The Fork CPAs

As a hungry restaurateur, you want to systemize your operations to scale and grow comfortably, quickly, and securely. Yet, you still need agility in purchasing because you’re in a fast-paced industry, and anything can come up last minute. As a result, you have most likely issued corporate cards to your key employees. Corporate credit and debit cards are linked directly to the company’s credit card and bank accounts and serve as modern-day petty cash. For example, the kitchen is short on bananas, so a line cook grabs the corporate card from the GM and runs across the street to a grocery store. Perhaps the executive chef, GM, owner, catering manager, and pastry chef have their cards tied to the business’s account. Corporate cards are convenient but extremely risky if issued directly to employees. They must be monitored proactively to ensure all purchases are authorized and have proper documentation, which is cumbersome. Requesting receipts from restaurant workers is like pulling teeth. Corporate cards also encourage excessive spending because of the psychological effects of spending “someone else’s” money with an unlimited tab. Two alternatives to corporate cards can be implemented in your restaurant group, allowing you to grow and scale with the proper internal controls. We just wrote this article to explain why purchasing cards and accountable plans are a safer and more scalable solution than corporate cards. Check it out and share it with your favorite restaurateur! #restaurants #restaurantfinance #cfo #accounting #restaurantcontrols #internalcontrols #controller https://lnkd.in/erZY6ypd

Here is how costs have increased in restaurants since February 2020: - Food +29% - Labor +31% - Occupancy +12% - Supplies +20% - Swipe fees +32% - Utilities +16% Restaurants' average pre-tax profit margins are 3-5%. Therefore, given the above cost increases, you must have increased your menu prices by 26.2% since February 2020 to maintain your pre-pandemic profit margins. It shouldn't be a surprise that average menu prices increased 27.2% between February 2020 and June 2024. Here is how your menu price increases have affected your profitability, assuming traffic didn't change: - Zero price increase = from 5% profit to -20% loss - 20% price increase = from 5% profit to break-even - 26.2% price increase = maintain 5% profit Check out the complete calculation and explanation from the National Restaurant Association below. #restaurants #financials #cfo #controller #accounting #hospitality #restaurantmanagement

As you grow, you need operational efficiency without sacrificing agility. Corporate cards may seem like a quick fix, but we have a better way. Check out two smarter alternatives in our latest blog: https://bit.ly/3BkWs73 #RestaurantGroups #MultiUnitRestaurants #ExpenseManagement #RestaurantFinance

Myth 👉 Corporate cards are the best solution for managing your restaurant expenses. Reality 👉 Not for a restaurant group that wants to scale.They can lead to reduced visibility, overspending, and increased fraud risk. It's a really common condundrum. As a growing restaurant group, you want to systemize your operations so that you can scale and grow quickly. Yet, you still need agility in purchasing because you're in a fast-paced industry, and anything can come up last minute. As a result, you've most likely issued corporate cards to your key employees. Thing is, without proper controls, corporate cards can lead to: ✖️ Unauthorized purchases draining your profits ✖️ Hours wasted chasing staff for receipts ✖️ Overspending due to the 'someone else's money' mindset ✖️ Increased risk of fraud and theft There's a better way to manage expenses. Our new blog post dives deep into two smart alternatives for restaurant groups, explaining: 👉 How Accountable Expense Reimbursement Plans can save you money 👉 Why P-Cards with built-in controls might be your new best friend 👉 The essential safeguards every restaurant needs, regardless of system 👉 Strategies to keep your finances tight without losing flexibility We also explore how to seamlessly integrate these systems with your accounting processes. Get all the info on this simple switch here 👉 https://bit.ly/3BkWs73 #RestaurantGroups #MultiUnitRestaurants #ExpenseManagement #RestaurantFinance

Investing in a restaurant management system can transform your Ops. If your goal is growing restaurant groups, this is a non-negotiable. We explain everything in our new blog post! https://bit.ly/3TPo1vp #RestaurantManagement #RestaurantOperations #ScalingRestaurants #RestaurantGrowth #MultiUnitRestaurants #HospitalityIndustry

