From what I remember (i had a neighbor who was a former high level manager at a restaurant) they'll basically run at 3% profit to account for slow periods/off seasons but anything above that gets pumped into expansion to new locations or bonuses for people high up in the groups.
So if they made like a 3% profit margin + $1m they'll divide up that $1m into bonuses for people high up in the company.
I hope that makes sense.
Edit: also "business trips" to somewhere nice on the company dime where they just go eat and drink at a bunch of different restaurants.
Restaurants still deal with a lot of cash transactions, so a good portion of that can go right under the table or into the owner's pocket so legal cash remains under the restaurant. Losses can be juked easy too cause it's hard to verify what food is sold and what sits and goes bad. A lot also scam grants and shit to get started.
Ah, with salaries/amortization true, but bonuses would be exactly profit margins I assume, or do they keep cash in restaurants name?
From what I remember (i had a neighbor who was a former high level manager at a restaurant) they'll basically run at 3% profit to account for slow periods/off seasons but anything above that gets pumped into expansion to new locations or bonuses for people high up in the groups.
So if they made like a 3% profit margin + $1m they'll divide up that $1m into bonuses for people high up in the company.
I hope that makes sense.
Edit: also "business trips" to somewhere nice on the company dime where they just go eat and drink at a bunch of different restaurants.
and it's deductible "market research" so it also lowers the company's tax bill
Restaurants still deal with a lot of cash transactions, so a good portion of that can go right under the table or into the owner's pocket so legal cash remains under the restaurant. Losses can be juked easy too cause it's hard to verify what food is sold and what sits and goes bad. A lot also scam grants and shit to get started.