2010 Restaurant lndustry Gperations Report 'Fig fi if zi?ajlgi: 5/t I 'ii I NATIGNAL 2 RES Deloitte Restaurant Industry Operations Report 2010 Edition 2 4 9 10 11 12 13 14 42 68 96 List of Exhibits The Restaurant Industry Highlights From The Restaurant Industry Dollar Understanding Medians And Means Understanding Medians Explanation Of Terms Introduction To Analysis Of Data And Explanatory Notes 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 122 Analyze Your Operation 124 Sample Survey 127 Information Regarding Regional And State Restaurant Industry Operations Reports 128 Additional Information ISBN # 1-931400-67-9 Dear Reader: The National Restaurant Association and Deloitte & Touche LLP are pleased to present the 2010 edition of the Restaurant Industry Operations Report. The Restaurant Industry Operations Report is based on financial and operating data 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 650 questionnaires were received from restaurant operators, which form the basis of this report. This unique study of the operating results of restaurants principally in 2008 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, Joseph Brzezinski, Stuart Fano, Michael Petrillo, and John Ramsay. 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 President and Chief Executive Officer National Restaurant Association Steven Steinhauser Director, Restaurant Industry Practice Deloitte & Touche LLP (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 1 List of Exhibits Exhibit Page The Restaurant Industry Highlights From The Restaurant Industry Dollar Understanding Medians And Means Understanding Medians Explanation Of Terms Introduction To Analysis Of Data And Explanatory Notes Section A Full Service Restaurants (Average Check Per Person Under $15) Profile of Contributors Highlights Characteristics Composition of Participating Restaurants Performance Measurements Average Check Average Daily Seat Turnover Cost per Dollar of Sales Number of Employees Annual Employee Turnover Employee Information Take-Out/Drive-Through, Outside Catering and Banquet Service -- Ratio to Total Sales Statement of Income and Expenses Amount per Seat and Ratio to Total Sales: All Full Service Restaurants (Average Check Per Person Under $15) Amount per Square Foot Amount per Seat by: Type of Establishment Affiliation Sales Volume Menu Theme Location Average Check Ratio to Total Sales by: Type of Establishment Affiliation Sales Volume Menu Theme A-2 A-3 A-4 A-5 A-6 A-7 A-8 16 17 18 19 20 21 22 A-1 14 14 15 4 9 10 11 12 13 Section B Full Service Restaurants (Average Check Per Person $15 to $24.99) Profile of Contributors Highlights Characteristics Composition of Participating Restaurants Performance Measurements Average Check Average Daily Seat Turnover Cost per Dollar of Sales Number of Employees Annual Employee Turnover Employee Information Take-Out/Drive-Through, Outside Catering and Banquet Service -- Ratio to Total Sales Statement of Income and Expenses Amount per Seat and Ratio to Total Sales: All Full Service Restaurants (Average Check Per Person $15 to $24.99) Amount per Square Foot Amount per Seat by: Type of Establishment Affiliation Sales Volume A-11 A-13 A-15 A-17 A-19 A-21 A-12 A-14 A-16 A-18 26 28 30 34 36 38 27 29 32 35 Menu Theme Location Average Check Ratio to Total Sales by: Type of Establishment Affiliation Sales Volume Menu Theme Location Average Check Income Differential B-2 B-3 B-4 B-5 B-6 B-7 B-8 44 45 46 47 48 49 50 B-1 42 42 43 Location Average Check Income Differential Exhibit Page A-20 A-22 A-23 37 39 40 B-9 B-10 B-11 B-13 B-15 B-17 B-19 B-21 B-12 B-14 B-16 B-18 B-20 B-22 B-23 51 52 54 56 58 60 62 64 55 57 59 61 63 65 66 A-9 A-10 23 24 2 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP List of Exhibits - continued Exhibit Page Section C Full Service Restaurants (Average Check Per Person $25 and Over) Profile of Contributors Highlights Characteristics Composition of Participating Restaurants Performance Measurements Average Check Average Daily Seat Turnover Cost per Dollar of Sales Number of Employees Annual Employee Turnover Employee Information Take-Out/Drive-Through, Outside Catering and Banquet Service -- Ratio to Total Sales Statement of Income and Expenses Amount per Seat and Ratio to Total Sales: All Full Service Restaurants (Average Check Per Person $25 and Over) Amount per Square Foot Amount per Seat by: Type of Establishment Affiliation Sales Volume Menu Theme Location Average Check Ratio to Total Sales by: Type of Establishment Affiliation Sales Volume Menu Theme Location Average Check Income Differential C-2 C-3 C-4 C-5 C-6 C-7 C-8 70 71 72 73 74 75 76 C-1 68 68 69 Section D Limited Service Restaurants Profile of Contributors Highlights Characteristics Composition of Participating Restaurants Performance Measurements Average Check Average Daily Seat Turnover Cost per Dollar of Sales Number of Employees Annual Employee Turnover Employee Information Take-Out/Drive-Through, Outside Catering and Banquet Service -- Ratio to Total Sales Statement of Income and Expenses Amount per Seat and Ratio to Total Sales: All Limited Service Restaurants C-9 C-10 C-11 C-13 C-15 C-17 C-19 C-21 C-12 C-14 C-16 C-18 C-20 C-22 C-23 77 78 80 82 84 88 90 92 81 83 86 89 91 93 94 Amount per Square Foot Amount per Seat by: Type of Establishment Affiliation Sales Volume Menu Theme Location Average Check Ratio to Total Sales by: Type of Establishment Affiliation Sales Volume Menu Theme Location Average Check Income Differential D-9 D-10 D-11 D-13 D-15 D-17 D-19 D-21 D-12 D-14 D-16 D-18 D-20 D-22 D-23 105 106 108 110 112 114 116 118 109 111 113 115 117 119 120 D-2 D-3 D-4 D-5 D-6 D-7 D-8 98 99 100 101 102 103 104 D-1 96 96 97 Exhibit Page (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 3 The Restaurant Industry The restaurant industry is a large and diverse business: o Restaurant-industry sales are forecast to reach $580.1 billion in 2010 - an increase of 2.5 percent over 2009. However, when adjusted for inflation, restaurant-industry sales are expected to decline 0.1 percent in 2010. o On a typical day in America in 2010, more than 130 million people will be foodservice patrons. o Sales at full service restaurants are projected to reach $184.2 billion in 2010. o Sales at limited service restaurants are forecast to increase to $164.8 billion in 2010, while snack and non-alcoholic-beverage bar sales rise to $24.7 billion. As the industry increasingly offers consumers options to meet their varying desires, restaurants remain essential to American lifestyles. Some things they are looking for: speedy drive-through at limited service restaurants, elegant ambience and cuisine at fine-dining establishments, the newest latte at the corner coffee shop, and the relaxed atmosphere of a casual-dining concept. Indeed, a new Association survey reveals that nearly four in five consumers believe going to restaurants with family or friends gives them opportunities to socialize and is a better way to use their leisure time instead of cooking and cleaning up. With nine in 10 adults saying they enjoy going to restaurants, the industry over the long term will continue along a path of growth. Restaurant Industry Sales - 2009 and 2010 ($000) 2009 Total Restaurant Industry Commercial Restaurant Services Eating Places Full Service Restaurants Limited Service Restaurants Noncommercial Restaurant Services Military Restaurant Services $565,774,371 $517,314,563 $380,475,552 $181,992,532 $160,035,527 $46,372,154 $2,087,654 2010 $580,060,112 $530,351,941 $388,510,737 $184,176,442 $164,836,593 $47,547,226 $2,160,945 It's evident that challenges remain. Managing costs will be important, but the extent of the industry's upturn depends largely on consumer confidence, which is critical to long-term success. And unsteady job growth is expected to further challenge overall economic growth. Until personal disposable income increases and unemployment levels fall, economic recovery is expected to be prolonged and patchy. To help spur consumer confidence, operators will be working in the following areas to ensure success: o Guest Value: To help spur consumer confidence operators must take steps to provide value to guests, and will look to build sales by marketing healthful menu items and responding to consumer demand for convenience and variety. Growth opportunities include delivery and other off-premise options, cooking classes and other interactive activities, and new media to reach new and returning guests. o Social media: Networking and photo/video sharing sites will become more critical to restaurant marketing this year. It's clear that "word of mouth" has moved online, and more consumers use the Web to browse menus, make reservations, and get recommendations from other diners. o Sustainability: While the economy might have affected operators' abilities to fund new green initiatives, industry intent and consumer interest are strong. That shows sustainability efforts will remain a long-term trend and not a fad. Note: 2010 figures are projected Source: National Restaurant Industry, 2010 Restaurant Industry Forecast 4 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Full service outlook Full service restaurant sales are forecast to reach $184.2 billion in 2010, an increase of roughly 1.2 percent from 2009. That represents a real sales decline of 1.5 percent after accounting for inflation. The Association estimates that full service restaurant sales were $182 billion in 2009, a 3.9 percent decline in nominal sales and a 6.2 percent drop in real sales compared to 2008. Nearly six in 10 casual- and fine-dining operators and 54 percent of familydining operators say sales were lower in 2009 than 2008. Many operators reported that customer traffic declined across all three dayparts (breakfast, lunch and dinner). Trends to look for in 2010 include: o Value-focused options: One-third of fine-dining operators expect guests to be more value-conscious in 2010. Restaurant frequent-dining or customer loyalty programs likely will become more