Event Recap: Restaurant CFO Bootcamp – Las Vegas 2018
In early June, restaurant industry professionals gathered in Las Vegas to participate in BDO’s Restaurant CFO Bootcamp. We spent two jam-packed days discussing industry trends, challenges, tax reform, GAAP topics, technology, the current legal and economic climates and much more. A few topics were top of mind with our attendees, including:
Third-Party Delivery Services
While delivery is a booming trend among today’s restaurants, it also incurs huge costs to both the participating restaurateurs and the third-party delivery services. These expenses will continue to grow as delivery’s prominence increases and restaurant owners are tasked with collecting revenue from various delivery service providers This was certainly a hot topic of discussion among participants during our roundtable session and networking events.
New Revenue Recognition Standard
Effective for public companies and private companies, the new revenue recognition standard will impact restaurateurs in the following capacities: accounting for upfront franchise fees, gift card breakage, loyalty programs, and franchisor marketing funds. Visit BDO’s revenue recognition resource page for more information.
The New Lease Accounting Standard
Although we’ve been talking about it for years, lease accounting changes are quickly approaching! The new lease accounting standard’s impact on debt covenants, financial results, and the length of leases were all topics of discussion during the GAAP update. Businesses are encouraged to begin the transition process by identifying the individuals who will be tasked with the conversion, and potentially consider investing in lease accounting software.
While tax reform continues to affect every industry, there are several specific changes for restaurants to consider. The reduced corporate tax rate, repeal of the corporate AMT, and preservation of the Work Opportunity Tax Credit and FICA tip credit are all wins for the industry. Stay tuned as BDO’s dedicated restaurant professionals continue to roll out additional information
on how tax reform impacts the restaurant industry. Visit BDO’s tax reform resource page for more information.
The average restaurant company spent 2% of revenues on technology during fiscal year 2017, according to Hospitality Technology’s 2018 Restaurant Technology Study. From delivery services to table ordering, restaurant technology advisor Bill Lindsey of a la carte walked Bootcamp attendees through current tech trends, which appear to be limitless for restaurants. Restaurateurs are interested in finding the latest technology to increase sales and employee productivity, as well as improving customer experience and the security of information.
If you missed us at CFO Bootcamp, or if you have any questions, feel free to contact BDO’s Restaurant practice
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