In recent years, the concept of refranchising has gained steam. Major brands (think: McDonald’s, Wendy’s, Johnny Rocket’s, have made refranchising an important part of their growth strategy.

Refranchising, when executed strategically, can have significant benefits, but it depends on the circumstances. Timing, financials, overall health of the brand, the economy: all of these things can be reasons to move forward with (or hold off on) refranchising.

Read on for a full definition of refranchising, including how it works and why it can be beneficial for some franchisors.

What is refranchising?

In simple terms, refranchising is the sale or transition of stores from franchisor to franchisees.

(Side note: If you’re here, you probably already understand the basic concept of franchising. But just so we’re all on the same page, here’s franchise ownership in a nutshell:

• A franchisee pays a franchisor a fee, as well as an ongoing percentage of sales, for the right to own and operate a franchise.
• Specifically, the franchisee is paying the franchisor for the right to use the franchisor’s trademark and business systems, and to sell its products and services.
• Typically, a franchisor also provides ongoing resources and support to the franchisee — because when the franchisee succeeds, so does the franchisor.

Often, franchisors will maintain ownership of a portion of the brand’s stores. Take Brinker International. Brinker operates restaurants under the Chili’s Grill & Bar and the Maggiano’s Little Italy brands. Many of the restaurants are owned and run by franchisees. But a large number are not franchised and instead are company-owned. In fact, as of 2019, 60% of Brinker’s 1,676 stores were owned and operated by Brinker.)

When a franchisor decides to refranchise, that means the franchisor is selling off the stores it owns to current or new franchisees. They can also do the opposite, where the franchisor buys back franchised stores and transitions them into corporate-run stores. (Brinker did just that in 2019, purchasing 116 stores from franchisees.)

What are the benefits of refranchising?

Under the right circumstances, refranchising can be a savvy growth strategy. There are a lot of advantages to maintaining a small (or even nonexistent) footprint of corporate-run stores.

• Stronger profit margins: Franchisors receive franchise fees and royalties from franchisees, without typical operational and overhead costs — like inventory and paying workers.
• Less earnings volatility: In a franchise model, the royalties paid to the franchisor are typically a percentage of the franchisee’s sales, not of their profitability. That means even if a franchisee’s operations are not incredibly profitable, or profitability varies, the franchisor can still expect a relatively steady income stream.
• Minimal day-to-day management: Refranchising frees franchisors up from having to deal with day-to-day operations, so they can focus on the big picture — like marketing, advertising, and ensuring the success of the overall brand.
• Light capital requirements: Capital expenditures are often passed down to franchisees, decreasing a franchisor’s debt.
• Real estate cash flow: Many franchisors own real estate and lease it to franchisees.
  Stronger performance: Generally speaking, franchised restaurants perform better than corporate-owned restaurants. There could be a myriad of reasons for this (which we won’t delve into in this blog post!).

What are the downsides to refranchising?

So, if refranchising is so great, why would any company choose not to do it? There are definite pros and cons. Most of the disadvantages to refranchising are about control (or lack thereof).

When a company decides to adopt a franchise model, they’re giving up control over a lot of areas, including:

• Day-to-day operations: While franchisors may have systems, processes and templates in place, franchisees typically have a good deal of autonomy. They’re making decisions about inventory, staffing, training, repairs, payroll, etc. That can be beneficial for the franchisor (see above), but it can also create the opportunity for mismanagement.
• Customer experience: When a franchisor chooses to refranchise some or all of their stores, they have less oversight when it comes to the customer experience and become more removed from the market they’re serving.
• Brand management: Similarly, franchisors can also lose touch with the execution of their brand when they refranchise their stores, as they become more focused on the “big picture.”
• Cash flows: Here again, refranchising can be a double-edged sword. When a company maintains ownership of its stores, they have control over all the cash flows (not just fees, royalties and real estate revenues generated).

Some restaurant industry professionals and advisors believe that maintaining corporate ownership of at least some stores helps with franchisee relationships, as it shows the franchisor essentially has some “skin in the game.”

What are the keys to refranchising successfully?

Like any corporate strategy, refranchising can go great, or it can go…well, south. The decision to refranchise should never be a rash decision or an attempt to off-load underperforming stores. Instead, refranchising should happen as part of an organized, well-thought-out program that benefits the entire franchise.

