It was kind of fun trying to come up with a decent headline for today’s article. Tips are in the news a lot, lately. Servers, and others who receive tips, don’t like handing out a portion of their tips to other co-workers and especially not to the “house” (management). Now, we find that they don’t like “tipping out” to the big house, either! It’s not like we didn’t know this, but apparently, the CRA is just starting to take notice!
A few months ago, Dining Date Night began offering customers a 30% discount at various restaurants in Toronto. In order to get the discount, a customer books a reservation on a website and pays a $10 fee to Dining Date Night. When the customer visits the restaurant, 30% of the total bill (before taxes) is deducted as a discount. This type of promotion is relatively good for both the consumer and the restaurant that provides the discount, because the restaurant can restrict the hours when reservations may be taken.
As a restaurateur, you probably have a general idea how your menus and prices have changed over the last few years. Unfortunately, only having a “general idea” can land you in a big pot of trouble when your restaurant is audited. This post reviews a few of the methods of documenting key changes to your menu and prices. When the time comes, you will have accurate, credible information to support your actual margins and document the reasons for variances from the expected margins.