In my last post, I wrote about a study that predicts increases in the minimum wage will lead to significantly more restaurant closures. Clearly, many restaurants and bars are unable (or failed) to raise their prices in response to increases in the minimum wage, resulting in their ultimate demise. (more…)
Posts Tagged ‘Pricing’
Groupon POS Implications
Posted in Accounting, Coupons, Customer Comps, Internal Controls, Marketing & Promotion, Sales Taxes, tagged Accounting, HST, Internal Controls, marketing, Operations, Pricing, Promotion, Sales Taxes, Taxes, technology on June 20, 2012| 4 Comments »
This is the second article in a series about Groupon coupons for restaurants. The first article covered accounting for Groupon transactions. This piece covers how to set up your Point of Sale (POS) system to record redemptions of coupons. Failing to do so properly could result in the restaurant being on the hook for a lot of sales tax, penalties and interest!
In the first article, we learned that HST applies to the “promotional value” of the Groupon coupon. In our example, the coupon was worth $100 of meals, and the customer purchased it for $50, which was paid directly to Groupon. The promotional value of the coupon is the $50, even though the restaurant does not receive this amount from Groupon. So, when the customer orders $100 worth of meals and drinks at a restaurant, she will have to pay tax on $50, but she will receive a credit for $100 (face value of the coupon).
Restaurants that use Groupon (or other similar programs) may need to update their POS systems to properly account for these transactions. Many POS systems can be easily modified by the user to make these changes, but some require programming by the developer (which can take time). Here are the changes you will need.
Accounting for Groupon Coupons
Posted in Accounting, Advertising, Cost Control, Coupons, Internal Controls, Sales Taxes, tagged Accounting, HST, Pricing, Promotion, Sales Taxes on June 19, 2012| 14 Comments »
While I’m not a fan of Groupon coupons, at least for restaurants, I felt compelled to write a few articles about it. Today’s piece covers accounting for Groupon coupons, because I’ve seen some really weird accounting recommendations and far-from-best-practices. As far as I know, none of the more unusual accounting has been suggested by real accountants!
Future articles will cover how to generate the proper entries in QuickBooks, how to set up your Point of Sale (POS) system to properly account for redemptions of Groupon certificates, and why you may be in for a huge shock when the tax man comes a knocking.
For what it’s worth, if you really, really think you need to use Groupon (or Living Social) coupons at your restaurant, at least get the accounting right. There are four types of entries that need to be made in your accounting system, which are:
How the HST Will Affect Your Prices & Margins
Posted in Alcohol Costs, Cost Control, Sales Taxes, tagged Beer, Cost Control, HST, Liquor, Pricing, RST, Taxes, Wine on February 7, 2010| 1 Comment »
Recently, the Canadian Restaurant and Foodservices Association (CRFA) published three calculators to help restaurateurs determine the effect of the new HST, effective July 1, 2010, on their prices. The calculators cover wine, spirits and beer. I’ve included the links, below. Perhaps a short note is necessary to help you use them properly. They are set up for “typical” value, medium and premium priced examples. Unfortunately, you aren’t able to change the net cost figures, but they will give you an idea as to the effects on your prices and the price that your customers will be paying come July.