Successful refranchising programs focus on:

• Finding the right franchisee(s): This depends on a lot of factors. How many stores are being refranchised? How big is the geographic footprint? Is this a turnaround situation? In some situations, a “green” franchisee could be a great fit; in other situations, you might require a multi-unit franchisee with extensive operating experience, or someone with access to a significant amount of capital.
• Avoiding overpricing: Some refranchising experts say overpricing is a problem. The focus shouldn’t be on getting the best purchase price; instead, it should be on ensuring the right franchisee is on board.
• Minimizing disruptions: During the handoff process, it’s typically wise to minimize disruptions and maintain status quo — at least in the beginning — in terms of staffing, training, and other operational procedures and processes.

Refranchising can be a very positive move for both franchisors and franchisees. But it isn’t right for every company, even when it is the best move, it comes with pros and cons. Companies that are considering a refranchising program should do it for the right reasons, weigh their options carefully — and when in doubt, consider pulling in a consultant or advisor who can help make the right call.

By now, you’re probably well aware that the American Rescue Plan Act of 2021 has been passed. The Act created a $28.6 billion Restaurant Revitalization Fund (RRF) — which most are viewing as a huge win for the hospitality industry.

Of course, like any piece of legislation, the RRF comes with a lot of fine print. So we partnered with CohnReznick to answer your top questions, clear up misconceptions, and help you prepare.

Not sure if you qualify? Or what you’re entitled to? Or how is this different from the PPP? We cover it all in our Q&A below. Read on!

(Please keep in mind: this does not take the place of legal or accounting advice!)

Instant payments are having an identity crisis.

These days, a lot of technologies are masquerading as instant payment solutions or platforms. That’s primarily because there’s a lack of understanding or agreement as to what “instant” really means. (Case in point: Over a third of consumers claim to have used instant payments, even though the methods they use don’t even support real-time payments, according to PYMNTS.com research.)

We’ll refrain from referring to Webster’s, but suffice it to say: the definition of instant has gotten stretched and softened to the point where it’s frequently used in a way that’s misleading, or even #fakenews.

It’s a problem for a lot of industries, but especially for the restaurant and hospitality space. These employers understand the importance of instant payments for their employees, and they seek out the best ways to make it happen — often without realizing that the methods they’ve chosen aren’t actually instant, after all. 

So: here’s a breakdown of what instant payments really are, what they’re not, and why they’re so important for restaurant teams.

What are instant payments?

Instant payments are the immediate transfer of funds from one party to another. For restaurant employers, that means the moment money leaves your hands is the same moment your employees receive it. 

Cash is the “OG” of instant payments, and it’s still the greatest visualization of what real-time actually means. When you hand your employee a dollar bill, there’s no waiting, no holds, no delays: it immediately becomes theirs.

Unfortunately, as payments have gone digital, what’s categorized as “instant” has gotten a little cloudy. The bottom line is that just because a payment is digital or automated does not mean it’s instant. 

If you’re evaluating instant payment methods for your restaurant, keep in mind:

1. Confirmation is not payment. Instant confirmation is a major culprit when it comes to confusion around instant payments. Once a digital payment has been initiated, it’s not unusual for both the sender and the recipient to receive an immediate notification that they’ve been debited or credited a certain amount. But an email, text message or phone notification doesn’t mean the transaction has actually been completed (or even initiated!).
2. “Next business day” isn’t instant, either. Along those same lines, instant payments — by definition — shouldn’t come with a waiting period, whether it’s 2 a.m. or Christmas Day.
3. Instant means instant for sender and recipient. On a digital payment platform, once the sender hits “send” or “submit,” they can essentially move on. It may not matter if there’s a lag time between the initiation and completion of the transaction. But for employees waiting on the other end, it can be a source of major frustration or anxiety if you don’t know when you’re going to get access to your funds.
4. Access is a big part of the equation. Speaking of access to funds, we’d argue that it’s only an instant payment if it’s available for use immediately following the transaction, without unexpected fees or waiting periods.

Why are instant payments important?

Simply put: your people are your greatest asset — and that’s especially true in the restaurant space. 

