What is OS BENEFiTS?

OS BENEFiTS is an association built to provide affordable, ACA-compliant health insurance and wellness benefits specifically for independent businesses in the hospitality industry. By leveraging the collective bargaining power of the OSB Association, OS BENEFiTS secures quality, nationwide benefits at competitive rates, lowering the barriers to entry for independent restaurants.

The Unique Demographics of the Hospitality Industry:

Why Accessible Health Benefits Matter

The hospitality industry is one of the most diverse sectors in the U.S., with significant representation from minority groups and younger workers, making it unique in both workforce composition and needs. This diversity underscores the importance of affordable, accessible health benefits designed for independent restaurants and foodservice businesses.

In April 2024, the National Restaurant Association (NRA) published its Restaurant Employee Demographics report. Below is an in-depth look at the workforce composition within the restaurant industry, including race, ethnicity, age, and role demographics.

Race and Ethnicity

• Diverse Workforce: 50% of restaurant and foodservice employees are minorities, compared to 41% of the total U.S. employed labor force. Within this group, 26% are Hispanic, 12% are Black or African American, and 7% are Asian, each with a larger representation in the restaurant industry than in the overall workforce.
• Minority Leadership: The industry also boasts a high percentage of minority managers (45%) and has the highest proportion of minority chefs and cooks (60%) among major occupations.

These statistics show that the restaurant industry serves as an important pathway for career advancement and opportunity for minority communities. However, limited access to affordable healthcare presents a barrier to stability and well-being for these professionals.

Age

• Younger Workforce: The hospitality industry employs a much younger workforce compared to other sectors, with 40% of restaurant employees under the age of 25 and 60% under the age of 35. By contrast, only 13% of the overall U.S. workforce is under 25, while 35% is under 35.
• Roles with Younger Demographics: Positions such as food preparation, counter staff, and waitstaff tend to attract younger workers, with 65% of food preparation and counter workers and 51% of waitstaff under the age of 25. Older employees, particularly those aged 55 and above, are more frequently represented in managerial (16%) and chef roles (16%).

This younger workforce often prioritizes flexibility and immediate, preventive care options but has fewer resources to afford coverage. Independent restaurant owners face the challenge of providing affordable health benefits that fit tight budgets while meeting these diverse needs.

The Need for Change in Hospitality Benefits

Independent hospitality businesses often operate with narrow profit margins, making it difficult to balance the health and wellness needs of their employees with the realities of their budgets. The result is an underserved, uninsured community of dedicated professionals—only 32% of hospitality workers currently have healthcare coverage, a stark contrast to the 77% coverage rate for private industry workers. This lack of coverage is not without consequences. As The Kaiser Family Foundation’s Healthcare Coverage and Access Research points out in their report, 50% of U.S. families cannot afford their deductible, and 33% have chosen not to seek care due to costs in the past year, leaving many restaurant workers to face health risks without adequate support.

OS BENEFiTS: A Solution Built for the Hospitality Industry

OS BENEFiTS was created to address these challenges head-on, providing a practical, cost-effective solution that empowers independent restaurant owners to support their teams’ health and well-being. With options that meet the budgetary constraints and needs of independent restaurants, OS BENEFiTS offers preventive care, crisis insurance, and lifestyle services tailored to the industry’s unique demands. Our mission is simple: To make quality health benefits accessible for independent restaurant teams, helping owners take care of their employees with the same dedication they bring to taking care of their guests.

Why OS BENEFiTS Matters for Your Restaurant

Offering health benefits through OS BENEFiTS is not only about meeting the needs of your team; it’s a smart business move. Health benefits improve morale, increase retention, and make your restaurant a more attractive workplace. In an industry where employee turnover is high, the ability to retain skilled team members can have a direct impact on your bottom line. Here’s why it matters:

• Retention: Employees with access to health benefits are more likely to stay with an employer. By providing affordable, comprehensive benefits, you’re investing in a more stable, experienced team that’s dedicated to your restaurant.
• Attracting Talent: As the job market grows more competitive, health benefits are a key differentiator. Offering health insurance can make your restaurant a preferred choice among job seekers, helping you recruit top talent.
• Reducing Absenteeism: With health coverage, employees are more likely to address health issues before they escalate. This reduces sick days and presenteeism (working while sick), which helps maintain productivity and service quality.

