2007-2008 Restaurant Report

REstauRant IndustRy o p e r a t i o n s r e p o r t

2 0 0 7 – 2 0 0 8 E d I t I o n

and

Restaurant Industry Operations Report 2007/2008 Edition

4 List of Exhibits

6 The Restaurant Industry

9 Highlights from the Restaurant Industry Dollar

10 Understanding Medians and Means

12 Explanation of Terms

13 Introduction to Analysis of Data and Explanatory Notes

14 Section A—Full Service Restaurants (Average Check Per Person Under $15)

42 Section B—Full Service Restaurants (Average Check Per Person $15 to $24.99)

68 Section C—Full Service Restaurants (Average Check Per Person $25 and Over)

94 Section D—Limited Service Restaurants

119 Analyze Your Operation

120 Worksheet

121 Sample Survey

124 Information Regarding Regional and State Restaurant Industry Operations Reports

125 Additional Information

ISBN # 1-931400-64-4

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Dear Reader:

The National Restaurant Association and Deloitte & Touche LLP are pleased to present the 2007/2008 edition of the Restaurant Industry Operations Report.

The Restaurant Industry Operations Report is based on financial and operating data for 2006 provided by members of the National Restaurant Association and members of various state restaurant associations. The data processing was performed by Deloitte & Touche LLP, and the report was published in conjunction with the National Restaurant Association. More than 700 questionnaires were received from restaurant operators, which form the basis of this report. This unique study of the operating results of restaurants principally in 2006 includes specific financial information on full service restaurants segregated by average check of less than $15 per person, average check per person $15 to $24.99, average check equal to or greater than $25 per person, and limited service restaurants.

The data has been presented by type of restaurant, location, sales volume, and menu theme, among other methods. The report presents operating results as amounts per restaurant seat and as ratios to total sales, which are the most common bases used in the industry. Unless otherwise noted, amounts and ratios in the text and exhibits are the medians and upper and lower quartiles of the survey data. This data is not intended to be standards or goals for individual restaurants, nor is this report an attempt by the National Restaurant Association or Deloitte & Touche LLP to set or adjust industry prices or operating ratios. Rather, the data and related worksheet at the back of the report are intended to be used as management tools to help you compare your restaurant’s performance with that of similar restaurants.

This year’s survey is based on substantial effort and support provided by the Research Department of the National Restaurant Association in Washington, D.C., and by the Restaurant & Hospitality practice of Deloitte & Touche, LLP, including Nicole Bell, Ha Na Ko, and Ryan Huynh. Their efforts are very much appreciated.

We would like to thank the restaurant operators who supplied complete information about their restaurants, making this study possible.

Dawn Sweeney Steven SteinhauserPresident and Chief Executive Officer Director, Restaurant Industry PracticeNational Restaurant Association Deloitte & Touche LLP

© 2008 by the National Restaurant Association and Deloitte & Touche LLP

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Exhibit Page

The Restaurant Industry 6

Percent Change in Dollar Sales 2005-2007 8

The Restaurant Industry Dollar 9

Section A Full Service Restaurants(Average Check Per Person Under $15)

Profile of Contributors

Highlights 14

Characteristics 14

Composition of Participating Restaurants A-1 15

Performance Measurements

Average Check A-2 16

Average Daily Seat Turnover A-3 17

Cost per Dollar of Sales A-4 18

Number of Employees A-5 19

Annual Employee Turnover A-6 20

Employee Information A-7 21

Take-Out/Drive-Through, Outside CateringAnd Banquet Service – Ratio to Total Sales

A-8 22

Statement of Income and Expenses

Amount per Seat and Ratio to Total Sales:All Full Service Restaurants(Average Check Per Person Under $15) A-9 23

Amount per Square Foot A-10 24

Amount per Seat by:Type of Establishment A-11 26

Affiliation A-13 28

Sales Volume A-15 30

Menu Theme A-17 34

Location A-19 36


Ratio to Total Sales by:Type of Establishment A-12 27

Affiliation A-14 29

Sales Volume A-16 32

Menu Theme A-18 35

Location A-20 37


Income Differential A-23 40

List of ExhibitsExhibit Page

Section B Full Service Restaurants(Average Check Per Person $15 to $24.99)


Highlights 42

Characteristics 42

Composition of Participating Restaurants B-1 43


Average Check B-2 44

Average Daily Seat Turnover B-3 45

Cost per Dollar of Sales B-4 46

Number of Employees B-5 47

Annual Employee Turnover B-6 48

Employee Information B-7 49

Take-Out/Drive-Through, Outside Catering and Banquet Service – Ratio to Total Sales B-8 50


Amount per Seat and Ratio to Total Sales:All Full Service Restaurants(Average Check Per Person $15 to $24.99) B-9 51

Amount per Square Foot B-10 52

Amount per Seat by:Type of Establishment B-11 54

Affiliation B-13 56

Sales Volume B-15 58

Menu Theme B-17 60

Location B-19 64


Ratio to Total Sales by:Type of Establishment B-12 55

Affiliation B-14 57

Sales Volume B-16 59

Menu Theme B-18 61

Location B-20 63


Income Differential B-23 66

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Exhibit Page

Section C Full Service Restaurants(Average Check Per Person $25 and Over)


Highlights 68

Characteristics 68

Composition of Participating Restaurants C-1 69


Average Check C-2 70

Average Daily Seat Turnover C-3 71

Cost per Dollar of Sales C-4 72

Number of Employees C-5 73

Annual Employee Turnover C-6 74

Employee Information C-7 75

Take-Out/Drive-Through, Outside Cateringand Banquet Service – Ratio to Total Sales

C-8 76


Amount per Seat and Ratio to Total Sales:All Full Service Restaurants(Average Check Per Person $25 and Over) C-9 77

Amount per Square Foot C-10 78

Amount per Seat by:Type of Establishment C-11 80

Affiliation C-13 82

Sales Volume C-15 84

Menu Theme C-17 86

Location C-19 88


Ratio to Total Sales by:Type of Establishment C-12 81

Affiliation C-14 83

Sales Volume C-16 85

Menu Theme C-18 87

Location C-20 89


Income Differential C-23 93

Exhibit Page

Section DLimited Service Restaurants


Highlights 94

Characteristics 94

Composition of Participating Restaurants D-1 95


Average Check D-2 96

Average Daily Seat Turnover D-3 97

Cost per Dollar of Sales D-4 98

Number of Employees D-5 99

Annual Employee Turnover D-6 100

Employee Information D-7 101

Take-Out/Drive-Through, Outside Cateringand Banquet Service – Ratio to Total Sales

D-8 102


Amount per Seat and Ratio to Total Sales:All Limited Service Restaurants D-9 103

Amount per Square Foot D-10 104

Amount per Seat by:Type of Establishment D-11 106

Affiliation D-13 108

Sales Volume D-15 110

Menu Theme D-17 112

Location D-19 114


Ratio to Total Sales by:Type of Establishment D-12 107

Affiliation D-14 109

Sales Volume D-16 111

Menu Theme D-18 113

Location D-20 115


Income Differential D-23 118

List of Exhibits – continued

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The restaurant industry is a large and diverse business:

• Restaurant-industry sales are forecast to reach $558.3 billion in 2008 – an increase of 4.4 percent over 2007, or 0.9 percent in inflation-adjusted terms.

• The restaurant industry will mark the 17th consecutive year of real sales growth in 2008.

• On a typical day in 2008, the restaurant industry will post average sales of more than $1.5 billion.

• Sales at full service restaurants are projected to reach $187.4 billion in 2008.

• Sales at quick service restaurants are forecast to increase to $156.8 billion in 2008, while snack and non-alcoholic-beverage bar sales rise to $20.9 billion.

As the restaurant industry heads into an expected 17th consecutive year of real sales growth, the National Restaurant Association anticipates slower growth in industry sales for 2008. Elevated gas prices, higher food costs (wholesale and menu), and other factors likely will cause consumers to become more discriminating in their spending. Nevertheless, consumers continue to demand the variety, convenience, and socialization restaurants provide. The ability of dining establishments to provide customers with an assortment of food and beverage options, while maintaining value pricing, will be essential to competitive differentiation in the upcoming year.

Association research indicates that unfulfilled demand for restaurant services continues at respectable levels, resulting in a rise in industry employment. As food and labor costs climb, operators will rely more on technology to help manage costs and boost productivity. Although growth in 2008 is expected to be more modest than in previous years, the industry is expected to post real sales gain in the coming year.

Several notable industry trends expected in 2008 are:• More creative menus: Driven by more sophisticated and

demanding customers, the restaurant industry has seen an explosion of new tastes, flavors, and preparation methods. That trend will accelerate in 2008.

• Employee recruitment and retention: Restaurateurs already say recruitment and retention are top concerns – and that’s even before the industry adds 2 million jobs by 2018. Strong training, productivity gains, good employee-relations strategies, and immigration reform are more important than ever, especially in areas of the country where restaurant sales growth is the strongest.

• Green practices: Energy conservation practices among restaurateurs are on the rise – a majority of restaurant operators indicate that they are actively working to cut energy costs.

• Enhancing food safety: Food safety and security will continue to be a top public policy issue for the industry during 2008.

• Nutrition-conscious patrons: Three in four adults are trying to eat more healthfully in restaurants than they were two years ago. Restaurant operators will need to continue to deliver an expanding variety of tasty choices – in a wider array of portion options – to their guests.

• Convenience: Customers demand the meals they want, when and how they want them. Look for innovations in take-out, drive-thru, delivery, online ordering, self-service options, and at-table ordering and payment options.

• Better margins through improved technology: Higher energy and food costs will add to margin pressure. Greater capital investment in technology will be needed to boost productivity.

FULL SERVICE OUTLOOKFull Service restaurant sales are forecast to reach $187.4 billion in 2008, an increase of roughly $7.7 billion, or 4.3 percent, over 2007 sales.

A majority of full service operators expect their business to improve in 2008: 59 percent of fine-dining operators, 57 percent of casual-dining operators, and 45 percent of family-dining operators expect improved sales figures in the upcoming year.

WHAT TO WATCHFull service restaurants will need to pay close attention to the three Cs in 2008 – choice, convenience, and customers. According to the National Restaurant Association’s October 2007 survey of table service operators, customers are exerting more influence than ever before, and they will reward those operators who can give them the food they want where and when they want it – whether it is delivered to their car or ordered online.

The Restaurant Industry

RESTAURANT INDUSTRY SALES – 2007 AND 2008 ($000)

2006 2007

Total Restaurant Industry $534,720,701 $558,318,575

Commercial Restaurant Services

488,290,700 510,430,349

Eating Places 360,722,002 376,738,661

Full Service Restaurants 179,679,723 187,405,951

Limited Service Restaurants

150,217,108 156,826,661

Noncommercial Restaurant Services

44,535,085 45,874,762

Military Restaurant Services

1,894,916 2,013,464

Note: 2007 and 2008 figures are projected

Source: National Restaurant Association, 2008 Restaurant Industry Forecast

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Trends to look for in 2008 include:• Customers hungry for choices: From curbside to online, operators

are delivering more choices to their customers. Take-out is becoming more prevalent, especially among family-dining and casual-dining restaurants; according to Association research, nine out of ten family-dining and casual-dining operators believe that the take-out trend will become more popular in the future. Although not as prevalent as take-out, delivery from full service restaurants also is a service that will likely increase in popularity.

• Techno-savvy service: Full service operators continue to attract patrons with improved in-restaurant technology. Technology-related offerings gaining favor include wireless Internet access for customers. Though not as prevalent, electronic ordering and electronic payment systems at the table will become more popular in the future.

• Take the experience home: More full service operators are allowing customers to take the dining experience home with them – or share it with others – by selling food and merchandise as well as gift cards. The Association’s October 2007 survey found that a majority of family-dining and casual-dining operators believe merchandise and food items available for retail sale will become increasingly more popular. Additionally, Association research has found that restaurant gift cards continue to grow in popularity among consumers.

QUICK SERVICE OUTLOOKThe quick service-restaurant segment is forecast to post sales of $156.8 billion in 2008, a 4.4 percent increase over its 2007 sales of $150.2 billion.

The National Restaurant Association defines quick service restaurants as operations where patrons generally order at a cash register or a drive-thru, or select items from a food bar and pay before they eat.

A majority of quick service operators expect their business to improve – 69 percent of quick service operators anticipate sales to be higher in 2008 than they were in 2007.

WHAT TO WATCHThe National Restaurant Association’s October 2008 survey of quick service operators found that more food choices topped the list of hot trends for the coming year. Thirty percent of quick service operators cited more food choices as a top trend, 19 percent picked healthy alternatives, 17 percent listed more value for the price, 14 percent listed more beverage choices, and 11 percent chose improved food quality.

Trends to look for in 2008 include:• Serving up options: Quick service will continue to play to its

strength of providing convenience to time-pressed consumers, including via takeout, delivery, and drive-thru services.

• Tapping into technology: Quick service operators are using technology to satisfy customers’ hunger for choice. From wireless Internet access to self-serve ordering terminals to digital menu boards, quick service operators are employing a variety of technology-related options to improve operational efficiency as well as distinguish themselves from the competition.

• An appetite for variety: Quick service operators are striving to fulfill consumers’ hunger for more food and beverage choices. According to the Association’s October 2007 survey, 90 percent of quick service operators said they added new food items in 2007, while 84 percent said they plan to add new food items in 2008.

MENU TRENDSThe name of the game for restaurant menus in 2008 will be “more” – more food choices; more beverage choices; more portion-size choices; more healthy options; and more tastes, flavors, and innovation. Restaurant operators, customers, and chefs surveyed by the National Restaurant Association in October 2007 point to an explosion of choices on restaurant menus as restaurant operators deliver new items as well as menu standards with new twists. The trend toward variety extends to expanding beverages options too, with restaurants serving a range of alcoholic and nonalcoholic beverages.

• Small is big. Bite-size desserts and small plates/tapas/mezze are among the hottest trends, according to the National Restaurant Association’s second annual “What’s Hot, What’s Not,” survey of more than 1,200 chefs who are members of the American Culinary Federation.

• Many restaurants now feature alternative-source ingredients. Local produce, organics, sustainable seafood, grass-fed, and free-range items all ranked high on the Top 20 hot items in the chef survey. Full service-restaurant operators surveyed by the Association also said locally produced items continued to grow more popular, especially at fine-dining establishments, where 86 percent of operators said they serve locally sourced items (compared with about three of five family-dining and casual-dining operators). A majority of operators across all full service segments believe locally sourced items will become more popular in the future.

• Specialty alcohol is on tap as a strong trend. Chefs ranked craft beer, signature cocktails, and organic wine among the top 20 restaurant trends. National Restaurant Association operator surveys show that full service restaurants are shaking up their beverage-alcohol options with new offerings.

• Americans want healthful options. According to National Restaurant Association research, three of four adults – and about the same percentage of teenagers – say they are trying to eat more healthfully in restaurants today. More than eight out of 10 consumers say that they see more “healthy” options on restaurant menus than they did two years ago. Nearly one in four adults has used the Internet to research nutrition information for restaurant foods. Quick service operators said “healthy alternatives” are the No. 2 trend for their segment in 2008.

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OPERATIONAL SPENDING TRENDSRecent Association research shows that full service and quick service operators plan to concentrate their spending on improved food safety practice, better technology, and remodeling.

Percentage of full service restaurant operators, by type of operation, planning to allocate a larger proportion of their budget to selected items in 2008:

Percentage of quick service restaurant operators planning to allocate a larger proportion of their budget to selected items in 2008:

OUTLOOK FOR RESTAURANTS IN 2008Economic factors play an ongoing and critical role in determining the performance of the restaurant industry. Because business conditions within the industry mirror general economic conditions, it is important to understand how the economy is expected to perform in 2008 in order to determine what will occur with restaurant sales over the years ahead. Real GDP growth in 2008 around the 2 percent range is anticipated. An expanding economy signals growth in the restaurant industry as well, with a high correlation traditionally existing between changes in real GDP and changes in inflation-adjusted industry sales.

The rate of increase in disposable income is another indicator of restaurant industry performance. Changes in real disposable income are positively related to changes in restaurant sales. In general, as the rate of change in disposable incomes rises or falls, similar behavior is observed for restaurant sales. Advances in real disposable income in 2008 are expected to be in the 2 to 3 percent range.

National Restaurant AssociationResearch and Information Services Division

Family dining

Casual dining

Fine dining

Food safety/security 36% 45% 34%

Training 36% 34% 34%

Technology 30% 34% 36%

Remodeling 29% 37% 28%

Green initiatives 23% 31% 32%

Advertising/promotion 27% 20% 22%

Unit expansion 10% 10% 19%

Source: National Restaurant Association, 2007

Technology 55%

Unit expansion 46%

Remodeling 46%

Food safety/security 43%

Training 40%

Advertising/promotion 29%

Green initiatives 21%

Source: National Restaurant Association, 2007

Restaurant Industry Percent Change In Dollar Sales, 2005-2007

Current $ 2006

Current $ 2007

Current $ 2008

0.80.8

1.9

0.70.3

1.2

0.90.8

1.54.4

4.64.7

4.34.1

4.5

4.44.5

5.0

Restaurant industry sales include all meals and snack sales at commercial restaurants, institutional organizations, hotel/motel restaurants and retail host restaurants, among others.Constant dollar sales are adjusted for inflation.

Note: 2006 and 2007 figures are projected.Source: National Restaurant Association, 2007 Restaurant Industry Forecast

Constant $ 2006

Constant $ 2007

Constant $ 2008

Total Industry Sales

Fullservice Restaurant Sales

Quickservice Restaurant Sales

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Highlights From The Restaurant Industry Dollar• Full Service Restaurants (Average Check Per Person Under $15)

reported income before income taxes of approximately 5.6% of total sales.

• Full Service Restaurants (Average Check Per Person $15 to $24.99) reported salaries and wages of approximately 33.5% of total sales.

• Full Service Restaurants (Average Check Per Person $25 and Over) reported cost of food and beverage sales of approximately 32.4% of total sales.

• Limited Service Restaurants reported cost of food and beverage sales of approximately 30.4% of total sales.

The following schedule presents selected median values for full service and limited service restaurants.

The Restaurant Industry Dollar1

Full Service Restaurants Limited Service RestaurantsAverage Check Per Person

Under $15 $15 to $24.99

$25 and Over

Where It Came From:

Food and Beverage Sales 100% 100% 100% 100%

Where It Went:

Cost of Food and Beverage Sales 31.9% 33.1% 32.4% 30.4%

Salaries and Wages2 32.5% 33.5% 34.5% 28.6%

Restaurant Occupancy Costs 6.0% 6.0% 6.9% 8.6%

Income Before Income Taxes 5.6% 3.6% 4.1% 9.7%

1 All amounts are median values2 Includes employee benefits

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The annual studies written by the Restaurant/Hospitality Advisors of Deloitte & Touche LLP utilize medians for the majority of their reported results. This article will give an in-depth explanation of medians and quartiles as well as briefly discuss means, along with practical uses of both.

A median is defined as the middle value of all amounts calculated for a specific line item. For example, if we received nine responses for number of full-time employees – 8,4,2,6,9,7,5,1,3 – these numbers would be arranged sequentially (in order of size) – 1,2,3,4,5,6,7,8,9 – and the middle value, 5, would be the median, since 50% of the responses received are below the value and 50% are above.

In conjunction with medians, lower and upper quartiles are used to give a further description of the sample results. Occasionally, we use means (arithmetic average) to report data, but we believe the median is the more appropriate method to report our results. This is because the median gives less biased results. Medians keep results from being skewed by a few abnormal respondents. For example, if a few responding restaurants incurred very large operating losses, those losses would be divided evenly among all restaurants in the sample (when using mean calculations) and would reduce the average net profit of the entire group which, for the most part, may have reported respectable profits.

Quartiles divide the responses into four equal parts, with the median still being the middle value. The “lower quartile” is the value that separates the lowest 25% of the responses from the rest of the sample when arranged sequentially, while the “upper quartile” defines the boundary of the upper 25% of the responses from the lower 75%. Stated another way, 50% of all responses fall between the lower and upper quartiles. For example, if we receive 99 responses for a specific item and the responses (conveniently) were numbered 1 through 99, the median (or middle value) would be 50, the lower quartile would be 25 (25% of responses would be above 75). Fifty percent (or half) of the responses would fall between the lower and upper quartiles (see chart below).

It will become evident in the reading of this report that columns do not total when medians are involved. The reason behind this is, EACH LINE ITEM IS ANALYZED SEPARATELY! In Table I, when all amounts are arranged sequentially, the median total sales amount per seat is $5,197. This figure is based on the 354 restaurants* that gave us information for this specific line item. The median amounts per seat for total food and beverage sales were $2,163 and $1,091, respectively. These two amounts were analyzed on a sample of 326 and 254 restaurants, respectively, that gave us separate food sales and beverage sales figures. Different sample sizes are one reason why figures do not add to the totals shown.

There is another major reason that columns in the tables do not total. When using medians, it is important to remember that the median food sales, the median beverage sales and the median total sales figures reported probably represent the results of three different restaurants, even though the sample size of each may be equal. This also holds true for lower and upper quartile figures.

The terms MEAN, AVERAGE, and ARITHMETIC MEAN are all synonymous. A mean is calculated by summing the results and dividing by the number of responses. In Table II, Column 1, the sum of the number of restaurant seats is 1,940. Divide this by the 9 respondents and the mean (average) is 216 seats per restaurant. By comparison, the median number of seats is 140. It is obvious that the average is skewed by the two restaurants with 500 and 600 seats.

Table II shows a group of restaurants that provided their total number of seats. They also provided the number of guests served, so the average daily seat turnover was calculated. The average number of seats for this sample is approximately 216 (1,940 seats divided by nine responses), and the median number of seats is 140 (the middle value of all respondents when responses are arranged sequentially). The average daily customers is 206, and the median is 200. With this information, the mean and median for the number of daily seat turnover can be calculated.

Understanding Medians And Means

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• The median daily seat turnover is 1.6 (the middle value of a sequential sort of Column 3).

• To compute the average daily seat turnover, divide the average daily customers served (Column 2) of 206 by the average number of seats per restaurant (Column 1) of 216. This gives the average daily seat turnover of approximately 1.0. The mean daily seat turnover is greatly influenced by the large restaurants with 500 and 600 seats with low daily seat turnover statistics, due perhaps to inclusion of seating for large banquet facilities.

As shown, median and means both have their uses, with medians not being affected by one or two responses that vary significantly from the rest of the sample. This is the main reason the accompanying studies report the data using medians.

* The numbers used for sample sizes are representative and are not actual sample sizes.

