Sooner than it feels, we'll be wrapping up 2016. For a lot of industries, that means winding down early; but we know the restaurant industry only gets busier during the holidays. So make sure you're ready to take on the start of a new year before it catches you by surprise.
Particularly, our restaurant consultants advise you have your new year budgets ready to go. Our president, David Kincheloe, offers up three tips that are applicable to any size and genre of restaurant.
1. First, budget generously. The restaurant industry can be volitile, and there are a lot of unpredictable factors that come into play, particularly when it comes to wages. "The Department of Labor originally dictated a minimum wage increase where there is overtime to be paid, from about $24,000 to $48,300." This would have been a significant increase for most managers, or they would be paid overtime. "As a result, managers were going to have to make at least $50,000. The regulation has now been put on hold by a federal judge, but you need to plan accordingly. Either list your assistant GM as an hourly wage or increase their pay."
2. Keep an eye on the hourly wage increase. Hourly wage increases are driven my by the states, not really driven federally. "Some states have now gone far beyond the federal minimum, Colorado being a prime example," Kincheloe explains. "It's important to keep an eye on your local market."
3. There will be increased food costs to consider. Every year, the cost of food rises; this year, watch for gains in the cost of meat and proteins. Kincheloe says, "Fair treatment for animals laws are going to drive up protein costs. For example, egg prices will rise in California."
Our restaurant consultants are experts in budgeting and business plans. If you have questions about creating budgets for the coming year, or what these law changes could mean for your finances, contact our restaurant consultants today