popular. More than half of all customers say they likely would patronize restaurants that offer customer-loyalty or reward program. o E-mail marketing: Nearly seven in 10 operators say they use e-mail marketing or newsletters. Forty-one percent of consumers surveyed by the Association say they choose new restaurants because of e-mail promotions. o Interactive activities: Sixty-four percent of adults surveyed say they would patronize chef's table dinners and private tastings, while 57 percent say they would participate in interactive cooking demonstrations. o Off-premise options: Nearly three in 10 adults tell the Association that take-out food is essential to the way they live. Forty-six percent of adults say they would use curbside take-out from a table service restaurant, and 54 percent indicated a desire for home or office delivery. o Market green efforts: More than half of adults surveyed by the Association say they are more likely to visit restaurants that offer food grown in an organic or environmentally friendly way, and seven in 10 are more likely to visit restaurants that offer locally produced food. o Ordering and payment innovations: Consumers noted interest in both online reservations and ordering, as well as tabletop systems that would allow them to browse the Internet, watch television or play video games. o Focus on health: In response to consumer interest in nutrition, table service operators are enhancing their produce offerings, healthful children's items and other options. And customer's notice: About half the adults in the Association's consumer survey say table service restaurants make it easy for them to choose the portion sizes they want. (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 5 Limited service outlook Limited service restaurant sales are forecast to reach $164.8 billion in 2010, an increase of 3 percent from 2009. That represents a real sales increase of 0.4 percent after accounting for inflation. The limited service segment sold $160 billion in food and drink in 2009, according to Association projections. That represents a 1.5 percent increase in nominal sales from 2008, but a 0.7 percent drop in real sales. While 35 percent of limited service operators surveyed by the Association reported their sales were higher in 2009 than in 2008, more than half said their sales decreased from 2008. A significant percentage reported lower traffic in all dayparts. Trends to look for in 2010 include: o Upgrade operations: Forty-three percent of limited service operators plan to allocate more resources for remodeling/renovation this year than in 2009, according to the National Restaurant Association's limited service operator survey. While they focus on existing stores, they appear more conservative about adding units: 39 percent say they will spend less on unit expansion in 2010, compared to 30 percent who plan to spend more. o Capitalize on new media: Fifty-eight percent of limited service operators say they have e-mail newsletters, 52 percent advertise online, and 26 percent say they market through cell phone text messages. o Add Wi-Fi: Thirty-five percent of adults say they would use wireless Internet access at limited service restaurants. The figure jumps to 55 percent of 18-34-years olds. o Empower Customers: Forty-seven percent of adults say they would like the option to order through self-serve terminals at limited service restaurants. For consumers between 18-44 years old, that number rises to 58 percent. Thirty-six percent of all adults say they would order online at a Web site, compared to 53 percent of those between 18 and 34. o Hit the road: Fifty-four percent of adults indicated an interest in home and office delivery service from limited service restaurants. That figure rises to 72 percent for adults between 18-34 years old, and 64 percent of adults in households with children. o Cater to guest's interest in conservation: More than three in four limited service operators buy products made from recycled materials, and nearly a third of limited service operators plan to spend more on green initiatives in 2010. o Market healthful options: Nearly two-thirds of limited service operators say they offer more healthful choices for children than they did two years ago. Seventy-three percent of adults in the consumer study say they try to eat healthier, and 56 percent say they're more likely to visit restaurants that offer food raised in organically or environmentally friendly ways. 6 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Menu trends Chefs constantly are looking for new ingredients and flavors to entice their increasingly sophisticated guests. They literally travel around the world to find and create new tastes. So it's no surprise that ethnic cuisines and flavors ranked high in the Association's "What's Hot" survey of 1,800 American Culinary Federation chefs. The Association's September 2009 ethnic cuisine survey of more than 1,900 consumers also points to a strong interest in ethnic food. o A move beyond the mozzarella sticks: Two of the top seven appetizer trends for 2010 will be Asian- and Mexican-inspired starters, according to the "What's Hot" survey. Chefs expect such foods as tempura, spring rolls, satay, and dumplings to be popular, as well as tamales, quesadillas, and taquitos. That will make diners happy: Mexican and Chinese are two of the most popular ethnic cuisines, according to the National Restaurant Association ethnic cuisine survey. o Entr?e Variation: While meat and seafood trends dominate the top five entr?es for 2010 in the "What's Hot" survey, chefs are broadening how they serve their entrees. In addition to offering new and traditional cuts or species, they also look for new ways to serve entrees. For example, ethnic-influenced small plates, such as tapas/ mezze/dim sum, remain a top entr?e trend as well as Asian-inspired entr?e salads. o Sweet-tooth temptations: Chefs ranked traditional ethnic sweets as the eighth most popular dessert trends for 2010. Such desserts include flan, a creamy Latin American pie made of eggs and milk and baked in a pastry crust; delimanjoo, a South Korean sponge cake; and qatayef, a Middle Eastern pastry that resembles a small pancake folded into a crescent and stuffed with cream and nuts. o Coffee accompaniment: Chefs expect ethnic-inspired items to be among the hottest breakfast/brunch trend for 2010. Think Asian-flavored syrup, chorizo-scrambled eggs, and coconut-milk pancakes. They expect the next most popular trend to be traditional ethnic breakfast items. Look for huevos rancheros; shakshuka, a Middle Eastern egg dish; and ashta, the homemade clotted cream used to fill those qatayef and other Middle Eastern pastries. o Into the mouths of babes: Expect to see ethnic influences on every part of the menu this year, including kids' meals. Chefs ranked ethnic-inspired dishes as the fifth most popular trend in 2010 for children's meals. o Variety is the spice of life: Dishes from the Old World, New World, and every point on the globe will influence restaurant menus this year. Chefs expect regional ethnic cuisine to be the hottest trend, followed by ethnic fusion, North African/Magrebi, Latin American/Nuevo Latino, Southeast Asian, Peruvian, Cuban, Mediterranean, Himalayan, Spanish, Korean, sushi and French, according to the "What's Hot" survey. Consumers are interested in trying French, Spanish, Japanese (other than sushi), Thai, Cajun/Creole, soul food, and sushi, according to the ethnic cuisine consumer survey. o Authenticity is everything: Consumers are more likely to eat less familiar ethnic food, such as Brazilian, Indian, or Thai at a restaurant, according to the ethnic cuisine survey. They're more likely to order pizza, Chinese, Greek, and more familiar foods for delivery/take-out. Furthermore, consumers say it's important for restaurants to specialize in the type of cuisine they serve, particularly for food they're less familiar with, such as Ethiopian, Vietnamese, or Thai. (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 7 Challenges ahead Recent Association research shows that competition will intensify for restaurant operators; both full service and limited service segments expect to face challenges in 2010. Percent of full service-restaurant operators, by type of operation, who mention as their top challenge in 2010: Family dining The economy Building/maintaining sales volume Government mandates Operating costs Recruiting and retaining employees 29% 24% 15% 7% 6% Casual dining 35% 23% 5% 7% 3% Fine dining 30% 28% 4% 4% 4% Outlook for 2010 This year likely will be a period of gradual economic recovery, as the labor market struggles to catch up with rising economic output. Stronger growth is expected in 2011. o Jobs: The national unemployment rate will remain high in the first half of 2010 before slowly declining in the second half. The national economy is expected to add jobs during 2010, mostly in the second half of the year o GDP: Building on the momentum established in the second half of 2009, national output is projected to rise moderately this year. The Association expects real GDP to increase 3.2 percent, up from a 2.4 percent decline in 2009. It would mark the strongest gain in four years o Income: Real disposable personal income - a key indicator of restaurant-industry performance - is projected to increase 1.5 percent in 2010. This would be the largest increase since 2007, but a modest gain by historical standards. National Restaurant Association Research and Knowledge Group Source: National Restaurant Association, operator survey, October 2009 Percent of limited service restaurant operators who mention as their top challenge in 2010: The economy Building/maintaining sales volume Government mandates Access to capital Food costs Operating costs 30% 30% 13% 5% 4% 4% Source: National Restaurant Association, operator survey, October 2009 8 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Highlights From The Restaurant Industry Dollar o Full Service Restaurants (Average Check Per Person Under $15) reported income before income taxes of approximately 3.0% of total sales. o Full Service Restaurants (Average Check Per Person $15 to $24.99) reported salaries and wages of approximately 33.2% of total sales. o Full Service Restaurants (Average Check Per Person $25 and Over) reported cost of food and beverage sales of approximately 31.9% of total sales. o Limited Service Restaurants reported income before income taxes of approximately 5.9% of total sales. The Restaurant Industry Dollar1 Full Service Restaurants Average Check Per Person Under $15 Where It Came From: Food and Beverage Sales Where It Went: Cost of Food and Beverage Sales Salaries and Wages2 Restaurant Occupancy Costs Income Before Income Taxes 1 Limited Service Restaurants $25 and Over 100% 100% $15 to $24.99 100% 100% 32.2% 33.7% 4.9% 3.0% 31.8% 33.2% 5.1% 3.5% 31.9% 33.7% 6.1% 1.8% 31.9% 29.4% 7.7% 5.9% All amounts are median values Includes employee benefits 2 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 9 Understanding Medians And Means 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 10 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP $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. STUART: HERE SHOULD BE THEResponses arranged sequentially "RESPONSES ARRANGED SEQUENTIALLY" CHART. 