Understanding Medians*

Table INet Profit

Amount per Seat

Lower Quartile

Median Upper Quartile

Sales

Food $2,787 $2,163 $6,246

Beverage 555 1,091 2,254

Total Sales 3,381 5,197 7,788

Cost of Sales

Food 1,030 1,499 2,331

Beverage 139 306 587

Total Cost of Sales 1,154 1,877 2,637

Gross Profit 2,110 3,313 5,154

Other Income 13 41 113

Total Income $2,213 $3,446 $5,362

Note: Detail amounts do not sum to totals due to presentation of median values.

Table IIRestaurant Seating

Responding Restaurants

Column 1 Number of Seats

Column 2 Average Daily

Customers Served

Column 3 Average Daily Seat Turnover

(Column 2/Column 1)

Sequential Order of Column 3

A 60 90 1.5 3

B 80 128 1.6 4

C 100 200 2.0 9

D 120 204 1.7 6

E 140 250 1.8 7

F 160 290 1.8 8

G 180 290 1.6 5 Actual Median

H 500 200 0.4 2

I 600 200 0.3 1

Total 1,940 1,852 N/A

Median (middle value of column)

140 200 1.6 (ª)

Average (mean) 216 206 1.0

(ª) The median daily seat turnover is 1.6 (the middle value of a sequential sort of Column 3). Notice that this is not equal to the product of the median average daily customers served (200) divided by the median number of seats (140), which is 1.4. It is incorrect to use medians in calculations, such as addition or multiplication.

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Food salesThis category includes revenue derived from the sale of food in the restaurant. Food sales also include the sale of coffee, tea, milk and fruit juices, which usually are served as part of a meal. If there is no service of liquor, beer or wines, the soft drink sales also would be included in this category.

Beverage salesThis category includes revenue from the sale of wine, spirits, liqueurs, beer, and ale. These sales do not include coffee, tea, milk, or fruit juices, which normally are served with meals and, therefore, are considered food.

Prime costPrime cost is the total of the following: cost of food sold, cost of beverage sold and the associated payroll costs and employee benefit costs.

Salaries and wagesThis category includes the regular salaries and wages, extra wages, overtime, vacation pay and any commission or bonus payments made to employees. The entire restaurant payroll generally is included under this category.

Employee benefitsThis category includes federal retirement (Social Security) tax (FICA), federal and state unemployment taxes and state health insurance tax. Other items considered benefits are worker’s compensation insurance premiums, welfare plan payments, pension plan payments, accident and health insurance premiums and hospitalization, Blue Cross/Blue Shield and group insurance premiums. Also listed under employee benefits are education expenses, employee parties, employee sports activities, credit union, awards and prizes, and transportation and housing.

Direct operating expensesExpenses directly involved in providing service to the customer, such as uniforms, laundry, linen, china, and cleaning and paper supplies, are considered operating expenses. Also included are utensils, kitchen fuel, menus and drink lists, flowers and decorations, contract cleaning, auto or truck expense, parking, and licenses and permits.

MarketingThis group of expenses includes selling and promotion expenses, such as direct mail and entertainment costs in promotion of business (including gratis meals to customers). Also, the cost of advertising through newspapers, magazines or trade journals, outdoor signs, and radio and television is included. Public relations and publicity (including fees and commissions to advertising or promotional agencies) and royalties are found in this category.

Utility servicesThis section is composed of the costs of all fuel except that charged to direct operating expenses in the account “kitchen fuel.” Water, ice and refrigeration supplies, and the removal of waste are also included. The cost of oils, boiler compound, fuses, grease and other supplies, plus any small tools used in the operation or maintenance of the mechanical and electrical equipment, should also be charged to this account.

Restaurant occupancy costsRent, taxes and property insurance are occupancy costs. These are sometimes called “fixed charges,” since they usually are determined by the financial setup of the restaurant and usually not by the trend of its business.

Repairs and maintenanceThe following items are repairs and maintenance expenses: painting and decorating; plastering; upholstering; mending curtains; and maintenance contracts on elevators, signs and office machinery. Repairs to dining room furniture, refrigeration, air conditioning, buildings, floors, plumbing and heating are charged to this category as well. Repairs to dishwashing and sanitation equipment, kitchen equipment and office equipment are also included here.

General and administrative expensesThis group of expenses is commonly considered as overhead and includes items that are necessary to the operation of the business rather than those connected directly with the service and comfort of the customer. This account should be charged with the cost of all printed matter not devoted to advertising and promotion, such as accounting forms, account books, restaurant checks, office supplies, cash register and other checking supplies, letterheads, bills and envelopes. All postage, except amounts applicable to advertising, should be charged here. The cost of telephone equipment rental, local and long-distance calls should be charged to this account, with the exception of calls chargeable to marketing. Other items charged to this account are data processing costs, dues and subscriptions and insurance costs (other than those included as employee benefits or fire and extended coverage on the premises and contents). Commissions on credit card charges collection fees, cash shortages, professional dues and protective services are also considered general and administrative expenses.

Corporate overheadThis category consists of costs or fees charged or allocated by the central office or a management organization of a chain operation for executive supervision and management.

*Definitions and examples have been taken from “Uniform System of Accounts for Restaurants.”

Explanation Of Terms*

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IntroductionThe 2007/2008 edition of the Restaurant Industry Operations Report is divided into four sections. Each section provides analysis on one of the following types of operations:

Section A: Full Service Restaurants (Average Check Per Person Under $15)

Section B: Full Service Restaurants (Average Check Per Person $15 to $24.99)

Section C: Full Service Restaurants (Average Check Per Person $25 and Over)

Section D: Limited Service Restaurants

Respondents were asked to select which of the above categories most closely represents their operation. The data in each section is presented in individual exhibits that characterize the operating statistics of various types of establishments based upon the tabulation of the actual survey responses. Each section provides financial, operational and performance information, for 2006, which is presented in the following breakdowns:

Type of Establishment (Food Only/Food and Beverage)

Affiliation (Single Unit/Multi-Unit)

Sales Volume

Menu Theme

Restaurant Location

Average Check

Profit Versus Loss

More than 700 restaurants throughout the United States responded to our survey, which forms the basis for this publication. A sample copy of the survey can be found at the end of this publication.

Explanatory NotesReaders should be aware that the operators who participated in this study are not identical with those who participated in prior years’ studies. This makes comparisons with previous data difficult, because reporting ratios can be vastly different. However, comparisons of the information in past reports may be useful in identifying certain financial trends.

As in previous years, medians and quartiles are used extensively in data presentation. Medians are the middle values of all amounts calculated for a particular item when placed in sequential order. Half of all values reported are below the median, and half are above. Readers should be aware that medians are calculated only from respondents reporting information for each individual line item.

To provide readers with a better understanding of the range of reported values, lower and upper quartiles are also presented. These are the midpoints of each group bounded by the median. In other words, the sample is broken into four equal parts when arranged in sequential order. The lower quartile divides the sample into the lowest quarter and higher three-quarters of the sample; the upper quartile divides the sample into the highest quarter and lower three-quarters of the sample. It is important to note that columns composed of medians and quartiles may not add to the totals shown in the exhibits of this report, because all participants did not respond to every line item.

Computations within each exhibit include respondents that provided zeros and numerical amounts.

By Steven Steinhauser Director, Restaurant Industry Practice Deloitte & Touche LLP 2 California Plaza 350 South Grand Avenue Los Angeles, California 90071 (213) 688-3231

Introduction To Analysis Of Data And Explanatory Notes

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Exhibit A-1 presents the characteristics of the 223 respondents in the Full Service Restaurants (Average Check Per Person Under $15) category of this year’s study. Approximately three-fifths (60.5%) of the respondents represent independent restaurants and 57.9% reported that they were the sole occupant of their location. Restaurants with American menu themes represent 50.2% of this sample.

The median ratio of income before income taxes to total sales is 5.6% or $395 per seat.

Highlights• Median average check is $10.00.

• Median total sales per full-time equivalent employee is $47,543.

• Median food sales are $7,976 per seat and median beverage sales are $1,110 per seat.

• Median total sales per square foot is $281.

• Median income before income taxes is 5.6% of total sales.

• Median total cost of sales is 31.9% of total sales.

Characteristics• 60.5% of full service (average check under $15) restaurants are

single units, i.e., independents.

• 57.0% of the responding establishments have sales volume of $1,000,000 and over.

• 50.2% of the respondents report an American menu theme.

• 81.6% of the respondents operate their businesses in locations with less than 7,500 square feet and 69.0% of the respondents have less than 200 seats.

Section A-Full Service Restaurants (Average Check Per Person Under $15)

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Exhibit A-1Composition of Participating Full Service Restaurants(Average Check Per Person Under $15)Number of Respondents: 223

Percentage of Respondents


Type of Establishment: Ownership:Food Only 38.1% Sole Proprietorship 16.6%Food and Beverage 61.9 Partnership 16.6

Public Corporation 4.5Years in Business: Private Corporation 61.91 to 5 Years 19.3% Not Specified 0.45 to 10 Years 16.1 Over 10 Years 64.6 Menu Theme:

Hamburger 9.9%Region: 1 Steak/Seafood 4.5Northeast 17.9% Pizza 1.8North Central 27.4 Sandwiches/Subs/Deli 4.1South 27.4 American (varied) 50.2West 25.1 Mexican 4.9Not Specified 2.2 Italian 4.0

Other 20.6Average Check: 2

Under $10.00 39.9% Sales Volume: 3

$10.00 to $14.99 60.1 Under $500,000 18.4%$500,000 to $999,999 24.6

Affiliation: $1,000,000 to $1,999,999 35.0Single Unit - Independent 60.5% $2,000,000 and Over 22.0Single Unit - Franchise Operated 6.3Multi-Unit - Company Operated 19.3 Restaurant Location:Multi-Unit - Franchise Operated 13.9 Hotel 2.7%

Shopping Center or Mall 21.5Profit versus Loss: 3 Sole Occupant 57.9Profit 76.9% Other 17.0Loss 23.1 Not Specified 0.9

Lease versus Own: Total Number of Seats:Own Land and Building 30.9% Under 100 30.5%Lease Land and Building 32.3 100 to 149 19.7Lease Land and Own Building 5.4 150 to 199 18.8Own Land and Lease Building 0.4 200 to 399 26.0Not Specified 31.0 400 and Over 3.2

Not Specified 1.8

Total Restaurant Square Footage:Under 2,500 21.5%2,500 to 4,999 32.75,000 to 7,499 27.47,500 and Over 15.7Not Specified 2.7

¹ Regions:

Northeast: CT, ME, MA, NH, NJ, NY, PA, RI, VT

North Central: IL, IN, IA, KS, MI, MN, MO, NE, ND, OH, SD, WI

South: AL, AR, DC, DE, FL, GA, KY, LA, MD, MS, OK, NC, SC, TN, TX, VA, WV

West: AK, AZ, CA, CO, HI, ID, MT, NV, NM, OR, UT, WA, WY

² Per person, all meals

³ For respondents specifying

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Exhibit A-2Full Service Restaurants (Average Check Per Person Under $15)Average Check

Total

Lower Quartile Median

Upper Quartile

All Restaurants $8.00 $10.00 $12.00

Type of Establishment

Food Only $7.00 $8.00 $9.00

Food and Beverage 10.00 12.00 13.00

Restaurant Location

Hotel ** ** **

Shopping Center or Mall $7.75 $10.00 $12.00

Sole Occupant 8.00 10.00 12.00

Other 9.00 11.00 13.00

Profit versus Loss

Profit $8.00 $10.00 $12.00

Loss 9.00 10.00 12.50

Menu Theme

Hamburger $8.25 $11.00 $12.00

Steak/Seafood ** ** **

Pizza ** ** **

Sandwiches/Subs/Deli ** ** **

American (varied) 8.00 10.00 12.00

Mexican ** ** **

Italian ** ** **

Other 8.00 9.50 12.00

Affiliation

Single Unit - Independent $9.00 $10.00 $13.00

Single Unit - Franchise Operated ** ** **

Multi-Unit - Company Operated 7.00 10.00 12.00

Multi-Unit - Franchise Operated 8.50 9.00 11.00

Ownership

Sole Proprietorship $9.00 $12.00 $14.00

Partnership 9.00 10.00 12.00

Public Corporation ** ** **

Private Corporation 8.00 10.00 12.00

Sales Volume

Under $500,000 $7.00 $9.00 $12.00

$500,000 to $999,999 9.00 10.00 12.00

$1,000,000 to $1,999,999 8.00 10.00 13.00

$2,000,000 and Over 10.00 11.00 12.00

** Insufficient data

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Exhibit A-3Full Service Restaurants (Average Check Per Person Under $15)Average Daily Seat Turnover

Total


Upper Quartile

All Restaurants 1.7 2.5 3.6


Food Only 1.8 2.6 4.4


Restaurant Location

Hotel ** ** **

Shopping Center or Mall 1.9 2.7 4.2


Other 1.5 2.5 3.6

Profit versus Loss

Profit 1.7 2.7 3.7

Loss 1.3 2.0 3.2

Menu Theme

Hamburger 2.2 2.8 3.2


Pizza ** ** **



Mexican ** ** **

Asian ** ** **

Italian ** ** **

Other 2.1 2.7 3.9

Average Check

Under $10.00 1.9 2.7 4.7

$10.00 to $14.99 1.3 2.4 3.2

Affiliation

Single Unit - Independent 1.4 2.1 3.2




Ownership

Sole Proprietorship 1.4 2.1 2.8

Partnership 1.2 1.8 2.7



Sales Volume

Under $500,000 0.7 1.3 2.4

$500,000 to $999,999 1.3 2.2 2.9

$1,000,000 to $1,999,999 1.8 2.5 3.7

$2,000,000 and Over 2.7 3.2 4.0


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Exhibit A-4Full Service Restaurants (Average Check Per Person Under $15)Cost per Dollar of Sales*

Total Cost of Sales

Total Payroll and Benefits Prime Cost

All Restaurants 31.9¢ 32.5¢ 65.1¢


Food Only 33.3¢ 33.6¢ 66.6¢


Restaurant Location

Hotel ** ** **

Shopping Center or Mall 31.9¢ 32.0¢ 64.6¢


Other 32.1 35.5 68.7

Profit versus Loss

Profit 31.8¢ 31.1¢ 63.3¢

Loss 33.6 39.3 70.1

Menu Theme

Hamburger ** 31.7¢ **


Pizza ** ** **


American (varied) 32.4¢ 34.0 67.2¢

Mexican ** ** **

Italian ** ** **

Other 31.3 33.4 64.0

Average Check

Under $10.00 33.2¢ 32.8¢ 65.3¢

$10.00 to $14.99 31.6 32.2 64.4

Affiliation

Single Unit - Independent 32.1¢ 34.4¢ 67.5¢




Ownership

Sole Proprietorship 33.1¢ 31.2¢ 64.5¢




Sales Volume

Under $500,000 ** ** 68.1¢

$500,000 to $999,999 33.2¢ 33.6¢ 68.5

$1,000,000 to $1,999,999 31.9 31.1 64.0

$2,000,000 and Over 29.0 33.0 61.9

* All amounts are medians** Insufficient data

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Exhibit A-5Full Service Restaurants (Average Check Per Person Under $15)Number of Employees*

Number of Employees per Restaurant

Full TimePart Time

(20-34 Hours)

Part-Part-Time (Under 20

Hours)

All Restaurants 10 14 6


Food Only 9 9 5

Food and Beverage 11 15 8

Restaurant Location

Hotel ** ** **

Shopping Center or Mall 13 10 5

Sole Occupant 10 16 10

Other 10 12 6

Profit versus Loss

Profit 11 14 7

Loss 8 15 6

Menu Theme

Hamburger 13 23 43


Pizza ** ** **


American (varied) 10 15 6

Mexican ** ** **

Italian ** ** **

Other 9 7 5

Average Check

Under $10.00 9 9 5

$10.00 to $14.99 12 15 10

Affiliation

Single Unit - Independent 8 12 6


Multi-Unit - Company Operated 19 ** 4

Multi-Unit - Franchise Operated 13 22 23

Ownership

Sole Proprietorship 6 12 7

Partnership 11 20 12


Private Corporation 11 13 5

Sales Volume

Under $500,000 3 7 3

$500,000 to $999,999 6 9 5

$1,000,000 to $1,999,999 13 15 10

$2,000,000 and Over 26 25 20

* All amounts are medians


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Exhibit A-6Full Service Restaurants (Average Check Per Person Under $15)Annual Employee Turnover*

All Employees

Salaried Employees

Hourly Employees

All Restaurants 82% 37% 89%


Food Only 79% 27% 86%


Restaurant Location

Hotel ** ** **

Shopping Center or Mall 76% 31% 92%


Other 63 ** 67

Profit versus Loss

Profit 76% 33% 85%

Loss 94 67 100

Menu Theme

Hamburger 126% 60% 128%


Pizza ** ** **



Mexican ** ** **

Italian ** ** **

Other 115 33 125

Average Check

Under $10.00 83% 25% 90%

$10.00 to $14.99 81 50 89

Affiliation

Single Unit - Independent 63% ** 70%


Multi-Unit - Company Operated 88 50% 91

Multi-Unit - Franchise Operated 136 67 139

Ownership

Sole Proprietorship 95% 25% 100%

Partnership 85 67 100



Sales Volume

Under $500,000 ** ** **

$500,000 to $999,999 67% ** 76%

$1,000,000 to $1,999,999 84 50% 85

$2,000,000 and Over 89 50 104

* Amounts for all employees and hourly employees are medians; amounts for salaried employees are upper quartiles.

All amounts are derived from the number of W-2’s and the number of employees


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Exhibit A-7Full Service Restaurants (Average Check Per Person Under $15)Employee Information*

Full-Time Equivalent EmployeesAmount per Full-Time Equivalent Employee

TotalPer 100

Restaurant SeatsPer 100 Average

Daily Covers Total SalesTotal Payroll and Benefits

All Restaurants 25.5 19.2 7.7 $47,543 $15,843


Food Only 22.3 18.4 6.6 $44,729 $14,764

Food and Beverage 26.4 19.6 8.5 50,766 16,481

Restaurant Location

Hotel ** ** ** ** **

Shopping Center or Mall 25.6 21.0 8.2 $46,407 $15,776

Sole Occupant 27.0 19.0 7.6 47,543 15,447

Other 20.2 18.3 7.7 48,564 16,837

Profit versus Loss

Profit 25.4 20.1 7.7 $48,592 $15,730

Loss 25.8 18.3 8.3 42,642 16,276

Menu Theme

Hamburger 45.6 23.2 7.8 $52,239 $16,913

Steak/Seafood ** ** ** ** **

Pizza ** ** ** ** **

Sandwiches/Subs/Deli ** ** ** ** **

American (varied) 27.5 18.0 7.4 46,216 15,370

Mexican ** ** ** ** **

Italian ** ** ** ** **

Other 15.4 18.6 7.3 49,532 16,843

Average Check

Under $10.00 21.9 18.3 6.3 $46,525 $15,145

$10.00 to $14.99 28.6 20.0 9.1 48,845 16,204

Affiliation

Single Unit - Independent 21.9 18.5 7.6 $46,198 $16,056

Single Unit - Franchise Operated ** ** ** ** **

Multi-Unit - Company Operated 38.5 22.4 9.2 44,843 15,674

Multi-Unit - Franchise Operated 43.0 21.9 7.3 51,341 15,911

Ownership

Sole Proprietorship 18.5 17.6 8.8 $45,892 $15,447

Partnership 31.0 18.0 7.7 48,789 15,572

Public Corporation ** ** ** ** **

Private Corporation 24.6 20.3 7.6 47,426 15,911

Sales Volume

Under $500,000 8.7 11.9 8.9 $33,854 **

$500,000 to $999,999 15.9 18.0 8.1 46,525 $16,172

$1,000,000 to $1,999,999 29.5 19.2 7.4 47,426 15,616

$2,000,000 and Over 55.8 23.9 7.6 52,337 17,013

* All amounts are medians. Based on 35 hours per week. Factors used to compute full-time equivalent employees are as follows: full-time (35 hours or more) equals 1.0; part-time (20-34 hours) equals 0.7; part-part-time (less than 20 hours) equals 0.35


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Exhibit A-8Full Service Restaurants (Average Check Per Person Under $15)Take-Out/Drive Through, Outside Catering andBanquet Service - Ratio to Total Sales*

Take-Out/ Drive Through

Outside Catering

Banquet Service



Food Only 10% 5% 2%


Restaurant Location

Hotel ** ** **

Shopping Center or Mall 10% ** **

Sole Occupant 6 5% 5%

Other 7 ** **

Profit versus Loss

Profit 8% 3% 5%

Loss 6 ** 4

Menu Theme

Hamburger ** ** **


Pizza ** ** **


American (varied) 5% 4% 5%

Mexican ** ** **

Italian ** ** **

Other ** ** **

Average Check

Under $10.00 9% 5% 2%

$10.00 to $14.99 7 3 5

Affiliation

Single Unit - Independent 10% 5% 5%


Multi-Unit - Company Operated 10 5 **

Multi-Unit - Franchise Operated 5 ** **

Ownership

Sole Proprietorship 11% ** **

Partnership 5 ** 2%


Private Corporation 7 5% 5

Sales Volume

Under $500,000 9% ** **

$500,000 to $999,999 10 ** **

$1,000,000 to $1,999,999 7 3% 2%

$2,000,000 and Over 6 ** **



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Exhibit A-9Full Service Restaurants (Average Check Per Person Under $15)Statement of Income and Expenses

All Restaurants

Amount per Seat Ratio to Total Sales*


Upper Quartile


Upper Quartile

Sales

Food $4,444 $7,976 $11,839 81.2% 95.7% 100.0%

Beverage 518 1,110 2,602 4.6 11.1 27.3

Total Sales 5,611 9,199 13,610 100.0 100.0 100.0

Cost of Sales

Food 1,571 2,579 3,584 28.9 33.0 37.2

Beverage 135 279 752 24.7 28.0 34.0

Total Cost of Sales 1,906 2,803 4,044 28.6 31.9 35.5

Gross Profit 3,589 6,133 9,522 64.5 68.0 71.4

Operating Expenses

Salaries and Wages (including Employee Benefits) 1,897 3,300 4,364 28.4 32.5 37.8

Direct Operating Expenses 244 580 1,122 3.9 6.3 10.2

Music and Entertainment 4 16 86 0.0 0.1 1.0

Marketing 64 146 313 0.9 2.0 3.8

Utility Services 229 327 482 2.9 3.8 5.0

Restaurant Occupancy Costs 271 528 857 4.0 6.0 8.3

Repairs and Maintenance 80 138 218 1.1 1.6 2.4

Depreciation 81 148 322 0.9 1.8 3.7

Other Expense/(Income) (62) 51 350 (0.6) 0.6 5.2

General & Administrative Expenses 123 248 476 1.6 3.2 5.4

Corporate Overhead 158 248 492 1.6 3.0 4.7

Total Operating Expenses 3,157 5,385 8,354 52.5 60.9 67.7

Interest Expense 29 109 215 0.3 1.2 2.6

Other Expenses 20 89 249 0.3 1.0 2.2

Income (Loss) Before Income Taxes $23 $395 $1,091 0.3% 5.6% 12.4%

Note: Computations include respondents that provided zeros and numerical amounts

* All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales

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Exhibit A-10Full Service Restaurants (Average Check Per Person Under $15)Statement of Income and Expenses - Amount per Square Foot*