Did you know? On average, 20-25% of restaurant invoices received are duplicates 😱 This statistic highlights just one of the many pitfalls in restaurant purchasing and payment processes. Without proper controls, duplicate invoices can lead to: ✖️ Overpayments draining your cash reserves ✖️ Hours wasted reconciling accounts ✖️ Inaccurate financial reporting skewing your business decisions ✖️ Increased risk of fraud and theft But duplicate bills are just the beginning. Our new blog post dives deep into the world of restaurant bill management, revealing: 👉 The hidden costs of a disorganized payment process 👉 5 critical steps to create a scalable, secure system for managing your restaurant's invoices 👉 How leading restaurant groups are using technology to automate their payments 👉 Strategies to free up owner and manager time for running the business We also explore why investing in a restaurant management system is non-negotiable for growing restaurant groups, and how it can transform your operations. Read the full article 👉 https://bit.ly/3TPo1vp #RestaurantManagement #RestaurantOperations #ScalingRestaurants #RestaurantGrowth #MultiUnitRestaurants #HospitalityIndustry

If you want to grow and manage a multi-unit restaurant group, you need a systemized purchasing and payment process that allows you to delegate while maintaining segregation of duties and internal controls. The purchasing and payments process is called Accounts Payable (AP) because AP represents the amount you owe your vendors and purveyors. A systemized purchasing process with the proper controls is critical for scaling from one to ten locations and beyond because it ensures: - Owners and Executives spend time on their highest-value activities, such as adding more locations, implementing processes, raising money, etc. - All purchases are authorized. - Duplicate payments are avoided. - Fraud and theft are avoided. - Credit memos are issued. - Bills are not paid before they’re due - Food and pour costs are maintained appropriately You might create an efficient process, but it’s not necessarily a best practice without strong internal controls. Check out our Complete Guide to Restaurant AP Internal Controls, which outlines the internal controls that must be implemented at every point of the purchasing process—from ordering to payment. #restaurants #accounting #accountspayable #internalcontrols #finance #restaurantfinance #restaurantcfo #restaurantmanagement #CPAtips #CPA #invoices #controls #restaurantgroup #bestpractices https://lnkd.in/eU-JtNpT

We all know that a single restaurant is no longer enough if you're trying to make a buck, especially for franchises. Multi-unit ownership has continued to accelerate over the last few years. If you're one of these multi-unit restaurateurs, you should know some critical pointers for effective multi-unit ownership from a legal and financial perspective. This includes structuring a holding company and management company, raising and borrowing money, and offering equity to key employees. Check out this article from Restaurant Finance Monitor! #restaurants #restaurantgrowth #restaurantfinance #restaurantaccounting #finance #cfo #cpatips #accounting https://lnkd.in/eUVeERWm

Do you own the real estate for your restaurant, bar, or nightclub? If so, you probably keep it in a separate LLC and file a separate tax return. Renting your real estate to a restaurant, bar, or nightclub you own and participate in is known as a self-rental. If not planned and structured appropriately, a self-rental can have devastating tax consequences.   We recently published an article outlining the self-rental traps and tax planning opportunities you must know if you own the real estate for your bar, restaurant, or nightclub. Check out below! #taxplanning #restaurantfinance #cpatips #cpa #accounting #restaurantaccounting #taxes #restaurantcfo #realestate #selfrental https://lnkd.in/eSEa2VPH?

🍦 Soft serve is no longer just a nostalgic treat – it’s a key driver in today’s dessert innovation! As consumer preferences shift towards customizable, unique experiences, soft serve is making a big impact on menus across the country. Curious about how this trend can enhance your business offerings? In early June we had the privilege of interviewing with The Fork CPAs to delve into the changing world of soft serve. Check out ‘Economics Behind Soft Serve’ for insights into the soft serve craze and how it can help you stand out in the competitive foodservice landscape. #SoftServeTrends #ItabercoInnovation #FoodserviceInsights #DessertTrends #ElevateYourMenu https://lnkd.in/dytmqw47