Running a Business

Offering competitive employee benefits can help small businesses attract top talent. But how do you build an outstanding benefits package? Whether you’re navigating healthcare options, trying to decide on retirement plans, or considering which perks will resonate with your employees, we’ll walk you through what you need to know. Here’s why employee benefits matter, and how you can structure yours to support your team and grow your business. What are employee benefits? Employee benefits are non-wage compensation provided to employees in addition to their regular salary. They can include health insurance, retirement savings plans, vacation days and even perks like gym memberships or paid volunteer days. These benefits play a critical role in boosting workplace satisfaction and employee well-being. For small business owners, building an effective employee benefits package isn’t just about ticking boxes. It’s about providing tangible value to employees, showing them they’re appreciated, and fostering a positive, productive work environment. Why is offering benefits important for small businesses? 1. Attracting talent. Small businesses often compete with larger corporations for skilled professionals. Offering competitive benefits levels the playing field and allows you to stand out as an employer of choice. 2. Retaining employees. Strong benefits packages play a crucial role in improving employee retention. Employees are more likely to stay with a company that offers healthcare, retirement plans and flexible perks that align with their needs. Reducing turnover saves recruitment and training costs in the long run. 3. Boosting productivity. Happy employees are more motivated and productive. Offering benefits that support both physical and mental well-being ensures a healthier workforce capable of performing at its best. 4. Enhancing your reputation. A well-rounded benefits package builds a strong employer brand. Word travels fast in tight-knit communities, and your investment in your employees establishes your company as a reputable, compassionate place to work. What benefits do small businesses offer their employees? There are different types of employee benefits. Let’s break them up into categories. Legally required benefits. Certain benefits are required by law, and failing to offer them could lead to penalties or legal challenges. Some legally required benefits depend on your businesses’ number of employees. Social Security and Medicare. Employers are required to withhold and match contributions from employees’ paychecks. Unemployment insurance. Employers must contribute to state and federal unemployment insurance programs to support employees during job loss. Workers’ compensation. This insurance provides financial support to employees injured on the job. Workers’ comp is mandatory in most states, regardless of company size, with a few exceptions. COBRA (Consolidated Omnibus Budget Reconciliation Act). Employers with 20+ employees must offer continued coverage after job loss or events like divorce or childbirth, lasting 18 – 36 months depending on the situation. Smaller employers should note that some states offer “mini-COBRA” for businesses with fewer than 20 employees. Affordable Care Act (ACA). Businesses with 50+ full-time employees must provide affordable healthcare under the Affordable Care Act. Companies with fewer than 50 employees aren’t required to offer health insurance, but might consider doing so to remain competitive. Local government requirements. California, Hawaii, New Jersey, New York, Rhode Island and Puerto Rico require employers to provide employees short-term disability insurance. Health benefits. High healthcare costs can create significant stress for employees. And when workers are sick or managing chronic conditions, businesses may lose productivity. Employee health benefits cover both physical and mental health, addressing the full spectrum of well-being. Group health insurance plans. These plans not only support employee well-being, but also provide tax savings for businesses. Medical flexible spending account (FSA). This allows employees to use pre-tax contributions for eligible healthcare expenses. Both employers and employees can contribute, offering significant tax savings. Health reimbursement arrangement (HRA). This account is fully funded and owned by the employer, providing employees with funds to cover eligible healthcare expenses. It also offers tax savings benefits. Health savings account (HSA). HSAs allow employees to use pre-tax funds for qualified medical expenses, similar to an FSA or HRA. Both employers and employees can contribute to the account. However, unlike FSAs and HRAs, an HSA is employee-owned and functions as an investment account that earns tax-free interest over time. Vision and dental insurance. Offering vision and dental insurance shows employees that you value their health and well-being beyond the legal requirements. They’re also competitive benefits that can set your small business apart. Mental health and wellness programs. Small businesses can offer mental health programs like access to counseling services or employee assistance programs (EAPs) to support their teams. Wellness initiatives such as mindfulness workshops or stress management sessions can also promote overall mental well-being. Financial benefits. Financial security helps employees feel peace of mind, allowing them to focus on their work without worrying about the future. By providing strong financial benefits, employers help their teams plan ahead with confidence. Retirement plans. Retirement plans, like a 401(k), help employees build a secure financial future, making it easier to save for life after their careers. Employer matching contributions can further enhance these savings, providing an added incentive to invest in retirement. Paid time off (PTO). PTO, which includes vacation, sick leave and personal days, ensures employees can take necessary breaks to recharge or handle personal matters without financial stress. It promotes better work-life balance and overall well-being. Life insurance. Life insurance offers employees peace of mind by providing financial security for their loved ones in case of unforeseen circumstances. It’s a safeguard that supports families during challenging times. Flexible spending accounts (FSAs). FSAs allow employees to set aside pre-tax dollars for eligible expenses like medical bills or childcare. This benefit helps reduce financial strain and makes managing expenses more affordable. Fringe benefits. Fringe benefits are optional perks that employers offer to attract and retain talent. While not legally required, fringe benefits can enhance employee satisfaction and differentiate your company from competitors. Examples include: What does a typical benefits package look like for a small business employee? A realistic benefits package for a small business might include: How much do benefits cost the employer? While costs can vary, 2024 data from the Bureau of Labor Statistics provides the average benefits cost for private industry workers in establishments that employ under 50 people: For small businesses