All Restaurants Type of Establishment Menu Theme Menu Theme Average Check Restaurant Location Sales Volume ($000s)


Upper Quartile Food Only

Food and Beverage Hamburger

Steak/ Seafood Pizza

Sandwiches/Subs/Deli

American (varied) Mexican Italian Other

Under $10.00

$10.00 to$14.99 Hotel Other

Shopping Center or Mall

Sole Occupant

Under $500

$500 to $999

$1,000 to $1,999

$2,000 and Over

Sales

Food $155.43 $259.38 $363.64 $237.50 $272.64 $368.36 ** ** ** $243.71 ** ** $264.90 $247.55 $271.96 ** $230.20 $233.33 $271.11 $118.73 $214.40 $272.98 $356.44

Beverage 8.70 31.61 73.90 N/A 36.29 ** ** ** ** 42.00 ** ** 28.73 ** 37.72 ** 40.17 20.12 33.16 ** 18.96 50.00 32.69

Total Sales 176.88 280.50 421.91 237.50 315.15 399.91 ** ** ** 269.28 ** ** 271.67 250.63 314.65 ** 258.47 265.49 295.38 125.72 241.07 311.74 427.86

Gross Profit on Sales 108.44 190.74 294.34 151.93 218.82 286.29 ** ** ** 179.68 ** ** 203.23 171.33 216.44 ** 180.42 184.28 203.82 83.71 161.11 210.12 300.10

Utility Services 7.06 10.27 14.29 9.40 11.48 18.55 ** ** ** 10.17 ** ** 10.42 9.75 11.54 ** 8.85 10.09 10.98 6.63 9.44 11.28 14.54

Restaurant Occupancy Costs 9.23 16.32 24.21 14.44 17.46 ** ** ** ** 14.76 ** ** 19.20 16.03 16.52 ** 15.28 15.38 16.33 10.00 13.16 16.76 21.27


* All amounts are medians unless otherwise stated


N/A Not applicable

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Exhibit A-10Full Service Restaurants (Average Check Per Person Under $15)Statement of Income and Expenses - Amount per Square Foot*

All Restaurants Type of Establishment Menu Theme Menu Theme Average Check Restaurant Location Sales Volume ($000s)



Food and Beverage Hamburger

Steak/ Seafood Pizza



Under $10.00

$10.00 to$14.99 Hotel Other


Sole Occupant

Under $500

$500 to $999

$1,000 to $1,999

$2,000 and Over

Sales

Food $155.43 $259.38 $363.64 $237.50 $272.64 $368.36 ** ** ** $243.71 ** ** $264.90 $247.55 $271.96 ** $230.20 $233.33 $271.11 $118.73 $214.40 $272.98 $356.44

Beverage 8.70 31.61 73.90 N/A 36.29 ** ** ** ** 42.00 ** ** 28.73 ** 37.72 ** 40.17 20.12 33.16 ** 18.96 50.00 32.69

Total Sales 176.88 280.50 421.91 237.50 315.15 399.91 ** ** ** 269.28 ** ** 271.67 250.63 314.65 ** 258.47 265.49 295.38 125.72 241.07 311.74 427.86

Gross Profit on Sales 108.44 190.74 294.34 151.93 218.82 286.29 ** ** ** 179.68 ** ** 203.23 171.33 216.44 ** 180.42 184.28 203.82 83.71 161.11 210.12 300.10

Utility Services 7.06 10.27 14.29 9.40 11.48 18.55 ** ** ** 10.17 ** ** 10.42 9.75 11.54 ** 8.85 10.09 10.98 6.63 9.44 11.28 14.54

Restaurant Occupancy Costs 9.23 16.32 24.21 14.44 17.46 ** ** ** ** 14.76 ** ** 19.20 16.03 16.52 ** 15.28 15.38 16.33 10.00 13.16 16.76 21.27




N/A Not applicable

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Exhibit A-11Full Service Restaurants (Average Check Per Person Under $15)Statement of Income and Expenses - Amount per Seat


Food Only Food and Beverage


Upper Quartile


Upper Quartile

Sales

Food $5,392 $8,345 $12,351 $4,120 $7,904 $11,771

Beverage N/A N/A N/A 513 1,122 2,635

Total Sales 5,392 8,345 12,351 5,665 10,000 13,640

Cost of Sales

Food 1,862 2,588 3,872 1,444 2,563 3,444

Beverage N/A N/A N/A 134 280 754

Total Cost of Sales 1,862 2,588 3,872 1,957 2,904 4,139

Gross Profit 3,496 5,702 8,753 3,755 6,371 9,925

Operating Expenses

Salaries and Wages (including Employee Benefits) 1,826 2,995 4,223 2,138 3,557 4,413

Direct Operating Expenses 197 479 1,065 275 609 1,127

Music and Entertainment 0 3 10 2 11 118

Marketing 54 147 318 64 134 297

Utility Services 213 292 450 235 337 491

Restaurant Occupancy Costs 253 507 873 257 528 816

Repairs and Maintenance 69 130 214 81 143 217

Depreciation 59 133 322 87 154 277

Other Expense/(Income) (48) 16 239 (66) 40 347

General & Administrative Expenses 97 229 476 116 246 457

Corporate Overhead 99 196 275 0 110 397

Total Operating Expenses 2,915 4,874 8,269 3,397 5,615 8,376

Interest Expense 17 83 150 9 76 215

Other Expenses 1 24 130 0 3 162

Income (Loss) Before Income Taxes $11 $334 $936 $23 $469 $1,213



N/A Not applicable

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Exhibit A-12Full Service Restaurants (Average Check Per Person Under $15)Statement of Income and Expenses - Ratio to Total Sales*




Upper Quartile


Upper Quartile

Sales

Food 100.0% 100.0% 100.0% 71.5% 86.8% 93.8%

Beverage N/A N/A N/A 6.2 13.2 28.5

Total Sales 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 29.8 33.3 36.8 28.7 32.5 37.7


Total Cost of Sales 29.8 33.3 36.8 28.1 31.5 35.1

Gross Profit 63.2 66.7 70.2 64.9 68.5 71.9

Operating Expenses

Salaries and Wages (includeing Employee Benefits) 29.0 33.6 39.6 27.7 31.7 37.4

Direct Operating Expenses 3.0 5.6 9.2 4.3 6.6 10.3

Music and Entertainment 0.0 0.0 0.1 0.0 0.1 1.1

Marketing 0.8 1.5 3.5 0.9 1.9 4.3

Utility Services 2.8 3.7 4.9 2.9 3.9 4.9

Restaurant Occupancy Costs 4.3 6.2 8.5 3.2 5.4 7.9

Repairs and Maintenance 1.0 1.6 2.1 1.1 1.6 2.4

Depreciation 0.8 1.7 3.2 0.7 1.8 4.1

Other Expense/(Income) (0.7) 0.2 4.2 (0.5) 0.5 4.4

General & Administrative Expenses 1.1 3.8 6.0 1.7 2.6 5.0

Corporate Overhead 1.1 2.7 4.5 0.0 0.9 3.1

Total Operating Expenses 50.4 60.7 67.1 53.3 61.1 67.8

Interest Expense 0.2 0.9 2.2 0.1 0.9 2.3

Other Expenses 0.0 0.3 1.3 0.0 0.0 1.6

Income (Loss) Before Income Taxes 0.2% 5.4% 12.8% 0.3% 5.5% 11.4%



N/A Not applicable

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Affiliation

Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated


Upper Quartile


Upper Quartile


Upper Quartile

Sales

Food $3,600 $7,638 $11,111 $4,500 $9,500 $12,424 $7,850 $10,558 $12,994

Beverage 250 1,049 2,500 514 1,558 2,869 ** ** **

Total Sales 5,000 8,395 12,374 5,402 10,300 14,928 8,361 11,070 14,024

Cost of Sales

Food 1,345 2,412 3,371 1,479 2,879 4,263 2,286 2,835 3,396

Beverage 101 278 724 100 492 873 ** ** **

Total Cost of Sales 1,864 2,652 3,932 1,560 3,188 4,933 2,412 2,993 3,427

Gross Profit 3,314 5,629 8,709 3,573 7,083 10,653 5,242 7,875 10,485

Operating Expenses

Salaries and Wages (including Employee Benefits) 1,667 3,192 4,188 2,471 3,981 5,008 2,501 3,777 4,286

Direct Operating Expenses 228 531 1,088 318 585 1,150 202 798 949

Music and Entertainment 0 11 74 0 16 146 2 3 4

Marketing 52 110 255 63 117 237 229 438 899

Utility Services 206 314 423 234 327 567 284 458 589

Restaurant Occupancy Costs 185 479 816 311 571 739 469 598 1,442

Repairs and Maintenance 71 133 216 79 159 324 93 138 168

Depreciation 53 125 271 54 153 269 123 250 552

Other Expense/(Income) 0 96 515 (30) 107 314 (83) (69) (51)

General & Administrative Expenses 84 188 461 119 277 646 230 260 371

Corporate Overhead 0 158 391 ** ** ** ** ** **

Total Operating Expenses 2,778 4,881 7,188 2,914 5,013 8,723 4,861 8,014 9,018

Interest Expense 9 93 177 31 60 239 14 46 216

Other Expenses 0 20 166 ** ** ** ** ** **

Income (Loss) Before Income Taxes $8 $300 $938 $89 $626 $1,460 $62 $644 $1,352



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Affiliation

Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated


Upper Quartile


Upper Quartile


Upper Quartile

Sales

Food 69.0% 87.2% 96.0% 74.7% 88.3% 95.1% 92.3% 93.3% 94.2%

Beverage 4.0 12.8 31.0 4.9 11.7 25.3 ** ** **

Total Sales 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 29.9 33.3 38.5 30.0 33.3 35.8 22.6 30.0 34.5

Beverage 25.4 29.1 34.8 ** ** ** ** ** **

Total Cost of Sales 29.6 32.1 37.1 28.1 31.9 34.6 22.4 29.9 34.5

Gross Profit 62.9 67.9 70.5 65.4 68.1 71.9 65.5 70.1 77.6

Operating Expenses

Salaries and Wages (including Employee Benefits) 27.9 34.4 38.3 27.7 34.6 39.0 29.7 31.5 33.0

Direct Operating Expenses 4.0 5.9 11.2 4.0 6.3 9.3 3.4 6.6 7.5

Music and Entertainment 0.0 0.1 0.9 0.0 0.1 1.1 0.0 0.0 0.0

Marketing 0.7 1.5 3.0 0.6 1.7 2.6 3.3 4.2 7.0

Utility Services 2.8 3.7 5.0 2.6 3.5 5.0 3.6 4.1 4.9

Restaurant Occupancy Costs 3.1 5.3 7.9 3.0 5.0 7.8 5.7 7.6 9.5

Repairs and Maintenance 1.0 1.6 2.3 1.2 1.7 2.6 1.0 1.4 1.8

Depreciation 0.6 1.5 3.0 0.8 1.7 3.7 1.7 2.3 4.9

Other Expense/(Income) 0.0 0.3 1.7 ** ** ** ** ** **

General & Administrative Expenses 1.1 2.5 4.9 1.1 4.1 5.3 1.8 2.8 6.0

Corporate Overhead 0.0 1.5 4.0 ** ** ** ** ** **

Total Operating Expenses 51.6 59.3 67.6 50.1 60.9 67.0 60.8 62.5 67.9

Interest Expense 0.1 1.1 2.4 0.2 0.7 1.8 0.1 0.7 2.1

Other Expenses 0.0 0.3 1.7 ** ** ** ** ** **

Income (Loss) Before Income Taxes 0.2% 5.3% 12.8% 1.1% 6.0% 11.5% 1.3% 5.5% 11.0%




�0



Sales Volume ($000) Sales Volume ($000)

Under $500 Between $500 and $999 Between $1,000 and $1,999 $2,000 and Over


Upper Quartile


Upper Quartile


Upper Quartile


Upper Quartile

Sales

Food $2,255 $3,333 $6,241 $3,813 $7,043 $9,561 $5,714 $7,904 $12,133 $10,368 $11,652 $13,738

Beverage ** ** ** 206 725 2,041 546 1,667 2,500 613 1,001 2,785

Total Sales 2,317 3,502 6,570 5,247 7,370 9,997 6,429 9,899 12,719 10,904 13,648 15,834

Cost of Sales

Food 739 1,200 2,446 1,371 2,213 2,774 1,987 2,773 3,582 2,664 3,303 3,959

Beverage ** ** ** 59 190 515 210 522 767 155 226 866

Total Cost of Sales 792 1,258 2,532 1,935 2,280 2,990 2,173 3,088 4,153 2,845 3,640 4,610

Gross Profit 1,504 2,189 4,160 3,291 5,000 7,101 4,120 6,419 9,382 7,739 9,961 11,378

Operating Expenses

Salaries and Wages (including Employee Benefits) ** ** ** 1,561 3,040 3,500 2,079 3,097 3,966 3,800 4,325 5,347

Direct Operating Expenses 122 209 569 175 453 1,011 258 563 1,099 590 909 1,212

Music and Entertainment ** ** ** 1 11 49 2 8 63 1 4 17

Marketing 30 90 241 53 91 189 94 177 312 111 256 753

Utility Services 135 204 292 230 310 354 235 339 450 324 495 597

Restaurant Occupancy Costs 123 253 814 188 486 726 263 496 793 497 686 1,318

Repairs and Maintenance 34 60 103 59 116 177 112 154 249 144 205 301

Depreciation 58 138 859 27 111 212 64 140 233 121 215 457

Other Expense/(Income) ** ** ** 0 51 485 (34) 119 470 (92) (67) 0

General & Administrative Expenses 74 141 192 61 160 467 152 296 466 191 253 524

Corporate Overhead ** ** ** ** ** ** 129 211 286 0 196 626

Total Operating Expenses 1,156 1,992 3,578 2,778 4,399 6,262 3,917 5,359 8,205 6,327 8,351 9,874

Interest Expense ** ** ** 3 82 149 14 55 159 17 120 336

Other Expenses ** ** ** ** ** ** 2 20 214 0 2 94

Income (Loss) Before Income Taxes ($143) $205 $504 $9 $339 $961 $6 $471 $1,218 $160 $827 $1,592



�1






Upper Quartile


Upper Quartile


Upper Quartile


Upper Quartile

Sales

Food $2,255 $3,333 $6,241 $3,813 $7,043 $9,561 $5,714 $7,904 $12,133 $10,368 $11,652 $13,738

Beverage ** ** ** 206 725 2,041 546 1,667 2,500 613 1,001 2,785

Total Sales 2,317 3,502 6,570 5,247 7,370 9,997 6,429 9,899 12,719 10,904 13,648 15,834

Cost of Sales

Food 739 1,200 2,446 1,371 2,213 2,774 1,987 2,773 3,582 2,664 3,303 3,959

Beverage ** ** ** 59 190 515 210 522 767 155 226 866

Total Cost of Sales 792 1,258 2,532 1,935 2,280 2,990 2,173 3,088 4,153 2,845 3,640 4,610

Gross Profit 1,504 2,189 4,160 3,291 5,000 7,101 4,120 6,419 9,382 7,739 9,961 11,378

Operating Expenses

Salaries and Wages (including Employee Benefits) ** ** ** 1,561 3,040 3,500 2,079 3,097 3,966 3,800 4,325 5,347

Direct Operating Expenses 122 209 569 175 453 1,011 258 563 1,099 590 909 1,212

Music and Entertainment ** ** ** 1 11 49 2 8 63 1 4 17

Marketing 30 90 241 53 91 189 94 177 312 111 256 753

Utility Services 135 204 292 230 310 354 235 339 450 324 495 597

Restaurant Occupancy Costs 123 253 814 188 486 726 263 496 793 497 686 1,318

Repairs and Maintenance 34 60 103 59 116 177 112 154 249 144 205 301

Depreciation 58 138 859 27 111 212 64 140 233 121 215 457

Other Expense/(Income) ** ** ** 0 51 485 (34) 119 470 (92) (67) 0

General & Administrative Expenses 74 141 192 61 160 467 152 296 466 191 253 524

Corporate Overhead ** ** ** ** ** ** 129 211 286 0 196 626

Total Operating Expenses 1,156 1,992 3,578 2,778 4,399 6,262 3,917 5,359 8,205 6,327 8,351 9,874

Interest Expense ** ** ** 3 82 149 14 55 159 17 120 336

Other Expenses ** ** ** ** ** ** 2 20 214 0 2 94

Income (Loss) Before Income Taxes ($143) $205 $504 $9 $339 $961 $6 $471 $1,218 $160 $827 $1,592



�2






Upper Quartile


Upper Quartile


Upper Quartile


Upper Quartile

Sales

Food 71.7% 90.6% 97.4% 65.8% 86.1% 96.6% 73.6% 87.0% 94.4% 80.2% 91.5% 94.3%

Beverage ** ** ** 3.4 13.9 34.2 5.6 13.0 26.4 5.7 8.5 19.8

Total Sales 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 32.1 35.8 43.6 29.2 33.8 41.2 30.0 33.2 35.8 22.9 30.3 32.6

Beverage ** ** ** 25.8 28.7 34.1 25.5 29.1 34.1 20.0 25.1 30.0

Total Cost of Sales 30.9 35.4 43.8 29.3 33.2 38.4 29.9 31.9 35.2 24.3 29.0 32.2

Gross Profit 56.3 64.6 69.1 61.6 66.8 70.7 64.8 68.0 70.1 67.8 71.0 75.7

Operating Expenses

Salaries and Wages (including Employee Benefits) 22.4 29.8 37.0 29.0 33.6 38.3 28.3 31.1 37.0 30.1 33.0 38.1

Direct Operating Expenses 4.4 6.5 10.3 3.2 5.9 10.9 3.3 5.2 9.9 4.5 6.7 9.2

Music and Entertainment ** ** ** 0.0 0.1 0.8 0.0 0.1 0.6 0.0 0.0 0.1

Marketing 1.1 2.5 4.6 0.7 1.3 2.5 0.9 1.9 3.4 0.8 2.3 6.0

Utility Services 3.2 4.9 7.3 2.9 3.7 4.7 2.8 3.3 4.6 2.9 3.7 4.7

Restaurant Occupancy Costs 2.4 5.7 12.1 3.2 6.0 8.0 3.7 5.6 7.8 4.3 5.8 7.9

Repairs and Maintenance 0.7 1.6 2.2 1.0 1.3 1.9 1.1 1.7 2.4 1.2 1.7 2.5

Depreciation 1.3 3.9 5.4 0.5 1.5 3.5 0.7 1.6 2.6 1.1 1.8 3.1

Other Expense/(Income) ** ** ** 0.0 0.7 6.0 (0.4) 1.2 5.2 (0.8) (0.5) 0.0

General & Administrative Expenses 1.5 4.0 5.3 1.0 2.6 5.3 1.7 3.2 5.7 1.3 2.0 4.1

Corporate Overhead ** ** ** ** ** ** 1.0 2.4 4.0 0.0 2.3 3.9

Total Operating Expenses 48.2 54.7 68.6 50.5 60.5 67.1 53.5 60.9 66.9 58.4 63.4 68.3

Interest Expense 0.8 2.6 3.7 0.1 0.9 2.2 0.1 0.7 1.7 0.1 1.1 2.3

Other Expenses ** ** ** ** ** ** 0.0 0.3 1.9 0.0 0.0 0.8

Income (Loss) Before Income Taxes (4.5%) 6.0% 12.8% 0.1% 5.1% 12.2% 0.1% 4.7% 11.1% 1.5% 6.9% 11.4%




��






Upper Quartile


Upper Quartile


Upper Quartile


Upper Quartile

Sales

Food 71.7% 90.6% 97.4% 65.8% 86.1% 96.6% 73.6% 87.0% 94.4% 80.2% 91.5% 94.3%

Beverage ** ** ** 3.4 13.9 34.2 5.6 13.0 26.4 5.7 8.5 19.8

Total Sales 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 32.1 35.8 43.6 29.2 33.8 41.2 30.0 33.2 35.8 22.9 30.3 32.6

Beverage ** ** ** 25.8 28.7 34.1 25.5 29.1 34.1 20.0 25.1 30.0

Total Cost of Sales 30.9 35.4 43.8 29.3 33.2 38.4 29.9 31.9 35.2 24.3 29.0 32.2

Gross Profit 56.3 64.6 69.1 61.6 66.8 70.7 64.8 68.0 70.1 67.8 71.0 75.7

Operating Expenses

Salaries and Wages (including Employee Benefits) 22.4 29.8 37.0 29.0 33.6 38.3 28.3 31.1 37.0 30.1 33.0 38.1

Direct Operating Expenses 4.4 6.5 10.3 3.2 5.9 10.9 3.3 5.2 9.9 4.5 6.7 9.2

Music and Entertainment ** ** ** 0.0 0.1 0.8 0.0 0.1 0.6 0.0 0.0 0.1

Marketing 1.1 2.5 4.6 0.7 1.3 2.5 0.9 1.9 3.4 0.8 2.3 6.0

Utility Services 3.2 4.9 7.3 2.9 3.7 4.7 2.8 3.3 4.6 2.9 3.7 4.7

Restaurant Occupancy Costs 2.4 5.7 12.1 3.2 6.0 8.0 3.7 5.6 7.8 4.3 5.8 7.9

Repairs and Maintenance 0.7 1.6 2.2 1.0 1.3 1.9 1.1 1.7 2.4 1.2 1.7 2.5

Depreciation 1.3 3.9 5.4 0.5 1.5 3.5 0.7 1.6 2.6 1.1 1.8 3.1

Other Expense/(Income) ** ** ** 0.0 0.7 6.0 (0.4) 1.2 5.2 (0.8) (0.5) 0.0

General & Administrative Expenses 1.5 4.0 5.3 1.0 2.6 5.3 1.7 3.2 5.7 1.3 2.0 4.1

Corporate Overhead ** ** ** ** ** ** 1.0 2.4 4.0 0.0 2.3 3.9

Total Operating Expenses 48.2 54.7 68.6 50.5 60.5 67.1 53.5 60.9 66.9 58.4 63.4 68.3

