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Picture your dining room in mid-December: it’s bustling with holiday parties, tourists, and families celebrating together. Then, in a blink, the new year arrives. Festive gatherings evaporate, bills from holiday stocking-ups flow in, and your restaurant’s foot traffic slows. This abrupt contrast is more than just a mood shift—it’s a financial one, too.
Here’s why this is particularly jarring come January:
It’s no wonder restaurant owners experience an almost physical “ouch” in January when those processing costs seem to jump overnight. But in many cases, it’s more a reflection of the post-holiday business environment combined with existing fee structures than a blunt rate hike (though those can happen, too).
One key concept to recall is that payment processing fees are not calculated in a vacuum. If you process $100,000 in credit card sales in December and then $60,000 in January, the total fees appear distorted. Even if your percentage-based processing rates remain the same, the economics of scale or offsetting revenue shrinks—and so does your bank account. That discrepancy makes those January statements painful.
In fact, small differences in net margins can be dramatic when your revenue dips. Consider an example:
While in December the absolute amount paid in fees might be higher ($2,900 plus transaction fees), it accounted for a smaller percentage of your total monthly costs because your overall revenue was strong. In January, that 2.9% feels more acute: you’re still paying a baseline for each transaction, but you’re pulling in less revenue overall—so the chunk taken out of your bottom line cries out a bit louder.
Plus, if your average ticket size shifts because fewer large holiday orders come in, you might actually see more transactions overall at lower dollar amounts. This accumulates additional per-transaction fees. It’s a double blow: fewer total sales, but proportionally higher costs in fees.
Restaurants often accept multiple payment methods, with credit and debit cards a common choice. Each payment method has its own associated fees, involving interchange costs, processing fees, and occasionally additional monthly or annual fees. Let’s clarify some of the usual mechanisms:
Come January, many of these fees intersect with your lowered revenues. Moreover, some providers implement new fee schedules at the start of the year or highlight fees that you might have previously overlooked in the swirl of holiday business.
Since the holiday season typically keeps you busy with jam-packed dining rooms, it’s easy to miss details in your payment processing statements. Then, when you finally have a moment to breathe in January, you spot line items that weren’t obvious before.
Look closer for:
The first step is to dissect your statements and see exactly where your money is going. Armed with that information, you can approach your payment partners for clarity or renegotiation. If it feels overwhelming, consider consulting a professional who understands merchant statements or using a user-friendly, transparent payment solution—one that integrates directly with your restaurant operations. That’s where an all-in-one tool like sunday can help simplify fees, reduce confusion, and keep you aware of your charges in real time.
Not only are you dealing with new or more transparent fees, but your daily turnover likely sees a significant drop post-holiday. Fewer reservations and walk-ins mean that your staff hours might be trimmed, potentially leaving you with less flexibility to handle front-of-house tasks. In essence, everything feels a bit tighter in January.
This wave of emptier tables and narrower margins also means you can’t absorb additional costs as easily. For example, if your rent is the same in January as it was in December, you’re suddenly paying a higher share of your fixed expenses with reduced income. Add in the credit card processing fees, and it’s a prickly cocktail for your finances, especially if you haven’t budgeted for it.
According to the National Restaurant Association’s research (their official research page), the restaurant industry typically experiences slower traffic in the first quarter, with January often cited as one of the most challenging months for both foot traffic and average check size. It’s no surprise many operators do annual cost reviews at this very time—deliberately or not—to see where they can reduce overhead or rework processes.
While many restaurants piece together a patchwork of separate tools—POS, payments, reservation systems, loyalty programs—this approach can inadvertently compound your costs and administrative complexity. With sunday’s all-in-one solution, you get:
By merging multiple payment-related tasks into a single, user-friendly interface, you ease staff training, reduce administrative headaches, and get a fuller picture of your financial health in real time. That’s especially helpful in January, when you’re already juggling new-year audits and cost reviews.
These spikes in processing fees do not have to become your January tradition. Let’s look at tactics you can put in place to soften the blow:
You might already know your per-transaction rate, but it’s worth exploring potential changes as your business evolves. If you have a track record of consistent volume—even with the January dip—you could be eligible for a lower processor markup.
If the conversation stalls, consider exploring other providers—sometimes the mere act of comparison can motivate your current one to offer a better deal. “Bundle” rates, in which your card processing and other services combine, can be advantageous, but only if you can verify transparency in the costs.
Tips are a significant part of the server’s take-home pay and can also factor into managing credit card fees. Some restaurants handle tips in cash, while others prefer everything on-card for simpler record keeping. Each approach has pros and cons:
A balanced approach might be encouraging both forms of tipping, but giving guests a seamless digital experience—like scanning a QR code, choosing a tip level, and quickly signing off. The easier you make it, the more likely your guest is to leave a generous gratuity. Meanwhile, you’re able to keep an eye on the real costs involved in each transaction.