Generally speaking, restaurant employers genuinely care about their teams. They want their workers to be successful and happy. And of course, successful, happy employees are also great for your bottom line. Why?

• Keeping your employees happy is one of the best ways to keep your customers happy, too. There’s a lot of focus on delighting customers, and without question, that’s critical in the restaurant business. But delighting your employees is equally, if not more important. They’re the ones who interact with your customers day in, day out; they have a lot of power over the customer experience. .
• Satisfied employees stick around. That means lower turnover, and less time and fewer resources funneled toward non-revenue generating activities — i.e., recruiting and training new employees.

Instant payments are “low-hanging fruit” when it comes to taking care of your employees in a way that benefits them and your business. That’s because:

• They’re in it to get paid daily. Hospitality workers are some of the hardest-working people around. Even if they’re passionate about their jobs, it can be mentally and physically taxing work. Part of the appeal is the fact that they can get paid their tips on a daily basis. Unfortunately, cash shortages due to increasing credit card transactions have made that more of a challenge. Some restaurants have switched to payroll or prepaid cards: but the former means they don’t get paid daily, and the latter means they have to wait for transfers and/or pay exorbitant fees. And (excuse our French) that kind of sucks for employees who expect and deserve to get access to their earnings after each shift.
• They deserve financial security. For many employees, getting paid right away is more than a perk; it’s a necessity. There are mouths to feed and bills to pay, and especially with shifts getting cut during Covid, instant payments are more important than ever.

• Transparency matters. Restaurant managers are no strangers to tip disputes. Lag time between work and payment can lead to drama about who earned what. Instant payments go a long way in eliminating those questions (and ultimately, in building a culture of trust). 

How to choose an instant payment method

For restaurant employers who are looking into instant payment methods, our advice is simple: be a skeptic when you see the word “instant.”

Some digital payment solutions throw that word around, but often, there are caveats. Many of these solutions require you to load payments onto a prepaid card — and while that might feel “instant” for the employer, it’s certainly not the case for employees.

There may be a limited number of retailers or institutions that accept those cards, and if employees try to relocate funds to their bank, it could take up to 5 business days. Plus, many of those transactions come with unexpected, predatory fees. 

Instant (cashless) payments should pass this test:

• Funds immediately debited from sender’s account
• Funds immediately available to recipient
• Money placed in or tied to recipient’s central banking account
• No unexpected fees 

There are a lot of hidden problems with cash payments, especially when it comes to tipping out your employees. But cash’s biggest virtue is that it’s truly instant — which means it’s a great litmus test when you’re evaluating instant payment technology. Ask yourself: Is the method I’m considering as fast and seamless, for both parties, as handing over a dollar bill?

When people are looking to get into the hospitality industry, they often make the assumption that they’ll need to start from scratch: come up with a concept, lock down real estate, purchase equipment, build a team — the list goes on. But that’s not always necessary.

Buying an existing restaurant business can allow restaurateurs to jump right into daily operations, without a lot of the legwork that’s required when you’re just starting up.

Buying a restaurant isn’t exactly risk-free, though — and it comes with its own set of challenges. If you have dreams of running your own restaurant or bar (or if you’re already in the biz and want to explore other options), here’s what to know about making a restaurant acquisition. 

6 benefits of buying an existing restaurant 

We’ll start with the upsides to buying an existing concept, versus getting your own off the ground. The running theme here is that the groundwork is laid, so a lot of those big decisions, and investments (as well as all the time and brainpower they require) are often already taken care of. 

1. You might have a ready-made team

The recruiting and hiring process is a big part of launching a restaurant, and the team you build can have a direct impact on your success. But finding (and retaining) good talent is tough: the hospitality labor market has been extremely competitive in the past few years. It can be hard to find qualified, reliable employees who work well together. 

When you buy an existing restaurant, you’ll likely already have a team (and a team culture) in place. While you may find there are some kinks to work out or changes to make once you get a feel for overall strengths, weaknesses and gaps, having a team who knows their role and each other can save you a lot of headache.

2. You don’t have to play the real estate game

You know what they say: location, location, location…can be a nightmare to find. Another perk of buying an existing restaurant is that you may not have to go through the grueling process of finding a good restaurant location. 