Interest Expense 0.8 2.6 3.7 0.1 0.9 2.2 0.1 0.7 1.7 0.1 1.1 2.3

Other Expenses ** ** ** ** ** ** 0.0 0.3 1.9 0.0 0.0 0.8

Income (Loss) Before Income Taxes (4.5%) 6.0% 12.8% 0.1% 5.1% 12.2% 0.1% 4.7% 11.1% 1.5% 6.9% 11.4%




��



Menu Theme

Hamburger American (varied)


Upper Quartile


Upper Quartile

Sales

Food $7,500 $11,292 $13,314 $3,500 $7,164 $10,793

Beverage ** ** ** 337 1,218 2,755

Total Sales 9,976 12,261 14,542 4,673 7,741 12,340

Cost of Sales

Food 2,201 2,741 3,170 1,300 2,273 3,346

Beverage ** ** ** 134 416 815


Gross Profit 6,104 9,505 10,495 2,770 5,134 8,642

Operating Expenses

Salaries and Wages (including Employee Benefits) ** ** ** 1,631 2,940 4,353

Direct Operating Expenses ** ** ** 187 430 1,136

Music and Entertainment ** ** ** 2 5 22

Marketing 67 808 978 46 117 214


Restaurant Occupancy Costs ** ** ** 250 442 665


Depreciation ** ** ** 63 123 201

Other Expense/(Income) ** ** ** (50) 8 215

General & Administrative Expenses ** ** ** 91 232 502

Corporate Overhead ** ** ** 32 208 435


Interest Expense ** ** ** 6 52 131

Other Expenses ** ** ** 0 37 136

Income (Loss) Before Income Taxes ** ** ** ($34) $233 $722



��



Menu Theme

Hamburger American (varied)


Upper Quartile


Upper Quartile

Sales

Food 91.8% 93.4% 94.5% 68.8% 80.2% 95.2%

Beverage ** ** ** 4.8 19.8 31.2

Total Sales 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 22.5 22.8 38.3 30.8 33.5 37.0

Beverage ** ** ** 25.1 28.3 34.1


Gross Profit 65.7 77.4 77.7 64.5 67.5 70.0

Operating Expenses

Salaries and Wages (including Employee Benefits) 30.0 31.7 33.0 28.8 34.0 39.1

Direct Operating Expenses ** ** ** 3.7 6.1 11.3

Music and Entertainment ** ** ** 0.0 0.1 0.5

Marketing 2.0 6.7 7.2 0.6 1.5 3.0




Depreciation ** ** ** 0.7 1.6 2.8

Other Expense/(Income) ** ** ** (0.8) 0.1 3.9

General & Administrative Expenses ** ** ** 1.2 3.6 6.0

Corporate Overhead ** ** ** 0.7 2.8 4.6


Interest Expense ** ** ** 0.1 0.8 2.2

Other Expenses ** ** ** 0.0 0.4 1.3

Income (Loss) Before Income Taxes ** ** ** (0.9%) 4.0% 10.0%




��



Metropolitan/Non-Metropolitan Location

Inside MSA*** Outside MSA***


Upper Quartile


Upper Quartile

Sales

Food $4,732 $8,513 $12,019 $3,484 $7,500 $11,902

Beverage 464 981 2,313 191 1,008 2,368

Total Sales 5,699 9,639 13,784 4,115 8,889 13,304

Cost of Sales

Food 1,782 2,588 3,430 1,288 2,472 3,917

Beverage 113 238 708 102 371 782


Gross Profit 3,807 6,475 9,925 2,628 5,629 9,210

Operating Expenses



Music and Entertainment 2 5 46 ** ** **

Marketing 61 141 315 56 142 279




Depreciation 78 150 323 48 104 308

Other Expense/(Income) (68) 0 264 11 144 665


Corporate Overhead 0 167 294 ** ** **



Other Expenses 0 22 167 ** ** **

Income (Loss) Before Income Taxes $7 $494 $1,154 $94 $295 $651



*** Metropolitan statistical area

��






Upper Quartile


Upper Quartile

Sales

Food 73.2% 88.9% 95.0% 72.7% 81.3% 96.2%

Beverage 5.0 11.1 26.8 3.8 18.8 27.3

Total Sales 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 28.5 32.4 35.8 30.3 34.3 43.0

Beverage 23.8 27.1 31.8 ** ** **


Gross Profit 64.9 68.5 71.9 60.8 66.1 70.0

Operating Expenses



Music and Entertainment 0.0 0.1 0.4 ** ** **

Marketing 0.8 1.8 3.9 1.1 2.0 3.6




Depreciation 0.7 1.8 3.6 0.7 1.6 3.0

Other Expense/(Income) (0.7) 0.0 3.5 0.4 1.6 7.0


Corporate Overhead 0.0 1.8 3.9 ** ** **



Other Expenses 0.0 0.3 1.5 ** ** **






��



Average Check

Under $10.00 $10.00 to 14.99


Upper Quartile Lower Quartile Median Upper Quartile

Sales

Food $5,388 $7,903 $11,363 $3,921 $8,175 $11,879

Beverage 21 196 1,316 538 1,122 2,500

Total Sales 5,640 7,976 13,625 5,586 9,859 13,532

Cost of Sales

Food 1,852 2,565 4,084 1,433 2,588 3,462

Beverage 17 72 344 149 280 754


Gross Profit 3,714 5,400 8,957 3,477 6,477 9,883

Operating Expenses




Marketing 53 141 289 61 134 317




Depreciation 72 147 328 75 140 275







Income (Loss) Before Income Taxes $112 $426 $956 $0 $390 $1,183



��



Average Check

Under $10.00 $10.00 to 14.99


Upper Quartile


Upper Quartile

Sales

Food 91.0% 98.1% 100.0% 72.1% 85.4% 93.3%

Beverage 0.0 1.9 9.0 6.7 14.6 27.9

Total Sales 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 29.7 33.5 36.9 28.8 32.5 38.0

Beverage ** ** ** 24.1 27.4 32.5


Gross Profit 63.2 66.8 71.2 64.9 68.3 71.6

Operating Expenses




Marketing 0.8 1.5 3.5 0.8 2.0 4.2




Depreciation 0.9 1.9 3.7 0.7 1.7 3.2

Other Expense/(Income) (0.7) 0.1 4.2 (0.5) 0.4 4.4





Other Expenses 0.2 0.8 2.4 0.0 0.0 1.0



* All ratios are based as a percentage costs, which are based on their respective sales


�0


Exhibit A-23Full Service Restaurants (Average Check Per Person Under $15)Income Differential


Profit Loss Profit Loss


Upper Quartile


Upper Quartile


Upper Quartile


Upper Quartile

Sales

Food $4,873 $8,563 $12,188 $3,526 $6,200 $10,785 81.8% 95.7% 100.0% 69.1% 88.1% 95.3%

Beverage 333 1,063 2,372 318 853 2,325 4.5 11.0 26.5 4.7 11.9 30.9

Total Sales 5,828 9,691 14,542 5,097 7,030 11,849 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 1,719 2,677 3,488 1,283 2,201 3,696 28.6 32.6 36.8 30.2 34.1 38.5

Beverage 105 250 735 ** ** ** 24.0 27.6 32.6 25.0 30.0 34.4

Total Cost of Sales 1,936 2,886 4,153 1,868 2,273 3,758 28.2 31.8 35.5 30.0 33.6 36.6

Gross Profit 3,930 6,475 10,333 3,371 4,694 7,875 64.5 68.2 71.8 63.3 66.4 70.0

Operating Expenses

Salaries and Wages (including Employee Benefits) 2,098 3,311 4,344 1,804 3,300 4,367 27.5 31.1 36.1 33.0 39.3 43.9

Direct Operating Expenses 242 580 1,088 202 476 1,429 3.7 5.9 9.2 4.4 7.5 12.8

Music and Entertainment 1 5 24 2 11 104 0.0 0.1 0.3 0.0 0.1 0.9

Marketing 61 135 315 59 147 248 0.8 1.8 3.9 0.8 2.2 3.5

Utility Services 230 336 480 212 304 439 2.8 3.7 4.7 3.3 4.5 5.6

Restaurant Occupancy Costs 251 508 860 297 512 800 3.2 5.4 7.6 4.7 7.0 10.7

Repairs and Maintanence 80 140 215 77 133 234 1.0 1.5 2.3 1.2 1.7 2.5

Depreciation 66 140 307 86 151 278 0.7 1.7 3.1 0.9 1.9 4.6

Other Expense/(Income) (66) 28 258 (38) 24 534 (0.5) 0.3 3.5 (0.6) 0.7 8.7

General & Administrative Expenses 114 248 467 112 193 493 1.2 2.4 5.1 1.7 3.9 5.4

Corporate Overhead 0 189 362 0 93 234 0.0 1.7 3.9 0.0 1.3 4.1

Total Operating Expenses 3,083 5,385 8,196 3,175 4,877 8,813 50.0 57.5 63.3 66.6 71.1 80.0

Interest Expense 8 67 201 29 100 151 0.1 0.9 2.2 0.3 1.2 2.3

Other Expenses 0 11 162 ** ** ** 0.0 0.1 1.4 ** ** **

Income (Loss) Before Income Taxes $283 $669 $1,460 ($887) ($363) ($142) 4.2% 8.5% 14.5% (14.5%) (6.2%) (2.2%)




�1


Exhibit A-23Full Service Restaurants (Average Check Per Person Under $15)Income Differential




Upper Quartile


Upper Quartile


Upper Quartile


Upper Quartile

Sales

Food $4,873 $8,563 $12,188 $3,526 $6,200 $10,785 81.8% 95.7% 100.0% 69.1% 88.1% 95.3%

Beverage 333 1,063 2,372 318 853 2,325 4.5 11.0 26.5 4.7 11.9 30.9

Total Sales 5,828 9,691 14,542 5,097 7,030 11,849 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 1,719 2,677 3,488 1,283 2,201 3,696 28.6 32.6 36.8 30.2 34.1 38.5

Beverage 105 250 735 ** ** ** 24.0 27.6 32.6 25.0 30.0 34.4


Gross Profit 3,930 6,475 10,333 3,371 4,694 7,875 64.5 68.2 71.8 63.3 66.4 70.0

Operating Expenses




Marketing 61 135 315 59 147 248 0.8 1.8 3.9 0.8 2.2 3.5



Repairs and Maintanence 80 140 215 77 133 234 1.0 1.5 2.3 1.2 1.7 2.5

Depreciation 66 140 307 86 151 278 0.7 1.7 3.1 0.9 1.9 4.6

Other Expense/(Income) (66) 28 258 (38) 24 534 (0.5) 0.3 3.5 (0.6) 0.7 8.7





Other Expenses 0 11 162 ** ** ** 0.0 0.1 1.4 ** ** **

Income (Loss) Before Income Taxes $283 $669 $1,460 ($887) ($363) ($142) 4.2% 8.5% 14.5% (14.5%) (6.2%) (2.2%)




�2


Section B-Full Service Restaurants (Average Check Per Person $15 to $24.99)Exhibit B-1 presents the characteristics of the 183 respondents in the Full Service Restaurants (Average Check Per Person $15 to $24.99) category of this year’s study. More than three-quarters (80.3%) of the respondents represent independent restaurants and 56.3% reported that they were the sole occupant of their location. Restaurants with American menu themes represent 54.1% of this sample.


Highlights • Median average check is $18.00.






Characteristics• 80.3% of full service (average check $15 to $24.99) restaurants are





��


Section B-Full Service Restaurants (Average Check Per Person $15 to $24.99)Exhibit B-1 presents the characteristics of the 183 respondents in the Full Service Restaurants (Average Check Per Person $15 to $24.99) category of this year’s study. More than three-quarters (80.3%) of the respondents represent independent restaurants and 56.3% reported that they were the sole occupant of their location. Restaurants with American menu themes represent 54.1% of this sample.








Characteristics• 80.3% of full service (average check $15 to $24.99) restaurants are





Exhibit B-1Composition of Participating Full Service Restaurants(Average Check Per Person $15 to $24.99)Number of Respondents: 183




Public Corporation 1.6Years in Business: Private Corporation 61.21 to 5 Years 21.9%5 to 10 Years 21.9 Menu Theme:Over 10 Years 56.2 Steak/Seafood 19.1%

Hamburger 2.7Region: 1 Pizza 2.7Northeast 21.3% American (varied) 54.1North Central 21.9 Mexican 1.1South 19.7 Italian 5.5West 34.4 Asian 2.8Not Specified 2.7 Other 12.0

Average Check: 2 Sales Volume: 3

$15.00 to $19.99 55.7% Under $500,000 8.7%$20.00 to $24.99 44.3 $500,000 to $999,999 25.7

$1,000,000 to $1,999,999 33.9Affiliation: $2,000,000 and Over 31.7Single Unit - Independent 80.3%Single Unit - Franchise Operated 4.4 Restaurant Location:Multi-Unit - Company Operated 14.2 Hotel 6.6%Multi-Unit - Franchise Operated 1.1 Shopping Center or Mall 16.4

Sole Occupant 56.3Profit versus Loss: 3 Other 19.7Profit 72.6% Not Specified 1.0Loss 27.4

Total Number of Seats:Lease versus Own: Under 100 19.1%Own Land and Building 43.2% 100 to 149 30.1Lease Land and Building 24.0 150 to 199 19.1Lease Land and Own Building 2.7 200 to 399 23.5Own Land and Lease Building 0.0 400 and Over 8.2Not Specified 30.1


¹ Regions:







��


Exhibit B-2Full Service Restaurants (Average Check Per Person $15 to $24.99)Average Check

Total


Upper Quartile

All Restaurants $16.00 $18.00 $21.00


Food Only ** ** **

Food and Beverage $16.00 $18.00 $21.00

Restaurant Location

Hotel ** ** **


Sole Occupant 16.00 18.00 20.50

Other 15.75 18.00 22.00

Profit versus Loss

Profit $16.00 $19.00 $21.00

Loss 15.75 17.50 20.00

Menu Theme

Steak/Seafood $16.00 $18.00 $21.00

Chicken ** ** **

Pizza ** ** **


Mexican ** ** **

Italian ** ** **

Asian ** ** **

Other 15.00 17.00 20.00

Affiliation




Multi-Unit - Franchise Operated ** ** **

Ownership


Partnership 16.00 20.00 21.00



Sales Volume

Under $500,000 ** ** **

$500,000 to $999,999 $16.00 $18.00 $21.00

$1,000,000 to $1,999,999 16.00 18.00 21.00

$2,000,000 and Over 16.00 18.00 21.00


��


Exhibit B-3Full Service Restaurants (Average Check Per Person $15 to $24.99)Average Daily Seat Turnover

Total


Upper Quartile



Food Only ** ** **


Restaurant Location

Hotel ** ** **



Other 1.0 1.4 2.3

Profit versus Loss

Profit 0.9 1.4 2.1

Loss 0.9 1.2 1.6

Menu Theme

Steak/Seafood 1.0 1.4 1.9

Chicken ** ** **

Pizza ** ** **


Mexican ** ** **

Italian ** ** **

Asian ** ** **

Other 1.3 2.0 2.6

Average Check

$15.00 to $19.99 1.1 1.4 2.2

$20.00 to $24.99 0.7 1.2 1.6

Affiliation





Ownership





Sales Volume

Under $500,000 ** ** **

$500,000 to $999,999 0.7 0.9 1.3

$1,000,000 to $1,999,999 1.0 1.4 1.9

$2,000,000 and Over 1.4 2.0 2.6

**Insufficient data

��


Exhibit B-4Full Service Restaurants (Average Check Per Person $15 to $24.99)Cost per Dollar of Sales*

Total Cost of Sales




Food Only ** ** **

Food and Beverage 33.0¢ 33.7¢ 67.1¢

Restaurant Location

Hotel ** ** **



Other 34.1 35.0 68.8

Profit versus Loss

Profit 32.9¢ 32.8¢ 66.5¢

Loss 33.9 37.0 70.2

Menu Theme

Steak/Seafood 34.4¢ 33.6¢ 66.5¢

Chicken ** ** **

Pizza ** ** **


Mexican ** ** **

Italian ** ** **

Asian ** ** **

Other 32.0 29.3 61.5

Average Check

$15.00 to $19.99 33.0¢ 33.6¢ 67.7¢

$20.00 to $24.99 33.3 33.1 66.1

Affiliation





Ownership





Sales Volume

Under $500,000 ** ** **

$500,000 to $999,999 34.8¢ 35.3¢ 69.6¢

$1,000,000 to $1,999,999 33.1 35.0 68.0

$2,000,000 and Over 31.7 32.3 65.9



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Exhibit B-5Full Service Restaurants (Average Check Per Person $15 to $24.99)Number of Employees*


Full TimePart Time

(20-34 Hours)


Hours)



Food Only ** ** **


Restaurant Location

Hotel ** ** **



Other 12 15 5

Profit versus Loss

Profit 15 15 7

Loss 10 12 5

Menu Theme

Steak/Seafood 16 15 10

Chicken ** ** **

Pizza ** ** **


Mexican ** ** **

Italian ** ** **

Asian ** ** **

Other 12 12 4

Average Check

$15.00 to $19.99 13 16 6

$20.00 to $24.99 13 10 6

Affiliation



Multi-Unit - Company Operated 21 22 16


Ownership


Partnership 16 15 4



Sales Volume

Under $500,000 ** ** **

$500,000 to $999,999 7 8 5

$1,000,000 to $1,999,999 14 14 5

$2,000,000 and Over 26 25 13



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Exhibit B-6Full Service Restaurants (Average Check Per Person $15 to $24.99)Annual Employee Turnover*

All Employees

Salaried Employees

Hourly Employees



Food Only ** ** **

Food and Beverage 76% 33% 85%

Restaurant Location

Hotel ** ** **



Other 57 * *

Profit versus Loss

Profit 76% 33% 85%

Loss 90 33 99

Menu Theme

Steak/Seafood 72% 28% 78%

Chicken ** ** **

Pizza ** ** **


Mexican ** ** **

Italian ** ** **

Asian ** ** **

Other 79 ** 86

Average Check

$15.00 to $19.99 85% 33% 90%

$20.00 to $24.99 64 * *

Affiliation





Ownership

Sole Proprietorship 70% ** 94%

Partnership 92 20% 100



Sales Volume

Under $500,000 ** ** **

$500,000 to $999,999 57% 29% 61%

$1,000,000 to $1,999,999 69 33 75

$2,000,000 and Over 92 33 100




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Exhibit B-7Full Service Restaurants (Average Check Per Person $15 to $24.99)Employee Information*


TotalPer 100



All Restaurants 27.3 18.5 13.3 $50,605 $17,010


Food Only ** ** ** ** **

Food and Beverage 27.9 18.5 13.4 $50,665 $17,044

Restaurant Location

Hotel ** ** ** ** **


Sole Occupant 28.6 18.3 12.8 54,379 17,920

Other 23.7 18.6 13.3 47,712 16,476

Profit versus Loss

Profit 28.8 19.7 13.1 $52,295 $17,045

Loss 23.2 16.6 14.1 48,101 16,104

Menu Theme

Steak/Seafood 33.5 16.1 12.3 $54,379 $16,300

Chicken ** ** ** ** **

Pizza ** ** ** ** **

American (varied) 26.7 18.0 14.2 49,528 17,397

Mexican ** ** ** ** **

Italian ** ** ** ** **

Asian ** ** ** ** **

Other 27.4 25.4 12.4 54,198 15,535

Average Check

$15.00 to $19.99 27.3 19.5 12.3 $50,563 $17,204

$20.00 to $24.99 27.4 17.5 15.4 51,755 15,748

Affiliation


Single Unit - Franchise Operated ** ** ** ** **


Multi-Unit - Franchise Operated ** ** ** ** **

Ownership


Partnership 33.6 21.7 14.7 46,841 15,476



Sales Volume

Under $500,000 ** ** ** ** **

$500,000 to $999,999 16.0 12.6 14.8 $44,509 $13,926

$1,000,000 to $1,999,999 27.1 19.5 13.2 51,471 18,154

$2,000,000 and Over 51.9 25.7 12.4 56,033 17,291

* All amounts are medians. Based on 35 hours per week. Factors used to compute full-time equivalent employees are as follows:

full-time (35 hours or more) equals 1.0; part-time (20-34 hours) equals 0.7; part-part-time (less than 20 hours) equals 0.35


�0


Exhibit B-8Full Service Restaurants (Average Check Per Person $15 to $24.99)Take-Out/Drive Through, Outside Catering andBanquet Service - Ratio to Total Sales*


Outside Catering

Banquet Service



Food Only ** ** **


Restaurant Location

Hotel ** ** **


Sole Occupant 3 3% 5%

Other ** ** **

Profit versus Loss

Profit 5% 5% 5%

Loss 5 3 10

Menu Theme

Steak/Seafood 4% ** **

Chicken ** ** **

Pizza ** ** **

American (varied) 5 3% 8%

Mexican ** ** **

Italian ** ** **

Asian ** ** **

Other ** ** **

Average Check

$15.00 to $19.99 5% 3% 7%

$20.00 to $24.99 3 3 10

Affiliation



Multi-Unit - Company Operated ** ** **


Ownership

Sole Proprietorship 5% ** 10%

Partnership ** ** **


Private Corporation 3 3% 10

Sales Volume

Under $500,000 ** ** **

$500,000 to $999,999 5% ** 15%

$1,000,000 to $1,999,999 5 3% 7

$2,000,000 and Over 4 4 5



�1


Exhibit B-9Full Service Restaurants (Average Check Per Person $15 to $24.99)Statement of Income and Expenses

All Restaurants



Upper Quartile


Upper Quartile

Sales

Food $4,062 $6,530 $10,046 65.7% 76.1% 84.9%

Beverage 1,155 2,336 3,638 16.4 25.0 34.8

Total Sales 5,787 9,018 13,342 100.0 100.0 100.0

Cost of Sales

Food 1,440 2,305 3,750 30.6 34.5 40.5

Beverage 348 600 1,053 24.7 29.3 34.3


Gross Profit 3,601 5,864 9,037 61.4 66.9 70.0

Operating Expenses


Direct Operating Expenses 310 602 897 3.8 5.9 8.4


Marketing 68 156 355 1.0 1.8 3.0


Restaurant Occupancy Costs 322 549 876 3.6 6.0 8.0


Depreciation 79 188 338 1.1 2.1 3.1

Other Expense/(Income) (6) 154 357 0.0 1.5 4.8





Other Expenses 17 96 325 0.3 1.0 2.6

Income (Loss) Before Income Taxes ($75) $331 $898 (0.7%) 3.6% 9.0%



�2


Exhibit B-10Full Service Restaurants (Average Check Per Person $15 to $24.99)Statement of Income and Expenses - Amount per Square Foot*

All Restaurants Type of Establishment Menu Theme Menu Theme Average Check Restaurant Location Sales Volume ($000)