50 percent of responses 50 percent of responses 1 25 50 75 99 Lower quartile 25 percent 50 percent of responses Upper quartile 25 percent Understanding Medians* Table I Net Profit Amount per Seat Lower Quartile Sales Food Beverage Total Sales Cost of Sales Food Beverage Total Cost of Sales Gross Profit Other Income Total Income $2,787 555 3,381 1,030 139 1,154 2,110 13 $2,213 Median $2,163 1,091 5,197 1,499 306 1,877 3,313 41 $3,446 Upper Quartile $6,246 2,254 7,788 2,331 587 2,637 5,154 113 $5,362 o The median daily seat turnover is 1.6 (the middle value of a sequential sort of Column 3). o 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. Note: Detail amounts do not sum to totals due to presentation of median values. Table II Restaurant Seating Responding Restaurants A B C D E F G H I Total Median (middle value of column) Average (mean) Column 1 Number of Seats 60 80 100 120 140 160 180 500 600 1,940 140 216 Column 2 Average Daily Customers Served 90 128 200 204 250 290 290 200 200 1,852 200 206 Column 3 Average Daily Seat Turnover (Column 2/Column 1) 1.5 1.6 2.0 1.7 1.8 1.8 1.6 0.4 0.3 N/A 1.6 (?) 1.0 Sequential Order of Column 3 3 4 9 6 7 8 5 Actual Median 2 1 (?) 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. (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 11 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 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 sales This 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 cost Prime 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 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 worker's compensation insurance premiums, welfare plan payments, pension plan payments, accident and health insurance premiums and hospitalization 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 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. 12 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 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 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." (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Introduction To Analysis Of Data And Explanatory Notes Introduction The 2010 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 2008, which is presented in the following breakdowns: Type of Establishment (Food Only/Food and Beverage) o Affiliation (Single Unit/Multi-Unit) o Sales Volume o Menu Theme o Restaurant Location o Average Check o Profit Versus Loss More than 650 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. Computations within each exhibit include respondents that provided zeros and numerical amounts. Computations for operating expenses also include imputed zeros, when applicable. By Steven Steinhauser Director, Restaurant Industry Practice Deloitte & Touche LLP 2 California Plaza 350 South Grand Avenue Los Angeles, California 90071 +1 213 688 3231 Explanatory Notes Readers 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. (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 13 Section A - Full Service Restaurants (Average Check Per Person Under $15) Exhibit A-1 presents the characteristics of the 175 respondents in the Full Service Restaurants (Average Check Per Person Under $15) category of this year's study. Approximately 66.3% of the respondents represent independent restaurants and 50.3% reported that they were the sole occupant of their location. Restaurants with American menu themes represent 56.6% of this sample. The median ratio of income before income taxes to total sales is 3.0% or $250 per seat. Highlights o Median average check is $11.00. o Median total sales per full-time equivalent employee is $51,599. o Median food sales are $7,698 per seat and median beverage sales are $1,716 per seat. o Median total sales per square foot is $275.50. o Median income before income taxes is 3.0% of total sales. o Median total cost of sales is 32.2% of total sales. Characteristics o 66.3% of full service (average check under $15) restaurants are single units, i.e., independents. o 57.7% of the responding establishments have sales volume of $1,000,000 and over. o 56.6% of the respondents report an American menu theme. o 78.4% of the respondents operate their businesses in locations with less than 7,500 square feet and 74.2% of the respondents have less than 200 seats. 14 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit A-1 Composition of Participating Full Service Restaurants (Average Check Per Person Under $15) Number of Respondents: 175 Percentage of Respondents Type of Establishment: Food Only 31.4% Food and Beverage 68.6 Years in Business: 1 to 5 Years 5 to 10 Years Over 10 Years Region: 1 Northeast North Central South West Average Check: 2 Under $10.00 $10.00 to $14.99 Affiliation: Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Not Specified Profit versus Loss: 3 Profit Loss Lease versus Own: Own Land and Building Lease Land and Building Lease Land and Own Building Own Land and Lease Building Not Specified 18.0% 18.0 64.0 Percentage of Respondents Ownership: Sole Proprietorship Partnership Public Corporation Private Corporation Not Specified Menu Theme: Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Italian Asian Other Sales Volume: 3 Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over Restaurant Location: Hotel Shopping Center or Mall Sole Occupant Other Not Specified Total Number of Seats: Under 100 100 to 149 150 to 199 200 to 399 400 and Over Not Specified Total Restaurant Square Footage: Under 2,500 2,500 to 4,999 5,000 to 7,499 7,500 and Over Not Specified 12.0% 16.0 3.4 66.9 1.7 14.3% 31.4 25.1 29.2 30.7% 69.3 6.3% 0.6 0.6 6.3 1.1 56.6 5.1 1.1 3.4 18.9 66.3% 23.4 9.1 1.2 16.6% 25.7 37.1 20.6 68.1% 31.9 3.4% 25.7 50.3 18.3 2.3 37.7% 36.6 4.0 1.7 20.0 29.1% 27.4 17.7 20.0 2.9 2.9 14.9% 44.6 18.9 15.4 6.2 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 3 Per person, all meals For respondents specifying (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 15 Exhibit A-2 Full Service Restaurants (Average Check Per Person Under $15) Average Check Total Median $ 11.00 $ 8.50 12.00 ** $ 10.00 12.00 10.70 $ 11.50 11.00 ** ** ** ** ** $ 11.10 ** ** 11.00 $ 10.30 13.50 ** ** $ 11.40 ** 12.00 $ 9.50 11.00 11.90 13.30 All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Italian Other Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over **Insufficient data Lower Quartile $ 9.00 $ 7.40 10.20 ** $ 9.30 8.40 9.20 $ 9.20 10.00 ** ** ** ** ** $ 9.00 ** ** 9.70 $ 8.50 10.30 ** ** $ 9.70 ** 9.30 $ 7.50 8.00 9.80 9.40 Upper Quartile $ 13.90 $ 10.00 14.00 ** $ 13.90 14.00 12.30 $ 14.00 13.90 ** ** ** ** ** $ 14.00 ** ** 12.30 $ 13.00 14.60 ** ** $ 13.60 ** 14.00 $ 11.00 14.00 13.40 14.40 16 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit A-3 Full Service Restaurants (Average Check Per Person Under $15) Average Daily Seat Turnover Total Median 1.9 2.3 1.7 ** 1.7 2.0 2.3 2.2 1.7 ** ** ** ** ** 1.9 ** ** ** 1.9 2.5 1.7 1.7 2.2 ** ** 1.9 ** 1.9 0.8 1.7 2.2 2.6 All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check Under $10.00 $10.00 to $14.99 Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over **Insufficient data Lower Quartile 1.0 1.5 1.0 ** 0.9 1.3 0.8 1.0 0.9 ** ** ** ** ** 1.0 ** ** ** 1.4 1.5 1.0 0.8 1.0 ** ** 1.0 ** 1.0 0.4 0.8 1.6 1.3 Upper Quartile 2.9 3.0 2.7 ** 2.6 2.7 3.3 3.2 2.3 ** ** ** ** ** 3.0 ** ** ** 2.7 3.2 2.5 2.6 3.5 ** ** 2.6 ** 3.1 1.5 2.3 3.2 3.9 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 17 Exhibit A-4 Full Service Restaurants (Average Check Per Person Under $15) Cost per Dollar of Sales* Total Cost of Sales 32.2 ? 30.9 ? 32.8 ** 31.3 ? 32.3 32.8 31.4 ? 34.2 ** ** ** ** ** 32.7 ? ** ** ** 32.0 32.8 ? 31.9 33.9 ? 31.6 ** 35.1 ? 31.7 ** 32.3 35.3 ? 34.0 32.6 30.8 Total Payroll and Benefits 33.7 ? 33.5 ? 33.7 ** 32.3 ? 33.1 37.6 33.1 ? 38.1 ** ** ** ** ** 34.8 ? ** ** ** 31.5 34.0 ? 33.7 34.7 ? 33.5 ** 31.4 ? 32.3 ** 34.0 32.7 ? 33.5 33.8 34.0 All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check Under $10.00 $10.00 to $14.99 Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over Prime Cost 65.9 ? 64.4 ? 67.3 ** 64.4 ? 65.2 69.7 65.1 ? 71.8 ** ** ** ** ** 69.5 ? ** ** ** ** 66.6 ? 65.4 69.9 ? 63.5 ** 62.9 ? 60.5 ** 67.7 71.0 ? 