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Most Restaurant Owners are Tipping the IRS Six-Figures

Traditionally restaurant owners have remained competitive through differentiated service, renovations every few years, marketing, and satisfying the taste buds of customers better than the competition.  All of these things require financial investment and hiring/retaining talent. These key elements rest on the shoulders of the restaurant owner.

Delivery service is one of the most recent competitive advantages for many restaurants as it adds incremental revenue growth. More than 50% of restaurant to-go orders are placed online for delivery.   And, when hungry customers are deciding where to eat, delivery service can weigh as the deciding factor.  But there must be a balance between top line competitive edge and bottom line profitability.

For restaurants in all categories, from fast food to four-star establishments, margins have become challenging.  Margins are impacted relative to payroll, turnover, rent/lease, the cost of food, renovations, etc.  When customers order food for delivery, they no longer have the ability to order high margin items like alcohol that typically offset other costs.  The restaurant also misses out on the opportunity to upsell the customer things such as the premium “item of the day”, lobster tail to compliment a filet mignon, an appetizer or a dessert.  In addition, the restaurant has to pay a fee to a 3rd party company to delivery services like Door Dash, Uber Eats, and Grub Hub.

Differentiated Leadership Consulting can help companies remain competitive and increase cash flow!  Most restaurants are still overpaying about 10% in property taxes, leaving money on the table with hiring taxes, and have the ability to increase cash flow with an average of six-figures through cost segregation, an engineering-based study and assessment.  Cost Segregation is not something most CPAs offer as a service but are great partners for us to collaborate with during the process.

Don’t allow the IRS to take a larger bite out of your profits than necessary, let us do a free profit assessment consultation for your today!

 

 

 

 

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