Texas Restaurant Law

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Many, if not all, restaurants have extremely valuable employees, and it is often important to find a way to compensate these employees in such a way as to make sure they stick around long-term. But what is the best way to compensate those invaluable employees? This post shows how profit sharing can be a solution to the problems of giving away stock and taking on partners. Problems with Offering Stock or Equity We have previously…
It’s only January 15th, and already six major restaurant expansions or acquisitions have occurred in DFW! It’s an exciting time in the restaurant industry. Here are the details: First, Day Star Restaurant Group acquired Texas Land & Cattle and the Lone Star Steakhouse chains. Click here for more on that story. Texas Land & Cattle has long been a Texas staple, and this move ushers in great potential. Next, Denton is getting its first Cafe…
You may have just acquired a restaurant or perhaps you are days away. What are the main things to consider in the transition? This week, we decided to answer this question, to focus on restaurant transitions, what makes them go well and what makes them go badly. Assuming that the sale of the restaurant was properly documented, here are Five Tips On Transitioning A Restaurant: Permits. Hopefully prior to the sale, but at least shortly…
There is no denying that restaurant prices are set to rise this year. Multiple sources show that restaurants and customers will both pay more at all levels of of the industry. This includes fast-food, fast-casual, and fine dining. For example, Andrew Robinson at BizJournals.com, reports that chain restaurants are increasing their prices. See this link for more on chains. He says that most chains expect to increase prices between 1.6 and 2 percent. Likewise, Mark…
There are so many things to consider when buying a restaurant that we decided to break that list down to just seven issues. If you only look at these issues, you should avoid most of the big hazards when you buy your next restaurant. Now, this assumes that you have some idea of the restaurant itself, what it serves, and its reputation. With that in mind, the top seven things to consider include the following:…
We all know how important restaurant taxes are to restaurant owners. Last week, our own tax counsel, David Gair, outlined his Top Ten Tax Mistakes for Restaurant Owner on TexasTaxTalk.com, so TexasRestaurantLaw.com decided to share it as well. Here is the list in its entirety: Employee Classification – Misclassifying workers as independent contractors and not employees can be  terrible problem.  Restaurant workers (chefs, waiters, dishwashers, etc.) are employees.  Employers don’t get to arbitrarily…
At TexasRestaurantLaw.com, we have covered “Who Owns Your Restaurant Name?” and “Is Your Restaurant Recipe Safe?” However, we have not previously discussed the many parts of restaurant intellectual property. This post shows some of the most critical pieces that encompass restaurant intellectual property. Your Name & Brand We all hear that branding is everything. Likewise, you probably put a lot of thought into your brand and name. So how important is…
There are many motivations for restaurant creation and investment. However, these different desires can lead to conflict, so how are restaurant operators, owners, and investors supposed to resolve these conflicts? This post answers that question, and it gives a game plan to operators, owners, and investors to deal with these inevitable conflicts. Step One: Avoid The Conflict By Identifying Motivators and Doing Your Homework The best way to deal with a conflict is to ensure…
Two recent news stories present the issue of how restaurants should deal with supply issues. The first story is the infamous horse meat scandal that has plagued Burger King in the United Kingdom since January. Click here for that story. The second story appeared in today’s Wall Street Journal. It deals with the fact that the U.S. Department of Agriculture may purchase up to 400,000 tons of sugar to bail out sugar processors who…
For years, I have recommended that all restaurants should be operated as limited liability companies – that is no more! Recent tax changes have now made LLCs much less attractive. Instead, we now suggest that our restaurant clients should consider forming “S-corporations,” except in rare instances. See below for the details and for a way you can avoid these taxes if you act quickly. Why Have Things Changed? Effective January 1, 2013, certain types of…