69.5 66.4 63.4 *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. **Insufficient data 18 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit A-5 Full Service Restaurants (Average Check Per Person Under $15) Number of Employees* Number of Employees per Restaurant Part-Part-Time Part Time (Under 20 Full Time (20-34 Hours) Hours) 10 10 5 10 10 ** 12 8 11 12 8 ** ** ** ** ** 11 ** ** ** 10 12 9 9 16 ** 8 13 ** 9 4 6 12 25 10 11 ** 7 12 10 12 10 ** ** ** ** ** 12 ** ** ** 8 10 12 10 15 ** 6 10 ** 13 4 10 16 26 4 5 ** 7 5 3 6 5 ** ** ** ** ** 5 ** ** ** 7 3 5 4 5 ** 4 8 ** 5 2 4 7 9 All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check Under $10.00 $10.00 to $14.99 Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over * All amounts are medians **Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 19 Exhibit A-6 Full Service Restaurants (Average Check Per Person Under $15) Annual Employee Turnover* All Employees 60% 55% 62 ** 88% 50 59 72% 67 ** ** ** ** ** 65% ** ** ** 73 70% 60 53% 88 ** ** 79% ** 58 ** 86% 63 59 Salaried Employees 33% 42% 25 ** 33% 33 ** 33% 21 ** ** ** ** ** 23% ** ** ** ** 25% 25 ** 33% ** ** 58% ** 27 ** 33% 33 33 Hourly Employees 71% 73% 71 ** 97% 59 64 79% 71 ** ** ** ** ** 76% ** ** ** ** 75% 69 64% 92 ** ** 85% ** 67 ** 94% 67 64 All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check Under $10.00 $10.00 to $14.99 Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over * 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-2s and the number of employees. **Insufficient data 20 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit A-7 Full Service Restaurants (Average Check Per Person Under $15) Employee Information* Full-Time Equivalent Employees Per 100 Per 100 Average Total Restaurant Seats Daily Covers 22.0 17.5 8.9 19.8 23.0 ** 22.5 20.6 21.5 27.0 19.6 ** ** ** ** ** 25.5 ** ** ** 20.2 19.8 22.9 18.5 39.9 ** 16.5 22.5 ** 23.2 8.9 14.9 25.8 51.5 17.5 17.4 ** 16.9 16.6 20.6 18.1 15.4 ** ** ** ** ** 19.8 ** ** ** 16.3 19.5 17.3 15.8 22.8 ** 18.0 17.7 ** 17.1 11.3 13.6 18.0 26.3 8.2 9.1 ** ** 10.1 8.9 8.2 8.8 ** ** ** ** ** 9.1 ** ** ** 9.8 7.7 9.8 8.9 10.4 ** ** 11.3 ** 8.9 ** 8.9 7.4 8.5 Amount per Full-Time Equivalent Employee Total Payroll Total Sales and Benefits $ 51,599 $ 17,962 $ 42,581 54,527 ** $ 52,941 53,330 46,845 $ 54,586 49,085 ** ** ** ** ** $ 49,048 ** ** ** 43,739 $ 44,385 54,732 $ 48,079 55,651 ** $ 44,881 50,438 ** 53,187 $ 36,475 48,718 52,439 59,045 $ 15,604 17,457 ** $ 16,949 17,291 17,568 $ 17,480 17,397 ** ** ** ** ** $ 16,923 ** ** ** 14,972 $ 16,697 17,372 $ 16,757 17,516 ** ** $ 17,442 ** 17,221 ** $ 16,492 17,465 19,257 All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check Under $10.00 $10.00 to $14.99 Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $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. **Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 21 Exhibit A-8 Full Service Restaurants (Average Check Per Person Under $15) Take-Out/Drive Through, Outside Catering and Banquet Service - Ratio to Total Sales* Take-Out/ Drive Through 5% 5% 5 ** 5% 5 ** 6% 5 ** ** ** ** ** 5% ** ** ** ** 5% 5 5% 5 ** ** ** ** 5% ** 8% 5 6 Outside Catering 2% ** 2% ** 2% 2 ** 2% ** ** ** ** ** ** 2% ** ** ** ** 3% 2 2% ** ** ** ** ** 2% ** ** 2% ** Banquet Service 3% ** 5% ** ** ** ** 3% ** ** ** ** ** ** ** ** ** ** ** ** 3% 3% ** ** ** ** ** 3% ** ** ** ** All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check Under $10.00 $10.00 to $14.99 Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over * All amounts are medians ** Insufficient data 22 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit A-9 Full Service Restaurants (Average Check Per Person Under $15) Statement of Income and Expenses All Restaurants Amount per Seat Lower Quartile 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 (Loss) Before Income Taxes $ 4,906 556 6,034 1,567 161 1,981 3,967 1,808 166 0 36 209 ** 56 ** 0 77 0 3,713 2 0 $ (79) Median $ 7,698 1,716 8,827 2,704 480 2,901 5,824 3,040 476 0 132 342 398 131 88 0 200 285 5,849 71 1 $ 250 Upper Quartile $ 11,071 3,199 12,718 3,491 876 4,122 8,897 4,557 946 13 281 453 798 243 245 135 499 563 7,767 207 57 $ 910 Lower Quartile 75.6% 0.0 100.0 29.8 24.4 29.2 62.8 29.1 3.0 0.0 0.6 2.8 ** 0.8 ** 0.0 1.0 0.0 57.1 0.0 0.0 (1.3%) Ratio to Total Sales* Median 90.9% 9.1 100.0 33.6 29.0 32.2 67.8 33.7 5.3 0.0 1.6 3.6 4.9 1.5 1.0 0.0 2.4 2.0 61.9 0.9 0.0 3.0% Upper Quartile 100.0% 24.4 100.0 38.0 33.5 37.2 70.8 39.4 8.6 0.2 2.8 4.8 8.0 0.9 2.7 1.7 4.6 5.5 69.1 2.1 0.9 8.8% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 23 Exhibit A-10 Full Service Restaurants (Average Check Per Person Under $15) Statement of Income and Expenses - Amount per Square Foot* All Restaurants Lower Quartile Sales Food Beverage Total Sales Gross Profit on Sales Utility Services $137.30 0.00 174.30 108.30 6.90 Median $239.30 24.70 275.50 172.30 9.90 Upper Quartile $367.40 82.30 413.30 287.10 13.90 Type of Establishment Food and Food Only Beverage $266.30 N/A 266.30 170.60 11.70 $216.00 52.50 278.50 174.00 9.30 Menu Theme American (varied) $229.10 31.50 277.80 167.90 9.90 Average Check Under $10.00 to $10.00 $14.99 $270.60 ** 273.00 169.00 11.20 $217.70 46.80 275.50 174.00 9.20 Other $209.10 ** 211.20 140.30 10.70 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All amounts are medians unless otherwise stated. ** Insufficient data N/A Not applicable 24 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Hotel ** ** ** ** ** Restaurant Location Shopping Sole Other Center or Mall Occupant $241.80 25.10 273.60 167.40 6.70 $285.70 3.00 311.30 213.20 12.50 $203.30 28.80 251.60 152.40 9.90 Under $500 $120.60 ** 130.00 84.00 6.10 Sales Volume ($000s) $500 to $1,000 to $999 $1,999 $192.30 10.70 210.50 134.50 9.00 $291.90 38.50 314.80 218.60 10.50 $2,000 and Over $360.30 66.00 451.40 317.10 14.90 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 25 Exhibit A-11 Full Service Restaurants (Average Check Per Person Under $15) Statement of Income and Expenses - Amount per Seat Type of Establishment Lower Quartile 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 (Loss) Before Income Taxes $ 6,010 N/A 6,010 1,764 N/A 1,764 3,824 1,333 155 ** 27 238 ** 58 ** 0 83 0 2,043 0 0 $ (424) Food Only Median $ 8,504 N/A 8,504 2,636 N/A 2,636 5,748 2,826 362 ** 101 335 380 109 57 0 184 362 5,073 71 26 $ 135 Upper Quartile $ 10,621 N/A 10,621 3,160 N/A 3,160 7,963 3,638 994 ** 168 410 717 192 141 146 458 530 6,608 166 170 $ 584 Lower Quartile $ 4,640 556 6,162 1,447 165 2,196 4,027 1,912 202 ** 65 203 ** 56 ** 0 77 0 3,330 5 0 $ (713) Food and Beverage Median Upper Quartile $ 7,391 1,716 9,294 2,754 482 3,227 5,893 3,096 538 6 165 344 410 134 100 0 220 205 5,605 72 0 $ 65 $ 11,146 3,194 13,294 3,590 878 4,429 9,286 4,765 942 25 328 482 817 264 274 97 511 563 8,092 223 35 $ 846 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data N/A Not Applicable 26 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit A-12 Full Service Restaurants (Average Check Per Person Under $15) Statement of Income and Expenses - Ratio to Total Sales* Type of Establishment Lower Quartile 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 (Loss) Before Income Taxes 100.0% N/A 100.0 26.7 N/A 26.7 63.7 28.4 1.2 0.0 0.3 3.2 ** 0.9 ** 0.0 1.0 0.0 55.5 0.0 0.0 0.2% Food Only Median 100.0% N/A 100.0 30.8 N/A 30.8 68.8 33.5 4.1 0.0 1.1 3.8 4.2 1.4 0.8 0.0 2.2 1.2 60.0 0.8 0.3 3.7% Upper Quartile 100.0% N/A 100.0 35.1 N/A 35.1 72.2 39.5 6.9 0.0 1.9 5.5 8.7 2.2 2.1 2.2 4.4 5.6 68.5 1.6 2.0 8.1% Food and Beverage Lower Quartile Median Upper Quartile 69.4% 7.0 100.0 30.8 23.9 29.6 60.9 29.3 2.9 0.0 0.7 2.5 ** 0.7 ** 0.0 0.9 0.0 54.4 0.1 0.0 (1.9%) 81.8% 18.2 100.0 34.0 28.2 32.8 67.0 33.7 5.9 0.1 2.0 3.4 4.4 1.5 1.0 0.0 2.5 2.3 61.4 0.9 0.0 2.7% 93.0% 30.6 100.0 41.1 32.8 37.7 70.0 39.3 8.6 0.3 3.1 4.3 7.2 2.1 2.9 1.1 4.7 5.3 68.8 2.1 0.4 9.6% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data N/A Not Applicable (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 27 Exhibit A-13 Full Service Restaurants (Average Check Per Person Under $15) Statement of Income and Expenses - Amount per Seat Affiliation Single Unit - Independent Lower Upper Quartile Median Quartile 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 (Loss) Before Income Taxes $ 3,168 0 5,155 1,391 150 1,697 3,091 $ 6,343 325 8,210 2,626 339 2,850 5,105 $ 9,361 2,212 10,810 3,339 856 3,964 6,992 Multi-Unit - Company Operated Lower Upper Quartile Median Quartile $ 7,273 833 8,670 2,120 370 2,913 6,027 $ 11,000 2,600 13,000 3,485 779 3,900 9,100 $ 15,368 3,539 18,989 5,184 978 6,140 12,476 1,317 75 ** 32 200 ** 46 ** 0 59 0 2,993 1 0 $ (115) 2,626 350 ** 115 327 255 93 62 0 171 29 5,053 41 10 $ 122 4,206 813 ** 223 435 575 167 152 177 353 340 6,455 148 64 $ 593 3,353 547 0 107 220 ** 107 ** 0 151 54 5,907 20 ** $ (151) 4,181 884 7 254 376 820 285 148 0 305 411 8,852 157 ** $ 859 6,470 1,366 37 566 572 1,188 383 732 42 512 706 11,066 301 ** $ 1,211 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data 28 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit A-14 Full Service Restaurants (Average Check Per Person Under $15) Statement of Income and Expenses - Ratio to Total Sales* Affiliation Single Unit - Independent Lower Upper Quartile Median Quartile 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 (Loss) Before Income Taxes 75.0% 0.0 100.0 30.8 25.9 30.2 61.0 93.4% 6.6 100.0 35.0 30.0 33.9 66.1 100.0% 25.0 100.0 42.0 34.8 39.0 69.8 Multi-Unit - Company Operated Lower Upper Quartile Median Quartile 75.8% 8.0 100.0 29.7 23.7 29.6 66.3 80.9% 19.1 100.0 33.0 26.0 31.6 68.4 92.0% 24.2 100.0 35.3 31.8 33.7 70.4 28.3 1.9 0.0 0.5 2.9 ** 0.7 ** 0.0 0.0 0.0 48.9 0.0 0.0 (11.4%) 34.7 4.5 0.0 1.5 3.8 3.8 1.3 0.7 0.0 1.0 0.7 60.9 0.7 0.1 0.0% 41.4 9.2 0.2 2.8 5.4 7.4 2.0 2.1 0.0 3.4 3.0 69.0 1.9 1.9 5.4% 29.9 4.5 0.0 1.0 1.7 ** 0.7 ** ** 0.0 1.0 33.9 0.2 ** (11.3%) 33.5 6.5 0.0 2.2 3.0 5.2 1.5 1.2 ** 1.2 3.0 59.7 1.0 ** 4.5% 37.9 8.1 0.2 3.1 3.7 7.6 2.3 3.2 ** 2.6 5.6 66.6 1.3 ** 7.7% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 29 Exhibit A-15 Full Service Restaurants (Average Check Per Person Under $15) Statement of Income and Expenses - Amount per Seat Sales Volume ($000) Under $500 Lower Quartile 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 (Loss) Before Income Taxes $ 1,661 0 2,510 847 ** 1,029 1,561 701 25 0 3 140 ** 20 ** 0 ** ** 1,186 ** ** $ (114) Median $ 3,160 84 4,078 1,412 ** 1,492 2,306 1,208 156 0 48 202 ** 44 5 0 ** ** 1,810 ** ** $ 111 Upper Quartile $ 5,556 279 