Make no mistake — the food service and hospitality industry is more competitive than ever. From managing employees and suppliers to staying ahead of marketing and culinary trends, restaurateurs wear many hats. It takes hard work, but with the right strategies in place you can build or maintain a thriving operation — and make the most of your restaurant financing. These practical restaurant tips and tricks can equip you with ideas to help streamline operations, improve profitability and create memorable customer experiences. Restaurant Operations and Management Let’s start with the fundamentals — your day-to-day restaurant operations. The decisions you make here can keep your restaurant efficient and profitable. Buy and source wisely. Your restaurant’s food ordering expenses can quickly spiral out of control without proper inventory management. Build strong relationships with reliable vendors to negotiate better deals. Buy seasonal produce for cost savings, and utilize inventory management software to track stock and reduce food waste. Take care of your staff. A happy restaurant staff equals happy customers. Train your team well, offer competitive wages and incentives and create an environment where they feel valued. Employee satisfaction impacts efficiency and morale which, in turn, influences your service quality and overall guest experience. Review your menu pricing and design. Review your pricing strategy regularly to ensure there’s a good profit margin on all of your restaurant menu items. Factor in rising ingredient and food costs and adjust prices when necessary, but make sure your pricing aligns with customer expectations. Consider seasonal menu swaps with high-quality, low-cost appetizers, tasting flights, shared plates or entrees to help save money and balance your profit margins. Feature higher-return items and add-ons more prominently on your menu. Upgrade your technology. From POS systems to digital inventory and payroll software, technology integrations can save you time and effort with tableside ordering, contactless payments, reservation management and more. Point-of-sale tools like Toast, Square or TouchBistro can streamline your table operations and produce data and reporting for smarter decision-making. They can also help create efficiencies across the board — from kitchen display systems to payment processing. Review your hours. While you already know your busy and slow times, analyzing them in black and white could reveal new patterns. If certain hours of the day or even days of the week are consistently quiet, modify your business hours to concentrate resources during peak times and cut down on operating costs. Consider expansion opportunities. Once your restaurant achieves a sustainable level of success, you might want to think about strategically expanding. This could mean opening a new location, launching a catering menu or even offsite catering, or partnering with meal delivery companies to boost revenue streams. Marketing and Sales A strong marketing strategy that aligns with your customer experience and communicates your brand’s unique selling proposition will build your brand’s presence and loyalty. Get social. Establish a social media presence to showcase your brand to potential customers and generate awareness and impressions. Create quality content and visual photography for platforms like Instagram and Facebook to put your best foot forward and reach potential new customers. From menu spotlights to behind-the-scenes storytelling, memorable visuals and content marketing can make a huge difference in your posts’ engagement rates. Experiment with new marketing strategies. Shifting consumer preferences in the restaurant industry are a constant. The same goes for getting people’s attention. Stay ahead of the curve by finding new and innovative ways to reach your audience: Track customer responses to identify which strategies yield the best return on investment (ROI). Get on delivery apps. Partner with food delivery platforms such as DoorDash or Uber Eats. This not only opens your services to a wider audience and customer base, but it can also increase convenience for your customers, especially during quiet dining-in periods. Offer reservations via booking apps. Make it easy for customers to reserve a table with apps like OpenTable or Resy. These platforms come with added search capability, making it easier for people who may not know your brand to find your restaurant. Host events. Live music, trivia nights, or chef-led tastings and pop-up concepts can bring in new customers and create buzz. These events encourage new and loyal customers alike to experience your restaurant in a way that stands out from a typical dining experience. Customer Experience Delivering a memorable experience for your guests can increase customer retention and foster strong word of mouth. Make customer retention a priority. According to restaurant software company Olo, 60% of a restaurant’s revenue is driven by repeat customers. Focus on building customer relationships and earning their loyalty. Remember names, favorite dishes and preferences to create personal connections that make them feel valued. Start a loyalty program. Reward repeat business with a loyalty program. Offer customer discounts, free items or exclusive perks when they hit a certain spending level. Loyalty programs can help customers feel appreciated and keep them coming back. Manage and moderate your online reviews. Reviews play a big role in customer decision-making. Monitor platforms like Google, Yelp and TripAdvisor to respond promptly to feedback, whether it’s positive or negative. A professional response to complaints shows your dedication to improvement and builds trust. What are the four Ps of restaurant management? The “four Ps” play a vital role in successful restaurant management. Here’s how they apply: Product. Provide high-quality food and beverages that exceed expectations. Place. Your location and ambiance matter. Make your establishment inviting and comfortable. Price. Balance affordability with profitability. Maintain a pricing strategy that aligns with customer expectations. Promotion. Consistently share your restaurant’s story and unique value prop to attract and retain customers. What are the three Cs of restaurant success? Elevate your restaurant’s success with this simple, easy-to-remember framework. Several guest speakers shared this list during a “2023 Restaurant Franchising and Innovation Summit,” and it stuck: Convenience. Make it easy for customers to dine with you. Offer accessible hours, online ordering and delivery options. Consistency. Whether it’s food quality or service, deliver excellence every time. Consistency builds trust with your customers. Connection. Build a relationship with your customers through personalized service and by creating an ambiance where they feel welcomed. The Bottom Line Managing a restaurant requires countless responsibilities, but with strategic planning and focus, your extra