Food and Beverage

Steak/ Seafood Chicken Pizza

American (varied) Mexican Italian Asian Other

$15.00 to $19.99

$20.00 to $24.99 Hotel Other


Sole Occupant

Under $500

$500 to $999

$1,000 to $1,999

$2,000 and Over

Sales

Food $125.18 $202.07 $314.81 ** $201.00 $233.46 ** ** $181.81 ** ** ** $240.00 $217.86 $186.98 ** $201.00 $173.08 $214.45 ** $152.79 $188.52 $315.30

Beverage 35.83 69.20 113.45 N/A 69.64 75.84 ** ** 74.95 ** ** ** 62.87 71.49 61.58 ** 85.35 36.36 76.37 ** 36.20 71.24 90.69

Total Sales 178.07 278.89 416.06 ** 278.89 288.06 ** ** 264.29 ** ** ** 380.00 295.36 262.27 ** 292.86 213.27 297.92 ** 184.64 280.00 399.31

Gross Profit on Sales 115.73 180.20 277.27 ** 180.20 170.87 ** ** 178.29 ** ** ** 262.20 196.24 174.37 ** 201.15 136.29 190.16 ** 122.27 177.87 263.77

Utility Services 6.41 9.00 12.63 ** 9.00 9.19 ** ** 9.50 ** ** ** 9.32 9.95 8.68 ** 8.90 7.25 10.00 ** 7.86 9.51 11.09

Restaurant Occupancy Costs 8.23 15.37 25.33 ** 15.48 14.40 ** ** 13.15 ** ** ** 21.88 15.62 15.17 ** 15.17 16.74 15.09 ** 12.24 17.78 18.80




N/A Not applicable

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Exhibit B-10Full Service Restaurants (Average Check Per Person $15 to $24.99)Statement of Income and Expenses - Amount per Square Foot*




Food and Beverage

Steak/ Seafood Chicken Pizza

American (varied) Mexican Italian Asian Other

$15.00 to $19.99

$20.00 to $24.99 Hotel Other


Sole Occupant

Under $500

$500 to $999

$1,000 to $1,999

$2,000 and Over

Sales

Food $125.18 $202.07 $314.81 ** $201.00 $233.46 ** ** $181.81 ** ** ** $240.00 $217.86 $186.98 ** $201.00 $173.08 $214.45 ** $152.79 $188.52 $315.30

Beverage 35.83 69.20 113.45 N/A 69.64 75.84 ** ** 74.95 ** ** ** 62.87 71.49 61.58 ** 85.35 36.36 76.37 ** 36.20 71.24 90.69

Total Sales 178.07 278.89 416.06 ** 278.89 288.06 ** ** 264.29 ** ** ** 380.00 295.36 262.27 ** 292.86 213.27 297.92 ** 184.64 280.00 399.31

Gross Profit on Sales 115.73 180.20 277.27 ** 180.20 170.87 ** ** 178.29 ** ** ** 262.20 196.24 174.37 ** 201.15 136.29 190.16 ** 122.27 177.87 263.77

Utility Services 6.41 9.00 12.63 ** 9.00 9.19 ** ** 9.50 ** ** ** 9.32 9.95 8.68 ** 8.90 7.25 10.00 ** 7.86 9.51 11.09

Restaurant Occupancy Costs 8.23 15.37 25.33 ** 15.48 14.40 ** ** 13.15 ** ** ** 21.88 15.62 15.17 ** 15.17 16.74 15.09 ** 12.24 17.78 18.80




N/A Not applicable

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Exhibit B-11Full Service Restaurants (Average Check Per Person $15 to $24.99)Statement of Income and Expenses - Amount per Seat




Upper Quartile


Upper Quartile

Sales

Food ** ** ** $4,000 $6,400 $9,832

Beverage N/A N/A N/A 1,147 2,333 3,567

Total Sales ** ** ** 5,725 9,018 13,160

Cost of Sales

Food ** ** ** 1,408 2,256 3,684

Beverage N/A N/A N/A 347 600 1,053

Total Cost of Sales ** ** ** 1,889 3,244 4,559

Gross Profit ** ** ** 3,583 5,833 8,867

Operating Expenses


Direct Operating Expenses ** ** ** 300 574 893


Marketing ** ** ** 64 147 324

Utility Services ** ** ** 199 303 442

Restaurant Occupancy Costs ** ** ** 290 530 814

Repairs and Maintenance ** ** ** 85 154 277

Depreciation ** ** ** 73 174 320

Other Expense/(Income) ** ** ** 0 100 316



Total Operating Expenses ** ** ** 3,204 5,488 8,099



Income (Loss) Before Income Taxes ** ** ** ($36) $331 $879



N/A Not applicable

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Exhibit B-12Full Service Restaurants (Average Check Per Person $15 to $24.99)Statement of Income and Expenses - Ratio to Total Sales*




Upper Quartile


Upper Quartile

Sales

Food ** ** ** 65.2% 75.0% 82.9%


Total Sales ** ** ** 100.0 100.0 100.0

Cost of Sales

Food ** ** ** 30.6 34.5 40.7


Total Cost of Sales ** ** ** 30.0 33.0 38.5

Gross Profit ** ** ** 61.5 67.0 70.0

Operating Expenses

Salaries and Wages (including Employee Benefits) ** ** ** 29.1 33.7 39.4



Marketing ** ** ** 0.9 1.7 2.9

Utility Services ** ** ** 2.6 3.4 4.6

Restaurant Occupancy Costs ** ** ** 3.1 5.9 8.0

Repairs and Maintenance ** ** ** 1.0 1.8 2.4

Depreciation ** ** ** 1.1 2.0 3.0

Other Expense/(Income) ** ** ** 0.0 0.9 4.2



Total Operating Expenses ** ** ** 54.6 61.1 67.7


Other Expenses ** ** ** 0.0 0.2 1.3

Income (Loss) Before Income Taxes ** ** ** (0.3%) 3.7% 9.0%




N/A Not applicable

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Affiliation

Single Unit - Independent Multi-Unit - Company Operated


Upper Quartile


Upper Quartile

Sales

Food $3,890 $6,000 $9,094 $7,595 $11,351 $15,119

Beverage 1,006 2,196 3,500 2,053 3,081 4,685

Total Sales 5,368 8,333 12,097 11,609 14,838 18,106

Cost of Sales

Food 1,359 2,067 3,296 2,742 3,928 5,461

Beverage 314 583 989 583 851 1,166


Gross Profit 3,489 5,428 8,140 6,753 9,490 11,936

Operating Expenses


Direct Operating Expenses 253 535 890 445 662 1,000


Marketing 67 143 311 82 228 430


Restaurant Occupancy Costs 281 523 732 395 637 1,037


Depreciation 69 159 283 166 282 505

Other Expense/(Income) 1 154 324 (73) (18) 145






Income (Loss) Before Income Taxes ($111) $229 $815 $353 $720 $2,138



��



Affiliation



Upper Quartile


Upper Quartile

Sales

Food 65.0% 74.7% 83.3% 69.9% 76.5% 81.6%

Beverage 16.7 25.3 35.0 18.4 23.5 30.1

Total Sales 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 30.8 34.5 40.5 31.3 37.3 40.7

Beverage 25.1 29.7 35.3 ** ** **


Gross Profit 61.2 66.7 69.8 61.4 65.8 70.4

Operating Expenses




Marketing 0.9 1.8 3.0 1.0 2.0 2.8




Depreciation 1.0 2.0 2.9 1.2 1.8 2.3

Other Expense/(Income) 0.0 0.4 1.4 ** ** **





Other Expenses 0.0 0.4 1.4 ** ** **

Income (Loss) Before Income Taxes (1.2%) 3.3% 7.9% 2.9% 6.0% 10.0%




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Sales Volume ($000)

Between $500 and $999 Between $1,000 and $1,999 $2,000 and Over


Upper Quartile


Upper Quartile


Upper Quartile

Sales

Food $3,346 $4,564 $6,592 $4,482 $6,841 $9,210 $6,705 $10,261 $13,951

Beverage 545 1,086 1,668 1,583 2,656 3,661 2,333 3,311 4,560

Total Sales 4,367 5,725 8,409 7,450 9,983 12,269 10,154 13,642 17,749

Cost of Sales

Food 1,077 1,679 2,295 1,600 2,423 3,378 2,217 3,772 5,281

Beverage 200 333 489 459 746 1,165 539 876 1,177


Gross Profit 2,911 3,620 5,479 4,895 6,259 8,362 6,140 9,176 11,723

Operating Expenses


Direct Operating Expenses 135 420 882 268 611 805 524 811 1,362


Marketing 44 95 160 84 187 324 77 267 436


Restaurant Occupancy Costs 228 323 564 409 552 819 408 615 1,024


Depreciation 49 133 227 69 174 234 89 283 489

Other Expense/(Income) 0 100 166 0 99 378 (17) 169 335

General & Administrative Expenses 64 143 548 279 416 804 136 347 739

Corporate Overhead ** ** ** ** ** ** 0 67 671


Interest Expense 4 59 169 19 75 154 25 103 250

Other Expenses ** ** ** 0 12 95 0 25 215

Income (Loss) Before Income Taxes ($283) $109 $400 ($48) $400 $874 $201 $712 $1,799



��



Sales Volume ($000)



Upper Quartile


Upper Quartile


Upper Quartile

Sales

Food 68.8% 78.1% 87.4% 60.0% 72.7% 80.1% 70.0% 76.0% 81.9%

Beverage 12.6 21.9 31.3 19.9 27.3 40.0 18.1 24.0 30.0

Total Sales 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 30.7 35.7 40.0 30.7 34.5 40.7 30.5 33.3 40.2

Beverage 26.6 30.1 39.7 25.3 29.5 33.4 22.6 25.5 30.9


Gross Profit 61.2 65.2 69.6 62.7 66.9 70.6 62.1 68.3 70.5

Operating Expenses




Marketing 0.7 1.6 2.9 1.0 1.9 3.4 0.9 1.8 2.9




Depreciation 1.1 2.4 4.3 1.1 1.7 2.4 1.0 1.9 3.0

Other Expense/(Income) 0.0 0.9 4.7 0.0 1.1 4.2 (0.1) 0.8 3.6


Corporate Overhead ** ** ** ** ** ** 0.0 0.4 6.0



Other Expenses ** ** ** 0.0 0.2 1.6 0.0 0.2 1.2

Income (Loss) Before Income Taxes (5.8%) 1.5% 7.3% (0.3%) 4.0% 7.5% 2.0% 5.5% 11.2%




�0



Menu Theme

Steak/Seafood American (varied)


Upper Quartile


Upper Quartile

Sales

Food $4,306 $7,567 $11,085 $3,597 $6,395 $9,045

Beverage 927 2,193 3,333 1,339 2,741 3,957

Total Sales 6,693 8,596 13,072 5,407 9,285 13,342

Cost of Sales

Food 1,907 3,126 4,050 1,424 2,224 3,310

Beverage 328 556 857 416 785 1,208


Gross Profit 4,144 5,250 8,811 3,480 5,864 8,347

Operating Expenses


Direct Operating Expenses 395 744 1,068 292 515 879


Marketing 73 172 311 61 152 362




Depreciation 69 139 274 65 171 357

Other Expense/(Income) 30 157 385 (45) 29 216






Income (Loss) Before Income Taxes $26 $292 $984 ($111) $269 $889



�1



Menu Theme

Steak/Seafood American (varied)


Upper Quartile


Upper Quartile

Sales

Food 71.5% 78.0% 84.0% 61.3% 69.4% 79.8%

Beverage 16.0 22.0 28.5 20.2 30.6 38.7

Total Sales 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 32.3 36.7 44.5 32.0 35.6 40.8

Beverage 23.5 28.2 33.5 24.9 29.5 34.1


Gross Profit 59.0 65.6 68.7 61.2 66.0 69.8

Operating Expenses




Marketing 0.8 1.6 3.2 1.0 2.0 3.0




Depreciation 0.8 1.7 2.7 1.0 2.0 3.1

Other Expense/(Income) 0.4 1.7 4.9 (0.3) 0.5 2.0





Other Expenses ** ** ** 0.0 0.1 1.1

Income (Loss) Before Income Taxes (0.7%) 3.0% 8.8% (1.2%) 3.5% 9.6%




�2






Upper Quartile


Upper Quartile

Sales

Food $4,328 $6,870 $11,475 $3,629 $5,634 $8,252

Beverage 1,230 2,703 3,972 859 1,636 2,656

Total Sales 6,750 10,000 14,537 4,966 6,824 10,445

Cost of Sales

Food 1,464 2,371 4,084 1,483 2,139 3,110

Beverage 351 731 1,166 256 517 696


Gross Profit 4,692 6,283 9,624 3,107 4,142 6,633

Operating Expenses




Marketing 81 190 417 49 121 199




Depreciation 79 184 328 64 200 484

Other Expense/(Income) (9) 103 319 0 138 311






Income (Loss) Before Income Taxes $22 $430 $1,260 ($326) $119 $387




��






Upper Quartile


Upper Quartile

Sales

Food 64.7% 74.6% 82.8% 67.7% 78.8% 83.7%

Beverage 17.2 25.4 35.3 16.3 21.2 32.3

Total Sales 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 30.5 33.9 39.6 34.7 39.7 44.3

Beverage 24.1 28.1 33.4 ** ** **


Gross Profit 63.1 67.8 70.5 56.2 61.3 66.3

Operating Expenses




Marketing 1.0 2.0 3.7 0.9 1.5 2.2




Depreciation 1.1 2.0 2.8 1.1 2.1 3.2

Other Expense/(Income) (0.1) 0.9 3.5 0.0 1.3 4.9





Other Expenses 0.0 0.4 1.5 ** ** **

Income (Loss) Before Income Taxes (0.4%) 4.2% 9.5% (5.9%) 1.7% 7.7%





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Average Check

$15.00 to $19.99 $20.00 to $24.99


Upper Quartile


Upper Quartile

Sales

Food $4,539 $6,670 $9,681 $3,483 $6,395 $10,254

Beverage 1,086 2,600 3,554 1,233 2,117 3,604

Total Sales 6,491 8,977 13,877 5,286 9,018 13,143

Cost of Sales

Food 1,564 2,609 3,733 1,246 2,033 3,750

Beverage 322 597 914 409 600 1,129


Gross Profit 4,123 5,631 9,471 3,444 6,041 8,346

Operating Expenses


Direct Operating Expenses 347 606 911 224 505 882


Marketing 80 189 356 56 111 311




Depreciation 74 200 335 74 159 300







Income (Loss) Before Income Taxes ($135) $242 $1,171 $54 $387 $804


��



Average Check

$15.00 to $19.99 $20.00 to $24.99


Upper Quartile


Upper Quartile

Sales

Food 65.2% 76.9% 85.0% 67.3% 73.3% 80.5%

Beverage 15.0 23.1 34.8 19.5 26.7 32.7

Total Sales 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 30.8 34.8 40.8 30.5 34.5 40.0

Beverage 24.0 27.9 33.6 25.5 31.1 34.8


Gross Profit 61.4 67.0 70.1 61.5 66.7 69.7

Operating Expenses




Marketing 1.0 2.0 3.0 0.8 1.5 2.7




Depreciation 1.1 1.8 3.0 1.0 2.2 3.0

Other Expense/(Income) 0.0 1.3 4.2 0.0 0.9 4.8





Other Expenses 0.0 0.4 1.4 0.0 0.1 0.9




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Exhibit B-23Full Service Restaurants (Average Check Per Person $15 to $24.99)Income Differential




Upper Quartile


Upper Quartile


Upper Quartile


Upper Quartile

Sales

Food $4,434 $6,928 $11,696 $3,399 $5,556 $8,333 67.9% 76.0% 83.9% 63.5% 71.1% 83.7%

Beverage 1,226 2,620 3,781 846 1,570 3,203 17.2 24.6 32.6 16.3 28.9 36.5

Total Sales 6,413 10,035 14,656 5,008 7,334 10,034 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 1,554 2,406 4,179 1,270 2,012 2,800 30.5 34.1 40.0 31.8 35.7 41.6

Beverage 360 668 1,094 ** ** ** 24.2 28.5 33.7 26.6 30.1 38.3


Gross Profit 4,199 6,522 9,706 3,321 4,627 6,633 61.8 67.1 70.2 61.0 66.1 69.0

Operating Expenses


Direct Operating Expenses 330 633 907 248 432 832 3.8 5.7 8.2 3.8 6.0 9.1


Marketing 58 138 359 83 160 313 0.7 1.6 2.5 1.3 2.6 4.6



Repairs and Maintenance 83 155 257 88 145 313 0.9 1.6 2.2 1.2 2.1 3.3

Depreciation 84 195 359 65 154 227 1.1 2.0 2.9 0.8 2.0 3.3

Other Expense/(Income) (6) 130 377 0 32 282 0.0 1.3 4.1 0.0 0.7 4.7





Other Expenses 0 11 147 0 22 158 0.0 0.1 1.2 0.0 0.3 2.4

Income (Loss) Before Income Taxes $235 $627 $1,363 ($1,050) ($400) ($133) 3.0% 6.1% 11.4% (13.4%) (6.3%) (2.5%)




��


Exhibit B-23Full Service Restaurants (Average Check Per Person $15 to $24.99)Income Differential




Upper Quartile


Upper Quartile


Upper Quartile


Upper Quartile

Sales

Food $4,434 $6,928 $11,696 $3,399 $5,556 $8,333 67.9% 76.0% 83.9% 63.5% 71.1% 83.7%

Beverage 1,226 2,620 3,781 846 1,570 3,203 17.2 24.6 32.6 16.3 28.9 36.5

Total Sales 6,413 10,035 14,656 5,008 7,334 10,034 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 1,554 2,406 4,179 1,270 2,012 2,800 30.5 34.1 40.0 31.8 35.7 41.6

Beverage 360 668 1,094 ** ** ** 24.2 28.5 33.7 26.6 30.1 38.3


Gross Profit 4,199 6,522 9,706 3,321 4,627 6,633 61.8 67.1 70.2 61.0 66.1 69.0

Operating Expenses


Direct Operating Expenses 330 633 907 248 432 832 3.8 5.7 8.2 3.8 6.0 9.1


Marketing 58 138 359 83 160 313 0.7 1.6 2.5 1.3 2.6 4.6




Depreciation 84 195 359 65 154 227 1.1 2.0 2.9 0.8 2.0 3.3

Other Expense/(Income) (6) 130 377 0 32 282 0.0 1.3 4.1 0.0 0.7 4.7





Other Expenses 0 11 147 0 22 158 0.0 0.1 1.2 0.0 0.3 2.4





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Exhibit C-1 presents the characteristics of the 170 respondents in the Full Service Restaurants (Average Check Per Person $25 and Over) category of this year’s study. More than two-thirds (70.0%) of the respondents represent independent restaurants and 53.5% reported that they were the sole occupant of their location. Restaurants with American menu themes represent 45.9% of this sample.








Characteristics• 70.0% of full service (average check $25 and over) restaurants are





Section C-Full Service Restaurants (Average Check Per Person $25 and Over)

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Exhibit C-1Composition of Participating Full Service Restaurants(Average Check Per Person $25 and Over)Number of Respondents: 170




Public Corporation 1.2Years in Business: Private Corporation 61.81 to 5 Years 21.8%5 to 10 Years 22.9 Menu Theme:Over 10 Years 55.3 Steak/Seafood 20.6%

American (varied) 45.9Region: 1 Italian 12.9Northeast 21.8% Asian 1.8North Central 20.0 Other 18.8South 20.6West 36.4 Sales Volume: 3

Not Specified 1.2 Under $500,000 8.2%$500,000 to $999,999 19.4

Average Check: 2 $1,000,000 to $1,999,999 26.5$25.00 to $32.99 39.4% $2,000,000 and Over 45.9$33.00 and Over 60.6

Restaurant Location:Affiliation: Hotel 10.0%Single Unit - Independent 70.0% Shopping Center or Mall 9.4Single Unit - Franchise Operated 1.8 Sole Occupant 53.5Multi-Unit - Company Operated 27.6 Other 27.1Multi-Unit - Franchise Operated 0.6

Total Number of Seats:Profit versus Loss: 3 Under 100 31.2%Profit 74.9% 100 to 149 15.9Loss 25.1 150 to 199 12.4

200 to 399 34.7Lease versus Own: 400 and Over 4.7Own Land and Building 24.7% Not Specified 1.1Lease Land and Building 47.1Lease Land and Own Building 2.9 Total Restaurant Square Footage:Own Land and Lease Building 0.6 Under 2,500 14.7%Not Specified 24.7 2,500 to 4,999 24.7

5,000 to 7,499 21.27,500 and Over 34.1Not Specified 5.3

¹ Regions:







�0


Exhibit C-2Full Service Restaurants (Average Check Per Person $25 and Over)Average Check

Total


Upper Quartile

All Restaurants $29.00 $35.00 $43.00


Food Only ** ** **

Food and Beverage $29.00 $35.00 $43.00

Restaurant Location

Hotel ** ** **

Shopping Center or Mall ** ** **

Sole Occupant $29.00 $36.00 $43.50

Other 33.00 38.00 53.00

Profit versus Loss

Profit $30.00 $36.00 $45.00

Loss 26.25 31.00 37.50

Menu Theme

Steak/Seafood $27.00 $33.00 $44.50


Italian 30.25 35.50 42.25

Asian ** ** **

Other 28.50 36.00 53.50

Affiliation


Single Unit - Franchise Operated 25.00 25.00 32.50



Ownership


Partnership 30.00 35.00 47.00



Sales Volume

Under $500,000 ** ** **

$500,000 to $999,999 $28.00 $32.00 $47.00

$1,000,000 to $1,999,999 27.00 35.00 43.00

$2,000,000 and Over 30.25 35.50 43.00


�1


Exhibit C-3Full Service Restaurants (Average Check Per Person $25 and Over)Average Daily Seat Turnover

Total


Upper Quartile



Food Only ** ** **


Restaurant Location

Hotel ** ** **



Other 0.6 0.9 1.4

Profit versus Loss

Profit 0.7 1.1 1.6

Loss 0.5 0.8 1.1

Menu Theme

Steak/Seafood 0.7 0.9 1.1


Italian 0.6 0.9 1.6

Asian ** ** **

Other 0.5 0.8 1.3

Average Check

$25.00 to $32.99 0.7 1.1 1.7

$33.00 and Over 0.6 0.8 1.4

Affiliation





Ownership





Sales Volume

Under $500,000 ** ** **

$500,000 to $999,999 0.5 0.8 1.0

$1,000,000 to $1,999,999 0.6 0.8 1.0

$2,000,000 and Over 1.1 1.4 1.9


�2


Exhibit C-4Full Service Restaurants (Average Check Per Person $25 and Over)Cost per Dollar of Sales*