7,450 2,463 ** 2,519 4,549 2,227 357 6 124 311 278 114 81 58 ** ** 3,803 ** ** $ 495 Between $500 and $999 Lower Upper Quartile Median Quartile $ 4,381 0 5,282 1,402 96 1,654 3,410 1,374 206 0 23 218 ** 54 ** 0 71 ** 2,698 7 ** $ (55) $ 6,122 267 6,953 1,939 255 2,466 4,302 2,313 413 0 77 330 336 91 61 0 131 ** 4,068 74 ** $ 65 $ 7,888 1,416 8,668 2,935 767 3,166 5,657 2,920 909 8 144 422 583 159 125 162 326 ** 6,034 181 ** $ 385 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data 30 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Sales Volume ($000) Between $1,000 and $1,999 $2,000 and Over Lower Upper Lower Upper Quartile Median Quartile Quartile Median Quartile $ 5,814 0 8,143 2,110 185 2,501 5,360 2,603 277 0 99 236 ** 70 ** 0 96 81 5,053 1 0 $ (214) $ 9,199 922 9,818 2,850 536 3,146 6,757 3,372 467 0 147 363 542 143 97 0 238 411 6,345 46 19 $ 312 $ 11,991 2,842 12,868 3,512 992 4,405 8,969 4,400 946 24 255 437 863 267 242 56 539 554 7,692 184 62 $ 906 $ 9,766 833 11,968 2,987 350 3,454 8,492 3,709 450 0 206 309 ** 135 ** 0 157 0 6,972 21 ** $ 209 $ 11,570 2,432 13,333 3,868 774 4,165 9,725 5,019 800 0 417 448 607 242 230 10 418 457 9,226 164 ** $ 894 $ 16,063 3,548 19,571 5,464 888 5,906 13,431 6,433 1,043 18 566 584 983 358 551 139 607 1,118 11,201 323 ** $ 1,626 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 31 Exhibit A-16 Full Service Restaurants (Average Check Per Person Under $15) Statement of Income and Expenses - Ratio to Total Sales* Sales Volume ($000) Under $500 Lower Quartile 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 (Loss) Before Income Taxes 84.2% ** 100.0 32.8 ** 32.2 56.1 25.3 1.7 0.0 0.1 2.8 ** 0.7 ** 0.0 ** ** 48.3 ** ** (1.8%) Median 96.1% ** 100.0 37.8 ** 35.3 64.7 32.7 3.8 0.0 1.6 4.8 ** 1.5 0.1 0.0 ** ** 56.3 ** ** 4.1% Upper Quartile 100.0% ** 100.0 44.5 ** 43.9 67.8 39.6 6.5 0.1 3.8 6.7 7.7 2.1 2.1 2.0 ** ** 71.3 ** ** 13.5% Between $500 and $999 Lower Upper Quartile Median Quartile 82.5% 0.0 100.0 30.1 27.3 29.8 61.7 27.4 3.6 0.0 0.4 3.4 ** 0.9 ** 0.0 1.2 ** 57.8 0.2 ** (2.0%) 93.6% 6.4 100.0 34.5 30.0 34.0 66.0 33.5 6.2 0.0 1.2 4.1 5.1 1.5 0.9 0.0 2.1 ** 62.6 1.5 ** 1.0% 100.0% 17.5 100.0 42.1 33.5 38.3 70.2 38.1 10.7 0.1 2.2 5.5 7.8 2.2 2.3 2.5 4.6 ** 69.1 2.1 ** 6.2% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data 32 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Sales Volume ($000) Between $1,000 and $1,999 $2,000 and Over Lower Upper Lower Upper Quartile Median Quartile Quartile Median Quartile 69.7% 0.0 100.0 28.5 24.2 27.0 64.8 30.6 3.2 0.0 0.7 2.5 ** 0.8 ** 0.0 0.7 1.0 57.8 0.1 0.0 (3.7%) 88.2% 11.8 100.0 33.5 29.1 32.6 67.4 33.8 5.9 0.0 1.6 3.5 5.7 1.5 1.0 0.0 2.4 3.7 62.8 0.3 0.2 2.8% 100.0% 30.3 100.0 37.4 32.8 35.2 73.0 40.0 8.1 0.2 2.8 4.4 8.8 2.2 2.8 0.2 5.4 5.7 69.2 1.9 0.6 9.0% 78.0% 6.6 100.0 27.5 22.5 27.0 68.0 29.7 3.3 0.0 1.8 2.2 ** 1.0 ** 0.0 1.1 0.0 58.9 0.1 ** 0.9% 81.5% 18.5 100.0 31.5 25.9 30.8 69.2 34.0 5.0 0.0 2.4 3.0 4.8 1.7 1.8 0.1 2.5 3.0 61.7 1.0 ** 5.5% 93.4% 22.0 100.0 34.3 28.2 32.0 73.0 38.5 7.4 0.2 3.4 3.7 6.2 2.2 3.1 0.9 4.8 6.6 66.0 2.2 ** 10.0% (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 33 Exhibit A-17 Full Service Restaurants (Average Check Per Person Under $15) Statement of Income and Expenses - Amount per Seat American (varied) Median $ 8,931 833 9,323 2,940 564 3,283 6,249 3,449 500 0 132 345 343 109 67 0 234 115 6,083 70 10 $ 151 Lower Quartile 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 (Loss) Before Income Taxes $ 4,500 0 6,021 1,404 178 2,120 3,833 1,876 156 0 54 204 ** 53 ** 0 87 0 3,609 5 0 $ (160) Upper Quartile $ 11,209 2,886 13,314 4,076 972 4,440 8,986 4,944 947 17 270 460 790 258 184 144 500 496 8,284 197 159 $ 698 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data 34 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit A-18 Full Service Restaurants (Average Check Per Person Under $15) Statement of Income and Expenses - Ratio to Total Sales* American (varied) Median 86.8% 13.2 100.0 34.4 27.4 32.7 67.3 34.8 4.9 0.0 1.7 3.5 4.9 1.4 0.7 0.0 2.3 1.1 61.9 0.9 0.1 2.5% Lower Quartile 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 (Loss) Before Income Taxes 74.0% 0.0 100.0 31.0 24.3 30.6 61.0 29.5 3.0 0.0 0.7 2.8 ** 0.8 ** 0.0 1.0 0.0 57.8 0.1 0.0 (2.4%) Upper Quartile 100.0% 26.0 100.0 41.6 32.8 39.0 69.4 41.4 8.1 0.2 2.9 4.8 8.0 2.1 2.4 2.2 4.4 4.5 69.1 1.9 2.6 6.1% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 35 Exhibit A-19 Full Service Restaurants (Average Check Per Person Under $15) Statement of Income and Expenses - Amount per Seat Metropolitan/Non-Metropolitan Location Inside MSA*** Outside MSA*** Lower Quartile Median Upper Quartile Lower Quartile Median Upper Quartile Sales Food Beverage Total Sales Cost of Sales Food Beverage Total Cost of Sales Gross Profit Operating Expenses Salaries and Wages 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 (Loss) Before Income Taxes $ 5,062 0 6,800 1,587 234 2,068 4,251 1,743 1,883 238 0 43 216 ** 69 ** 0 83 0 3,835 5 $0 $ (13) $ 7,919 833 9,239 2,782 598 2,923 6,144 2,800 3,033 530 0 138 365 447 137 93 0 224 345 5,870 72 $0 $ 309 $ 11,209 2,886 13,254 3,490 896 4,237 9,184 4,082 4,548 1,028 14 283 483 823 264 269 131 499 582 8,301 200 $ 35 $ 954 $ 3,152 0 5,029 1,405 ** 1,757 3,041 1,164 1,228 0 0 35 213 ** 46 ** 0 32 ** 3,065 ** ** $ (206) $ 6,845 388 8,573 2,636 ** 2,847 5,180 3,072 3,467 307 0 101 312 227 102 83 0 168 ** 5,357 ** ** $ 143 $ 9,861 968 10,761 3,487 ** 3,546 6,841 3,735 4,152 743 8 210 408 556 160 164 211 358 ** 6,444 ** ** $ 731 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data *** Metropolitan statistical area 36 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit A-20 Full Service Restaurants (Average Check Per Person Under $15) Statement of Income and Expenses - Ratio to Total Sales* Metropolitan/Non-Metropolitan Location Inside MSA*** Outside MSA*** Lower Upper Lower Upper Quartile Median Quartile Quartile Median Quartile 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 (Loss) Before Income Taxes 75.0% 0.0 100.0 28.6 24.4 28.3 63.2 29.5 3.3 0.0 0.5 2.9 ** 0.8 ** 0.0 1.0 0.0 57.7 0.1 0.0 (0.7%) 88.1% 11.9 100.0 33.3 28.2 32.0 68.0 33.4 5.7 0.0 1.6 3.7 5.3 1.6 1.0 0.0 2.3 2.5 61.9 0.9 0.0 3.5% 100.0% 25.0 100.0 38.0 32.9 36.8 71.7 38.4 9.4 0.2 2.8 4.8 8.6 2.2 2.8 1.5 4.6 5.6 69.0 2.1 0.6 8.8% 80.2% 0.0 100.0 31.8 ** 31.3 62.4 30.0 0.0 0.0 0.8 3.0 ** 0.8 ** 0.0 0.4 ** 56.5 ** ** (2.9%) 94.6% 5.4 100.0 34.8 ** 33.9 66.1 38.8 4.3 0.0 1.7 3.6 3.9 1.3 1.1 0.0 2.3 ** 58.9 ** ** 2.6% 100.0% 19.8 100.0 37.6 ** 37.6 68.7 41.4 7.6 0.2 2.7 5.3 6.1 2.1 2.2 2.2 4.2 ** 71.9 ** ** 8.0% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. *All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data *** Metropolitan statistical area (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 37 Exhibit A-21 Full Service Restaurants (Average Check Per Person Under $15) Statement of Income and Expenses - Amount per Seat Average Check Under $10.00 Lower Quartile 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 (Loss) Before Income Taxes $ 4,492 0 5,265 1,477 ** 1,704 3,824 1,305 67 0 24 248 ** 48 ** 0 71 0 3,371 0 0 $ 16 Median $ 8,325 0 8,490 2,705 ** 2,705 5,470 2,620 350 0 101 346 336 109 73 0 182 345 5,475 23 13 $ 309 Upper Quartile $ 11,510 243 12,332 4,027 ** 4,104 8,409 4,447 847 6 166 427 683 213 161 140 458 549 7,444 108 26 $ 715 $10.00 to 14.99 Lower Upper Quartile Median Quartile $ 5,062 276 6,800 1,559 187 2,191 4,071 2,000 248 0 75 210 ** 64 ** 0 83 0 4,053 8 0 $ (125) $ 7,404 1,469 9,294 2,667 500 2,960 5,899 3,146 590 0 175 340 438 133 98 0 231 245 5,961 118 0 $ 246 $ 11,000 3,098 13,000 3,432 878 4,137 8,934 4,620 995 19 319 453 824 251 288 75 511 553 8,284 262 61 $ 922 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data 38 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit A-22 Full Service Restaurants (Average Check Per Person Under $15) Statement of Income and Expenses - Ratio to Total Sales* Average Check Under $10.00 Lower Quartile 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 (Loss) Before Income Taxes 94.5% 0.0 100.0 29.8 ** 29.8 62.5 30.1 1.7 0.0 0.2 3.2 ** 0.8 ** 0.0 0.5 0.0 53.6 0.0 0.0 (0.1%) Median 100.0% 0.0 100.0 33.3 ** 32.8 67.2 34.0 4.2 0.0 0.9 3.8 3.3 1.7 0.9 0.0 2.1 1.1 63.2 0.2 0.2 3.1% Upper Quartile 100.0% 5.5 100.0 37.9 ** 37.5 70.2 40.4 6.3 0.1 1.9 5.3 7.9 2.1 1.8 2.2 4.4 5.7 67.8 1.3 0.5 8.6% Lower Quartile 72.0% 5.7 100.0 29.7 24.2 29.2 62.9 29.5 3.3 0.0 0.9 2.7 ** 0.8 ** 0.0 1.1 0.0 57.9 0.2 0.0 (2.8%) $10.00 to 14.99 Median 82.8% 17.2 100.0 33.6 27.9 31.9 68.1 33.7 6.3 0.0 2.0 3.4 5.4 1.5 1.1 0.0 2.5 2.3 62.0 1.3 0.0 3.1% Upper Quartile 94.3% 28.0 100.0 39.5 32.3 37.1 70.8 39.0 10.0 0.2 3.1 4.6 8.3 2.2 2.9 1.3 4.9 5.3 69.4 2.2 1.0 9.2% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 39 Exhibit A-23 Full Service Restaurants (Average Check Per Person Under $15) Income Differential Amount per Seat Profit Lower Quartile 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 (Loss) Before Income Taxes $ 5,571 0 6,519 1,728 160 2,068 4,261 1,925 236 0 58 202 ** 74 ** 0 94 17 3,633 8 0 $ 245 Median $ 8,932 798 9,770 2,871 593 3,083 6,921 3,147 549 0 147 346 417 136 93 0 220 389 6,334 63 19 $ 636 Upper Quartile $ 11,991 2,666 14,288 3,976 834 4,469 9,931 5,045 964 11 379 450 803 262 260 60 505 593 9,175 191 63 $ 1,225 Lower Quartile $ 3,034 0 5,331 1,247 160 1,545 3,698 1,872 211 0 30 225 ** 51 ** 0 49 ** 3,876 4 ** $ (707) Loss Median $ 6,181 524 7,771 2,252 278 2,629 5,069 2,678 388 0 121 327 410 117 99 8 164 ** 5,238 135 ** $ (367) Upper Quartile $ 8,994 1,542 9,301 2,875 536 3,275 6,211 3,992 760 17 218 482 737 171 239 259 332 ** 6,329 245 ** $ (115) Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data 40 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Ratio to Total Sales* Profit Lower Quartile 78.9% 0.0 100.0 27.7 24.1 27.5 65.1 29.7 3.3 0.0 0.7 2.6 ** 0.9 ** 0.0 1.2 0.5 55.8 0.1 0.0 2.8% Median 91.1% 8.9 100.0 32.1 28.2 31.4 68.6 33.1 5.7 0.0 1.7 3.4 4.5 1.6 1.0 0.0 2.4 3.0 59.9 0.8 0.2 6.1% Upper Quartile 100.0% 21.1 100.0 37.1 33.9 34.9 72.5 38.4 7.9 0.1 2.9 4.3 6.8 2.1 2.4 0.8 4.7 5.6 64.6 1.9 1.1 11.3% Lower Quartile 76.2% 0.0 100.0 32.0 26.1 31.9 61.0 32.7 3.7 0.0 0.5 3.8 ** 1.1 ** 0.0 0.6 0.0 63.5 0.1 ** (10.5%) Loss Median 91.5% 8.5 100.0 35.4 29.2 34.2 65.8 38.1 5.6 0.0 2.0 4.4 6.7 1.8 1.4 0.1 2.4 1.0 68.6 1.4 ** (5.0%) Upper Quartile 100.0% 23.8 100.0 42.8 31.9 39.0 68.1 43.3 8.7 0.2 2.8 5.7 9.2 2.4 3.0 4.3 4.4 3.3 75.5 2.7 ** (1.8%) (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 41 Section B - Full Service Restaurants (Average Check Per Person $15 to $24.99) Exhibit B-1 presents the characteristics of the 220 respondents in the Full Service Restaurants (Average Check Per Person $15 to $24.99) category of this year's study. 