Health Insurance Options for Independent Restaurants

For small restaurant owners, navigating the options for providing health benefits can be challenging, as each approach comes with unique advantages and drawbacks. Some plans offer tax incentives and flexibility, like Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs), which allow employers to reimburse employees for health expenses but puts the burden on the employees to manage their own insurance purchases. Other solutions, such as small business health insurance plans or Professional Employer Organizations (PEOs), provide more traditional group coverage options but often come with higher costs, limited flexibility, or added administrative burdens that can be difficult for small businesses to manage on their own.

QSEHRA is a tax-free reimbursement arrangement allowing small businesses to reimburse employees for health insurance premiums and other medical expenses up to a specified limit.

• Pros: Offers flexibility; business owners set contribution levels.
• Cons: Limited to businesses with fewer than 50 employees; employees must buy their own insurance, which can be cumbersome and may not provide comprehensive coverage. There is also a good bit of administrative burden put on both the employee and the employer to ensure proper reimbursement and documentation.

2 - Small Business Health Insurance (Individual Plan)

Owners can purchase health insurance plans on the open market, either directly through insurers with the support of a broker or via the Small Business Health Options Program (SHOP) marketplace.

• Pros: Access to standard small-group insurance options.
• Cons: Costs are often high, with fluctuating premiums and few affordable options for part-time or seasonal staff. Also, for the SHOP marketplace provided by the ACA, it requires 70% participation from your team, which can be challenging for small businesses to achieve. To put this in perspective, most teams in the hospitality industry see only 15-30% participation, often dependent on the employer’s contribution level.

3 - Professional Employer Organization (PEO)

A PEO is a co-employment arrangement where the PEO handles HR functions, including benefits administration, for the business.

• Pros: Simplifies HR management, provides access to benefits often reserved for larger companies.
• Cons: High administrative fees and loss of direct control over certain HR functions. Often unaffordable for smaller businesses with lean budgets.

4 - Medicaid

Medicaid is a federal and state program that provides free or low-cost healthcare coverage to eligible low-income individuals and families, with eligibility and covered services varying by state.

• Pros: Provides basic healthcare access at minimal or no cost for eligible employees, helping those in low-wage positions or with fluctuating income to access essential care.
• Cons: Not all employees may qualify due to income thresholds, and some states have limited Medicaid expansion, meaning that coverage may not be as comprehensive or accessible as private insurance options. Medicaid also does not cover all medical services, potentially leaving some healthcare needs unmet.

Why OS BENEFiTS is Different

OS BENEFiTS goes beyond health insurance to deliver a suite of benefits uniquely designed for the hospitality industry. Independent restaurants face challenges, from tight profit margins to high employee turnover and a diverse workforce with varying needs. Recognizing these challenges, OS BENEFiTS provides flexible, affordable, and easy-to-manage health and wellness benefits tailored specifically for small businesses in hospitality. By leveraging the collective bargaining power of the OSB Association, we provide ACA-compliant health insurance plans and wellness resources that empower restaurant owners to support their teams without financial strain—because great hospitality starts with taking care of your people.

Affordable, Transparent Pricing

• Plans Starting at $239 per Month: OS BENEFiTS makes it financially feasible for even the smallest independent restaurants to offer health benefits, removing one of the biggest barriers for business owners.
• Stable, Predictable Rates: Unlike traditional insurance plans that often come with fluctuating premiums and unexpected increases, OS BENEFiTS provides consistent pricing. This predictability allows business owners to plan their budgets with confidence and avoid surprises that can disrupt cash flow.

