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Navigating the bustling world of the restaurant industry comes with its own set of challenges, and one critical area that often flies under the radar is worker classification. Key considerations include: Wage and Hour Laws The Fair Labor Standards Act (FLSA) sets standards for minimum wage, overtime pay and recordkeeping.
A new year is creeping up on us again, bringing fresh opportunities—and challenges—for restaurant operators. From updating policies to gearing up for tax season, these steps will enhance your compliance and position your restaurant for sustained growth.
As the restaurant industry continues to evolve in 2025, effective legal strategies are more important than ever for operators aiming to grow and scale their businesses properly. From franchise compliance to mergers and acquisitions (M&A) terms, the right legal frameworks can guide a restaurant company to long-term, sustained success.
This world-altering development—part of a rational and effective public health strategy to slow the spread of disease and help our health care system cope with the devastating illness—has also been a widespread and immediate economic disaster for the nation’s restaurant and food service sector. Document Everything.
Let’s start with an uncontroversial premise: California’s complex, ever-changing gauntlet of employment laws is difficult for any company to navigate. Yet you may still be wondering why, aside from the headache, does it matter for my restaurant? California employment law isn’t intuitive. Why Compliance Matters.
Running a restaurant comes with a unique set of risks, especially when serving alcohol. For example, if your establishment serves alcohol to an intoxicated patron who subsequently drives and causes an accident, your business could be held liable for any resulting property damage, personal injury, or even fatalities, depending on local laws.
It’s hard to escape the continuing boom in restaurant franchises. Quick-serve brands are leading the trend, and not just for restaurants, but for franchises overall. Just as challenging is keeping on top of federally mandated franchise disclosures contained in the Franchise Disclosure Documents (FDD).
During a pandemic, drone delivery may also enable restaurants to serve customers who feel uncomfortable picking up food from a restaurant or having a delivery drivers come to their homes. However, restaurants seeking to capitalize on this new technology must navigate the aviation and privacy laws governing commercial drone operations.
Did you know that more sexual harassment claims are filed in the restaurant industry than in any other industry? Sexual Assault Awareness Month (SAAM) in April is an opportunity for restaurant and bar owners to review existing policies and develop new ones. What if an incident occurs outside of the restaurant or bar?
For restaurants, however, the PPP caused confusion in terms of who could apply and how the loans would be handled. Are restaurants eligible for PPP loans? In the food service industry, this raises a question as restaurants may, when combined within one company, have more than 500 employees. Businesses may borrow up to 2.5
The Freelance Isn’t Free Act (FIFA) represents a significant shift in labor law, providing new protections for freelance workers across New York state. This law requires written contracts for freelance engagements worth $800 or more or lasting longer than 120 days. Anti-retaliation protections. T – Timely payments.
restaurant industry will continue to shake off the aftereffects of the pandemic in 2024, but that doesn’t mean the challenges that remain are easily dispelled. Another growing risk: nuclear verdicts over dram shop law violations, driving up the costs of liquor liability insurance. Here’s an overview.
Did you know that payroll/labor makes up almost one-third of a restaurant's operating costs ? Understanding the ins and outs of paying employees, observing labor laws, and complying with the tax code is critical to running a business. This restaurant payroll guide will teach you: What payroll is. How to solve payroll tax issues.
Over the past few months, many restaurants made difficult decisions to reduce their workforce and apply a strict delivery and takeout format or pause operations entirely due to COVID-19. Unexpected downtime, when paired with a swift return to work, can present new risks to restaurant employees. Communicate Return Criteria.
As many as 90% of women and 70% of men working in restaurants reportedly experience some form of sexual harassment, according to the Harvard Business Review. Has a recent state law change made sexual harassment training mandatory, but you don’t know where to begin? What if an incident occurs outside of the restaurant/bar/brewery?
The current situation Involving lack of travel, dining out, and attending live entertainment, including sporting events, is of course having an adverse impact on hotels, restaurants and entertainment venues. Restaurants of all sizes have also been hit hard. The smaller restaurants may never re-open, depending on capital and expenses.
over the past decade, keeping employees in restaurants has become increasingly difficult. However, attracting high-quality restaurant employees goes beyond just filling open positions. Some restaurant staff may prefer fewer hours to accommodate school or family, while others might be looking for full-time work with a steady income.
Having to spend a shift—or even worse, your after-hours—reading through an employee handbook will sap the fun out of any new restaurant job. And let’s be honest, when was the last time you read your own restaurant employee handbook? Restaurant Scheduling Software for managers that want to stay in control.
Time Theft Laws. In the restaurant business, communication is at the core of success (7shifts Team Communication App can help with that). Recommended Download: Free Restaurant Labor Cost Calculator Template. White , a partner in the employment law firm White, Hilferty, and Albanese. Time theft laws.
Please send questions to Modern Restaurant Management (MRM) magazine Executive Editor Barbara Castiglia at bcastiglia@modernrestaurantmanagement.com. For this month’s piece, we offer some items for consideration that most directly affect operations in the restaurant sector. Build Back Better.
The loss of volume for the franchise, the forfeiture of jobs for the community, and the closed restaurant locations could have been avoided with a thoughtful succession plan. Despite this, restaurant owners and franchise brands routinely shy away from discussions around exit strategies or succession planning.
Did you know that payroll/labor makes up almost one-third of a restaurant's operating costs ? Understanding the ins and outs of paying employees, observing labor laws, and complying with the tax code is critical to running a business. Restaurant payroll is a system for calculating and managing the salaries of employees in a restaurant.
