PEOs Help Independent Restaurants Weather The Recession
Chicago, IL - The looming recession and changing consumer behavior is producing one of the toughest business environments in decades for the restaurant industry. As food prices surge and consumers tighten back and eat out less, restaurant operators are looking for innovative solutions to trim costs and maximize their respective businesses.
In order to improve operations during this type of economic downturn, more restaurant owners are finding it advantageous to outsource the administrative functions of their business that they no longer have the time or resources to handle. This includes but is not limited to items such as human resources, benefits administration (heath care, 401ks, etc.), payroll processing and workers compensation services.
As a Professional Employer Organization (PEO), Employco helps restaurant owners shoulder all of these responsibilities so that they have time to focus on what's important to their business, including food, customer service, and front- and back-house restaurant operations.
While outsourcing HR functions enable restaurant owners to take another item off their personal plate, it's about much more than passing the buck. PEOs help position restaurants for strategic growth within an increasingly competitive marketplace and uncertain economy.
Following are six reasons restaurant owners have turned to Employco to help them weather the current slowdown and improve their bottom line.
Simplify Life as a Restaurant Owner
A PEO can simplify an independent restaurant owner's life by taking away the administrative burdens — including HR, providing competitive health coverage, claims management, payroll taxes, direct deposits, etc. With complex laws governing wages and tips, restaurant payrolls can be extremely difficult to manage, however a PEO can help reduce payroll hassles and the risk of compliance penalties.
In addition to payroll, some of the most sought-after and important services that a PEO provides include I-9 compliance, which ensures that all employees are compliant with INS regulations. A PEO can also assist clients by auditing current pay methods to guarantee they are compliant with Fair Labor Standards Act regulations.
Streamline Restaurant Operations
In addition to taking on legal risks and responsibilities, PEOs can help streamline human resources operations and handle everything from employee-related administration to hiring and firing matters.
Employco works with their clients to help them fill positions ranging from managers to front of house staff to kitchen staff. Whether a company has an overworked HR staff in-house or no HR at all, a PEO can allow restaurant owners to spend more time focusing on managing their restaurant.
Level the Playing Field
Independent restaurant owners often find it difficult to compete for talent with larger restaurants in the arena of employee benefits. In an industry where 100-precent yearly turnover is the norm, most independent restaurants do not offer extensive benefits packages. Through a PEO, however, a small restaurant can level the playing field, and offer its employees the same benefits as a Fortune 500 company.
Control Health Care Costs
As health insurance premiums continue to soar, many independent restaurant owners are finding it too costly to offer health insurance to their employers. For example, according to the Kaiser Family Foundation, the percentage of all employers offering health insurance in the past eight years peaked in 2000 at 69% and has fallen steadily since, dropping to 60% in 2007.
PEOs are able to pool their client base together and use this group purchasing power to offer competitive benefits packages to small businesses that rival those of much larger corporations.
Increase Cash Flow
Cash flow is the key to surviving any prolonged economic slowdown, and PEOs play an integral role in helping manage cash flows for restaurant owners. PEOs improve cash flow by providing restaurant owners the flexibility to "pay as they go" or as they use aspects of a PEO offering instead of purchasing more costly bundled or front-loaded services from another provider that may not be necessary.
Scalable Solution that Grows with the Restaurant
A PEO provides a "hands-free" approach for independent restaurant owners as their organizations grow. Once set up, PEOs provide restaurant owners the flexibility to quickly add new employees to their organization or make adjustments to payroll, health coverage, etc. by providing a centralized clearinghouse for all of these services.
SOURCE: PEOs