Flexible Plan Options for Your Whole Team

• Adaptability Across Roles: Whether you have full-time chefs, part-time servers, or seasonal staff, OS BENEFiTS plans are designed to meet their unique needs. Employers can offer coverage that works for everyone, regardless of employment status or hours worked.
• Adjusts With Your Team: The hospitality industry often sees shifts in staffing through out the year, and our plans can scale alongside these changes, ensuring no team member is left behind.

Comprehensive Health Coverage

• Essential Plans: Provide the foundation for employee health with preventive care services, hospital indemnity for emergencies, and virtual primary care for convenient access to medical professionals.
• Premium Plans: For employees who need more extensive coverage, our premium options offer low co-pays, no deductibles for major medical services like surgery or hospitalization, and prescription drug coverage—ensuring comprehensive care without the financial burden.

Customizable Add-Ons

• Dental and Vision Coverage: Employees can access affordable, high-quality dental and vision plans as optional add-ons. Employers have the flexibility to cover these costs or offer them as voluntary benefits, ensuring the package suits both their budget and their team’s needs.

Nationwide Access and Virtual Care

• Extensive Provider Network: Employees gain access to a wide network of doctors, hospitals, and specialists across the United States, ensuring that no matter where they are, they can find the care they need.
• 24/7 Virtual Care: Virtual primary care options allow employees to consult with medical professionals anytime, anywhere—ideal for restaurant workers who may have irregular schedules and limited time for in-person appointments.

Wellness Benefits for Holistic Support

• Comprehensive Wellness Perks: OS BENEFiTS includes access to over 25 wellness-focused services, such as telemedicine, fitness discounts, mental health support, family planning, childcare, and even pet care. These perks are designed to address the unique challenges faced by hospitality workers, helping them stay healthy and balanced.
• Enhanced Employee Engagement: By offering these benefits, employers can demonstrate their commitment to their team’s overall well-being, boosting morale, loyalty, and productivity.

Simplified Administration

• Centralized Benefits Management: The OS BENEFiTS dashboard consolidates all aspects of benefits management—from enrollment and payment processing to vendor coordination—into a single, user-friendly platform.
• HIPAA-Compliant Technology: This ensures that all employee data is secure and protected, giving employers peace of mind.
• Time-Saving Solution: For independent restaurant owners juggling multiple responsibilities, our streamlined approach significantly reduces the administrative burden, allowing more time to focus on running their business.

With these comprehensive features, OS BENEFiTS delivers more than just health insurance—it provides a strategic advantage for independent restaurants. By ensuring your team feels supported and valued, you can improve employee retention, boost morale, and focus on growing your business. At OS BENEFiTS, we believe that taking care of your team is the first step to building a thriving hospitality business.

Who OS BENEFiTS May Not Be the Best Fit For

While OS BENEFiTS provides affordable, accessible health coverage designed to meet the vast majority of our teams, we understand that everyone’s healthcare needs are truly unique. For individuals with specific chronic conditions, or those at high risk for serious illnesses, our current plans may have limitations in covering ongoing treatment and specialized care. Our plans are designed to offer preventive care and diagnostic support, but we acknowledge they may not be suited for those requiring intensive, long-term treatment. We are committed to transparency around coverage and limitations and are actively working to expand our offerings to support team members with complex health conditions. We’re here to answer any questions and provide honest guidance on how OS BENEFiTS may—or may not—be the right fit for you.

Conclusion: Invest in Your Team, Strengthen Your Restaurant’s Bottom Line

The reality is that offering health benefits isn’t just about complying with regulations or ticking a box—it’s about building a stable, loyal team that drives your restaurant’s financial success. By opting into OS BENEFiTS, independent restaurant owners have access to affordable, comprehensive health and wellness solutions tailored for the hospitality industry. From boosting retention to reducing absenteeism, OS BENEFiTS helps restaurant owners invest in their team without compromising their bottom line.