Total Cost of Sales




Food Only ** ** **

Food and Beverage 32.3¢ 34.5¢ 65.5¢

Restaurant Location

Hotel ** ** **


Sole Occupant 33.3¢ 32.5¢ 64.7¢

Other 29.2 35.0 66.4

Profit versus Loss

Profit 30.3¢ 34.2¢ 64.1¢

Loss 35.1 37.5 76.5

Menu Theme

Steak/Seafood 35.7¢ 31.7¢ 68.6¢


Italian ** ** 65.9

Asian ** ** **

Other 31.7 34.9 66.9

Average Check

$25.00 to $32.99 33.5¢ 33.4¢ 66.3¢

$33.00 and Over 30.4 34.7 64.7

Affiliation




Ownership





Sales Volume

Under $500,000 ** ** **

$500,000 to $999,999 34.7¢ 35.3¢ 67.5¢

$1,000,000 to $1,999,999 34.3 34.5 72.1

$2,000,000 and Over 28.5 34.1 63.1



��


Exhibit C-5Full Service Restaurants (Average Check Per Person $25 and Over)Number of Employees*


Full TimePart Time

(20-34 Hours)


Hours)



Food Only ** ** **


Restaurant Location

Hotel ** ** **



Other 19 13 4

Profit versus Loss

Profit 23 16 5

Loss 10 9 4

Menu Theme

Steak/Seafood 12 15 4


Italian 22 10 4

Asian ** ** **

Other 14 7 0

Average Check

$25.00 to $32.99 14 12 4

$33.00 and Over 21 15 5

Affiliation




Ownership


Partnership 24 15 5



Sales Volume

Under $500,000 ** ** **

$500,000 to $999,999 6 7 2

$1,000,000 to $1,999,999 12 10 4

$2,000,000 and Over 32 30 16



��


Exhibit C-6Full Service Restaurants (Average Check Per Person $25 and Over)Annual Employee Turnover*

All Employees

Salaried Employees

Hourly Employees



Food Only ** ** **


Restaurant Location

Hotel ** ** **


Sole Occupant 74% 58% 81%

Other 69 ** **

Profit versus Loss

Profit 73% 60% 78%

Loss 82 63 90

Menu Theme

Steak/Seafood 57% 38% 60%


Italian ** ** **

Asian ** ** **

Other 84 67 86

Average Check

$25.00 to $32.99 68% 47% 75%

$33.00 and Over 79 67 86

Affiliation




Ownership

Sole Proprietorship ** ** **

Partnership 69% ** **



Sales Volume

Under $500,000 ** ** **

$500,000 to $999,999 78% 33% 82%

$1,000,000 to $1,999,999 52 ** **

$2,000,000 and Over 85 67 93




��


Exhibit C-7Full Service Restaurants (Average Check Per Person $25 and Over)Employee Information*


TotalPer 100



All Restaurants 29.2 20.6 20.6 $66,269 $23,650


Food Only ** ** ** ** **

Food and Beverage 29.8 20.8 20.8 $66,006 $23,737

Restaurant Location

Hotel ** ** ** ** **

Shopping Center or Mall ** ** ** ** **

Sole Occupant 27.5 19.4 22.6 $63,560 $20,992

Other 28.8 21.2 19.7 69,444 23,737

Profit versus Loss

Profit 35.0 23.4 20.4 $69,961 $24,397

Loss 20.7 16.9 22.6 53,922 17,984

Menu Theme

Steak/Seafood 28.6 18.4 20.9 $67,173 $18,769

American (varied) 42.5 23.6 18.3 69,393 24,412

Italian 35.3 19.6 21.2 62,524 **

Asian ** ** ** ** **

Other 23.2 19.6 25.0 64,000 19,544

Average Check

$25.00 to $32.99 26.1 19.9 17.3 $58,904 $20,010

$33.00 and Over 35.0 21.0 23.0 70,756 24,546

Affiliation




Ownership


Partnership 32.2 23.8 23.5 67,614 23,942



Sales Volume

Under $500,000 ** ** ** ** **

$500,000 to $999,999 12.9 18.1 23.5 $54,105 $19,255

$1,000,000 to $1,999,999 24.2 16.4 20.9 59,058 19,048

$2,000,000 and Over 60.9 25.2 17.7 71,311 24,848

* All amounts are medians. Based on 35 hours per week. Factors used to compute full-time equivalent employees are as follows:

full-time (35 hours or more) equals 1.0; part-time (20-34 hours) equals 0.7; part-part-time (less than 20 hours) equals 0.35


��


Exhibit C-8Full Service Restaurants (Average Check Per Person $25 and Over)Take-Out/Drive Through, Outside Catering andBanquet Service - Ratio to Total Sales*


Outside Catering

Banquet Service



Food Only ** ** **


Restaurant Location

Hotel ** ** **


Sole Occupant 2% 2% 10%

Other ** ** **

Profit versus Loss

Profit 2% 2% 11%

Loss ** ** 10

Menu Theme


American (varied) 2% ** 10%

Italian ** ** **

Asian ** ** **

Other ** ** **

Average Check

$25.00 to $32.99 3% 3% 8%

$33.00 and Over 2 4 15

Affiliation


Multi-Unit - Company Operated ** ** **


Ownership


Partnership ** ** **


Private Corporation 2% 5% 10%

Sales Volume

Under $500,000 ** ** **

$500,000 to $999,999 ** ** **

$1,000,000 to $1,999,999 2% ** 10%

$2,000,000 and Over ** ** 15



��


Exhibit C-9Full Service Restaurants (Average Check Per Person $25 and Over)Statement of Income and Expenses

All Restaurants



Upper Quartile


Upper Quartile

Sales

Food $6,249 $9,319 $13,458 67.9% 72.6% 77.7%

Beverage 2,135 3,831 5,665 22.8 27.6 32.8

Total Sales 8,761 12,829 19,090 100.0 100.0 100.0

Cost of Sales

Food 2,075 3,083 4,404 28.5 32.6 37.1

Beverage 612 1,129 1,704 25.1 28.2 35.4


Gross Profit 5,647 8,423 13,289 63.7 67.6 71.8

Operating Expenses




Marketing 125 313 478 1.3 2.2 3.0


Restaurant Occupancy Costs 498 843 1,355 4.1 6.9 9.0


Depreciation 138 280 592 0.9 2.0 3.9

Other Expense/(Income) (12) 74 383 (0.1) 0.9 2.5





Other Expenses 36 285 1,002 0.5 2.5 4.1

Income (Loss) Before Income Taxes $13 $577 $1,807 0.1% 4.1% 10.5%



��


Exhibit C-10Full Service Restaurants (Average Check Per Person $25 and Over)Statement of Income and Expenses - Amount per Square Foot*



Upper Quartile

Food Only

Food and Beverage

Steak/ Seafood

American (varied) Italian Asian Other

$25.00 to $32.99

$33.00 and Over Hotel Other


Sole Occupant

Under $500

$500 to $999

$1,000 to $1,999

$2,000 and Over

Sales

Food $191.59 $262.36 $389.80 ** $262.36 $238.86 $287.32 $286.63 ** $211.27 $221.66 $277.58 ** $267.86 ** $240.74 ** $219.38 $218.66 $366.52

Beverage 59.80 102.71 154.99 N/A 103.13 75.20 125.90 ** ** 90.31 78.38 112.46 ** 111.50 ** 91.73 ** 88.00 78.38 145.20

Total Sales 250.00 367.70 554.29 ** 374.40 333.13 422.27 345.50 ** 307.93 331.62 390.01 ** 389.81 ** 350.00 ** 301.81 283.33 540.25

Gross Profit on Sales 168.44 238.50 389.24 ** 238.50 218.75 292.35 241.88 ** 202.17 218.19 259.58 ** 276.79 ** 225.45 ** 191.17 190.97 385.05

Utility Services 6.44 9.77 14.99 ** 9.83 8.21 10.36 ** ** 9.60 9.72 9.77 ** 9.83 ** 9.60 ** 9.28 6.56 12.72

Restaurant Occupancy Costs 11.70 25.25 36.01 ** 25.58 21.40 31.91 ** ** 20.36 14.56 29.78 ** 29.70 ** 22.21 ** 20.50 17.41 34.22




N/A Not applicable

��


Exhibit C-10Full Service Restaurants (Average Check Per Person $25 and Over)Statement of Income and Expenses - Amount per Square Foot*



Upper Quartile

Food Only

Food and Beverage

Steak/ Seafood

American (varied) Italian Asian Other

$25.00 to $32.99

$33.00 and Over Hotel Other


Sole Occupant

Under $500

$500 to $999

$1,000 to $1,999

$2,000 and Over

Sales

Food $191.59 $262.36 $389.80 ** $262.36 $238.86 $287.32 $286.63 ** $211.27 $221.66 $277.58 ** $267.86 ** $240.74 ** $219.38 $218.66 $366.52

Beverage 59.80 102.71 154.99 N/A 103.13 75.20 125.90 ** ** 90.31 78.38 112.46 ** 111.50 ** 91.73 ** 88.00 78.38 145.20

Total Sales 250.00 367.70 554.29 ** 374.40 333.13 422.27 345.50 ** 307.93 331.62 390.01 ** 389.81 ** 350.00 ** 301.81 283.33 540.25

Gross Profit on Sales 168.44 238.50 389.24 ** 238.50 218.75 292.35 241.88 ** 202.17 218.19 259.58 ** 276.79 ** 225.45 ** 191.17 190.97 385.05

Utility Services 6.44 9.77 14.99 ** 9.83 8.21 10.36 ** ** 9.60 9.72 9.77 ** 9.83 ** 9.60 ** 9.28 6.56 12.72

Restaurant Occupancy Costs 11.70 25.25 36.01 ** 25.58 21.40 31.91 ** ** 20.36 14.56 29.78 ** 29.70 ** 22.21 ** 20.50 17.41 34.22




N/A Not applicable

�0


Exhibit C-11Full Service Restaurants (Average Check Per Person $25 and Over)Statement of Income and Expenses - Amount per Seat




Upper Quartile


Upper Quartile

Sales

Food ** ** ** $6,203 $9,164 $13,439

Beverage N/A N/A N/A 2,135 3,831 5,665

Total Sales ** ** ** 8,761 12,829 19,041

Cost of Sales

Food ** ** ** 2,032 3,077 4,361

Beverage N/A N/A N/A 612 1,129 1,704

Total Cost of Sales ** ** ** 2,777 4,233 5,723

Gross Profit ** ** ** 5,647 8,512 13,289

Operating Expenses


Direct Operating Expenses ** ** ** 520 836 1,444


Marketing ** ** ** 118 307 478

Utility Services ** ** ** 241 368 529

Restaurant Occupancy Costs ** ** ** 495 833 1,323

Repairs and Maintenance ** ** ** 99 204 361

Depreciation ** ** ** 92 259 565

Other Expense/(Income) ** ** ** (4) 54 364



Total Operating Expenses ** ** ** 5,276 8,525 11,683


Other Expenses ** ** ** 2 125 794

Income (Loss) Before Income Taxes ** ** ** $4 $571 $1,800



N/A Not applicable

�1


Exhibit C-12Full Service Restaurants (Average Check Per Person $25 and Over)Statement of Income and Expenses - Ratio to Total Sales*




Upper Quartile


Upper Quartile

Sales

Food ** ** ** 67.4% 72.4% 76.9%


Total Sales ** ** ** 100.0 100.0 100.0

Cost of Sales

Food ** ** ** 28.5 32.5 37.1


Total Cost of Sales ** ** ** 28.0 32.3 36.1

Gross Profit ** ** ** 63.7 67.6 72.0

Operating Expenses

Salaries and Wages (including Employee Benefits) ** ** ** 30.9 34.5 38.2



Marketing ** ** ** 1.3 2.2 3.0

Utility Services ** ** ** 2.1 2.8 4.0

Restaurant Occupancy Costs ** ** ** 4.0 6.9 9.0

Repairs and Maintenance ** ** ** 1.0 1.6 2.1

Depreciation ** ** ** 0.8 2.0 3.7

Other Expense/(Income) ** ** ** (0.1) 0.6 2.2



Total Operating Expenses ** ** ** 56.0 62.4 68.2


Other Expenses ** ** ** 0.0 1.3 4.1

Income (Loss) Before Income Taxes ** ** ** 0.0% 4.1% 10.2%




N/A Not applicable

�2



Affiliation



Upper Quartile


Upper Quartile

Sales

Food $5,714 $8,189 $11,042 $9,872 $14,406 $18,886

Beverage 1,643 3,028 4,811 4,219 5,660 7,432

Total Sales 7,328 11,333 15,711 15,309 19,984 25,727

Cost of Sales

Food 1,947 2,936 3,539 2,924 4,211 5,588

Beverage 521 988 1,520 988 1,422 1,975


Gross Profit 5,026 7,611 10,072 10,821 14,196 18,455

Operating Expenses




Marketing 95 207 366 404 489 692


Restaurant Occupancy Costs 456 699 1,249 535 1,144 1,517


Depreciation 71 180 328 298 538 738


General & Administrative Expenses 80 253 729 643 796 1,168



Interest Expense 22 116 200 ** ** **


Income (Loss) Before Income Taxes ($1) $341 $982 $537 $2,052 $2,913



��



Affiliation



Upper Quartile


Upper Quartile

Sales

Food 66.7% 72.5% 78.7% 69.9% 72.9% 75.1%

Beverage 21.3 27.5 33.3 24.9 27.1 30.1

Total Sales 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 29.6 34.3 38.4 27.0 29.1 31.2

Beverage 27.3 31.1 37.4 ** ** **


Gross Profit 62.6 66.5 70.0 69.4 72.4 74.1

Operating Expenses




Marketing 0.9 1.9 2.7 2.0 2.5 3.6




Depreciation 0.7 1.5 3.1 1.6 2.5 4.3





Interest Expense 0.2 1.0 1.7 ** ** **

Other Expenses 0.0 0.4 2.5 ** ** **





��



Sales Volume ($000)



Upper Quartile


Upper Quartile


Upper Quartile

Sales

Food $5,229 $7,259 $9,720 $5,994 $7,374 $9,460 $9,573 $13,440 $17,124

Beverage 1,691 2,802 4,770 1,528 2,478 3,886 4,122 5,399 7,505

Total Sales 7,371 10,613 14,517 8,313 10,133 12,732 14,119 18,729 23,754

Cost of Sales

Food 1,529 2,742 3,212 2,038 2,645 3,256 3,047 4,160 5,420

Beverage 624 1,802 1,501 439 766 1,192 1,053 1,449 2,013


Gross Profit 4,714 6,919 8,942 5,286 6,871 8,502 9,694 13,412 17,737

Operating Expenses


Direct Operating Expenses 406 716 1,259 394 679 1,498 750 970 1,649


Marketing 94 156 253 65 171 316 330 453 670


Restaurant Occupancy Costs 496 629 989 353 569 914 786 1,214 1,534


Depreciation 88 164 278 37 127 262 200 494 732

Other Expense/(Income) 38 219 787 0 72 267 (51) 12 307

General & Administrative Expenses ** ** ** 37 158 354 458 756 1,121

Corporate Overhead ** ** ** ** ** ** 87 326 527


Interest Expense 34 148 213 ** ** ** 32 165 566

Other Expenses ** ** ** ** ** ** ** ** **

Income (Loss) Before Income Taxes ($696) $111 $374 ($124) $259 $972 $410 $1,308 $2,581



��



Sales Volume ($000)



Upper Quartile


Upper Quartile


Upper Quartile

Sales

Food 66.4% 70.4% 77.3% 67.5% 75.0% 80.0% 68.4% 72.1% 75.5%

Beverage 22.7 29.6 33.6 20.0 25.0 33.1 24.5 27.9 31.6

Total Sales 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 32.6 35.4 37.3 30.0 34.8 39.2 27.2 29.6 34.6

Beverage 29.5 36.3 39.8 27.0 31.0 36.3 23.5 25.6 28.1


Gross Profit 62.7 65.3 67.5 60.7 65.7 68.8 67.4 71.5 73.7

Operating Expenses




Marketing 1.0 1.8 2.6 0.8 2.0 2.7 1.7 2.4 3.2




Depreciation 1.0 1.9 3.5 0.5 1.4 2.4 1.2 2.3 4.2

Other Expense/(Income) 0.4 3.0 11.1 0.0 0.6 2.6 (0.2) 0.1 1.5

General & Administrative Expenses ** ** ** 0.7 2.2 5.1 2.9 3.9 5.4

Corporate Overhead ** ** ** ** ** ** 0.6 1.1 3.2



Other Expenses ** ** ** ** ** ** ** ** **

Income (Loss) Before Income Taxes (4.7%) 0.8% 4.2% (2.2%) 2.4% 7.8% 2.5% 6.4% 11.6%




��



Menu Theme

Steak/Seafood American (varied) Italian


Upper Quartile


Upper Quartile


Upper Quartile

Sales

Food $6,245 $8,566 $10,463 $6,871 $9,891 $13,918 $6,063 $7,706 $14,165

Beverage 1,318 2,696 5,132 2,555 4,363 5,712 1,500 2,800 6,915

Total Sales 8,291 11,473 16,999 9,583 14,792 19,515 8,379 10,945 20,865

Cost of Sales

Food 2,422 3,139 4,587 2,258 3,274 4,332 1,960 2,946 4,736

Beverage 421 843 1,684 773 1,201 1,621 405 754 1,966


Gross Profit 5,026 7,639 10,218 6,690 9,913 14,159 5,641 7,118 14,628

Operating Expenses

Salaries and Wages (including Employee Benefits) 2,457 4,371 6,234 3,593 5,876 7,207 ** ** **

Direct Operating Expenses 570 994 2,155 536 834 1,250 ** ** **

Music and Entertainment 8 22 200 12 19 75 ** ** **

Marketing 104 288 460 119 392 508 118 223 359


Restaurant Occupancy Costs 499 632 1,077 565 1,033 1,437 ** ** **


Depreciation 49 169 257 185 435 627 ** ** **

Other Expense/(Income) ** ** ** (3) 44 367 ** ** **

General & Administrative Expenses 52 207 784 351 673 975 ** ** **

Corporate Overhead ** ** ** 53 269 407 ** ** **


Interest Expense ** ** ** 3 91 210 ** ** **

Other Expenses ** ** ** 2 75 1,040 ** ** **

Income (Loss) Before Income Taxes $25 $403 $1,194 $3 $716 $2,196 $153 $549 $2,016



��



Menu Theme

Steak/Seafood American (varied) Italian


Upper Quartile


Upper Quartile


Upper Quartile

Sales

Food 70.1% 75.3% 80.8% 66.9% 72.4% 75.9% 68.8% 75.1% 78.7%

Beverage 19.3 24.7 29.9 24.1 27.6 33.2 21.3 24.9 31.2

Total Sales 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 34.7 38.0 41.9 28.1 30.8 35.1 27.1 29.8 36.6

Beverage 26.9 30.2 35.6 23.5 25.9 33.3 26.0 28.1 34.0


Gross Profit 60.0 64.3 66.9 65.4 69.8 72.9 65.3 70.4 72.8

Operating Expenses

Salaries and Wages (including Employee Benefits) 27.7 31.7 35.7 31.5 34.6 39.4 ** ** **

Direct Operating Expenses 4.7 9.9 12.7 3.9 4.9 8.7 ** ** **

Music and Entertainment 0.1 0.3 0.9 0.1 0.2 0.9 ** ** **

Marketing 0.9 2.4 3.8 1.3 2.1 3.0 1.1 1.8 2.6


Restaurant Occupancy Costs 4.1 7.4 8.6 5.4 6.8 9.0 ** ** **


Depreciation 0.5 1.1 2.1 1.5 2.7 4.5 ** ** **

Other Expense/(Income) 0.0 1.2 7.9 0.0 0.6 1.8 ** ** **

General & Administrative Expenses 0.6 2.7 4.4 3.0 4.2 5.2 ** ** **

Corporate Overhead ** ** ** 0.3 1.2 3.2 ** ** **


Interest Expense ** ** ** 0.0 0.8 2.0 ** ** **

Other Expenses ** ** ** 0.0 0.7 3.6 ** ** **

Income (Loss) Before Income Taxes 0.1% 2.8% 7.6% 0.0% 5.0% 11.2% 1.4% 4.8% 8.8%




��






Upper Quartile


Upper Quartile

Sales

Food $6,803 $9,705 $14,032 $4,121 $5,195 $8,730

Beverage 2,326 4,317 6,081 1,103 2,361 2,989

Total Sales 9,635 14,636 20,018 5,686 7,469 11,612

Cost of Sales

Food 2,225 3,274 4,489 1,305 1,902 2,962

Beverage 715 1,173 1,799 391 646 1,196


Gross Profit 6,554 9,777 14,172 3,854 5,235 7,749

Operating Expenses

Salaries and Wages (including Employee Benefits) 3,509 5,448 7,159 ** ** **



Marketing 147 361 536 50 111 298


Restaurant Occupancy Costs 552 981 1,424 352 500 627


Depreciation 128 351 600 ** ** **

Other Expense/(Income) (8) 54 352 ** ** **

General & Administrative Expenses 200 652 998 ** ** **




Other Expenses 11 493 1,040 ** ** **

Income (Loss) Before Income Taxes $83 $820 $2,082 ($170) $40 $418




��






Upper Quartile


Upper Quartile

Sales

Food 68.2% 72.3% 76.0% 66.5% 75.1% 79.5%

Beverage 24.0 27.7 32.0 20.5 24.9 33.5

Total Sales 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 28.2 31.2 37.1 28.7 33.6 38.9

Beverage 24.4 27.7 34.0 ** ** **


Gross Profit 64.5 68.9 72.4 60.3 66.8 68.1

Operating Expenses

Salaries and Wages (including Employee Benefits) 30.7 34.2 37.8 ** ** **



Marketing 1.4 2.2 3.0 0.9 1.9 2.8




Depreciation 0.9 2.0 4.1 ** ** **

Other Expense/(Income) (0.1) 0.6 2.1 ** ** **

General & Administrative Expenses 2.5 3.9 5.7 ** ** **




Other Expenses 0.1 2.8 4.1 ** ** **

Income (Loss) Before Income Taxes 0.7% 5.6% 11.2% (2.1%) 0.6% 4.2%





�0



Average Check

$25.00 to $32.99 $33.00 and Over


Upper Quartile


Upper Quartile

Sales

Food $5,686 $8,114 $12,667 $6,707 $9,686 $13,860

Beverage 1,454 3,251 5,605 2,402 4,129 5,731

Total Sales 7,574 11,479 18,372 9,336 14,131 19,266

Cost of Sales

Food 2,108 2,996 4,206 2,064 3,139 4,470

Beverage 461 1,000 1,842 655 1,163 1,639


Gross Profit 5,153 7,770 11,596 6,443 9,506 13,986

Operating Expenses




Marketing 101 253 418 129 358 508


Restaurant Occupancy Costs 295 532 993 574 1,037 1,468


Depreciation 61 228 500 131 291 602






Other Expenses 2 75 509 0 181 794

Income (Loss) Before Income Taxes ($192) $273 $1,051 $107 $739 $2,225


�1



Average Check

$25.00 to $32.99 $33.00 and Over


Upper Quartile


Upper Quartile

Sales

Food 66.1% 74.4% 79.2% 68.0% 72.2% 75.9%

Beverage 20.8 25.6 33.9 24.1 27.8 32.1

Total Sales 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 30.0 36.4 39.8 27.8 30.7 35.0

