Featuring topics of interest to the restaurant/hotel industry
Restaurants and Hotels Can Benefit from Operational reviews
Given the uncertainty of the long-term economic outlook, all restaurants and hotels should review their operations to ensure that they are performing at peak efficiency. Like all businesses, your restaurant or hotel can benefit from a periodic review of its operations. Such reviews can help identify areas of opportunity for improvement that ultimately can lead to more satisfied guests and better bottom line results. The review can encompass all areas of restaurant or hotel operations or target specific departments that have been identified as needing special attention. From our experience as accountants and consultants to the hospitality industry in general and restaurants and hotels in particular, we have noted the following areas of operations where such reviews can have significant positive impact:
Food and beverage operations; there are many ways your full service hotel or restaurant can improve its operating results and service to guests. It is important to garner customer feedback at all times as you review your hours of operations, employee staffing guidelines, restaurant concepts, menu pricing, etc.
Accounting office operations; it is much easier to assess your hotel or restaurant’s results of operations if you are using the industry standard “Uniform Systems of Financial Reporting for Hotels and/or Restaurants”. These financial reporting systems (which are periodically updated) enable you to compare or “benchmark” your results of operations with other hotels/restaurants and industry data which can help you determine what areas of operations need attention.
Tax status; whether you are a Corporation, S-Corporation, Partnership or LLC, a review of the applicable IRS guidelines and record keeping requirements can help you stay compliant. Additionally, your operation will want to be certain it is benefiting from all applicable tax credits and deductions including industry specific provisions.
Payroll issues; is your restaurant or hotel compliant with current federal and state laws governing fair labor standards (wage and hour) or independent contractor classifications? If your operation compensates service employees via tips or gratuities are you taking proper advantage of tip credits or the worker’s compensation insurance exemption on excess tips that is available in some states? Additionally, are your banquet service charges potentially subject to sales taxes under certain circumstances in your state?
Fortunately, all these questions and issues can be easily dealt with by conducting an operational review.
Laskaris & Laskaris, a Pennsylvania licensed certified public accounting firm, was organized in 1973. Their primary area of practice is the hospitality industry, offering accounting, tax and advisory services such as feasibility and operational studies to our restaurant, hotel and private club clients. Their founding principals gained their expertise beginning in 1948 with Horwath & Horwath (later known as Laventhol & Horwath), an international accounting and consulting firm to the hospitality industry. The firm has recruited its senior staff members from controllership positions in the hospitality industry in order to provide our firm with the expertise required to render effective services in this specialized field. In addition to membership in the American and Pennsylvania Institutes of Certified Public Accountants, they are also members of the National Club Association, Club Tax Network and PA Restaurant and Lodging Associations.