The #1 Reason Restaurants Should Outsource Payroll

The #1 Reason Restaurants Should Outsource Payroll

Restaurants are just like any other business on payday. Employees expect to receive their paper checks or go online and see their direct deposit has actually gone through. And yet, restaurant payroll is unique to some extent. Restaurant owners have to think about things that owners of other kinds of businesses can ignore.

The best bet for maintaining an efficient and compliant payroll system for restaurants is to outsource with a third-party provider offering a specialized solution. One such provider is Dallas-based BenefitMall. Their restaurant payroll software accounts for all of the unique aspects of paying restaurant employees while simultaneously maintaining compliance with federal and state laws.

Does your restaurant outsource payroll or handle it in-house? If you do not outsource, perhaps it’s time to rethink your strategy. Why? In a word, service. The number one reason for outsourcing payroll to a third-party provider is so that you and your staff can focus entirely on serving your customers.

You Live or Die on Service

There are a lot of service-oriented businesses making good money in America. But more than any other, restaurants live or die on the service they provide. It doesn’t matter where or restaurant is located or how good the food is. A restaurant could offer the best tasting food in the country and still go out of business if their service stinks.

Restaurant customers expect service that is attentive and friendly. They expect both the front and back of house staff to be knowledgeable and skilled. They expect service to be exceptional to the point that the dining experience is enjoyable rather than merely functional.

In short, restaurants live and die on the service they provide. So, what does this have to do with payroll? A lot, actually. Consider how much time it takes a restaurant owner to handle weekly payroll in the office.

Weekly Payroll Processing Duties

Payroll processing begins with tracking time and attendance. It can be done via manual time sheets, an old-fashioned time clock with punch cards, or a modern clock that utilizes digital ID cards. Either way, time and attendance have to be tracked.

At the end of the week, employee hours have to be added up and entered into the computer system. If any employees worked overtime, that also has to be taken into account. And then there’s one more task that drives restaurant owners crazy: trying to account for server and bartender tips.

Once all of the data is compiled and entered, the system must process payroll to generate paper checks, pay stubs, or direct deposit transactions. In the case of paper checks, they have to be printed and distributed to employees.

Payroll Is a Distraction

All of this takes a tremendous amount of time that the restaurant owner could be investing in other things. He or she could be training servers on how to provide the kind of service expected. He/she could be working with back of house staff to be more efficient so that meals are prepared faster. In essence, the restaurant owner could be more actively involved in helping his/her employees be the best they can be instead of sitting at a desk in the office staring at a computer screen.

At the end of the day, payroll is a distraction to restaurant owners. And let’s face it, the competitiveness of the restaurant industry is such that owners don’t have time to waste being distracted. They have to be on the floor ensuring that staff is providing impeccable service.

The number one reason for outsourcing restaurant payroll is the need to provide excellent service. Now you know.