Types of Restaurant Ordering Technology
Explore the main types of ordering technology restaurants use to improve accuracy, speed, payments, customer convenience, and operational efficiency daily.
Aug 17, 2026
Explore the main types of ordering technology restaurants use to improve accuracy, speed, payments, customer convenience, and operational efficiency daily.
Aug 17, 2026
Learn the eight essential steps of the restaurant payroll process, from tracking hours and calculating wages to payments and recordkeeping.
Aug 17, 2026
Panera Bread welcomes Andrew Rebhun as its new CMO to spearhead strategic brand growth and transformation, bolstering its vision for 2028.
Aug 17, 2026
Discover how restaurant SMS marketing works, from building subscriber lists and creating campaigns to improving engagement and measuring marketing performance.
Aug 14, 2026
The transition of Pizza Hut's CEO, Aaron Powell, marks a pivotal moment for the chain and offers valuable leadership lessons for restaurant owners. Here’s what this executive change could mean for your business.
Aug 17, 2026
Learn how to manage cash flow in your restaurant by tracking finances, controlling costs, forecasting needs, and building cash reserves.
Aug 14, 2026
Increase online orders by simplifying checkout, optimizing menus, improving Google visibility, promoting ordering channels, and encouraging customers to order again.
Aug 12, 2026
Streamline restaurant back office operations by standardizing workflows, automating repetitive tasks, integrating systems, centralizing data, and improving accountability and efficiency.
Aug 12, 2026
McDonald’s USA has appointed Patrick Gerber as chief restaurant officer, leveraging his decades of global experience to boost operations, food quality, and customer satisfaction in the U.S. market.
Aug 11, 2026
Freddy’s Frozen Custard & Steakburgers promotes Rick Petralia to Executive Chef & VP of Training & Innovation, signaling a strategic focus on culinary excellence and franchisee support.
Aug 12, 2026
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Explore the implications of recent tax code changes on restaurant operations, focusing on service charges, gratuity-based income, and potential effects on minimum wage and economic growth.
Photo by Alexander London
The differentiation between service charges and tips has been a contentious issue in the restaurant industry. While tips are generally considered voluntary payments made by customers to service staff, service charges are often automatically added to the bill by the establishment. Recent tax code changes have brought this demarcation into focus, with debates arising on the fairness of excluding service charges from certain tax exemptions.
Erika Polmar's assertion regarding the impact of not counting service charges on line cooks, dishwashers, porters, and prep staff sheds light on the potential disparities created by the new tax provisions. In many cases, these behind-the-scenes workers are vital to the functioning of independent restaurants, yet they may not receive the same tax relief as front-of-house staff who rely heavily on tips for income.
The warning issued by the IRC about employers incentivizing tip prompting and worker reclassification to evade minimum wage requirements underscores the complexity of the new tax laws. By potentially shifting the burden of compensation onto customer gratuities, there is a fear that some workers may face reduced wages or altered employment classifications.
The broader economic impact of the tax code modifications cannot be ignored. With the enforcement expansion and potential rise in deportations of undocumented workers, industries like restaurants could witness a significant disruption in their workforce. This shift might not only affect operational efficiency but could also have repercussions on economic growth, as highlighted by the Economic Policy Institute.
The ongoing legislative process in the House of Representatives offers a window for potential revisions that could address some of the concerns raised by industry stakeholders. Restaurant operators may need to strategize and adapt to mitigate the possible adverse effects of the tax code changes. This could involve reevaluating business models, employee compensation structures, and compliance mechanisms to navigate the evolving regulatory landscape.