While a previous owner may be selling an existing restaurant because the lease is expiring, this isn’t always the case. In many instances, existing leases sell at below market value. If you have to buy a new lease, the landlord can reset it to a price that’s consistent with the going market rate, which means essentially, that you’ll be charged more. 

Our advice: take advantage of an existing lease to save money. But be sure there is enough time left on the lease to recover your expenses. Also, make sure it will protect you from unexpected liabilities. 

3. You might be able to leverage current operating licenses

Applying for operating licenses when you open a restaurant can often be a monumental task (check out our post on getting your liquor license, if you haven’t already!). When you’re looking at buying a restaurant, you may be able to use the existing license while your applications are processing, saving you a good chunk of time and money.

4. You have access to equipment and other physical assets

One of the biggest benefits of buying an existing restaurant is that it will already come with the equipment you’ll need to operate the business, as this is a costly and time-consuming expense. (Keep in mind, though, that the state of the assets will likely be reflected in the purchase price.) Some of the equipment and machinery you’ll most likely find include:

• An HVAC system
• A fully-operational kitchen
• Code-required fire-prevention system
• A ventilation system 

Of course, you’ll want to evaluate the equipment to make sure it’s in proper working condition. Hire a professional to inspect it if necessary.

Something else to think about is whether the restaurant equipment is owned or was being leased by the previous owner. If it was leased, be sure whatever contract was negotiated can be easily transferred to you with the same terms and conditions. Some questions to ask about previously-owned equipment are: 

• When was the equipment purchased?
• Are there any current issues? 
• When was the equipment last repaired?
• Is any of the equipment still under warranty?

5. You’ve got an existing customer base

Because the restaurant you’re interested in buying has already been in operation, it’s (probably) already got a built-in customer base. While this doesn’t necessarily mean you’ll spend less on marketing and advertising — that’s usually necessary whether you want to maintain or grow your business — it does mean there’s a little less risk involved. That is, have a general idea of what to expect in terms of volume, whereas opening a new restaurant is always a gamble.

6. Less financial risk

Generally speaking, it costs less to buy an already established restaurant than starting a new one, especially when you consider the risk you’re mitigating and the time you’re saving compared to launching your own restaurant.  

Questions to ask before buying a restaurant

Just like you would before any big purchase or investment, you need to do your due diligence prior to buying a restaurant business. (In fact, it’s never a bad idea to consult a professional advisor, like an attorney, business broker, or even an M&A advisor, depending on the size of the transaction.) 

While this certainly isn’t an exhaustive list of questions to ask, here are a few to get you started. And remember: don’t just rely on the previous owner’s answers. Make sure you’ve got access to financial/accounting records, contracts, permits, etc., and do your own market research so you get a clear, accurate picture of the state of the business.

• Why is the owner selling the restaurant?

This should be the first question you ask. Maybe the owner wants to pursue other career opportunities or retirement — but there could also be some operational, financial, or team issues that you need to know about. They might not be dealbreakers, but just like you’d inspect a home before you buy it, you certainly want to know the good, the bad and the ugly before you sign on the dotted line.

• How is the restaurant performing? 

A common practice when looking at buying a restaurant is getting access to any and all financial records the previous owner has kept. This will help provide valuable insight into the state of the current business. 

A (very) general rule of thumb is that many restaurants are valued at three to five times the yearly profit — but of course, that’s highly dependent on a wide range of variables. (Here again, it’s helpful to have an advisor who’s been through the process before to help answer questions around business value.)

• What’s the competitive landscape like?

Which restaurants does your target compete against? How do you stand out among them? How do you expect that to change in the next 3-5 years? It’s not a bad idea to do a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to get a really good understanding of how the business is positioned in the market.

• Which employees can you expect to stay on after the transition?  

When you’re buying a restaurant, it often comes with employees who have a history with the establishment. But sometimes when a new owner comes in, it can change the culture (for better or worse). Plus: some employees — especially key employees — may have developed strong working relationships with the owner. All of this can lead to personnel shifts. Some may be inconsequential, but if a chef or top managers chooses to leave, that could have a direct impact on the business.

You can probably get good insight from the seller, but as soon as you’re ready to let the rest of the team know about the potential (or pending) sale, have some very candid conversations with the current employees and get a feel for culture, chemistry, and their willingness to stay on board. 