Consider the potential of a surcharge or discounted rate for cash payments. Some operators in the US now apply a slight fee (for instance, 3%) on card transactions to cover processing costs, while discounting menu prices if the customers pay with cash. Check your local and state regulations first—some states do not allow surcharging. Done appropriately, these programs can meaningfully reduce your net fees, but it demands clear communication with your guests.
A catfish-sandwich lover might be happy to pay $12 on a credit card, or they can get it for $11.70 with cash. If you’re 100% transparent, many people won’t mind the slight difference. That said, weigh the potential friction it might generate. If your guest experience is strongly tied to convenience, you’ll want to tread carefully.
Frequent small transactions can accumulate more flat per-transaction fees. If you do a lot of to-go or curbside pick-up orders, grouping items onto a single check at your own kiosk or letting guests easily add afterthought items can cut down on separate smaller charges. The fewer, bigger tickets you can process, the less you pay in per-transaction fees. By offering easy reordering or bundling options, you not only reduce fees but can boost the average check size as well.
Beyond front-of-house best practices, make sure your team knows how to handle partial approvals, declined cards, and other hiccups. Every time a transaction misfires, you risk incurring extra fees to correct the situation. A quick refresher in January can save you from unnecessary statements showing repeated declines or forced transactions.
Managing your payment fees during the slow season doesn’t have to be a one-time scramble. Use January as the kickoff for a year-round plan to reduce friction and maintain a healthier profit margin. Here are some additional strategies:
You can also learn from your colleagues, whether in an official restaurant association or in informal local meet-ups. If someone orchestrated a major shift in their payment platform to reduce fees, they might have valuable insights on the pros and cons that you won’t find on a sales brochure.
According to a feature from FSR Magazine, more restaurants are modernizing their payment systems at a growing pace, partly because the new generation of solutions integrates marketing, loyalty, online ordering, and contactless payment methods. Over time, those efficiencies can lower your overall cost of doing business—particularly in the dreaded January slump.
| Month | Typical Sales Variation (Approx.) | Payment Impact |
|---|---|---|
| December | +20% (Holiday Rush) | Higher volume masks fees |
| January | -10% (Seasonal Dip) | Fewer transactions magnify processing costs |
| February | +5% (Valentine’s Day) | Short spike, then normalizes |
This rough illustration shows how sales fluctuations play out over different months. Of course, specific numbers vary by region, concept, and marketing efforts. But the essence remains: January brings a combination of lower sales and fresh cost discoveries, making it a prime moment to address operational inefficiencies.
1) Are my January costs really rising, or am I just noticing them more?
It can be both. In many cases, rates and fees reset or get adjusted after the holidays, which can mean genuine changes in what you owe. At the same time, your post-holiday lull likely makes your existing fees feel a lot bigger because there are fewer sales to cushion the expense.
2) How can an all-in-one solution like sunday help reduce fees?
By consolidating your payment processes in one place—point of payment, tipping features, and even review prompts—an integrated solution gives you clear visibility of your total costs. You’re less prone to sudden or unexplained charge spikes since you’re not juggling multiple vendors.
3) Why does it matter if I process many small transactions?
Every swipe or dip of a card often includes a fixed per-transaction fee on top of a percentage rate. If most of your checks are small, you might be paying that fixed fee numerous times each day, driving up your total costs proportionately more than if those transactions were combined.
4) Is surcharging legal in my state?
It depends. Some states in the US allow you to add a surcharge to help cover payment processing fees, while others impose legal restrictions on the practice. You’ll want to confirm local regulations. If surcharging is allowed, be transparent with your customers to avoid misunderstandings.
5) Should I just stick to one payment processor for everything or shop around?
Competition can work in your favor. Shopping around helps you stay informed about market rates, new technology, and better contract terms. If your existing provider can match or beat those offers, great—even better for your business. The key is transparency and understanding precisely what you’ll pay month after month.
6) How can I prepare in advance to avoid the January blues?
Start by budgeting for a lower volume of sales right after the holiday season. Make sure you review your existing contract to see if any new rates or fees will apply in January. You might also plan a small promotional campaign during the slow season to boost revenue, which helps maintain a healthier ratio of processing costs to sales.
7) Can a system like sunday boost table turnover too?
Absolutely. With a quick, contactless way for guests to pay, you can shave minutes off each table’s experience, especially when servers are busy. The combined effect can yield faster table turnover—which means you seat more guests, boost total sales, and offset credit card fees on a volume basis.
8) Is it normal to feel swamped by payment statements?
Yes. Restaurant operators are busy people, and payment processing can get technical. That’s why clarity and simplicity are key. If you find your statements confusing, seek out more transparent solutions. You deserve to understand, easily and completely, every line item that’s coming out of your pocket.
January’s payment blues don’t have to be your annual tradition. By digging deeper into your statements, negotiating better terms, and leveraging an integrated platform such as sunday, you give your restaurant the strongest possible foundation to thrive—even during those quiet, chilly months. Enjoy the satisfaction of cutting down on unexpected costs and freeing up resources for what truly matters: serving amazing food, delighting guests, and keeping your business growing all year round.