68.6% of the respondents represent independent restaurants and 50.0% reported that they were the sole occupant of their location. Restaurants with American menu themes represent 41.8% of this sample. The median ratio of income before income taxes to total sales is 3.5% or $346 per seat. Highlights o Median average check is $18.00. o Median total sales per full-time equivalent employee is $57,590 o Median food sales are $7,650 per seat and median beverage sales are $2,504 per seat. o Median total sales per square foot is $362.91. o Median income before income taxes is 3.5% of total sales. o Median total cost of sales is 31.8% of total sales. Characteristics o 68.6% of full service (average check $15 to $24.99) restaurants are single units, i.e., independents. o 68.7% of the responding establishments have sales volume of $1,000,000 and over. o 41.8% of the respondents report an American menu theme. o 69.6% of the respondents operate their businesses in locations with less than 7,500 square feet and 60.9% of the respondents have less than 200 seats. 42 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit B-1 Composition of Participating Full Service Restaurants (Average Check Per Person $15 to $24.99) Number of Respondents: 220 Percentage of Respondents Type of Establishment: Food Only 2.7% Food and Beverage 97.3 Years in Business: 1 to 5 Years 5 to 10 Years Over 10 Years Region: 1 Northeast North Central South West Average Check: 2 $15.00 to $19.99 $20.00 to $24.99 Affiliation: Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Not Specified Profit versus Loss: 3 Profit Loss Lease versus Own: Own Land and Building Lease Land and Building Lease Land and Own Building Own Land and Lease Building Not Specified Percentage of Respondents Ownership: Sole Proprietorship Partnership Public Corporation Private Corporation Not Specified Menu Theme: Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Italian Asian Other Sales Volume: 3 Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over Restaurant Location: Hotel Shopping Center or Mall Sole Occupant Other Not Specified Total Number of Seats: Under 100 100 to 149 150 to 199 200 to 399 400 and Over Not Specified Total Restaurant Square Footage: Under 2,500 2,500 to 4,999 5,000 to 7,499 7,500 and Over Not Specified 18.6% 15.5 3.2 61.8 0.9 22.7% 16.4 60.9 13.6% 23.2 26.8 36.4 56.0% 44.0 2.7% 17.7 0.5 2.7 0.0 41.8 5.5 6.4 5.9 16.8 68.6% 29.1 1.4 0.9 7.7% 23.6 25.5 43.2 75.5% 24.5 25.9% 39.1 2.7 0.9 31.4 5.0% 20.0 50.0 23.6 1.4 20.9% 21.4 18.6 29.1 7.7 2.3 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. 13.2% 28.2 28.2 25.4 5.0 2 3 Per person, all meals For respondents specifying (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 43 Exhibit B-2 Full Service Restaurants (Average Check Per Person $15 to $24.99) Average Check Total Median $ 18.00 ** $ 18.00 ** $ 18.00 18.00 18.00 $ 18.00 ** ** $ 18.00 ** ** ** 18.00 ** ** 18.00 $ 19.00 17.10 ** $ 17.00 18.00 ** 18.50 ** $ 17.10 19.20 18.00 All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Italian Other Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over ** Insufficient data Lower Quartile $ 15.00 ** $ 15.00 ** $ 15.60 15.00 15.00 $ 16.10 ** ** $ 16.10 ** ** ** 15.00 ** ** 15.00 $ 15.70 15.00 ** $ 12.50 15.00 ** 15.70 ** $ 11.70 15.00 16.30 Upper Quartile $ 21.70 ** $ 21.90 ** $ 20.00 21.00 22.10 $ 22.00 ** ** $ 21.50 ** ** ** 21.00 ** ** 22.10 $ 22.00 19.90 ** $ 20.00 20.00 ** 22.00 ** $ 20.00 22.10 21.00 44 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit B-3 Full Service Restaurants (Average Check Per Person $15 to $24.99) Average Daily Seat Turnover Total Median 1.5 ** 1.4 ** 1.8 1.4 1.4 1.7 0.7 ** 1.4 ** ** ** 1.3 ** ** ** 1.6 1.8 1.1 1.1 2.0 ** 1.2 1.8 ** 1.5 ** 0.7 1.3 2.0 All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check $15.00 to $19.99 $20.00 to $24.99 Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over ** Insufficient data Lower Quartile 0.6 ** 0.7 ** 0.7 0.7 0.5 0.8 0.4 ** 0.5 ** ** ** 0.6 ** ** ** 0.6 0.8 0.5 0.5 1.5 ** 0.7 0.8 ** 0.6 ** 0.5 0.6 1.3 Upper Quartile 2.1 ** 2.1 ** 2.6 2.1 1.8 2.3 2.1 ** 2.2 ** ** ** 2.0 ** ** ** 2.9 2.5 1.8 1.8 3.1 ** 2.0 3.2 ** 2.1 ** 1.4 2.0 2.8 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 45 Exhibit B-4 Full Service Restaurants (Average Check Per Person $15 to $24.99) Cost per Dollar of Sales* Total Cost of Sales 31.8 ? ** 31.6 ? ** 28.7 ? 32.8 31.9 30.8 ? 36.9 ** 37.5 ? ** ** ** 32.1 ** ** ** 31.8 31.8 ? 31.1 32.6 ? 28.7 ** 32.2 ? 30.4 ** 31.9 ? ** 33.3 ? 32.1 30.0 Total Payroll and Benefits 33.2 ? ** 33.3 ? ** 33.3 ? 32.8 33.7 32.8 ? 36.7 ** 33.7 ? ** ** ** 34.7 ** ** ** 32.3 32.8 ? 33.8 34.4 ? 31.5 ** 34.4 ? 31.5 ** 32.8 ? ** 33.1 ? 34.4 33.1 All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check $15.00 to $19.99 $20.00 to $24.99 Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over *All amounts are medians ** Insufficient data Prime Cost 64.9 ? ** 64.7 ? ** 62.7 ? 66.1 64.7 63.4 ? 74.0 ** 71.4 ? ** ** ** 66.9 ** ** ** 63.6 64.9 ? 65.0 67.4 ? 60.7 ** 68.0 ? 61.7 ** 64.9 ? ** 66.8 ? 67.2 63.1 46 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit B-5 Full Service Restaurants (Average Check per Person $15 to $24.99) Number of Employees* Number of Employees per Restaurant Part-Part-Time Part Time (Under 20 Full Time (20-34 Hours) Hours) 11 14 7 ** 11 ** 14 11 9 11 10 ** 9 ** ** ** 15 ** ** ** 6 13 11 9 20 ** 8 8 ** 12 ** 5 12 19 ** 15 ** 10 15 14 15 13 ** 15 ** ** ** 15 ** ** ** 6 15 13 12 21 ** 15 13 ** 15 ** 8 15 25 ** 7 ** 4 9 7 7 6 ** 7 ** ** ** 6 ** ** ** 8 7 5 5 8 ** 6 6 ** 7 ** 5 5 10 All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check $15.00 to $19.99 $20.00 to $24.99 Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over * All amounts are medians ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 47 Exhibit B-6 Full Service Restaurants (Average Check per Person $15 to $24.99) Annual Employee Turnover* All Employees 63% ** 64% ** 64% 73 50 71% 60 ** 45% ** ** ** 70 ** ** ** 67 63% 60 64% 64 ** 91% 117 ** 59 ** 59% 61 64 Salaried Employees ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** Hourly Employees 67% ** 72% ** 67% 76 60 75% 66 ** 50% ** ** ** 76 ** ** ** 67 66% 67 75% 66 ** 100% 119 ** 63 ** 64% 67 66 All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check Under $10.00 $10.00 to $14.99 Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over * 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-2s and the number of employees. ** Insufficient data 48 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit B-7 Full Service Restaurants (Average Check per Person $15 to $24.99) Employee Information* Amount per Full-Time Equivalent Employee Total Payroll Total Sales and Benefits $ 57,590 $ 20,054 ** $ 58,441 ** $ 60,914 56,927 53,837 $ 62,260 53,700 ** $ 59,914 ** ** ** $ 55,728 ** ** $ 61,669 $ 55,143 59,149 $ 57,802 58,441 ** $ 54,256 67,283 ** $ 56,261 ** $ 52,024 53,615 62,873 ** $ 19,007 ** $ 20,571 18,310 18,900 $ 20,305 19,697 ** $ 19,226 ** ** ** $ 18,822 ** ** $ 18,864 $ 18,108 21,406 $ 18,864 19,369 ** $ 16,747 21,705 ** $ 18,993 ** $ 15,909 18,047 21,195 All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check $15.00 to $19.99 $20.00 to $24.99 Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over Full-Time Equivalent Employees Per 100 Per 100 Average Total Restaurant Seats Daily Covers 29.2 17.8 13.5 ** 29.3 ** 30.3 32.0 24.3 32.4 24.8 ** 25.2 ** ** ** 36.0 ** ** 12.7 34.8 25.8 21.1 42.9 ** 24.9 24.3 ** 31.8 ** 13.9 27.0 47.6 ** 18.8 ** 22.2 17.4 15.9 18.9 14.8 ** 15.9 ** ** ** 19.7 ** ** 15.9 19.9 17.3 15.4 23.7 ** 14.5 15.5 ** 19.8 ** 12.4 19.3 22.5 ** 13.4 ** 14.7 12.0 15.2 12.2 16.1 ** 12.9 ** ** ** 13.2 ** ** 14.1 11.6 15.5 15.0 11.4 ** 14.7 10.5 ** 13.8 ** 16.1 13.5 11.4 * 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. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 49 Exhibit B-8 Full Service Restaurants (Average Check per Person $15 to $24.99) Take-Out/Drive Through, Outside Catering and Banquet Service - Ratio to Total Sales* Take-Out/ Drive Through 3% ** 3% ** 2% 4 3 3% ** ** 3% ** ** ** 3 ** ** ** ** 3% 2 3% 3 ** 3% ** ** 4 ** 2% 4 3 Outside Catering 2% ** 2% ** ** 2% ** 3% ** ** ** ** ** ** 3% ** ** ** 5 2% 3 4% ** ** ** ** ** 4% ** 5% 2 2 Banquet Service 5% ** 5% ** ** 5% 5 5% 3 ** ** ** ** ** 5% ** ** ** ** 5% 5 5% 1 ** ** ** ** 5% ** 5% 5 5 All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check $15.00 to $19.99 $20.00 to $24.99 Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over * All amounts are medians ** Insufficient data 50 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit B-9 Full Service Restaurants (Average Check Per Person Under $15 to $24.99) Statement of Income and Expenses All Restaurants Amount per Seat Lower Quartile 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 (Loss) Before Income Taxes $ 4,345 1,119 5,771 1,253 288 1,804 3,909 1,800 244 0 53 199 ** 58 ** 0 110 0 3,870 0 0 $0 Median $ 7,650 2,504 10,866 2,495 693 3,395 7,347 3,795 594 12 175 343 495 137 102 0 282 180 7,075 35 0 $ 346 Upper Quartile $ 11,853 3,865 16,098 3,810 1,066 4,782 10,777 5,509 1,132 64 431 497 931 274 299 99 612 712 10,490 207 70 $ 1,023 Lower Quartile 67.2% 15.0 100.0 28.1 23.2 27.4 63.1 29.2 3.1 0.0 0.8 2.2 ** 0.7 ** 0.0 1.0 0.0 55.7 0.0 0.0 0.0% Ratio to Total Sales* Median 78.0% 22.0 100.0 33.3 28.2 31.8 68.2 33.2 5.4 0.1 2.0 3.4 5.1 1.4 1.0 0.0 3.3 1.8 63.8 0.5 0.0 3.5% Upper Quartile 85.0% 32.8 100.0 39.0 33.6 36.9 72.6 37.7 9.9 0.7 4.0 4.4 8.1 1.2 2.8 1.0 5.3 5.8 70.7 1.8 0.9 8.4% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 51 Exhibit B-10 Full Service Restaurants (Average Check per Person $15 to $24.99) Statement of Income and Expenses - Amount per Square Foot* All Restaurants Lower Quartile Sales Food Beverage Total Sales Gross Profit on Sales Utility Services $149.84 27.33 206.72 123.31 5.20 Median $250.24 69.39 362.91 236.99 9.81 Upper Quartile $375.00 130.00 498.47 350.37 15.12 Type of Establishment Food and Food Only Beverage ** N/A ** ** ** $250.24 74.90 368.74 242.75 9.63 Menu Theme American Hamburger (varied) Mexican ** ** ** ** ** $246.15 92.27 342.17 230.29 9.00 ** ** ** ** ** Asian ** ** ** ** ** Italian ** ** ** ** ** Steak/ Seafood $245.00 46.88 282.17 169.55 10.90 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All amounts are medians unless otherwise stated. ** Insufficient data N/A Not applicable 52 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Menu Theme Regional ** ** ** ** ** Other $209.01 62.47 326.02 227.99 10.85 Average Check $15.00 to $20.00 to $19.99 $24.99 $297.36 85.61 398.57 267.18 11.00 $208.80 62.73 329.84 198.14 8.15 Hotel ** ** ** ** ** Restaurant Location Shopping Sole Center or Mall Occupant $327.99 67.10 408.44 295.59 10.84 $248.20 67.32 352.10 229.55 10.79 Other $198.02 85.50 294.94 204.33 8.74 Under $500 ** ** ** ** ** Sales Volume ($000s) $500 to $1,000 to $999 $1,999 $153.73 47.18 215.19 133.75 6.51 $264.04 61.54 384.03 251.96 9.26 $2,000 and Over $349.97 111.83 470.14 328.39 12.93 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 53 Exhibit B-11 Full Service Restaurants (Average Check Per Person $15 to $24.99) Statement of Income and Expenses - Amount per Seat Type of Establishment Food Only Lower Quartile 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 (Loss) Before Income Taxes ** N/A ** ** N/A ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** Median ** N/A ** ** N/A ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** Upper Quartile ** N/A ** ** N/A ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** Lower Quartile $ 4,400 1,119 5,884 1,241 288 1,859 3,937 2,034 244 0 52 200 ** 59 ** 0 117 0 2,510 0 0 $0 Food and Beverage Median $ 7,650 2,504 11,111 2,495 693 3,395 7,495 3,837 603 12 182 346 500 137 105 0 294 179 6,466 37 0 $ 79 Upper Quartile $ 11,976 3,865 16,203 3,788 1,066 4,792 10,782 5,658 1,164 64 472 498 945 276 300 89 634 721 10,160 209 76 $ 715 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data N/A Not Applicable 54 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit B-12 Full Service Restaurants (Average Check Per Person $15 to $24.99) Statement of Income and Expenses - Ratio to Total Sales* Type of Establishment Food Only Lower Quartile 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 (Loss) Before Income Taxes ** N/A ** ** N/A ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** Median ** N/A ** ** N/A ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** Upper Quartile ** N/A ** ** N/A ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** Lower Quartile 66.8% 16.0 100.0 28.0 22.9 27.1 63.4 29.3 2.2 0.0 0.5 1.9 ** 0.6 ** 0.0 1.0 0.0 49.7 0.0 0.0 0.0% Food and Beverage Median 77.4% 22.6 100.0 32.5 28.0 31.6 68.3 33.3 5.0 0.1 1.8 3.1 4.9 1.3 0.9 0.0 3.3 1.8 62.8 0.6 0.0 3.4% Upper Quartile 84.0% 33.2 100.0 38.5 33.4 36.1 72.7 37.7 8.7 0.7 3.9 4.3 7.7 2.1 2.6 1.0 5.4 5.7 69.0 1.8 0.9 8.3% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data N/A Not Applicable (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 55 Exhibit B-13 Full Service Restaurants (Average Check per Person $15 to $24.99) Statement of Income and Expenses - Amount per Seat Affiliation Single Unit - Independent Lower Upper Quartile Median Quartile 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 (Loss) Before Income Taxes $ 3,123 897 5,015 1,151 261 1,569 3,161 $ 6,366 1,778 8,622 2,054 583 2,724 6,034 $ 9,901 3,324 13,950 3,389 1,113 4,283 9,158 Multi-Unit - Company Operated Lower Upper Quartile Median Quartile $ 7,565 2,212 10,820 2,311 591 3,084 7,545 $ 10,465 3,181 14,540 3,233 748 4,378 10,169 $ 13,551 4,906 18,502 4,354 1,010 5,473 13,311 1,692 198 0 40 174 ** 51 ** 0 70 0 3,489 0 0 $0 3,381 540 17 120 265 421 106 62 0 249 14 5,930 20 0 $247 4,722 1,059 84 315 434 785 221 230 124 556 325 9,343 101 94 $874 3,149 369 0 181 332 ** 90 ** 0 167 250 6,791 4 0 $ 247 4,767 740 0 412 471 741 223 272 0 334 837 9,258 124 0 $ 547 6,384 1,338 17 666 599 1,191 364 402 36 613 1,326 11,938 272 41 $ 1,302 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data 56 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit B-14 Full Service Restaurants (Average Check per Person $15 to $24.99) Statement of Income and Expenses - Ratio to Total Sales* Affiliation Single Unit - Independent Lower Upper Quartile Median Quartile 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 (Loss) Before Income Taxes 66.7% 14.8 100.0 30.0 25.2 29.0 62.3 30.1 3.1 0.0 0.6 2.1 ** 0.6 ** 0.0 ** 0.0 52.7 0.0 0.0 0.0% 77.9% 22.1 100.0 34.3 29.3 32.6 67.4 34.4 5.5 0.2 1.5 3.2 4.9 1.3 0.9 4.7 ** 0.2 63.3 0.4 0.0 3.1% 85.2% 33.3 100.0 40.0 35.0 37.7 71.0 39.3 10.0 0.9 4.0 4.6 7.7 2.0 2.8 0.0 ** 3.4 71.2 1.5 1.1 8.4% Multi-Unit - Company Operated Lower Upper Quartile Median Quartile 69.2% 17.6 100.0 27.0 20.6 25.6 67.5 28.9 3.4 0.0 1.6 1.8 ** 0.6 ** 0.0 ** 2.5 45.1 0.0 0.0 1.1% 77.4% 22.6 100.0 30.0 24.7 28.7 71.3 31.5 5.3 0.0 2.7 3.1 4.8 1.3 1.5 0.0 ** 5.4 60.8 1.1 0.0 4.1% 82.4% 30.8 100.0 33.9 29.2 32.5 74.4 33.7 8.0 0.1 4.1 3.7 7.7 2.3 2.6 0.2 ** 8.1 67.3 1.1 0.3 7.2% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 57 Exhibit B-15 Full Service Restaurants (Average Check per Person $15 to $24.99) Statement of Income and Expenses - Amount per Seat Sales Volume ($000) Between $1,000 and $1,999 Lower Upper Quartile Median Quartile $ 4,600 781 7,081 1,247 264 1,833 4,663 $ 7,172 1,864 10,524 2,119 600 3,212 6,750 $ 10,000 3,732 16,613 3,662 1,047 4,967 9,903 Between $500 and $999 Lower Upper Quartile Median Quartile 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 (Loss) Before Income Taxes $ 2,959 711 4,861 1,076 230 1,368 2,809 $ 4,762 1,636 7,023 1,654 466 2,250 4,376 $ 7,099 2,975 9,777 2,644 918 3,267 6,442 $2,000 and Over Lower Quartile $ 8,400 2,230 11,579 2,430 604 3,448 8,129 Median $ 11,186 3,266 14,800 3,344 768 4,231 10,316 Upper Quartile $ 13,826 4,495 18,196 4,581 1,195 5,432 13,231 1,380 104 0 29 155 ** 38 ** 0 76 ** 2,442 0 ** $ (95) 2,067 356 13 99 222 303 82 42 0 241 ** 3,498 35 ** $ 183 3,589 762 37 208 416 633 191 242 42 654 ** 6,409 92 ** $ 384 2,703 152 0 46 168 ** 62 ** 0 58 0 4,590 0 0 $ (192) 3,598 510 11 180 282 480 100 42 0 191 62 6,755 10 12 $ 121 4,934 1,067 68 359 442 859 187 250 250 565 463 9,967 102 243 $ 800 3,392 443 0 111 311 ** 106 ** 0 186 130 7,210 4 0 $ 240 5,097 794 4 275 445 793 230 155 0 403 543 9,588 75 0 $ 640 6,480 1,388 65 600 608 1,192 356 378 62 667 1,114 11,938 275 73 $ 1,352 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data 58 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit B-16 Full Service Restaurants (Average Check per Person $15 to $24.99) Statement of Income and Expenses - Ratio to Total Sales* Sales Volume ($000) Between $1,000 and $1,999 Lower Upper Quartile Median Quartile 63.7% 10.0 100.0 29.3 24.0 27.9 63.8 78.8% 21.2 100.0 33.6 28.9 32.1 67.9 90.0% 36.3 100.0 38.7 32.6 36.2 72.1 Between $500 and $999 Lower Upper Quartile Median Quartile 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 (Loss) Before Income Taxes 61.2% 15.4 100.0 30.3 26.2 29.6 59.2 76.4% 23.6 100.0 35.0 31.6 33.3 66.7 84.6% 38.8 100.0 41.1 38.0 40.8 70.4 $2,000 and Over Lower Quartile 70.0% 16.7 100.0 27.1 21.6 25.8 66.3 Median 78.1% 21.9 100.0 30.6 25.6 30.0 70.0 Upper Quartile 83.3% 30.0 100.0 36.1 29.8 33.7 74.2 27.7 1.2 0.0 0.5 2.8 ** 0.7 ** 0.0 0.8 0.0 50.8 0.0 ** (1.8%) 33.1 4.5 0.2 1.6 3.8 5.1 1.1 0.9 0.0 4.1 0.0 63.4 0.7 ** 4.2% 38.0 10.1 0.7 3.1 5.0 6.6 2.2 3.0 0.9 6.3 2.3 68.3 1.3 ** 7.7% 30.2 2.0 0.0 0.6 1.7 ** 0.6 ** 0.0 0.5 0.0 57.6 0.0 0.0 (3.2%) 34.4 5.7 0.1 2.0 2.8 5.0 1.0 0.7 0.0 2.9 0.9 64.5 0.1 0.1 2.0% 40.8 10.0 0.8 3.6 4.0 8.5 1.9 1.8 2.7 5.0 4.9 72.5 1.1 1.8 7.8% 29.9 3.9 0.0 0.9 2.1 ** 0.8 ** 0.0 1.2 1.1 56.0 0.0 0.0 1.6% 33.1 5.3 0.0 2.0 3.0 5.5 1.6 1.1 0.0 3.1 4.0 63.4 0.6 0.0 4.3% 35.8 8.4 0.5 3.9 3.8 8.2 2.2 2.6 0.6 4.7 6.9 68.8 1.8 0.7 9.2% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 59 Exhibit B-17 Full Service Restaurants (Average Check per Person $15 to $24.99) Statement of Income and Expenses - Amount per Seat Menu Theme American (varied) Lower Quartile 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 (Loss) Before Income Taxes $ 3,640 1,114 5,587 1,152 279 1,739 3,780 1,711 244 0 38 163 ** 51 ** 0 37 0 3,529 0 0 $0 Median $ 7,650 3,034 10,833 2,543 717 3,586 7,160 3,697 588 10 124 285 489 140 101 0 223 94 7,073 30 0 $ 246 Upper Quartile $ 11,068 4,242 15,512 3,569 1,195 4,616 10,368 5,656 1,045 66 388 513 877 286 299 161 613 562 10,500 188 41 $ 1,027 Lower Quartile $ 3,895 752 4,609 1,311 239 1,694 2,906 1,642 239 0 63 207 ** 64 ** (6) 179 7 3,422 0 ** $ (133) Steak/Seafood Median $ 6,818 1,620 8,360 2,515 466 3,119 5,679 3,341 545 10 181 396 292 129 99 0 267 178 5,458 15 ** $ 178 Upper Quartile $ 12,127 2,880 14,784 4,719 792 5,447 9,448 4,975 832 52 402 521 578 277 231 18 481 1,326 9,014 38 ** $ 553 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data 60 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit B-18 Full Service Restaurants (Average Check per Person $15 to $24.99) Statement of Income and Expenses - Ratio to Total Sales* Menu Theme American (varied) Lower Quartile 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 (Loss) Before Income Taxes 64.0% 18.4 100.0 30.1 22.8 28.8 64.2 30.2 3.5 0.0 0.7 2.3 ** 0.6 ** 0.0 0.6 0.0 58.4 