Red flags and mistakes to avoid

While there are plenty of good reasons to buy a restaurant, that doesn’t mean there aren’t potential roadblocks to consider. When looking to buy a restaurant, you have the right to know about any past problems that affected the business. Here are some things to watch out for:

• Liabilities and legal issues

Before you make your purchase, make sure there are no existing issues, legal or otherwise — like health code violations, unpaid taxes, ongoing litigation, etc. If there are, they could become your problem. You’ll also be responsible for all financial obligations so it’s vital you have a clear picture of the business’s financial history.

• The restaurant’s reputation and brand

If you’re serious about buying a particular establishment, you’re likely already aware of any serious reputation/brand issues. But just in case: make sure you know how the business is perceived and whether it’s something you’d like to address.

For example, maybe the restaurant you’re buying is geared more toward business professionals, but you’d like to make it a hot weekend spot; or perhaps you get a lot of college kids and you want it to become more family friendly. Even if you’re buying a fixer-upper and you’re well aware that the brand needs work, it’s still worth understanding what needs to change. So: dig into review sites like Yelp, check out social media pages, or even do some research on your local Subreddit and other local online communities. 

• Refusal to sign a non-compete

While this doesn’t have to make or break the deal, if the owner declines to sign a non-compete agreement—a contract stating that employees will not start their own version of the restaurant you’re buying in direct competition—it’s something to be wary of. This is especially true if the owner is also the chef, which means he or she might be able to take the recipes and menu concept with them, forcing you to start over and create your own.

To launch or to buy?

Launching your own concept is exciting — and it puts you in the driver’s seat. Like building your own home, you get to have a say in every single decision from the get-go. 

But it also takes time, money, and a whole lot of patience. If your goal is to simply get into the restaurant business and you don’t have a concept that you’re set on bringing to life, consider feeling out the market and seeing what’s out there. When you ask the right questions and do your due diligence, buying a restaurant can be just as rewarding (personally and financially) as starting your own.

In case you missed it: our very own Brian Hassan made a recent guest appearance on PYMNTS.com’s “On the Agenda.” Brian spoke with Ingo Money CEO Drew Edwards and Reed Daniels, CEO of Minnesota-based pizza chain (and Kickfin customer!) Red’s Savoy, about how employee tip outs are going digital.

The big takeaways:

• Restaurants are embracing change. Restaurant owners are being proactive about making strategic shifts to their operations right now — not in spite of Covid-19, but because of it. According to Brian, restaurants previously had little bandwidth to evaluate what’s working, what’s not, and where they can find efficiencies, but they now have a reason to double-down on making improvements that will serve them well in the pandemic and beyond.
• Customers are adapting well: Change can be unpredictable, and quite frankly, a little scary. But another silver lining of Covid-19 is that customers seem to be extremely understanding and willing to adapt, Reed said. That’s yet another reason restaurateurs are finding that now is a great time to make strategic changes not only to their day-to-day systems and processes, but to their entire model.
• Digital tip payments are on the rise: One of the key changes we’re seeing is a shift in the way restaurants pay out tips. This trend started long before the pandemic, but there’s now a greater sense of urgency around enabling cashless, contactless tip payments. Concerns about viral transmission are driving up credit card transactions and off-premise sales. As a result, there’s less cash on hand to pay out tips. That means more bank runs — which take even longer now, with Covid restrictions in place. And on the employee side, with a shaky economy and shifts being cut, workers need immediate access to their earnings now more than ever. 

In case you haven’t heard: ghost kitchens are kind of having a moment.

Also called virtual, cloud, delivery-only, shadow, and dark kitchens, ghost kitchens are a relatively new concept that emerged in the past year or two. But in 2020 — thanks, in large part, to COVID — they’ve become a legitimate and even preferred alternative to starting up a full-fledged restaurant. 

Here’s the lowdown on ghost kitchens: what they are, why they’re gaining momentum, and four basic steps to launching your own ghost kitchen. 

What’s a ghost kitchen?

Ghost kitchens are essentially restaurants without the dining space. Their focus is to sell and fulfill online food orders for delivery using third-party apps like Grubhub, UberEats, and DoorDash, or with their own delivery operation. As a result, they typically have no visible storefront.