Beverage 25.4 29.2 37.3 24.9 28.1 34.5


Gross Profit 60.6 66.4 70.1 65.3 69.6 72.7

Operating Expenses




Marketing 1.0 2.2 2.9 1.4 2.1 3.0




Depreciation 0.7 1.5 3.2 0.9 2.0 3.9






Other Expenses 0.0 0.6 3.3 0.0 2.5 4.1




�2


Exhibit C-23Full Service Restaurants (Average Check Per Person $25 and Over)Income Differential




Upper Quartile


Upper Quartile


Upper Quartile


Upper Quartile

Sales

Food $7,167 $10,130 $14,449 $4,213 $6,615 $9,377 68.8% 72.9% 76.8% 64.5% 71.1% 82.2%

Beverage 2,405 4,363 6,230 925 2,500 4,085 23.8 27.5 31.8 17.8 28.9 35.5

Total Sales 10,237 14,882 20,030 5,364 9,336 14,510 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 2,432 3,370 4,529 1,497 2,234 3,204 28.2 30.8 36.5 32.0 36.7 40.4

Beverage 729 1,173 1,862 ** ** ** 24.4 27.3 33.3 27.8 34.6 40.9


Gross Profit 6,800 9,903 14,457 3,516 5,727 9,418 65.0 69.7 72.5 60.0 64.9 67.6

Operating Expenses




Marketing 147 346 498 67 225 409 1.4 2.2 2.9 1.1 2.2 4.2


Restaurant Occupancy Costs 524 952 1,385 360 577 909 3.9 6.9 8.7 4.2 7.8 11.8


Depreciation 127 294 611 37 222 413 0.8 2.0 3.4 0.9 1.8 5.4

Other Expense/(Income) 0 63 312 (3) 15 514 (0.1) 0.6 1.8 0.0 0.1 6.3


Corporate Overhead 50 288 492 ** ** ** 0.4 1.1 3.2 ** ** **



Other Expenses 2 112 933 ** ** ** 0.0 1.4 4.1 ** ** **





��


Exhibit C-23Full Service Restaurants (Average Check Per Person $25 and Over)Income Differential




Upper Quartile


Upper Quartile


Upper Quartile


Upper Quartile

Sales

Food $7,167 $10,130 $14,449 $4,213 $6,615 $9,377 68.8% 72.9% 76.8% 64.5% 71.1% 82.2%

Beverage 2,405 4,363 6,230 925 2,500 4,085 23.8 27.5 31.8 17.8 28.9 35.5

Total Sales 10,237 14,882 20,030 5,364 9,336 14,510 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 2,432 3,370 4,529 1,497 2,234 3,204 28.2 30.8 36.5 32.0 36.7 40.4

Beverage 729 1,173 1,862 ** ** ** 24.4 27.3 33.3 27.8 34.6 40.9


Gross Profit 6,800 9,903 14,457 3,516 5,727 9,418 65.0 69.7 72.5 60.0 64.9 67.6

Operating Expenses




Marketing 147 346 498 67 225 409 1.4 2.2 2.9 1.1 2.2 4.2


Restaurant Occupancy Costs 524 952 1,385 360 577 909 3.9 6.9 8.7 4.2 7.8 11.8


Depreciation 127 294 611 37 222 413 0.8 2.0 3.4 0.9 1.8 5.4

Other Expense/(Income) 0 63 312 (3) 15 514 (0.1) 0.6 1.8 0.0 0.1 6.3


Corporate Overhead 50 288 492 ** ** ** 0.4 1.1 3.2 ** ** **



Other Expenses 2 112 933 ** ** ** 0.0 1.4 4.1 ** ** **





��


Section D-Limited Service Restaurants*Exhibit D-1 presents the characteristics of the 117 respondents in the Limited Service Restaurants category of this year’s study. Almost half (46.2%) of the respondents represent independent restaurants and 52.1% reported that they were the sole occupant of their location. Restaurants with sandwiches/subs/deli menu themes represent 21.4% of this sample.

The median ratio of income before income taxes to total sales is 9.7% or $1,058 per seat.

*Includes quickservice and quick/fast casual restaurants.



• Median food sales are $11,542 per seat and median beverage sales are $609 per seat.




Characteristics• 46.2% of limited service restaurants are single units, i.e., independents.


• 21.4% of the respondents report a sandwiches/subs/deli menu theme.


��


Exhibit D-1Composition of Participating Limited Service RestaurantsNumber of Respondents: 117




Public Corporation 3.4Years in Business: Private Corporation 55.61 to 5 years 29.1%5 to 10 years 14.5 Menu Theme:Over 10 years 56.4 Hamburger 16.2%

Asian 2.6Region: ¹,³ Chicken 1.7Northeast 8.5% Pizza 11.1North Central 25.6 Sandwiches/Subs/Deli 21.4South 35.9 American (varied) 16.2West 29.0 Mexican 5.1Not Specified 1.0 Italian 2.6

Other 23.1Average Check: ²Under $7.50 44.4% Sales Volume: ³$7.50 and Over 55.6 Under $500,000 33.3%

$500,000 to $999,999 31.6Affiliation: $1,000,000 to $1,999,999 22.2Single Unit - Independent 46.2% $2,000,000 and Over 12.9Single Unit - Franchise Operated 12.8Multi-Unit - Company Operated 29.0 Restaurant Location:Multi-Unit - Franchise Operated 12.0 Hotel 0.9%

Shopping Center or Mall 27.4Profit versus Loss: ³ Sole Occupant 52.1Profit 83.8% Other 17.9Loss 16.2 Not Specified 1.7

Lease versus Own: Total Number of Seats:Own Land and Building 18.8% Under 100 65.0%Lease Land and Building 35.0 100 to 149 8.5Lease Land and Own Building 4.3 150 to 199 7.7Own Land and Lease Building 1.7 200 to 399 6.8Not Specified 40.2 400 and Over 1.7

Not Specified 10.3


¹ Regions:





² Per person, all meals3 For respondents specifying

��


Exhibit D-2Limited Service RestaurantsAverage Check

Total


Upper Quartile

All Restaurants $5.00 $8.00 $10.00


Food Only $5.00 $7.00 $9.00


Restaurant Location

Hotel ** ** **



Other 5.00 8.00 10.00

Profit versus Loss

Profit $5.00 $8.00 $10.00

Loss ** ** **

Menu Theme

Hamburger ** ** **

Asian ** ** **

Chicken ** ** **

Pizza ** ** **

Sandwiches/Subs/Deli $7.00 $9.00 $11.00

American (varied) ** ** **

Mexican ** ** **

Italian ** ** **

Other 5.00 5.00 6.00

Affiliation


Single Unit - Franchise Operated 6.50 9.00 11.00



Ownership


Partnership $5.00 $5.00 $9.25



Sales Volume

Under $500,000 $6.00 $8.00 $9.75

$500,000 to $999,999 7.00 8.00 12.00

$1,000,000 to $1,999,999 5.00 5.00 8.00

$2,000,000 and Over ** ** **


��


Exhibit D-3Limited Service RestaurantsAverage Daily Seat Turnover

Total


Upper Quartile



Food Only 2.3 5.8 9.2


Restaurant Location

Hotel ** ** **



Other ** ** **

Profit versus Loss

Profit 2.5 4.5 8.3

Loss ** ** **

Menu Theme

Hamburger ** ** **

Asian ** ** **

Chicken ** ** **

Pizza ** ** **

Sandwiches/Subs/Deli 1.4 2.5 5.6


Mexican ** ** **

Italian ** ** **

Other ** ** **

Average Check

Under $7.50 4.1 8.3 10.5

$7.50 and Over 1.9 3.2 4.8

Affiliation





Ownership





Sales Volume

Under $500,000 1.2 1.9 4.2

$500,000 to $999,999 3.0 5.2 7.3

$1,000,000 to $1,999,999 ** ** **

$2,000,000 and Over ** ** **


��


Exhibit D-4Limited Service RestaurantsCost per Dollar of Sales*

Total Cost of Sales




Food Only 30.1¢ 27.5¢ 58.1¢


Restaurant Location

Hotel ** ** **



Other 35.2 29.0 65.0

Profit versus Loss

Profit 30.0¢ 27.5¢ 58.7¢

Loss ** ** **

Menu Theme

Hamburger ** ** **

Asian ** ** **

Chicken ** ** **

Pizza ** ** **

Sandwiches/Subs/Deli 35.3¢ ** 62.3¢


Mexican ** ** **

Italian ** ** **

Other 26.5 27.5¢ 54.3

Average Check

Under $7.50 30.4¢ 27.6¢ 55.3¢

$7.50 and Over 30.4 29.0 60.6

Affiliation




Ownership





Sales Volume

Under $500,000 33.6¢ 30.6¢ 63.0¢

$500,000 to $999,999 29.0 27.9 58.9

$1,000,000 to $1,999,999 27.4 27.0 54.8

$2,000,000 and Over ** ** **



��


Exhibit D-5Limited Service RestaurantsNumber of Employees*


Full TimePart Time

(20-34 Hours)


Hours)



Food Only 5 6 4


Restaurant Location

Hotel ** ** **


Sole Occupant 8 9 5

Other 3 4 2

Profit versus Loss

Profit 6 6 4

Loss ** ** **

Menu Theme

Hamburger ** ** **

Asian ** ** **

Chicken ** ** **

Pizza ** ** **

Sandwiches/Subs/Deli 3 5 2


Mexican ** ** **

Italian ** ** **

Other 6 9 5

Average Check

Under $7.50 5 8 5

$7.50 and Over 6 5 2

Affiliation




Ownership


Partnership 7 10 5



Sales Volume

Under $500,000 2 3 2

$500,000 to $999,999 4 6 5

$1,000,000 to $1,999,999 11 10 6

$2,000,000 and Over ** ** **



100


Exhibit D-6Limited Service RestaurantsAnnual Employee Turnover*

All Employees

Salaried Employees

Hourly Employees



Food Only 112% 42% 121%


Restaurant Location

Hotel ** ** **



Other ** ** **

Profit versus Loss

Profit 105% 50% 117%

Loss ** ** **

Menu Theme

Hamburger ** ** **

Asian ** ** **

Chicken ** ** **

Pizza ** ** **

Sandwiches/Subs/Deli 121% 44% 135%


Mexican ** ** **

Italian ** ** **

Other 139 50 151

Average Check

Under $7.50 131% 50% 133%

$7.50 and Over 69 ** 82

Affiliation




Ownership


Partnership 147% 50% 159%



Sales Volume

Under $500,000 78% ** 94%

$500,000 to $999,999 105 ** 111

$1,000,000 to $1,999,999 129 50% 127

$2,000,000 and Over ** ** **




101


Exhibit D-7Limited Service RestaurantsEmployee Information*


TotalPer 100



All Restaurants 13.1 23.4 4.7 $60,718 $17,784


Food Only 11.5 25.8 3.9 $60,067 $17,006

Food and Beverage 17.4 15.6 5.5 60,761 19,876

Restaurant Location

Hotel ** ** ** ** **


Sole Occupant 16.4 25.7 3.7 59,689 17,579

Other 6.8 13.6 5.1 60,718 **

Profit versus Loss

Profit 14.0 22.0 4.2 $61,948 $17,436

Loss ** ** ** ** **

Menu Theme

Hamburger ** ** ** ** **

Asian ** ** ** ** **

Chicken ** ** ** ** **

Pizza ** ** ** ** **

Sandwiches/Subs/Deli 7.9 13.5 5.1 $67,721 **

American (varied) ** ** ** ** **

Mexican ** ** ** ** **

Italian ** ** ** ** **

Other 15.1 26.3 2.7 66,467 $17,850

Average Check

Under $7.50 13.7 25.6 2.7 $61,690 $17,579

$7.50 and Over 12.7 19.1 6.0 58,824 18,007

Affiliation




Ownership

Sole Proprietorship 5.7 ** ** $57,041 **

Partnership 15.8 25.8 2.7 62,224 $17,724



Sales Volume

Under $500,000 5.8 12.9 5.5 $53,571 $14,483

$500,000 to $999,999 11.8 21.0 4.3 61,520 17,075

$1,000,000 to $1,999,999 18.6 28.0 2.7 67,884 17,787

$2,000,000 and Over ** ** ** ** **

* All amounts are medians. Based on 35 hours per week. Factors used to compute full-time equivalent employees are as follows: full-time (35 hours or more) equals 1.0; part-time (20-34 hours) equals 0.7; part-part-time (less than 20 hours) equals 0.35


102


Exhibit D-8Limited Service RestaurantsTake-Out/Drive Through, Outside Catering andBanquet Service - Ratio to Total Sales*


Outside Catering

Banquet Service



Food Only 60% 10% **

Food and Beverage 10 ** **

Restaurant Location

Hotel ** ** **


Sole Occupant 60 ** **

Other ** ** **

Profit versus Loss

Profit 45% 10% **

Loss ** ** **

Menu Theme

Hamburger ** ** **

Asian ** ** **

Chicken ** ** **

Pizza ** ** **



Mexican ** ** **

Italian ** ** **

Other 70% ** **

Average Check

Under $7.50 68% ** **

$7.50 and Over 28 10% **

Affiliation

Single Unit - Independent 34% ** **

Multi-Unit - Company Operated 70 ** **


Ownership


Partnership 70% ** **


Private Corporation 34 10% **

Sales Volume

Under $500,000 40% ** **

$500,000 to $999,999 45 ** **

$1,000,000 to $1,999,999 70 ** **

$2,000,000 and Over ** ** **



10�


Exhibit D-9Limited Service RestaurantsStatement of Income and Expenses

All Restaurants



Upper Quartile


Upper Quartile

Sales

Food $6,864 $11,542 $17,612 97.9% 100.0% 100.0%

Beverage 195 609 1,108 0.0 4.8 12.5

Total Sales 7,315 11,706 18,107 100.0 100.0 100.0

Cost of Sales

Food 2,315 3,762 5,413 27.1 30.4 35.5

Beverage 63 195 343 24.4 33.4 38.0


Gross Profit 4,773 7,692 12,748 64.6 69.6 73.3

Operating Expenses




Marketing 72 163 492 0.7 1.6 3.4




Depreciation 52 96 303 0.4 1.0 2.6

Other Expense/(Income) 6 223 390 0.2 1.8 3.2


Corporate Overhead 434 924 1,429 4.1 6.3 8.5



Other Expenses 19 138 435 0.2 1.3 3.0

Income (Loss) Before Income Taxes $230 $1,058 $2,968 3.5% 9.7% 17.8%



10�


Exhibit D-10Limited Service RestaurantsStatement of Income and Expenses - Amount per Square Foot*




Food and Beverage Hamburger Asian Chicken Pizza



Under $7.50

$7.50 and Over Hotel


Sole Occupant Other

Under $500

$500 to $999

$1,000 to $1,999

$2,000 and Over

Sales

Food $186.55 $293.15 $470.81 $318.95 $278.88 ** ** ** ** $252.22 ** ** ** $379.95 $332.08 $278.88 ** $300.00 $312.87 $208.01 $150.00 $315.00 $433.65 **

Beverage 0.20 12.48 35.75 N/A 15.58 ** ** ** ** ** ** ** ** ** ** 12.97 ** ** ** ** ** ** ** **

Total Sales 199.00 313.79 467.75 318.95 290.58 ** ** ** ** 252.22 ** ** ** 379.95 334.67 290.40 ** 321.90 333.33 226.51 171.43 330.82 433.65 **

Gross Profit on Sales 125.52 213.26 355.56 219.90 200.51 ** ** ** ** 167.50 ** ** ** 268.07 223.13 200.00 ** 220.53 215.25 150.02 115.71 238.80 321.23 **

Utility Services 6.70 11.34 15.09 11.52 10.54 ** ** ** ** 8.97 ** ** ** 13.74 12.13 9.55 ** 11.25 11.63 ** 8.17 11.82 13.88 **

Restaurant Occupancy Costs 12.00 26.01 42.60 29.83 ** ** ** ** ** ** ** ** ** 34.93 32.00 18.25 ** 37.50 26.01 ** 12.00 30.46 38.23 **




N/A Not applicable

10�


Exhibit D-10Limited Service RestaurantsStatement of Income and Expenses - Amount per Square Foot*




Food and Beverage Hamburger Asian Chicken Pizza



Under $7.50

$7.50 and Over Hotel


Sole Occupant Other

Under $500

$500 to $999

$1,000 to $1,999

$2,000 and Over

Sales

Food $186.55 $293.15 $470.81 $318.95 $278.88 ** ** ** ** $252.22 ** ** ** $379.95 $332.08 $278.88 ** $300.00 $312.87 $208.01 $150.00 $315.00 $433.65 **

Beverage 0.20 12.48 35.75 N/A 15.58 ** ** ** ** ** ** ** ** ** ** 12.97 ** ** ** ** ** ** ** **

Total Sales 199.00 313.79 467.75 318.95 290.58 ** ** ** ** 252.22 ** ** ** 379.95 334.67 290.40 ** 321.90 333.33 226.51 171.43 330.82 433.65 **

Gross Profit on Sales 125.52 213.26 355.56 219.90 200.51 ** ** ** ** 167.50 ** ** ** 268.07 223.13 200.00 ** 220.53 215.25 150.02 115.71 238.80 321.23 **

Utility Services 6.70 11.34 15.09 11.52 10.54 ** ** ** ** 8.97 ** ** ** 13.74 12.13 9.55 ** 11.25 11.63 ** 8.17 11.82 13.88 **

Restaurant Occupancy Costs 12.00 26.01 42.60 29.83 ** ** ** ** ** ** ** ** ** 34.93 32.00 18.25 ** 37.50 26.01 ** 12.00 30.46 38.23 **




N/A Not applicable

10�


Exhibit D-11Limited Service RestaurantsStatement of Income and Expenses - Amount per Seat




Upper Quartile


Upper Quartile

Sales

Food $7,956 $13,967 $18,970 $5,611 $8,660 $14,273


Total Sales 7,956 13,967 18,970 6,861 9,777 14,927

Cost of Sales

Food 2,696 4,045 5,629 1,676 2,862 4,303



Gross Profit 5,268 9,541 13,363 4,606 6,622 10,423

Operating Expenses




Marketing 68 159 661 80 149 302


Restaurant Occupancy Costs 351 971 1,686 418 627 1,015


Depreciation 59 122 353 31 66 154

Other Expense/(Income) 48 265 533 ** ** **


Corporate Overhead 394 924 1,396 ** ** **




Income (Loss) Before Income Taxes $307 $1,134 $3,119 $196 $522 $2,701



N/A Not applicable

10�


Exhibit D-12Limited Service RestaurantsStatement of Income and Expenses - Ratio to Total Sales*




Upper Quartile


Upper Quartile

Sales

Food 100.0% 100.0% 100.0% 87.5% 92.6% 98.2%


Total Sales 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 26.4 30.1 35.3 28.5 31.0 36.1



Gross Profit 64.7 70.0 73.7 63.9 69.0 71.7

Operating Expenses




Marketing 0.6 2.1 3.8 0.9 1.4 2.4




Depreciation 0.4 1.1 2.4 0.4 0.7 2.3






Other Expenses 0.0 0.0 0.9 ** ** **





N/A Not applicable

10�



Affiliation



Upper Quartile


Upper Quartile

Sales

Food $4,729 $8,125 $14,816 $10,929 $16,695 $21,620

Beverage 6 556 1,027 ** ** **

Total Sales 4,875 9,777 14,816 10,644 16,740 21,597

Cost of Sales

Food 1,480 2,862 4,846 3,026 4,340 5,644

Beverage 4 170 340 ** ** **


Gross Profit 3,204 6,063 8,920 7,698 12,019 16,020

Operating Expenses




Marketing 54 141 310 63 99 169


Restaurant Occupancy Costs 266 514 1,044 685 1,518 1,923


Depreciation 34 65 136 64 94 258

Other Expense/(Income) 0 112 242 200 315 1,386

General & Administrative Expenses 70 213 778 ** ** **

Corporate Overhead ** ** ** 715 1,036 1,438



Other Expenses ** ** ** ** ** **

Income (Loss) Before Income Taxes $14 $441 $1,478 $1,107 $2,141 $4,015



10�



Affiliation



Upper Quartile


Upper Quartile

Sales

Food 84.4% 92.9% 99.5% 98.6% 99.1% 100.0%

Beverage 0.5 7.1 15.6 ** ** **

Total Sales 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 30.0 33.1 38.7 25.8 26.9 30.3

Beverage 27.2 33.3 40.0 ** ** **


Gross Profit 62.2 67.1 70.4 69.7 73.4 74.4

Operating Expenses




Marketing 0.9 1.5 3.0 0.5 0.6 0.9




Depreciation 0.3 1.0 2.4 0.3 0.7 1.9






Other Expenses ** ** ** ** ** **





110



Sales Volume ($000)

Under $500 Between $500 and $999 Between $1,000 and $1,999


Upper Quartile


Upper Quartile


Upper Quartile

Sales

Food $3,139 $5,933 $9,958 $7,923 $12,471 $15,657 $14,315 $17,229 $23,679

Beverage ** ** ** ** ** ** ** ** **

Total Sales 3,295 6,441 10,407 9,241 12,116 17,114 14,315 17,229 23,679

Cost of Sales

Food 905 1,890 3,460 2,812 3,828 4,745 4,137 5,174 6,449

Beverage ** ** ** ** ** ** ** ** **


Gross Profit 2,276 4,255 6,523 5,446 7,877 12,730 9,835 12,358 17,230

Operating Expenses


Direct Operating Expenses 125 286 1,000 ** ** ** 580 905 1,347

Music and Entertainment ** ** ** ** ** ** ** ** **

Marketing 39 90 223 63 278 671 99 156 552


Restaurant Occupancy Costs 220 557 882 442 1,000 1,630 804 1,610 2,143


Depreciation 27 97 273 ** ** ** 73 146 457

Other Expense/(Income) ** ** ** ** ** ** ** ** **

General & Administrative Expenses ** ** ** ** ** ** ** ** **

Corporate Overhead ** ** ** ** ** ** ** ** **


Interest Expense ** ** ** ** ** ** ** ** **

Other Expenses ** ** ** ** ** ** ** ** **

Income (Loss) Before Income Taxes ($58) $247 $927 $344 $1,224 $3,108 $1,245 $2,141 $3,610



