Question 1

What is prime cost and why does it matter for restaurants?

Accepted Answer

Prime cost is your cost of goods sold plus total labor, and it's the single most important number in restaurant profitability. Most operators target prime cost around 55–65% of sales, though the right benchmark depends on your concept. Because food and labor move daily, we track them together and against target — not just once a month — so you can act before a bad week becomes a bad quarter.

Question 2

What is the FICA tip credit and can my restaurant claim it?

Accepted Answer

The FICA tip credit is a federal income tax credit that reimburses employers for the Social Security and Medicare taxes they pay on employee tips above the minimum-wage level. If you have tipped employees who report their tips, you likely qualify. We calculate the credit as part of tax planning so you capture money you've already earned rather than leaving it on the table at year-end.

Question 3

Do you handle tip reporting and tipped-wage payroll?

Accepted Answer

Yes. We support compliant tip reporting, tip allocation, and tipped-wage payroll, and we coordinate the data your payroll provider needs. Tips create both compliance exposure and a tax opportunity through the FICA tip credit, so getting the reporting right protects you on audit and maximizes the credit at the same time.

Question 4

Can you support multi-unit and franchise operators?

Accepted Answer

Yes — multi-unit reporting is a core focus. We set up a consistent chart of accounts so every location reports the same way, produce unit-level P&Ls you can compare side by side, and roll results up for lenders, franchisors, and partners. That structure means adding a location doesn't break your books or your benchmarking.

Question 5

How do you handle sales, use, and occupancy tax across states?

Accepted Answer

We manage multi-jurisdiction sales, use, and occupancy tax from registration through filing, and we review nexus as you add locations or delivery channels. Serving clients in all 50 states, we track where new obligations are triggered so expansion into a new market or delivery platform doesn't create a surprise tax liability.

Question 6

Do you work with restaurants outside of Ohio?

Accepted Answer

Yes. Pease Bell is headquartered in Cleveland, Ohio, but we serve hospitality clients in all 50 states. Our reporting, tax, and advisory work is built to handle multi-state operators, so whether your restaurants are all in Ohio or spread across the country, we can support the full footprint from one firm.

Restaurant Chart of Accounts: Setup for Easy Prime Cost

Restaurant Prime Cost: Formula, Ratio, and Benchmarks

Sales and Use Tax for Multi-Location Restaurants

Food Cost Percentage: How to Calculate It and Cut It

The FICA Tip Credit: Restaurant Tip Reporting Rules and Section 45B

When Should a Restaurant Group Hire a Fractional CFO?

Craft Brewery Accounting: Excise Tax, COGS, and Margins

Industries: Hospitality