Operations Survey Instructions

Use this guide for help in answering the questions in the Operations Survey.

---

Section I: General

Question 1: State in which restaurant is located:
The single establishment for which the survey information is provided.

Question 2: Zip Code for restaurant:

Question 3: Type of ownership:
Check one.

Question 4: Type of organization:
Check independent or multi-unit. If multi-unit, number of units operated. Remember, the information provided should pertain to only a single restaurant. A separate survey may be completed for each unit.

Question 5: Franchisee or franchisor:
Check one.

Question 6: Primary type of business:
Check one.

Question 7: Liquor services:
Check one.

Question 8: Primary menu theme:
Check one.

Note: The information provided in questions 9 through 18 should pertain to only a single restaurant. Multi-unit operators may complete a separate survey for each unit in operation, or as many as possible.

Question 9: Site on which restaurant is located:
Check one for land and one for building.

Question 10: Number of years this restaurant has been in business:
Check one.

Question 11: Does restaurant offer:
Check yes or no for each. If offered, provide best estimate of percentage of total sales for that service.

Question 12: Restaurant located in/attached to:
Check one.

Question 13: Number of seats:
Total number of seats in establishment.

Question 14: Size of restaurant:
Total restaurant square footage, including preparation and storage areas.

Question 15: Number of customers served for the year:
Provide best estimate for 2005.

Question 16: Average guest check per person.
Provide best estimate for all meals.

Question 17: Average tip received by servers.
Provide best estimate.

Question 18: Average number of paid restaurant employees that work during a typical week:
Provide best estimates for salaried and hourly employees and add to total.

Question 19: Number of W-2s your restaurant sent last year (2005):
Provide best estimate for salaried and hourly employees and add to total.

Section II: Statement of Income and Expenses

Explanation of Terms:*
Food Sales:
This category includes revenue derived from the sale of food in the restaurant. Food sales also include the sale of coffee, tea, milk, soft drinks and fruit juices, which usually are served as part of a meal.

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

Cost of Sales:
The cost of food and beverages sold.

Salaries and Wages:
This 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 Benefits:
This category includes federal retirement (Social Security) tax (FICA), federal and state unemployment taxes and state health insurance tax. Other items considered benefits are workers' 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 unions, awards and prizes, and transportation and housing.

Direct Operating Expenses:
Expenses 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.

Marketing:
This 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 Services:
This 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 Costs:
Rent, 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 Maintenance:
The following items are repairs and maintenance items: 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 Expenses:
This 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 Overhead:
This 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."