The Fork CPAs

Where do you go for money if you have reached store-level profitability at your existing restaurants and want to expand? Expansion should only be considered once you have ideal unit economics and a profitable business model. If you’re producing 15%+ store-level pre-tax profit margins, you can probably bootstrap the expansion, but that will only get you so far. Depending on your growth rate and ambitions, taking on debt and raising capital from investors could be inevitable. See below for our latest article outlining the detailed steps and implications of funding your restaurant group’s expansion. This article also covers the different types of equity structures (long-term vs. short-term), how debt amounts are determined, the ideal debt vs. equity structures, and more. #restaurantcfo #cpatips #restaurantfinance #restaurantgrowth #accounting #raisingmoney #raisingcapital https://lnkd.in/eEEksXNC

No matter what mythological statistic you've heard about the number of restaurants that fail or stagnate, the reason is always the same... The inability to identify financial problems before it’s too late. We've written a value-packed guide for restaurant owners providing the exact blueprint successful restaurateurs use to build thriving, profitable businesses. This 5-step process is the accumulation of years of experience helping restaurant businesses grow. The same tactics and clear, actionable items we’ve used to change the lives of hundreds of restaurateurs. Whether you're a single location, a restaurant group or a franchise, this will work for you. 1. Gain crystal-clear visibility into your restaurant's financial health 2. Make informed decisions with real-time financial insights 3. Maximize profits at each location to fuel growth 4. Boost your bottom line by optimizing critical performance metrics 5. Secure your restaurant's future with strategic capital management Download your guide FOR FREE today to make your way confidently through each step https://bit.ly/3Zga1hr Don't let your restaurant become another statistic. #RestaurantSuccess #RestaurantGroup #RestaurantOwner #HospitalityBusiness

Do you know about the tax credits available for offering a 401(k)? For a detailed breakdown and real-world examples, we've summarized the options in one of our recent articles, check it out here! https://bit.ly/4i1Mkks #RestaurantFinance #TaxCredits #401k #MultiUnitRestaurants #RestaurantGroups

Restaurant growth stalling? Your capitalization might be the culprit. Before expanding, ensure you've hit these milestones: 1. Paying market-based wages to owner-operators 2. Reaching 10-15% profitability 3. Paying taxes 4. Paying down debt 5. Achieving working capital requirements Only then should you accumulate growth capital for expansion. Master the art of restaurant capitalization. Our Ultimate Guide to Financial Success in Restaurants shows you how. Download it here https://bit.ly/3Zga1hr #RestaurantGrowth #Capitalization #FinancialStrategy

"Are there industry-specific benchmarks I should be aiming for?" This is one of the most common questions we hear from restaurant owners. Here's what top-performing restaurants are targeting: Sales per square foot: • Full-Service: $300-$500 for moderate profit • Quick-Service: $400-$600 for moderate profit • Best-in-Class: Over $500 (Full-Service), Over $600 (Quick-Service) Occupancy costs (as % of sales) • Low: < 6% • Average: 7-9% • High: > 10% Prime costs (COGS + Labor, as % of sales) • Full-Service: 60-65% average, 55% best-in-class • Quick-Service: 55-60% average, 50% best-in-class Remember: These are guidelines. Your specific targets may vary based on your concept and location. Want to learn how to achieve these benchmarks and unlock more industry-specific insights? Download our free Ultimate Guide to Financial Success in Restaurants > https://bit.ly/3Zga1hr #RestaurantBenchmarks #RestaurantKPIs #RestaurantMetrics #RestaurantPerformance #RestaurantFinancials #FoodServiceIndustry #RestaurantOperations

If you're using a third-party aggregator (Checkmate, Chowly, etc.) to consolidate third-party sales channels, we suggest assessing your sales tax calculations to ensure the appropriate amounts are paid. Some aggregators do not capture promotions and pricing differences when pushing sales to the POS, resulting in a sales tax miscalculation in the POS reports. For example, you issue a 50% promotion on a $100 UberEats order, so the discounted total is $50 plus $5 sales tax. The aggregator may not push the 50% discount through so that the sale will get rung up in your POS at $100 with $10 sales tax owed. You will file sales tax based on the POS numbers and overpay sales tax by $5 for that order. The Toast direct integration may resolve this, but you should do a transaction-level review to confirm. Discrepancies between amounts received from third-party sales channels and the corresponding payment tender, as shown in the POS after considering the fees, are usually a good indicator that something might be wrong. #accountingtips #reconciling #thirdpartydelivery #restaurants #restaurantmanagement #accounting #bookkeeping #POS

Shall we talk retirement plans? There are 3 top plan options for restaurant groups. In our latest blog you can find a deeper analysis with our verdict of the BEST one. Check the full article: https://bit.ly/4fvNRxl #RestaurantGroup #MultiUnitRestaurants #RestaurantManagement #HospitalityIndustry #EmployeeBenefits #RetirementPlanning

Unsurprisingly, the food service industry is behind other industries in offering retirement plan benefits to employees. It's hard enough to keep labor costs low, so the idea of providing retirement plan benefits is a fantasy for most operators. Plan participation is the lowest of all industries, and average account balances place second to last, according to a 2022 Defined Contribution Plan benchmarking survey conducted by PlanSponsor. Nonetheless, restaurants can offer employees a retirement benefit plan to attract top talent, set themselves apart from their competitors, and receive some tax credits. The ideal retirement benefit plan varies for every industry, business size, and owner. The goal is to choose the most straightforward retirement benefit plan that attracts and retains top talent while providing a return on investment for owners. A 401(k) plan is the most suitable retirement plan for restaurants due to various factors we’ll explain in this newly published article below. #cfotips #retirementplan #cpatips #restaurants #restaurantfinance #401k #benefits #payroll #laborcosts https://lnkd.in/eHdNmQZE

Restaurant group owners: We need to talk retirement plans. Did you know? The restaurant industry lags behind in retirement benefits, with the lowest plan participation across all sectors. Yet, offering these benefits can attract top talent, set you apart from competitors, and can even provide tax credits. Let's break down the top 3 retirement plan options for restaurant groups: 401(k) Plans: Pros: ✅ Highest contribution limits ($23,000 in 2024) ✅ Flexible employer contributions ✅ Vesting schedules (ideal for high turnover industries) Cons: ❌ More complex administration ❌ Potentially higher costs (though modern solutions are changing this) SIMPLE IRAs: Pros: ✅ Easier setup ✅ Lower administrative costs Cons: ❌ Lower contribution limits ❌ Mandatory employer contributions ❌ No vesting schedules SEP IRAs: Pros: ✅ High contribution limits ✅ Straightforward administration Cons: ❌ Employer funds all contributions ❌ Must contribute equally for all eligible employees The verdict? 401(k)s often provide the best balance for most restaurant groups, especially those looking to scale. Want a deeper analysis? Our latest blog post offers a comprehensive guide to choosing the right plan for your restaurant business. Check it out https://bit.ly/4fvNRxl 👈 #RestaurantGroup #MultiUnitRestaurants #RestaurantManagement #HospitalityIndustry #EmployeeBenefits #RetirementPlanning

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