For many in the hospitality industry, tipping is an integral part of their restaurant's culture. It influences the livelihoods of restaurant workers around the world. I'm excited to introduce Tip Payouts , an easy-to-use tip payment solution that empowers restaurant managers to send tips directly to employees' bank accounts in seconds.
Local, state, and federal laws make it mandatory that you do so. But there’s more to the process than just filing employee documents away and forgetting about them. A personnel file is a collection of all the necessary employee documents associated with working in your company. Employee documents to include in a personnel file.
He wound up getting fired from his job, another victim of the restaurant industry’s pressure and churn, and he says he sought out therapy as a result. Finding free counseling directly led to someone helping him get Medicaid, he says, and now, he sees losing his restaurant job as a blessing in disguise. “I Mental Health Resources.
Selling a restaurant can be a major decision for many reasons. One of the main reasons is to cut losses due to financial challenges, with 52% of restaurant owners saying high operating and food costs are really cutting into their profits. If restaurants in your area sell at a multiple of 2.5
As explored in Part 1 of this blog series, your payroll accounting systems overlap with many different parts of your restaurant business. For those new in the payroll field as well as industry veterans, the restaurant industry can come with unique challenges for running payroll. Restaurant payroll follows these accounting cycles.
From choosing a concept and securing the necessary documentation to hosting your grand opening, we've outlined the complete process of opening a bar. However, note that bar profit margins vary due to various factors like tax rates, licensing laws, customer demographics, and the cost of living in your area. How profitable is a bar?
With a bit of legwork, you can smoothly change providers to one that serves your restaurant better—without you and your staff losing your cool. Restaurant Payroll Migration Template Stay organized when switching payroll providers using this detailed free payroll migration checklist. Document specific operational inefficiencies.
At long last, Congress agreed on a new $900 billion stimulus package and the president signed it into law last week. The Act also redefines payroll costs to specifically include group insurance payments made on group life, disability, vision and dental insurance. PPP improvements relevant to restaurant businesses.
“Our doors are closed but our hearts remain open”: A restaurant is seen boarded up as protests continue on June 3, 2020, in Washington, D.C. There have also been many documented cases of police aggression and escalated violence, often thinly justified by the professed need to get such looting under control.) They’re screaming.
The new law is a $2 trillion economic stimulus package designed to repair the economic damage caused by COVID-19 and provide additional protection to individuals and businesses who may lose income due to the pandemic. Impact on Unemployment Insurance. The documentation requirements will be outlined in soon-to-be-released IRS guidance.
If signed into law by the President, this Act would, among other changes, extend the 8-week Covered Period to 24 weeks. If signed into law by the President, this Act would, among other changes, allow for up to 40% of the loan amount to be used for non-payroll costs. Headcount reductions are common within the restaurant industry.
Successful restaurant owners and operators don’t just provide great food. The people piece of the puzzle can be challenging for restaurants. Because of the complicated nature of human resources (HR) and the sprawling regulations surrounding payroll, HR and payroll can be a recurring headache for restaurant owners and operators.
You can’t run a restaurant without employees, which means that processing payroll is an essential task for restaurant owners, operators, and managers. For restaurant owners and operators, the first step in understanding your payroll is to familiarize yourself with the basic concepts, regulations, and responsibilities.
How you run and track your payroll accounting has a significant impact on restaurant operations. From hiring and onboarding to running employee payments and paying taxes, payroll touches on many different parts of a restaurant business. Tracking labor and payroll data for restaurant employees.
This edition of MRM News Bites features a double dose from US Foods, SpotOn Transact, DoorDash Kitchens, Virtual Restaurant Consulting, Tripleseat and Gather, wagamama, Toast, The Gluten Intolerance Group, Instawork and StaffMate Online, Procurant and Yellofin, Sift, 7shifts, ParTech, Revel Systems and Como, Kabbage, Bluecrew and Cuboh.
Successful restaurant owners and operators don’t just provide great food. The people piece of the puzzle can be challenging for restaurants. Because of the complicated nature of human resources (HR) and the sprawling regulations surrounding payroll, HR and payroll can be a recurring headache for restaurant owners and operators.
With the impact of the coronavirus pandemic crippling nations and their health care systems, people are abiding by local laws, practicing social distancing, and despite lockdown easing in many regions. The restaurant industry, in particular, has taken a major hit. Can Small Loans Help Restaurants Survive Financial Instability?
How to Deal with Legal Regulations Affecting Your New Restaurant There’s no universal checklist for all of the necessary licenses, permits, inspections, postings, and signage for your new restaurant. These requirements vary greatly between states, cities, restaurant types, and even counties and neighborhoods.
Any seasoned restaurant owner knows a great team is crucial to smooth operations and outstanding guest experiences. Thankfully, there are tools to help you manage and retain employees by communicating clear expectations for employee conduct and restaurant processes. Enter the restaurant employee handbook. Here’s why.
Most restaurants need funding, especially during the initial stages when they’re setting up. The purpose of this guide is to help you with all the ins and outs of funding a restaurant with top tips from those who have been there, seen it, and done it. What makes someone a good Investor?
Before we get started on the actual process of calculating work hours, we need to address the huge purple elephant in the room that everyone wants to ignore but can’t: the law. The important thing to keep in mind about all this is that an employee’s time card (in whatever format the record of time worked takes) is a legal document.
A new hire checklist for restaurant employees can make the onboarding process easy and painless for all parties involved. After all, employees are the heart of your restaurant, and setting them up for success starts with the onboarding process. What Is Restaurant Employee Onboarding? Let’s get started! Download Now.
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