Research from Intuit ranks restaurants among the toughest small businesses to own and operate. Intuit says that the restaurant industry has a survival rate of just 20%. Between the high overhead costs, equipment, licenses, and the myriad of state and local regulations, restaurant owners need to maintain a strong cash flow position to remain viable. But there's something else that needs to be considered above and beyond financial resources: time resources.
Restaurant owners invest a tremendous amount of their own time in keeping their operations running. For an owner to work seven days a week is not all that unusual, especially in a small local restaurant that doesn't have the luxury of multiple locations with separate managers on staff. And because time is such a precious commodity, restaurant owners need to be very careful about how they use it. We believe it's important to talk about payroll services if we are going to talk about making the best use of time.
Payroll is a time-consuming and complicated task regardless of the industry a company is involved in. But it is definitely more complex for the restaurant owner. For any restaurant owner who does not fully understand accounting and payroll reporting, payroll can be tremendously frustrating. This is one of the reasons our payroll services focus on the restaurant industry, among others.
Consider what the typical restaurant owner has to deal with:
- High Turnover – It's no secret that profit margins in the restaurant business are extremely tight. Therefore, restaurants have to be very careful about what they pay, inevitably leading to high turnover. High turnover rates only make payroll more complicated for the restaurant owner.
- Server Tips – No other industry has to deal with the complicated matter of server tips. As a matter of practice, servers make less than minimum wage with the expectation that their tips will make up for the lower pay. But all of those tips have to be accounted for so that they are correctly reported. This is a tremendous headache.
- Staffing Shortages – Although staffing shortages don't directly affect payroll, they do affect it indirectly in that restaurant owners and managers have to work so hard in the kitchen they don't have time to deal with payroll during the course of daily business. The only other option is to take care of it when they are supposed to be resting and recharging at home.
Online Payroll Part of the Solution
There's not a lot that can be done to adequately address high turnover, the complex nature of tip reporting, and successfully dealing with staffing shortages to free up time for other things. But changing how you do payroll can help significantly. For example, accessing payroll services online makes it possible to streamline everything so that the restaurant owner's only responsibility is one of logging into his/her account and entering employee data once a week.
Obviously, different payroll services offer different levels of assistance to clients. This is why it pays to compare services before agreeing to work with one. BenefitMall is the ideal solution for restaurants because we have created a customized solution that meets the unique needs of your industry including features needed to help you receive the FICA Tip Credit, remain ACA compliant, and integrate your Point-of-Sale (POS) system.
Accessing payroll services online via BenefitMall ensures that your employees get paid on time and accurately, with just a few minutes of your time needed every week. It also ensures that your business is compliant with all tax and reporting responsibilities. You will be able to turn the headaches over to us so that you can actually enjoy the business of being a restaurant owner.
Get back to business with our Restaurant Payroll Solution!