Because the concept is still evolving, there isn’t a hard-and-fast definition of a ghost kitchen.(It’s also worth noting that the industry hasn’t landed on consistent terminology, so phrases that fall under the “ghost kitchen” umbrella — e.g., virtual restaurants — could mean slightly different things, depending on who you ask.) With that being said, there are a few common ways ghost kitchens can be structured. 

• Using a shared commissary spaces

These ghost kitchen facilities that are not located within a restaurant, so they’re strictly for delivery-only purposes. Several independent brands may use a shared kitchen facility simultaneously, or there may be multiple in-house brands developed and operated by a single management team. 

• Launching virtual “spin-off” brands 

Some dine-in restaurants are launching virtual, delivery-only restaurants, and they’re leveraging their current kitchens to do so. As an example: Chicago-based Frato’s Pizza has always made and served pizza to dine-in customers. But recently, the owner has launched four “spin-off” restaurants from the same kitchen, including a milkshake concept and a grilled-cheese concept. While Frato’s continues business as usual, the four virtual restaurants operate as delivery-only. 

• Renting out restaurant kitchens

Another trend we’re seeing: some restaurants are renting out their own kitchens to accommodate ghost kitchen brands that need space and equipment, creating an additional revenue stream for establishments that may be experiencing lower volume due to Covid.

Why ghost kitchens are appealing in 2020

Ghost kitchens are gaining traction quickly in 2020 for a myriad of reasons — with Covid leading the pack.

Even in pre-pandemic times, the average American orders out at least once a week, while more than 20% of Generation Z gets delivery more than three times a week. Those numbers are only going up as a result of Covid. Plus, restaurants are operating at reduced capacity, and patrons are more cautious about dining out. Ghost kitchens are a way that restaurants can take advantage of the boom in delivery orders without losing money on unused dining space (and all the costs that come with keeping it up).  

Another factor driving the ghost kitchen trend is the rise of the gig economy, in which ghost kitchens can hire freelancers to make deliveries at a fraction of the cost of third-party apps like GrubHub, UberEats, and Postmates. 

Rising real estate prices are also contributing to this trend. Why pay tens of thousands of dollars to open up a dine-in experience when you can rent out a much smaller space and hire delivery drivers for much cheaper?

Pros and cons of ghost kitchens

Here are a few of the pros and cons that both restaurant owners and their customers can expect from ghost kitchens.

Pros

• Low overhead: As we mentioned above, not only is real estate often cheaper, but ghost restaurants don’t have to invest in the costs of hosting a dine-in experience like furniture, decor, and menu printing costs.
• Faster opening times: Ghost kitchens can simply rent out space in existing facilities, so time-to-launch is dramatically decreased. 
• Convenience: Delivery-only makes it easy for customers to enjoy restaurant-quality food, especially during the pandemic. 
• Additional revenue streams: Established restaurants have the opportunity to generate additional revenue by renting out extra kitchen space to third-party ghost kitchen brands, or by launching delivery-only spin-offs from their own kitchen. 
• Flexibility: Ghost kitchens can adapt quickly as market conditions or customer preferences change. 

Cons

• Additional costs: If you’re an established restaurant adding on a virtual brand, there is an up-front investment involved, should you decide against running your own delivery operation. 
• Lower-quality customer experience: In the hospitality industry, building customer relationships and loyalty is all about experience. That’s harder to control when you’re running a ghost kitchen. 
• Brand awareness challenges: Though online visibility can help a restaurant, it also has to compete with the hundreds of other restaurant brands that can be found online. And because they all deliver, this means differentiators (like a prime location) won’t necessarily play into a customer’s decision. 

4 basic steps to setting up a ghost kitchen

Interested in setting up your own ghost kitchen? While it’s simpler, in some ways, than setting up a traditional restaurant, it’s also a relatively new concept — which means there’s a lot of uncharted territory. Here are four things to do if you’re considering launching a ghost kitchen. 

