In lean times restaurants barter for trade services (1)

In lean times restaurants barter for trade services (1) -...

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DECEMBER 3, 2009 In Lean Times, Restaurants Barter for Trade Services By JULIE JARGON http://online.wsj.com/article/SB10001424052748703735004574572050273487032.html Independent restaurants are turning to an old-fashioned method to fill tables—barter. As they struggle to keep customers and pay the monthly bills, restaurants are swapping food for services like oven-hood cleaning and pest control. Bartering helps restaurants fill seats, reassuring prospective customers who might be turned off by the sight of a vacant eatery. It also attracts new customers when tradespeople bring friends along, reduces some costs, and helps retain employees who can't scoop tips off empty tables. It's hardly a permanent fix for ailing restaurants, which still need cash to cover such expenses as rent, mortgages, taxes and utilities. But bartering is an especially useful tool for independent restaurants that, unlike some chains, lack access to corporate credit lines or cash. Many restaurants are using barter exchanges that track and manage the transactions, which count as taxable income and must be recorded for tax purposes. Rather than traditional bartering, in which services are swapped directly between vendors, most barter exchanges use a "round robin" approach that offers flexibility for both restaurants and
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This note was uploaded on 06/20/2011 for the course MARKETING 3336 taught by Professor Wyatt during the Spring '10 term at University of Houston.

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In lean times restaurants barter for trade services (1) -...

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