, and make any additional adjustments necessary.

While you focus on managing costs, you can depend on RBT CPAs to focus on your business’ accounting, advisory, audit, and tax needs. Give us a call today so we can show you how we can be Remarkably Better Together.

 

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

More than 20 Ways Technology and Automation Solutions Can Help Restaurants Thrive

More than 20 Ways Technology and Automation Solutions Can Help Restaurants Thrive

From enhancing customer experience to streamlining operations, technology has become a competitive game-changer. Here are more than 20 ways technology, software and apps are promoting productivity, saving money, or improving service in the restaurant sector.

  1. Automated invoicing and inventory systems connect with your POS and supplier systems to better manage food and beverage costs.
  2. Contactless payment enables diners to tap their contactless cards or smartphones on a payment terminal to pay without cash or a PIN.
  3. Delivery apps enable customers to place and pay for their orders and delivery via their mobile devices. There are also solutions that enable you to integrate orders coming from multiple apps to better manage the process.
  4. Digital menus with augmented reality allow customers to see potential food choices in 3D before placing their order.
  5. Digital menu boards are visually attractive electronic screens that can be used to display and easily update special offers, menu items, prices, events, and more.
  6. Event software helps you manage parties, weddings, special events, and more with documentation tracking, communication tools, and reports.
  7. Inventory management solutions help track stock and automate ordering to control costs, reduce waste, and ensure you have what’s needed to deliver on your menu. Some are even tailored specifically for bars.
  8. Kitchen display systems replace paper orders with online ones to facilitate smoother, more accurate, and timely food prep.
  9. Online order systems let customers place orders directly from a restaurant website or via a third-party app.
  10. Point of Sale or POS systems serve as a command center where numerous functions come together to help you manage a variety of tasks from order taking and processing to sales monitoring and payment processing.
  11. QR code menu allows you to create a QR code, and place it on tables. Customers scan them to see the menu, place orders, and make payments via their own mobile devices.
  12. Reservation systems allow customers to make reservations online and restaurants better manage seating arrangements and wait times. There are even solutions that sell tickets for seating to minimize no-shows and last-minute cancellations.
  13. Rewards programs, whether as a stand-alone or integrated with another system, allow you to reward customers with special offers, discounts, and other perks to build loyalty.
  14. Robot assistants help kitchen staff by performing repetitive tasks like chopping and stirring.
  15. Scheduling software to help you schedule employees, as well as track and manage labor costs.
  16. Self-order kiosks enable customers to place orders using a touchscreen.
  17. Supplier management solutions simplify all of the activities that go into overseeing multiple vendors.
  18. Waste management software and apps can help with sustainability efforts by helping you reduce the use of non-eco-friendly materials while directing where you can send leftovers.
  19. Waitlist app helps manage waitlists and improve customer communications during busy times.
  20. Wearable tech devices facilitate communication between customers, staff, and managers, promoting greater responsiveness when a customer needs something.
  21. Website builder programs specifically tailored for restaurants enable you to showcase your menu, and hours of service, accept online orders, and more.

That’s just a sampling. Before embarking on a tech shopping spree, you may want to consider how technology fits into your overall business strategy so your investments make the greatest impact.

To free you up to focus on your business, we want to remind you that you can always count on RBT CPAs for accounting, audit, tax, and advisory services. Give us a call to see how we can be Remarkably Better Together.

 

RBT CPAs never offshore work outside of the U.S. so you always know who is handling your financial information.

Know Your Numbers: The Importance of Monitoring Food, Labor, and Operation Costs

Know Your Numbers: The Importance of Monitoring Food, Labor, and Operation Costs

Forecasting, tracking, and managing food costs, labor costs, and operation costs helps foster strong financial management during the best of times. These actions take on a whole other level of importance during the uncertain times we’re navigating today.

With food prices up 25% since 2020 and labor costs up an estimated 25% due to the tight talent market and mandatory wage increases, restaurant owners are being challenged like never before. Keeping a close eye on key numbers can help restaurant owners make informed decisions to help protect profits and drive success.

While there are numerous metrics to track financial performance, for restaurants the top three focus on food, labor, and operations.

Food cost is the total expense incurred for the ingredients used in preparing a dish. It is a significant factor affecting a restaurant’s profitability as it directly influences the pricing of menu items. For example, if a dish costs $5 to prepare and sells for $15, the food cost percentage is 33%.

Ways to manage food costs include negotiating prices with suppliers, strengthening inventory management, recipe costing (down to the ingredient and portion size), joining a purchasing program, taking a more flexible approach to creating a menu, and regularly reviewing menu pricing based on market fluctuations.

A daily review of Cost of Goods Sold (CoGs) – the total cost of food and drinks served in a day – can help you spot rising costs, make adjustments, and prevent over-ordering and waste. Staff can help manage costs by avoiding over-portioning, preventing waste, and getting orders right the first time.

Labor cost, on the other hand, encompasses all expenses related to staffing, including wages, benefits, payroll taxes, and training. In a labor-intensive industry, these costs can quickly escalate and impact profitability. You can manage these costs by optimizing scheduling to prevent overstaffing during quiet periods and understaffing during peak times, cross-training staff in multiple roles, retaining high-performing employees and implementing efficient processes to reduce the time taken to perform tasks.

You may also want to consider how technology can help boost productivity and lower labor costs, with self-service ordering options and kiosks; online reservation systems; dynamic menus linked to QR codes; pay-at-the-table tools; and more data to forecast more accurate scheduling.

Operating cost refers to the total expenses related to housing the restaurant. This includes rent or mortgage payments, property taxes, utilities, and maintenance. Ways to manage these costs include negotiating lease terms, improving energy efficiency to lower utility costs, and performing regular maintenance to prevent costly repairs.

Knowing your numbers provides several benefits. First, it aids in pricing decisions. By understanding the costs involved in creating a dish, restaurants can price menu items appropriately to ensure profitability. Second, it helps identify inefficiencies. High food costs may indicate waste or theft, high labor costs could point to overstaffing, and high operating costs might mean it’s time to renegotiate a lease. Finally, monitoring these costs allows for better budgeting and forecasting, enabling restaurant owners to plan for the future and make informed business decisions.

If you need assistance tracking, monitoring, and evaluating costs, RBT CPAs are available to help you manage the financial side of your business with accounting, audit, taxes, and advisory services. Let us know what you need so we can show you how we can be Remarkably Better Together.

 

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.