1. Do your research: There aren’t a lot of templates for starting up a ghost kitchen, so you may have to get creative when you’re looking for resources. Seek out advice from teams who have been there, done that and learn from their successes (and mistakes).
2. Define your concept: You don’t have to worry as much about location and ambience, which means your menu is really going to be the star of the show. Who are you competing against? How will you stand out? How will you make your food to-go friendly? 
3. Find your space: When considering where to set up shop, so to speak, location may not matter as much since customers won’t be coming to you. But you do need to think about spaces that are suitable for cooking, whether it’s an existing kitchen space that you rent, a shared space, or your own facility. And if there are going to be multiple vendors using your space, is there ample room for comfortable cooking conditions and the supplies you need to start operation? You’ll also need to think about insurance coverage and safety inspections, among other things. 
4. Create a marketing plan: Once your concept and brand are established, you need to form a marketing plan with a heavy digital focus. Social media, digital ads, and a polished website will all help with this effort.

If you’ve got your heart set on launching a restaurant but are worried about the up-front investment — or if you’re in the business but want to give a new concept a spin: the ghost kitchen model just might be for you.

No matter your industry or profession, continuous learning is a key driver of success.

Whether it’s keeping up with news and trends, seeking out expert insights, or learning from others’ experiences, making a point to stay informed will keep you and your business ahead of the curve.

This is particularly true in hospitality, where it can be far too easy to do things the way they’ve always been done. As a result, restaurateurs risk being late to the table (so to speak) when it comes to innovative solutions or competitive advantages that can directly impact your bottom line.

In an ever-changing market (and especially now, during a pandemic), it’s never a bad idea to reevaluate the status quo. One way restaurateurs can keep an eye on where the industry is heading — and how the “other guys” are doing things — is by following restaurant industry blogs. 

Not only do restaurant industry blogs provide valuable tips of the trade, but they offer insights, news, advice, and stories from experts in the field. Bonus: it’s usually in a digestible, easy-to-follow format. 

Whether you’re new to the world of restaurant blogging, or you just need to freshen up your daily reads, here are a few of the best restaurant blogs and publications to follow in 2020. 

1. Foodable 

Foodable is really more than a restaurant industry blog: it’s an on-demand network specifically for foodservice professionals. Foodable boasts the largest collection of videos, coaching courses, and insights to help you improve your business. Its content also includes podcasts, virtual events, and articles, plus a huge index of industry professionals offering tips and advice for those who seek it. 

2. Modern Restaurant Management

This online magazine is the go-to source for restaurateurs. Modern Restaurant Management focuses on all aspects of restaurant management news. You’ll find daily news articles, expert advice, industry trends, profiles of experts in the field, and more, all geared around the restaurant management niche.

3. Open for Business by OpenTable

OpenTable’s restaurant blog offers tons of valuable info devoted to a variety of topics for newcomers and industry veterans alike. There’s great Q&A and video content, with categories like: 

• Behind the Scenes
• Day in the Life
• Get Your Restaurant in Shape
• How to Open a Restaurant 

4. The Restaurateur by KLR

If you need help with the business side of your restaurant business, KLR has got you covered. The accounting and business firm’s restaurant industry blog, The Restaurateur, specializes in the financial side of the restaurant industry. In other words, the fun stuff — like taxes, insurance, tipping policies, and more.

5. BevSpot Blog

This blog is devoted to the drink-making aspect of restaurants. Topics include culture, management, industry insights and tips, news, and more. Need to design the perfect drink menu? Want to know how to calculate exactly how many drinks are left in those near-empty bottles behind your bar? If you’ve got a drink-related query, BevSpot probably has a post on that.

6. The Restaurant Manifesto

The Restaurant Manifesto is different because it’s a restaurant industry blog devoted to diners rather than industry professionals. It’s all about helping customers improve their dining experience by offering tools to engage with waitstaff in a productive way, which then results in a better overall restaurant experience. Featuring all original content by a variety of industry professionals, content categories include Restaurant Life, Table Talk (server-specific), Dining Tips (geared toward customer etiquette when it comes to building relationships with servers), and The Service Bar.

7. Fast Casual

FastCasual.com has been reporting on the important news, events, and trends in the fast-casual industry since 1997. This restaurant blog is chock-full of resources, including a directory of service providers, slideshow presentations, video content, and industry research. Check out the resources section for great pieces like “Retailers Focus on Curb Appeal: Innovative Window Displays” and “Rebuild. Rebound. Reimagine: Restaurant Industry Steps to Recovery.”

