4Thought Blog

4thought graphic - blog 2020

PPP Now Excluded from Gross Receipts Rule for Employee Retention Credit Eligibility

Posted by Lisa Haffer on Thu, Aug 19, 2021

For restaurants, one of the most beneficial COVID-19 tax relief measures made available by the U.S. government is the employee retention credit (ERC). For readers not familiar with the ERC, a general overview can be found in our January blog post.

The ERC is a fully refundable payroll tax credit equal to a percentage of wages paid by employers that meet certain ERC eligibility requirements. On August 4, 2021, the IRS confirmed its position that tips that are treated as wages for payroll tax reporting can be treated as wages eligible for the ERC in both 2020 and 2021 (provided all other requirements are met).  This is a significant win for the restaurant industry.

Read More

Topics: Restaurants, 2020 Coronavirus

Restaurant Staffing in the Wake of COVID-19: How Much Has Changed?

Posted by Restaurant Practice Leaders on Thu, Jun 10, 2021

This blog was written by our guest author, Dan Murdoch, Vice President of Marketing, Harri

Before COVID-19, restaurants had a significant labor challenge, typically referred to as the “talent crisis” or “war for talent.” Unemployment rates were at a five-year low and minimum wage rates were rising across the country.

To better define the challenge, there were simply too many restaurants, massive job growth, a smaller talent pool given the same level of eligible employees, particularly among teenagers, as in 2007, triple-digit turnover rates, cyclical seasonal hiring, and a struggle to find talent that was capable of representing a brand’s ethos.

Read More

Topics: McDonald's management, Restaurants

Restaurant Revitalization Fund Receives $65 Billion in Applications, More Money Sought

Posted by Concannon Miller on Thu, May 20, 2021

The U.S. Small Business Administration has received more than twice the amount of Restaurant Revitalization Fund requests than they have money for, though the National Restaurant Association is advocating for more funding.

As of May 12, there were 266,000 RRF applications seeking a total of $65 billion, more than double than the $28.6 billion fund total.

Applications were accepted starting May 3 and for the first 21 days, the SBA is prioritizing funding applications from businesses owned and controlled by women, veterans, and socially and economically disadvantaged individuals. Applications from that group alone totaled $29 billion.

Read More

Topics: McDonald's management, Restaurants

Restaurant Revitalization Fund to Start Disbursing $28.6 Billion in Stimulus Aid

Posted by Concannon Miller on Fri, Apr 30, 2021

Applications for $28.6 billion Restaurant Revitalization Fund will be accepted starting at noon Monday, May 3, the U.S. Small Business Administration has announced.

The grants are for restaurants with 20 or fewer locations to help cover their pandemic-related revenue losses in 2020.

Restaurants can start registering for accounts now. In preparation, the SBA recommends qualifying applicants familiarize themselves with the application process in advance to ensure a smooth and efficient application experience, specifically by:

Read More

Topics: McDonald's management, Restaurants, 2020 Coronavirus

5 Ways Restaurants Can Reduce Employee Turnover in 2021

Posted by Restaurant Practice Leaders on Thu, Apr 15, 2021

This blog was written by our guest author, Brian Hassan, Co-CEO, Kickfin

For years, restaurant employers have struggled with high employee turnover rates. If they are able to find and attract qualified, dependable employees—a feat in and of itself—ensuring retention often poses the next challenge.

And it’s an expensive one. Recruiting, interviewing, onboarding and training candidates are non-revenue generating activities, and they take a lot of time. This doesn’t take into account the “softer” implications of dealing with employees coming through a revolving door, like the impact it has on relationships and company culture.

While the hospitality workforce, by nature, will always be more transient, restaurant operators do have the power to minimize turnover on their teams. Here are five ways employers can ensure that their most reliable, hardworking and talented employees stick around for the long haul.

Read More

Topics: McDonald's management, Restaurants

New Restaurant Aid: How to Qualify for New Stimulus Funding

Posted by Concannon Miller on Thu, Mar 18, 2021

The new federal stimulus bill (American Rescue Plan Act of 2021) includes a special fund – the new $28.6 billion Restaurant Revitalization Fund – to benefit the hard-hit restaurant industry by providing grant monies in addition to the Paycheck Protection Program loans and other pandemic relief measures.

While we await additional guidance from the SBA, here are the details that are currently available (subject to change).

Read More

Topics: McDonald's management, Restaurants

Three Post-Election Legislative Impacts on Restaurants

Posted by Adam Berebitsky, Lisa Haffer, and Carrie Shagat on Thu, Dec 17, 2020

With the 2020 election in the rearview mirror, businesses are looking forward to beginning 2021 with more clarity. Restaurants are particularly keen to understand what new legislative measures have passed or are on the horizon as they continue to navigate the acute—and devastating—impact of the coronavirus on the industry.

Of most interest is the fate of the Real Economic Support That Acknowledges Unique Restaurant Assistance Needed To Survive (RESTAURANTS) Act, passed by the House of Representatives in October.

If passed by the Senate, the act would provide to non-publicly traded restaurants $120 billion of relief through a grant (rather than a loan that is provided under the Paycheck Protection Program) that would cover the difference between 2019 and 2020 revenues. Restaurants would be able to use the funds for any expenses deemed essential by the secretary of the Treasury Department.

Read More

Topics: McDonald's management, Restaurants

DoorDash to Remit State Sales Tax in 19 New States

Posted by Concannon Miller on Tue, Sep 1, 2020

A heads-up to McDonald’s franchisees: DoorDash plans to remit state sales tax on the delivery orders in 19 new states starting Sept. 1, 2020.

The 19 affected states are: Arkansas, Connecticut, Georgia, Hawaii, Idaho, Indiana, Iowa, Kentucky, Maine, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Rhode Island, South Carolina, South Dakota, West Virginia and Wyoming. DoorDash already remits state sales tax in Pennsylvania and Washington state.

Read More

Topics: McDonald's management, Restaurants

Restaurateurs: Check Delivery Reports for State Sales Tax Collections

Posted by Steve Bickert and Patty Wiesmeth on Thu, Jun 18, 2020

Restaurateurs should pay close attention to their monthly reports from third-party delivery services to see if the delivery services are remitting state sales tax on the delivery orders on their behalf.

Uber Eats started remitting state sales taxes last year and now remits state sales tax in 32 states. You can view the entire list here to see if your state is included.

DoorDash recently started remitting state sales tax in Pennsylvania and Washington state, and Grubhub has started in a few states, as well.

Read More

Topics: McDonald's management, Restaurants

Restaurant Industry Scorecard for Q1 2019

Posted by Adam Berebitsky and David Rice on Thu, Aug 1, 2019

Despite evolving customer expectations, continued pressure on profit margins and fierce competition, the restaurant industry fared well through the first quarter of 2019, with same-store sales up an overall 1.5%. To preserve profitability and reclaim foot traffic, many industry players are recognizing that a departure from business-as-usual is the key to continued success.

But, given the maturity of the restaurant sector, what does this departure from business as usual entail? For some, it means making enhancements to their digital presence, rolling out delivery capabilities, or introducing promotions and loyalty programs to drive same-store sales and offset increasing labor costs.

Read More

Topics: McDonald's management, Restaurants

Subscribe for more Timely Tips for Businesses

Recent Posts