The payroll tax adjustment that went into play January 1, 2013, has impacted restaurant sales year-to-date.
According to Restaurant Finance Monitor author, Jonathan Maze, “Workers were hit with a bit of a shocker when they received their first paychecks this year: a 2-percent reduction in their pay, thanks to the return of the payroll tax to its normal levels. Anybody could have predicted the result on restaurant sales: BAD. Traffic and sales fell badly in January and February. Read more of the article here
Recent activity to temporarily raise the debt ceiling isn’t causing restaurateurs much hope for a Q4 rally. In a recent interview with Business Insider, global strategist Kit Juckes commented, “The risk in the U.S. is that when a ‘deal’ gets done to raise the debt ceiling, it is a temporary debt ceiling increase that doesn’t resolve the underlying issues. If that happens, any hope of Q4 risk rally taking hold will be out of the window.”
Rally or not, PayVision Online is here to help restaurants maximize their revenue through correctly processed restaurant payroll. Our restaurant payroll specialists can be reached at 214-442-5888 for a FREE quote. Learn more about our restaurant payroll expertise here.