Posts tagged: business issues

New York Bagel Law Slices Profits

New York City is enforcing an old tax on sliced and prepared bagels.

New York City is enforcing an old tax on sliced and prepared bagels.

When you think of New York cuisine what comes to mind? Is it a piping hot slice of pizza? How about a Nathan’s hot dog? Maybe authentic Chinatown Chinese food? Or New York-style, thin crust pizza? While all are icons of New York gastronomy, for millions of New Yorkers who start their day with a bagel and a shmear, there is nothing more New York than a crusty, chewy bagel.

Unfortunately for New Yorkers, the food police are at it again in New York City. After making transfats illegal for restaurants to serve a couple of years back now New York City is enforcing an old tax on sliced and prepared bagels.

The tax has actually been a law on the books for some time, but it hadn’t been enforced stringently until recently. There is little doubt the financial problems of New York City played a part in the overreaching enforcement of the law.

The size of the tax averages to about eight cents per sliced or prepared bagel, while bagels that are packaged for take- out are not taxed. This may not seem like a big deal, but small business that sell bagels are worried about the impact of the law on their bottom line.

Some companies have even been forced to pay back taxes because the law was so poorly enforced before this year.

“We think it’s unfair. They audited us four times in the past 20 years and never raised this before. We are a law abiding company and tax payers. They are requiring us to pay three years worth of taxes we never collected,” Kenneth Greene, owner of Bruegger’s Bagels told CNN Money recently.

Greene claims that his business didn’t collect the bagel tax from customers in the past as a way to keep prices down and customers happy, but they will have to now.

In 2007 in New York City, 646 restaurants were audited for bagel malfeasance. So far this year that number jumped to 1,077 and there are still four months left in 2010.

Do you think the recent enforcement of the New York Bagel Law is fair to small business owners? Has your business run into indiscriminant enforcement of laws in the past? How have you dealt with these issues?

Expect the Unexpected in Business, and in Life

Business owners already go through an unbelievable amount of hard work to get their businesses up and running, much less grow it to a successful business.

Imagine if in addition to all the “normal” challenges to being a business owner, you had another challenge thrown at you from left field? A challenge that could not only affect your business, but also your life?

That’s exactly what happened to Michele Alexander, a top business coach, when one morning, she woke up completely deaf. Alexander isn’t a business owner herself, but a certified business coach. Not being able to hear her clients, business owners, who needed to work through business issues, could have proved detrimental, but she managed to get through the day. She didn’t let any of her clients down, despite the fact that she couldn’t hear them!

Michele’s experience going through what seems like an impossible challenge — business coaching clients while deaf — just goes to show the lengths certified business coaches go to to make sure their clients succeed and reach their utmost potential. Find out more about what a business coach and business coaching session can do for any business here.

To read more about Michele’s amazing story here.