Back On the Radar: Affordable Care Act Could Affect Your Restaurant’s Business Flow

Steve O'ConnorCashflow, Employee Management, RestaurantLeave a Comment

The battle for a 40-hour full-time workweek continues as the Affordable Care Act attempts to redefine full-time as 30 hours a week. Changes could occur in the restaurant market, and now is the time for you to prepare for these potential alterations.

Earlier in March, the Supreme Court began hearing arguments regarding the “Forty Hours Is Full Time Act” in response to the Affordable Care Act’s labeling of a 30-hour workweek as full time. Dawn Sweeney, president and CEO of the National Restaurant Association, and Katherine Lugar, president and CEO of the American Hotel and Lodging Association, published in a joint op-ed, “This lower threshold for “full-time employment” has put many restaurants on the cusp of being classified as a large business – the result of which comes with a very steep price tag.”

Employers of a “large business” must pay health insurance for all full-time employees or face paying a large fine as a consequence, so titling full-time employment as 30 hours a week could put a large financial burden on your restaurant’s cash flow.

Keep the Cash Flow Going In Your Restaurant

While the “Forty Hours Is Full Time Act” continues to gain support in the Senate, you should not let your restaurant get caught off guard and leave your employees and customers to face the consequences. As the economy continues to recover and restaurant sales continue to increase, the time is now to search for money saving opportunities in your restaurant. Entrepreneur offers a list of tips for restaurant owners to find prospective savings:

  • Set a budget. Keep your restaurant’s spending under control to make sure that your drive for profit isn’t doomed from the start, no matter your sales success rate.
  • Re-evaluate the menu. Take part in a cost analysis to better understand the amount of revenue certain menu items generate in relation to production costs. Managing Partner of DineAbility, LLC David Koji discussed the tactics utilized in saving his restaurant money and noted, “As gradual [menu] changes occurred, we began tracking sales. This helped us get the menu to where it needed to be to help attain greater financial stability.”
  • Identify waste. Looking at how much food returns to the kitchen can give you an idea of which portion sizes work and which ones should be cut down to save your restaurant on expensive ingredients.

The restaurant playing field is constantly changing, and it is up to you as the restaurant owner to identify potential opportunities for savings, boosting sales, and maintaining employee and customer satisfaction. Staying up to date on changes in restaurant business can give you the edge you need to stay competitive in the market.

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