8. Food & Beverage Magazine

Food & Beverage Magazine is a “digizine” offering news and trends covering all aspects of the restaurant and hospitality industry. If you’re more of a listener than a reader, Food & Beverage is right up your alley: they produce five (yes, five) podcasts: “Rogues on the Road,” “The Art Mann Podcast,” “A Fork in the Road,” and “The Hangover,” and “Savage Turner Rock Express,” and a YouTube channel. Subscribe to the newsletter and get the latest updates so you won’t miss the interviews, profiles, and news you need to stay on top of what’s going on in the industry. 

9. FSR Magazine

This print and digital magazine covers just about everything you can think when it comes to full-service restaurants. Its three primary content categories — Food, Operations and Growth — regularly include topics like menu innovation, food safety, marketing, employee management, finance, and much more. FSR also offers free, downloadable reports where you can keep up with changing trends and market conditions that could have a direct impact on your business.

It is the goal of the Dining Alliance team to save restaurants time and resources by pulling the most pertinent information from the CARES Act to give to your employees. We found these particular provisions to be the most relevant to relay to restaurant teams during this time, as they apply to employee benefits, unemployment and 401k funds. We find it important to note that new developments are happening quickly within the CARES Act and other relief programs and we continue to suggest operators utilize the sba.gov and their state resources for the most up to date information.

Below are a few highlights that may be pertinent to restaurant workers and their employees.

Unemployment Compensation Benefits

• Benefits extended from 26 weeks (in most states) to 39 weeks
• Benefits are payable for the period beginning on January 27, 2020, and ends on December 31, 2020
• The amount of benefits includes the amount that would be calculated under state law plus $600 per week for up to four months
• Waiver of the usual one-week waiting period to receive benefits
• States can receive funding for “short-time compensation” programs to subsidize employees who have their hours reduced in lieu of layoff. The government would fund the difference between reduced hour payment and the unemployment benefits.
• There is a temporary program through December 31, 2020 to provide payment to those not traditionally eligible for unemployment benefits (self-employed, independent contractors, those with limited work history and others) who are unable to work as a direct result of the coronavirus public health emergency

Employee Benefits Provisions of the Act

• Individuals are permitted to receive a distribution from their 401(k) plans at a maximum amount of $100k. This is aggregated across all plans that individual has (401k, IRA, etc.)
• They will not incur the 10% excise tax
• This is only permitted if the individual asserts that they have been diagnosed with COVID-19, a spouse or close family member has been diagnosed with COVID-19; or they have experienced a financial need due to quarantine, furlough or layoff caused by COVID-19.
• Individuals will have the option to pay tax on the income from the distribution over a 3-year period or repay that amount back to the plan – tax free- over a 3-year period. Repayments are not subject to contribution limits.
• The act also allows participants with outstanding loans to delay any loan payment due during the balance of 2020 for up to one year. To qualify, a participant must meet the same criteria outlined above regarding COVID-19
• Plan amendments allowing this must be made before January 1, 2022
• Employers may pay employees’ student loans during 2020 without income tax to the employee unless the expense has already been excluded from the employee’s income due to a qualified education fringe benefit
• Group health plans are required to cover preventative care related to COVID-19 (including immunizations) without co-pays
• Over the counter medicines and feminine hygiene products now qualify as “qualified medical expenses” for FSA’s and HSA’s.

Workforce Development

• Provides for appropriations- ranging from $5 million to $51 million for each fiscal year from 2021-2025
• Provides the HHS Secretary with the authority to award grants of at least $75k to schools, programs, or other entities that establish or operate Geriatric Workforce Enhancement Programs
• Expands the types of nursing entities eligible to receive grants or contracts under the Public Health Service Act and authorizes appropriations of $254 million for year fiscal year from 2021 through 2025
• Requires that within 1 year after the Act’s enactment, the HHS Secretary, the Advisory Committee on Training in Primary Care Medicine and Dentistry and the Advisory Council on Graduate Medical Education shall analyze the manner in which their respective programs strengthen the nation’s healthcare workforce needs and identify and remediate any gaps in their programs.

DISCLAIMER: Buyers Edge Platform and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.