111



Sales Volume ($000)

Under $500 Between $500 and $999 Between $1,000 and $1,999


Upper Quartile


Upper Quartile


Upper Quartile

Sales

Food 83.8% 96.8% 100.0% 85.2% 88.9% 93.8% 95.7% 100.0% 100.0%

Beverage ** ** ** ** ** ** ** ** **

Total Sales 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 30.0 33.6 38.8 26.8 29.7 35.5 25.7 27.4 32.2

Beverage ** ** ** ** ** ** ** ** **


Gross Profit 61.8 66.4 70.0 64.6 71.0 73.6 67.7 72.6 74.2

Operating Expenses



Music and Entertainment ** ** ** ** ** ** ** ** **

Marketing 0.8 2.3 3.6 1.0 2.6 5.6 0.5 0.8 2.5




Depreciation 0.4 2.5 4.9 0.4 0.9 1.2 0.3 0.9 1.9

Other Expense/(Income) 0.2 1.3 2.8 0.1 1.8 3.1 ** ** **


Corporate Overhead ** ** ** ** ** ** ** ** **


Interest Expense 0.0 0.4 2.6 0.2 0.7 1.0 ** ** **

Other Expenses ** ** ** ** ** ** ** ** **

Income (Loss) Before Income Taxes (3.2%) 5.6% 15.0% 4.4% 10.0% 21.3% 7.1% 14.0% 16.4%




112



Menu Theme



Upper Quartile

Sales

Food $6,204 $8,055 $14,613

Beverage ** ** **

Total Sales 6,204 8,750 14,613

Cost of Sales

Food 2,246 2,795 4,351

Beverage ** ** **


Gross Profit 3,864 5,500 9,541

Operating Expenses

Salaries and Wages (including Employee Benefits) ** ** **

Direct Operating Expenses ** ** **

Music and Entertainment ** ** **

Marketing ** ** **

Utility Services ** ** **

Restaurant Occupancy Costs ** ** **

Repairs and Maintenance ** ** **

Depreciation ** ** **

Other Expense/(Income) ** ** **

General & Administrative Expenses ** ** **

Corporate Overhead ** ** **

Total Operating Expenses 2,548 4,567 5,929

Interest Expense ** ** **

Other Expenses ** ** **

Income (Loss) Before Income Taxes $214 $522 $2,054



11�



Menu Theme



Upper Quartile

Sales

Food 85.6% 88.8% 99.5%

Beverage ** ** **

Total Sales 100.0 100.0 100.0

Cost of Sales

Food 30.0 35.3 38.6

Beverage ** ** **

Total Cost of Sales 30.0 35.3 39.0

Gross Profit 61.0 64.7 70.0

Operating Expenses

Salaries and Wages (including Employee Benefits) ** ** **

Direct Operating Expenses ** ** **

Music and Entertainment ** ** **

Marketing ** ** **

Utility Services ** ** **

Restaurant Occupancy Costs ** ** **

Repairs and Maintenance ** ** **

Depreciation ** ** **

Other Expense/(Income) ** ** **

General & Administrative Expenses ** ** **

Corporate Overhead ** ** **

Total Operating Expenses 48.1 55.9 61.9

Interest Expense ** ** **

Other Expenses ** ** **

Income (Loss) Before Income Taxes 3.3% 6.9% 16.5%


* All ratios are based as a percentage of total sales except food and beverage costs,

which are based on their respective sales


11�




Inside MSA***


Upper Quartile

Sales

Food $7,300 $11,379 $18,309

Beverage 0 283 889

Total Sales 7,794 11,608 18,383

Cost of Sales

Food 2,322 3,815 5,347

Beverage 0 80 308


Gross Profit 5,003 7,696 13,320

Operating Expenses

Salaries and Wages (including Employee Benefits) 2,259 3,781 5,162

Direct Operating Expenses 284 677 1,163

Music and Entertainment 0 2 21

Marketing 68 147 350

Utility Services 259 425 638

Restaurant Occupancy Costs 418 834 1,665

Repairs and Maintenance 100 179 293

Depreciation 43 78 285

Other Expense/(Income) 3 224 469

General & Administrative Expenses 78 124 702

Corporate Overhead 288 834 1,327

Total Operating Expenses 3,788 6,183 10,072

Interest Expense 0 29 267

Other Expenses 0 0 125

Income (Loss) Before Income Taxes $249 $1,042 $3,047




11�




Inside MSA***


Upper Quartile

Sales

Food 88.8% 96.8% 100.0%

Beverage 0.1 3.9 11.4

Total Sales 100.0 100.0 100.0

Cost of Sales

Food 26.7 30.0 35.5

Beverage 27.0 34.1 39.5

Total Cost of Sales 26.6 30.0 35.4

Gross Profit 64.6 70.0 73.4

Operating Expenses

Salaries and Wages (including Employee Benefits) 25.5 28.6 33.3

Direct Operating Expenses 2.9 5.0 8.0

Music and Entertainment 0.0 0.0 0.2

Marketing 0.6 1.2 3.4

Utility Services 2.6 3.3 4.3

Restaurant Occupancy Costs 5.4 8.5 10.6

Repairs and Maintenance 1.1 1.5 2.2

Depreciation 0.3 0.8 2.0

Other Expense/(Income) 0.1 1.8 3.2

General & Administrative Expenses 0.6 1.2 4.6

Corporate Overhead 2.7 6.3 6.8

Total Operating Expenses 51.5 56.4 62.2

Interest Expense 0.0 0.4 1.2

Other Expenses 0.0 0.0 1.1

Income (Loss) Before Income Taxes 3.8% 9.8% 17.5%


* All ratios are based as a percentage of total sales except food and beverage costs,

which are based on their respective sales



11�



Average Check

Under $7.50 $7.50 and Over


Upper Quartile


Upper Quartile

Sales

Food $7,989 $14,750 $18,068 $6,600 $9,833 $16,807

Beverage ** ** ** 62 350 938

Total Sales 8,962 14,750 18,068 6,955 9,982 17,994

Cost of Sales

Food 2,996 4,278 5,681 2,186 3,156 4,850

Beverage ** ** ** 39 97 313


Gross Profit 5,198 10,007 12,838 4,836 6,729 12,663

Operating Expenses




Marketing 58 99 431 91 178 354


Restaurant Occupancy Costs 401 1,153 1,674 415 673 1,456


Depreciation 50 79 242 50 97 415

Other Expense/(Income) 105 307 533 0 71 284


Corporate Overhead 667 1,036 1,437 163 434 1,177




Income (Loss) Before Income Taxes $370 $1,058 $2,914 $160 $1,150 $3,062



11�



Average Check

Under $7.50 $7.50 and Over


Upper Quartile


Upper Quartile

Sales

Food 84.9% 96.8% 100.0% 88.6% 95.2% 99.3%

Beverage ** ** ** 0.7 5.0 12.0

Total Sales 100.0 100.0 100.0 100.0 100.0 100.0

Cost of Sales

Food 26.2 30.4 36.5 28.4 30.4 34.1

Beverage ** ** ** 25.0 33.3 37.5


Gross Profit 63.6 69.8 73.7 66.3 69.6 72.0

Operating Expenses




Marketing 0.5 0.8 3.4 1.0 2.2 3.4




Depreciation 0.3 0.6 1.8 0.5 1.0 3.2






Other Expenses ** ** ** 0.0 0.0 1.3





11�


Exhibit D-23Limited Service RestaurantsIncome Differential


Profit Profit


Upper Quartile


Upper Quartile

Sales

Food $7,410 $11,733 $18,095 96.8% 100.0% 100.0%

Beverage 0 350 916 0.5 6.7 12.8

Total Sales 7,962 11,761 18,394 100.0 100.0 100.0

Cost of Sales

Food 2,345 3,709 5,383 27.0 30.0 35.3

Beverage 0 97 293 22.6 33.4 36.4


Gross Profit 5,066 7,700 13,113 64.8 70.0 73.4

Operating Expenses




Marketing 65 152 322 0.6 1.4 3.2




Depreciation 49 81 285 0.4 0.9 2.0

Other Expense/(Income) 0 186 352 0.0 1.7 3.1


Corporate Overhead 288 875 1,437 2.7 6.3 7.5



Other Expenses 0 0 67 0.0 0.0 0.5

Income (Loss) Before Income Taxes $472 $1,563 $3,399 6.3% 12.6% 18.5%




11�


Analyze Your OperationA periodic analysis of the financial performance of your food and beverage service operations may provide some early warning signs of potential problems. Food and beverage costs or payroll may be inching up month by month. Some controllable expenses could be increasing, while others are decreasing.

Day-to-day changes in your costs may be small and could go unnoticed. However, regular examination could uncover undesirable trends, allowing you to take corrective action and control situations that could lead to a crisis. That is the key to effective management.

We have included on the following page a worksheet designed to provide information for you to analyze how well your restaurant is performing in comparison with those of a similar business profile. Follow these simple instructions for completing the worksheet:

1. Enter your financial data in the first column.

2. Compute the percentages for Column 2 by dividing the amounts by total sales. (Note: where food and beverage sales are broken down separately, compute percentage of food cost by dividing cost of food by food sales; for the beverage cost percentage, divide cost of beverages by beverage sales.)

3. Calculate supplemental operating information in accordance with the formulas given on the worksheet.

4. List the appropriate comparative percentages or ratios from the

tables included in this report in Column 3.

5. Compute the variances by dividing the difference between the figures in Column 2 and Column 3 by the figures in Column 3. Multiply the result by 100 to express the variance as a percentage.

6. If the variance is greater than plus or minus 10%, further analysis should be made to determine the reason for that variance.

120


WORKSHEETComplete and CompareStatement of Income and Expenses

Column 1Your Figures

(Dollars)

Column 2Your Figures(% of Sales)

Column 3Restaurant

Industry Report

Column 4

Variance + or -

Sales $ % %

Food

Beverage

Total Sales

Cost of Sales

Food

Beverage

Total Cost of Sales

Gross Profit

Operating Expenses

Salaries and Wages (including Employee Benefits)

Direct Operating Expenses

Music and Entertainment

Marketing

Utility Services

Restaurant Occupancy Costs

Repairs and Maintenance

Depreciation

Other Expense/(Income)

General & Administrative Expenses

Corporate Overhead

Total Operating Expenses

Interest Expense

Other Expenses

Income Before Income Taxes $ % %

Supplemental Operating Information Your FiguresRestaurant

Industry Report Variance + or -

Sales per Seat

Food $ $

Beverage $ $

Total $ $

Daily Seat Turnover (customers ÷ seats ÷ 365 days)

121


SAMPLE

Who Should Complete This Survey?• Owners/operators/managers of a single restaurant. • Owners/operators/managers of two or more restaurants:

Complete and return a survey for Each Unit in operation, or for as many units as possible.

This questionnaire has been specifically designed to collect information relating to an individual restaurant’s operation. It is vitally important that income statement information pertain to a single restaurant and not to a chain of restaurants. Multi-unit operators should report information for individual establishments, including allocated revenues and costs.

Please answer all questions as completely as possible by the June 15, 2007 deadline.

Questions or problems completing the survey? Visit our Web site at www.restaurant.org/research/operations

Sample Survey

122


SAMPLE

1. State in which restaurant is located: _________________

2. Zipcode of restaurant: ——————————————

3. Type of ownership (check one) 1 Sole proprietorship 2 Partnership 3 Public Corporation 4 Private Corporation

4. Type of organization 1 Independent (operates one unit) 2 Multi-unit (operates 2 or more units)* 3 Number of units operated:__________

*A separate survey should be completed for each unit.

5. Are you a franchisee or franchisor? (check one) 1 Franchisee 2 Franchisor 3 Both 4 Neither

6. Primary type of business (check one)

Fullservice 1 Average check per person under $15 2 Average check per person $15 to $24.99 3 Average check per person $25 and over

Limited service (all quickservice/fast food concepts) 4 Average check per person under $7.50 5 Average check per person $7.50 and over 6 Other (please specify):__________________

7. Liquor services (check one) 1 Beer and/or wine 2 Full liquor service 3 No alcoholic beverages

8. Primary menu theme: (check one) 1 Hamburger 6 American (varied) 2 Pizza 7 Mexican 3 Chicken 8 Asian 4 Steak/seafood 9 Italian 5 Sandwiches/subs/deli 10 Other (please specify):_______

9. Site on which restaurant is located:

Land (check one) Building (check one) 1 Owned 1 Owned 2 Leased 2 Leased

10. Number of years this restaurant has been in business:(check one)

1 Under 1 year 2 1 to 5 years 3 5 to 10 years 4 Over 10 years

11. Does restaurant offer:

(if offered, your best estimate of percentage of total sales)

Take out/drive-thru Yes No ___________%Outside catering Yes No ___________%Banquet services Yes No ___________%

12. Restaurant is located in/attached to: (check one) 1 A hotel 2 A shopping center or mall 3 Nothing—sole occupant of a building 4 Other (please specify):__________________

13. Number of seats:Total seats # _____________________1

14. Size of restaurant:Square feet of total area # _____________________1(including preparation and storage)

15. Number of customers served for the year:(provide best estimate) # _____________________1

16. Average guest check per person:(all meals) $_____________________1

17. Average number of paid restaurant employees that work during a typical week: (provide best estimate)

Salaried Hourly

Full-time (35 hours or more) _______1 _______2Part-time (20 to 34 hours) _______3 _______4Part-time (less than 20 hours) _______5 _______6TOTAL _______7 _______8

18. Number of W-2s your restaurant sent last year: (provide best estimate)

Salaried employees # ___________1Hourly employees # ___________2TOTAL # ___________3

Section I. General

12�


SAMPLE

Section II. Statement of Income and ExpensePlease completely fill out all financial data for fiscal year 2006. If you wish, you may submit a copy of your year-end operating statement and this section will be completed for you by Deloitte & Touche. Income statement information should pertain to ONLY A SINGLE RESTAURANT and not to a chain of restaurants. Please use whole dollar amounts. Enter “zero” where appropriate. See the Guide to Completing the Restaurant Industry Operations Survey at www.restaurant.org/research/operations for more information.

Remember, all information provided will be kept strictly confidential.

Current 12 months ended: Month _________ Year 2006

SALESFood __________________1Beverage (alcoholic) __________________2Total sales _________________3

COST OF SALESFood __________________4Beverage (alcoholic) __________________5Total cost of sales _________________6

GROSS PROFIT (line 3 minus line 6) _________________7

OPERATING EXPENSESRestaurant operating expensesSalaries and wages __________________8Employee benefits __________________9Direct operating expenses __________________10Music and entertainment __________________11Marketing __________________12Utility services __________________13Restaurant occupancy costs __________________14Repairs and maintenance __________________15Depreciation __________________16Other expense/(income) __________________17Total restaurant operating expenses __________________18

General and administrative expenses __________________19Corporate overhead __________________20Total operating expenses _________________21

INTEREST EXPENSE _________________22

OTHER EXPENSES _________________23

INCOME BEFORE INCOME TAXES _________________24

12�


Dear Restaurant Industry Operations Report 2007/2008 Edition Reader:

We appreciate your interest in this unique and extensive annual report of restaurant operations, prepared in conjunction with the professional services firm of Deloitte & Touche LLP.

With your purchase of this report, you are entitled to up to three free copies of selected Regional and State Restaurant Industry Operations Reports. These reports are exclusively offered in an electronic PDF format.

The Regional and State Restaurant Industry Operations Reports are produced as a special supplement to the national report. When used in conjunction with the national report, these operations reports can assist you in comparing your operations to others with a similar business profile on a regional, state and national basis.

2007/2008 Edition Regional and State Restaurant Industry Operations Reports are available for the following regions and states:

To order up to three regional and/or state reports, send an e-mail to [email protected] listing the reports you have selected. If you prefer, you may order by calling the National Restaurant Association’s Information Service and Library at (800) 424-5156 ext. 5959. Reports will be sent via e-mail.

National Restaurant AssociationResearch and Information Services Division

Regions:

• East North Central IL, IN, MI, OH, WI

• West North Central IA, KS, MN, MO, NE, SD

• New England CT, ME, MA, NH, RI

• Middle Atlantic NJ, NY, PA

• West South Central LA, OK, TX

• South Atlantic DE, DC, FL, GA, MD, NC, SC, VA, WV

• Mountain AZ, CO, ID, MT, NV, NM, UT, WY

• Pacific AK, CA, HI, OR, WA

States:

• California

• Florida

• Michigan

• Ohio

• Pennsylvania

• Texas

• Washington

12�


Additional InformationFor additional restaurant industry operations data beyond the scope of this report, contact the National Restaurant Association’s Information Service and Library at (800) 424 5156, ext. 5960. Several state and regional restaurant industry operations reports are available. For information on joining the National Restaurant Association, call the Membership Department at (800) 424-5156, extension 5929, or visit our Web site at www.restaurant.org/join.

For more information on Deloitte’s Consumer Business Practice, please contact:

Craig GiffiVice Chairman and National Managing Principal Consumer & Industrial Products Industries Deloitte & Touche LLPTel: 216 830 6604e-mail: [email protected]

Lawrence HutterGlobal Practice DirectorConsumer and Industrial Products Industries Deloitte Touche Tohmatsu Tel: +44 20 7303 8648e-mail: [email protected]

Adam WeissenbergVice Chairman and National Managing Partner Tourism, Hospitality & Leisure PracticeConsumer and Industrial Products Industries Deloitte & Touche LLPTel: 973 683 6789e-mail: [email protected]

Sandra ViolaNational Director of Marketing Consumer and Industrial Products IndustriesDeloitte Services LPTel: 212 436 3058e-mail: [email protected]

Steven SteinhauserDirector, Restaurant Industry Practice Consumer and Industrial Products IndustriesDeloitte & Touche LLPTel: 213 688 3231e-mail: [email protected]

Bruce WestbrookNational Consumer & Industrial Products Consulting Leader Deloitte Consulting LLPTel: 404 631 2950e-mail: [email protected]

Dale LottigNational Consumer & Industrial Products Tax Leader Deloitte Tax LLPTel: 415 783 4236e-mail: [email protected]

John SchefflerNational Consumer & Industrial Products Assurance Leader Deloitte & Touche LLPTel: 415-783-6827e-mail: [email protected]

Brett ShermanNational Consumer and Industrial Products Enterprise Risk Services LeaderDeloitte & Touche LLPTel: 973 683 6364e-mail: [email protected]

Kevin F. BarrettNational Consumer and Industrial ProductsFinancial Advisory Services LeaderDeloitte Financial Advisory Services LLPTel: 617 437 2500e-mail: [email protected]

Member of Deloitte Touche Tohmatsu

About the National Restaurant Association

WHO WE AREFounded in 1�1�, the National Restaurant Association is the leading business association for the restaurant industry. Together with the National Restaurant Association Educational Foundation (NRAEF), the Association’s mission is to represent, educate and promote a rapidly growing industry that is comprised of ��,000 restaurant-and-foodservice outlets and 1�.1 million employees. Its membership represents approximately ��0,000 restaurant locations.

WHAT WE DO

We Represent the Restaurant-and-Foodservice Industry• The National Restaurant Association is the restaurant industry’s voice in Washington, DC,

promoting a pro-employee/pro-employer public policy agenda on Capitol Hill and regulatory agencies for such issues as tax relief, litigation reform, food safety and health care reform.

• The National Restaurant Association — ranked one of the country’s most powerful lobbying organizations by Fortune magazine — promotes the essential role of the $558 billion industry to key opinion leaders and government officials.

We Educate the Restaurant-and-Foodservice Industry• The National Restaurant Association serves as the “go-to” source for data and research on the

restaurant industry, including industry sales, trends, employment and operations, through the expertise of the Association’s information-service specialists, economists and other experts.

• The Association provides educational resources, materials and programs that address recruiting, retaining and training the industry’s workforce. Programs include ProStart®, which is a state-based program linking classroom curriculums with workplace mentoring; and the ServSafe® food safety training program, which is accepted by more federal, state and local jurisdictions than any other similar program in the country. The NRAEF has awarded deserving students $4 million in scholarships over the last five years.

We Promote the Restaurant-and-Foodservice Industry• With 945,000 locations, $558 billion in sales and 13.1 million employees, the restaurant

industry truly is the cornerstone of the nation’s economy, of rewarding career-and-employment opportunities, and of local communities. Through its Cornerstone Initiative, the National Restaurant Association promotes the restaurant industry’s essential role to the nation’s leading decision-makers “inside the Beltway” and beyond.

• The Association’s Restaurant, Hotel-Motel Show is the largest single gathering of restaurant, foodservice and lodging professionals in North and South America. The Show, held annually at McCormick Place in Chicago, Ill., attracts 2,100 exhibiting companies and more than 73,000 industry professionals and visitors from all 50 states and 110 countries.

To learn more, visit the Association’s Web site at www.restaurant.org

About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms, and their respective subsidiaries and affiliates. Deloitte Touche Tohmatsu is an organization of member firms around the world devoted to excellence in providing professional services and advice, focused on client service through a global strategy executed locally in over 1�0 countries. With access to the deep intellectual capital of approximately 1�0,000 people worldwide, Deloitte delivers services in four professional areas – audit, tax, consulting, and financial advisory services – and serves more than �0 percent of the world’s largest companies, as well as large national enterprises, public institutions, locally important clients, and successful, fast-growing global companies. Services are not provided by the Deloitte Touche Tohmatsu Verein, and, for regulatory and other reasons, certain member firms do not provide services in all four professional areas.

As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other’s acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names “Deloitte,” “Deloitte & Touche,” “Deloitte Touche Tohmatsu,” or other related names.

In the United States, Deloitte & Touche USA LLP is the U.S. member firm of Deloitte Touche Tohmatsu and services are provided by the subsidiaries of Deloitte & Touche USA LLP (Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, Deloitte Tax LLP, and their subsidiaries), and not by Deloitte & Touche USA LLP. The subsidiaries of the U.S. member firm are among the nation’s leading professional services firms, providing audit, tax, consulting, and financial advisory services through nearly �0,000 people in more than �0 cities. Known as employers of choice for innovative human resources programs, they are dedicated to helping their clients and their people excel. For more information, please visit the U.S. member firm’s Web site at www.deloitte.com

Copyright © 200� Deloitte Development LLC. All rights reserved.

For further information contact:

natIonal REstauRant assocIatIonresearch and information services Division

1200 seventeenth street, nW Washington, DC 20036-3097

202.331.5900

e-mail: [email protected]: www.restaurant.org

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