The labor market is very competitive right now, and restaurants are no exception. According to a 2025 report by the National Restaurant Association, although the restaurant industry is expected to add 200,000 jobs to the workforce, fullservice and limited-service operators say the “ongoing struggle to recruit and retain employees” remains among their top concerns.
As an employer, you’ll need a substantial approach to attract the best talent – employees who are serious and long term career-minded.
One way to stand out from the competition could be to offer employees the opportunity to grow their skills through continued education.
Plus, if you do it correctly, the benefit could be a deductible business expense for you, and your employee could deduct the benefit from their gross income, potentially reducing their tax burden. Read on to find out more and of course, consult your own tax professional to discuss your specific business and the best plan for you.
*This article is for informational purposes only. Consult a tax professional to discuss your specific situation.
A company car, employer-provided cell phone, dues or membership fees for professional organizations—these are all examples of employer-provided benefits that allow an employee to better perform their job.
These types of benefits are referred to as working condition fringe benefits; the expenses would qualify as a business expense or depreciation expense deduction had the employee paid for them out of pocket.
Educational expenses also fall within this category. As an employer, you can reimburse employees for work-related educational expenses, and the amount you paid or reimbursed them could be a deductible business expense. And your employee might be able to deduct it from their gross income.
The education has to meet at least one of two criteria to make it work-related, per the IRS:
Of course, there are always exclusions. The IRS adds that even if the education meets one or both of those tests, it doesn’t count as qualifying education if it’s needed to meet the minimum educational requirements of the employee’s present trade or business or if it’s part of a program of study that will qualify the employee for a new trade or business.
It’s easy to see how work-related education can be a vital component of an employee’s ability to improve or maintain their skills in a restaurant. An educated and well-trained employee can tap into skills from culinary expertise to safety and sanitation practices to improve their own career as well as help your business run at peak efficiency.
Find out more detail about qualifying and disqualifying criteria in Publication 15-B of the IRS’ Employer’s Tax Guide to Fringe Benefits.
While the first example had to do with benefits that could be directly tied to the job, you can also help pay for your employees’ education expenses, regardless of whether that education is job-related, under a different method referred to as an educational assistance program.
Per the IRS, “An educational assistance program is an employer’s written plan to provide employees with undergraduate or graduate-level educational assistance. These programs allow employers to pay student loan debt and other education expenses tax-free.”
The tax-free benefits under an educational assistance program are limited to $5,250 per employee per year; assistance above that amount is normally taxable as wages.
Note that in order to qualify as an educational assistance program, the plan must be written and must meet certain other requirements. The IRS website provides a sample plan you can use to draft your own program.
According to the IRS, educational assistance benefits can include things like:
Educational assistance benefits do not include payments for:
In the Work Opportunity Tax Credit (WOTC), employers may claim a federal tax credit if they hire someone who is in a group that the federal government has classified as having consistently faced barriers to employment.
The targeted groups include qualified veterans, qualified ex-felons, a vocational rehabilitation referral, a qualified summer youth employee, and more.
According to the IRS, an employer must pre-screen and obtain certification from the appropriate Designated Local Agency (referred to as a State Workforce Agency or SWA) that an employee is a member of a targeted group to claim the credit.
Taxable employers claim the WOTC as a general business credit against their income taxes while tax-exempt employers claim it against their payroll taxes.
Investing in employee education can help during recruiting, attracting culinary professionals who are looking for a career and not just a job. It can also help lower turnover, the benefits of which can be translated into dollars and cents.
The National Restaurant Association estimates that it costs restaurants an average of nearly $6,000 to replace a single hourly employee per year in staff turnover. With the average restaurant’s profit margin hovering around five percent, a reduction in turnover might make a significant difference in your bottom line.
When a food service operation teams up with Auguste Escoffier Global Solutions for Work & Learn, they can secure access to a team of business, culinary, and education professionals for each employee who enrolls in Escoffier’s online program.
By partnering with Auguste Escoffier Global Solutions for Work & Learn, an employer’s employees can have access to special scholarships at Auguste Escoffier School of Culinary Arts.
Employees are eligible for a $1,000 scholarship upon sign up; increased scholarship amounts are determined by an employer’s tuition assistance program with matching available up to $5,250.
Because Escoffier is a state licensed and nationally accredited institution, students receive a reputable, reliable degree or diploma without quitting their job or taking a leave of absence.
Gone are the days of posting a simple “We’re Hiring” sign in your window and hoping good candidates see it. There’s more competition than ever for qualified culinary workers, and employers need to be thoughtful and creative about how to attract the best employees.
Escoffier Global’s innovative programs in education and skill development seek to meet the needs of both employers and employees, making work better for both.
For customized training solutions, connecting with externs, or exploring Work & Learn, get in touch with Auguste Escoffier Global Solutions. Find more information and get help creating the custom solution you need to suit your unique business.
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*This article is for informational purposes only. Consult a tax professional to discuss your specific situation.
