Operators of full-service restaurants should take note of recent developments from the United States Department of Labor, regarding regulations governing the use of tip-pooling arrangements. There is one caveat to be aware of, which is that the non-tipped duties must be performed in conjunction with tipped duties, or within a reasonable amount of time before …
The third quarter of the year is winding down and with the fourth quarter upon us, restaurants will start looking forward to the holiday season and the increased customer traffic, revenues and cashflows. Part of these increased cash flows are the result of the sale of gift cards during the holiday season. Two types of …
You built a successful restaurant operation and are now thinking about selling. What do you need to think about to make your business ready to sell? And importantly, maximize the proceeds you will receive. Any sophisticated buyer will go through a due diligence process. What this means will be somewhat different depending on what legal …
Restaurant owners wear a lot of different hats in the course of running a business. Unfortunately, accounting-related duties can easily fall by the wayside when you are being pulled in so many different directions. It often comes up at inopportune times, like when you need to better understand cash flows or get ready for tax …
When most business owners think of potential risks their restaurant could face, I would bet the first thing that comes to mind would be food safety. And rightly so. The health and safety of your customers should be top of mind. All restaurant owners should be aware of the regulations they are subject to, what …
FASB has just given the go-ahead to delay the effective date of the new lease standard for private companies for another year. Now it won’t be applicable until 2021 for calendar year ends. But it is still important to envision what the impact will be to your financial statements. Our earlier blog, “New lease standard: …
If you are looking to franchise your restaurant brand or are relatively new to franchising, it is important to understand your requirements for providing financial information within your Franchise Disclosure Document (FDD). The first requirement relates to financial information of your franchising entity. Item 21 in the FDD requires you to provide copies of your …
Third-party delivery services like Grubhub, DoorDash, UberEats, and Postmates have been growing in popularity over the past few years and will continue to grow. The industry is currently over a $15 billion dollars and is expected to grow at least 10% to 15% per year over the next five years. These services provide consumers the …
For half a century, sales tax from interstate commerce abided by two U.S. Supreme Court rulings: National Bellas Hess v. Department of Revenue of Illinois and Quill v. North Dakota. In these cases, the Court concluded that an out-of-state seller must have physical presence in a state before sales tax collection laws could be imposed. …
The mergers and acquisitions (“M&A”) market continues to be quite healthy compared to historical periods. The reason the M&A market is so healthy is because of the amount of excess capital available to fund alternative investments. For example, private equity funds (“PE”) and family offices have excess cash on their balance sheets and are looking …
The new revenue recognition standard takes effect for most private companies in 2019, but you can’t wait until then to learn about this. Download our new e-Book now.
Get the e-Book