0.0 0.0 0.0% Median 73.8% 26.2 100.0 33.8 27.8 32.1 67.9 34.7 5.7 0.1 1.6 3.4 5.1 1.5 0.9 0.0 2.9 1.3 66.7 0.4 0.0 2.8% Upper Quartile 81.6% 36.0 100.0 38.3 33.8 35.8 71.2 40.3 9.8 0.8 3.5 4.3 7.9 2.1 2.9 1.7 4.8 5.2 73.7 1.6 0.8 8.4% Lower Quartile 77.8% 15.4 100.0 36.1 26.0 33.6 60.5 30.0 3.1 0.0 1.0 3.4 ** 0.8 ** 0.0 2.0 0.0 55.6 0.0 ** (2.3%) Steak/Seafood Median 81.6% 18.4 100.0 39.3 28.9 37.5 62.5 33.7 4.9 0.2 2.2 4.2 4.6 2.0 0.9 0.0 3.1 1.8 62.2 0.3 ** 2.1% Upper Quartile 84.6% 22.2 100.0 41.2 31.7 39.5 66.4 38.3 8.6 0.6 3.5 5.5 7.0 2.9 1.6 0.6 4.4 8.9 67.3 1.0 ** 5.3% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 61 Exhibit B-19 Full Service Restaurants (Average Check per Person $15 to $24.99) Statement of Income and Expenses - Amount per Seat Metropolitan/Non-Metropolitan Location Inside MSA*** Outside MSA*** Lower Upper Lower Upper Quartile Median Quartile Quartile Median Quartile 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 (Loss) Before Income Taxes $ 4,701 1,125 7,023 1,333 308 1,930 4,471 2,167 244 0 53 208 ** 62 ** 0 93 0 4,384 0 0 $ 45 $ 7,813 2,621 11,579 2,604 717 3,620 7,773 3,915 610 11 180 366 550 150 99 0 310 240 7,200 56 0 $ 358 $ 12,059 3,927 16,293 3,999 1,126 4,905 11,249 5,721 1,159 63 518 527 1,000 287 305 63 613 851 10,532 211 61 $ 1,038 ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data *** Metropolitan statistical area 62 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit B-20 Full Service Restaurants (Average Check per Person $15 to $24.99) Statement of Income and Expenses - Ratio to Total Sales* Metropolitan/Non-Metropolitan Location Inside MSA*** Outside MSA*** Lower Upper Lower Upper Quartile Median Quartile Quartile Median Quartile 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 (Loss) Before Income Taxes 66.7% 15.8 100.0 28.0 22.9 27.2 64.4 29.3 2.9 0.0 0.8 2.3 ** 0.7 ** 0.0 0.8 0.0 55.5 0.0 0.0 0.3% 77.3% 22.7 100.0 32.4 27.8 31.4 68.6 33.0 5.3 0.1 1.9 3.3 5.2 1.4 1.0 0.0 3.0 2.1 63.7 0.5 0.0 3.4% 84.2% 33.3 100.0 38.4 33.0 35.6 72.8 37.1 9.9 0.7 4.0 4.2 8.2 2.2 2.7 0.9 5.0 6.2 70.3 1.8 0.6 8.4% ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. *All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data *** Metropolitan statistical area (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 63 Exhibit B-21 Full Service Restaurants (Average Check per Person $15 to $24.99) Statement of Income and Expenses - Amount per Seat Average Check $15.00 to $19.99 Lower Quartile 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 (Loss) Before Income Taxes $ 4,355 766 6,049 1,354 267 1,768 4,020 1,711 246 0 56 205 ** 59 26 ** 85 0 3,740 0 0 $ 59 Median $ 8,624 2,332 10,937 2,543 638 3,586 7,448 3,381 507 6 182 349 454 124 119 0 231 269 6,791 36 0 $ 348 Upper Quartile $ 12,083 3,506 16,203 4,084 922 4,982 11,119 5,335 1,107 66 428 502 812 304 300 66 484 666 9,892 218 73 $ 892 $20.00 to $24.99 Lower Upper Quartile Median Quartile $ 3,592 1,096 5,267 1,152 292 1,495 3,438 2,129 261 0 54 164 ** 59 0 ** 141 0 3,838 5 0 $ (128) $ 6,987 2,476 11,252 2,076 686 3,205 7,284 3,977 669 13 164 290 576 139 42 0 393 66 7,719 25 12 $ 244 $ 11,715 4,252 17,133 3,414 1,224 4,460 10,588 6,087 1,337 64 450 492 1,250 224 259 155 695 595 12,042 153 83 $ 1,098 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data 64 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit B-22 Full Service Restaurants (Average Check per Person $15 to $24.99) Statement of Income and Expenses - Ratio to Total Sales* Average Check $15.00 to $19.99 Lower Quartile 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 (Loss) Before Income Taxes 69.7% 9.3 100.0 28.0 24.0 28.0 62.4 29.0 2.6 0.0 0.8 2.5 ** 0.7 ** 0.0 0.8 0.0 54.9 0.0 0.0 0.4% Median 79.9% 20.1 100.0 33.8 28.3 31.8 68.2 32.8 5.2 0.1 1.9 3.4 4.8 1.5 1.1 0.0 2.5 2.2 62.3 0.6 0.0 3.9% Upper Quartile 90.7% 30.3 100.0 39.8 33.3 37.6 72.0 37.1 9.7 0.7 3.5 4.4 7.2 2.3 3.0 0.9 5.2 6.0 68.3 1.8 0.7 8.8% $20.00 to $24.99 Lower Upper Quartile Median Quartile 67.0% 16.7 100.0 27.7 23.2 26.5 63.2 29.6 4.1 0.0 0.7 1.9 ** 0.7 ** 0.0 1.2 0.0 57.8 0.0 0.0 (2.5%) 75.7% 24.3 100.0 31.7 27.7 31.1 68.9 33.8 6.0 0.1 2.0 3.0 5.6 1.3 0.9 0.0 3.9 1.3 66.5 0.4 0.1 2.8% 83.3% 33.0 100.0 38.3 33.6 36.8 73.5 39.4 10.6 0.8 4.5 4.5 9.4 2.1 1.9 1.4 5.7 5.2 75.0 1.2 1.0 8.2% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 65 Exhibit B-23 Full Service Restaurants (Average Check per Person $15 to $24.99) Income Differential Amount per Seat Profit Lower Quartile 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 (Loss) Before Income Taxes $ 5,744 1,111 7,798 1,622 376 2,336 5,402 2,336 365 0 93 229 ** 75 ** 0 141 0 4,997 5 0 $ 251 Median $ 9,352 2,591 12,386 3,006 730 3,906 8,562 4,035 732 11 210 351 667 165 122 0 339 300 7,889 73 1 $ 597 Upper Quartile $ 13,002 4,233 17,656 4,311 1,135 5,247 12,440 6,152 1,223 51 523 527 1,184 291 316 67 556 784 10,772 215 87 $ 1,304 Lower Quartile $ 2,908 914 3,976 1,179 283 1,461 2,481 1,584 237 0 29 150 ** 57 ** 0 97 0 3,493 0 0 $ (673) Loss Median $ 5,485 1,616 7,109 1,793 577 2,235 4,625 3,400 480 13 227 298 429 93 109 29 254 66 6,819 5 0 $ (372) Upper Quartile $ 9,901 3,131 13,006 3,414 1,015 4,436 8,857 4,722 669 127 424 497 690 229 359 213 601 487 8,749 209 5 $ (68) Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data 66 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Ratio to Total Sales* Profit Lower Quartile 69.5% 13.8 100.0 28.0 22.5 26.5 64.4 29.0 3.6 0.0 1.0 2.4 ** 0.8 ** 0.0 1.1 0.0 55.4 0.0 0.0 2.8% Median 79.2% 20.8 100.0 32.6 27.1 30.8 69.2 32.8 5.5 0.1 2.0 3.2 5.1 1.4 1.1 0.0 3.2 1.9 62.5 0.7 0.0 6.1% Upper Quartile 86.2% 30.5 100.0 37.0 32.2 35.6 73.5 36.4 8.9 0.6 4.0 4.1 7.7 2.1 2.8 0.9 5.0 5.7 68.1 1.4 0.9 11.3% Lower Quartile 70.9% 18.0 100.0 32.0 25.8 32.0 60.7 31.5 3.8 0.0 0.6 2.2 ** 0.6 ** 0.0 1.7 0.0 64.3 0.0 0.0 (11.0%) Loss Median 77.2% 22.8 100.0 38.5 30.6 36.9 63.1 36.7 6.3 0.2 2.4 3.7 5.2 1.7 1.4 0.4 4.0 1.4 70.9 0.1 0.0 (4.2%) Upper Quartile 82.0% 29.1 100.0 42.2 35.3 39.3 68.0 43.3 10.5 1.4 4.6 4.8 9.4 2.4 4.6 2.6 6.3 5.9 77.2 2.0 0.1 (0.7%) (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 67 Section C - Full Service Restaurants (Average Check Per Person $25 and Over) Exhibit C-1 presents the characteristics of the 149 respondents in the Full Service Restaurants (Average Check Per Person $25 and Over) category of this year's study. More than three-quarters (76.5%) of the respondents represent independent restaurants and 47.0% reported that they were the sole occupant of their location. Restaurants with American menu themes represent 38.3% of this sample. The median ratio of income before income taxes to total sales is 1.8% or $206 per seat. Highlights o Median average check is $32.00. o Median total sales per full-time equivalent employee is $60,408. o Median food sales are $8,020 per seat and median beverage sales are $3,454 per seat. o Median total sales per square foot is $415.53. o Median income before income taxes is 1.8% of total sales. o Median total cost of sales is 31.9% of total sales. Characteristics o 76.5% of full service (average check $25 and over) restaurants are single units, i.e., independents. o 71.1% of the responding establishments have sales volume of $1,000,000 and over. o 38.3% of the respondents report an American menu theme. o 67.7% of the respondents operate their businesses in locations with less than 7,500 square feet and 65.8% of the respondents have less than 200 seats. 68 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit C-1 Composition of Participating Full Service Restaurants (Average Check Per Person $25 and Over) Number of Respondents: 149 Percentage of Respondents Type of Establishment: Food Only 2.7% Food and Beverage 97.3 Years in Business: 1 to 5 Years 5 to 10 Years Over 10 Years Not Specified Region: 1 Northeast Northcentral South West Average Check: 2 $25.00-$32.99 $33.00 and Over Not Specified Affiliation: Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Not Specified Profit versus Loss: 3 Profit Loss Lease versus Own: Own Land and Building Lease Land and Building Lease Land and Own Building Own Land and Lease Building Not Specified Percentage of Respondents Ownership: Sole Proprietorship Partnership Public Corporation Private Corporation Not Specified Menu Theme: Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Italian Asian Other Sales Volume: 3 Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over Restaurant Location: Hotel Shopping Center or Mall Sole Occupant Other Total Number of Seats: Under 100 100 to 149 150 to 199 200 to 399 400 and Over Not Specified Total Restaurant Square Footage: Under 2,500 2,500 to 4,999 5,000 to 7,499 7,500 and Over Not Specified 19.5% 22.1 1.3 56.4 0.7 19.5% 22.8 55.0 2.7 22.8% 15.4 29.5 32.3 45.6% 49.0 5.4 0.0% 22.8 0.0 2.0 0.7 38.3 1.3 8.1 2.7 24.1 76.5% 20.1 2.0 1.4 8.1% 20.8 29.5 41.6 67.5% 32.5 13.4% 16.1 47.0 23.5 28.2% 38.9 0.7 0.0 32.2 24.2% 20.8 20.8 28.2 5.4 0.6 9.4% 36.2 22.1 26.3 6.0 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 3 Per person, all meals For respondents specifying (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 69 Exhibit C-2 Full Service Restaurants (Average Check Per Person $25 and Over) Average Check Total Median $ 32.00 ** 32.00 ** $ 34.50 32.50 30.00 $ 34.00 29.90 ** $ 30.00 ** ** ** 32.00 ** ** 35.00 $ 33.00 30.60 ** $ 38.00 38.00 ** 31.00 ** $ 32.00 30.00 34.70 All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Italian Other Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over ** Insufficient data Lower Quartile $ 27.50 ** 27.50 ** $ 28.00 27.00 28.00 $ 30.00 25.30 ** $ 26.70 ** ** ** 26.00 ** ** 30.00 $ 27.60 27.00 ** $ 28.00 25.50 ** 27.90 ** $ 25.80 26.90 30.00 Upper Quartile $ 42.00 ** 42.00 ** $ 42.00 47.30 40.00 $ 43.30 39.30 ** $ 57.30 ** ** ** 42.00 ** ** 43.50 $ 42.00 37.40 ** $ 55.00 45.90 ** 37.20 ** $ 42.00 37.50 45.70 70 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit C-3 Full Service Restaurants (Average Check Per Person $25 and Over) Average Daily Seat Turnover Total Median 0.8 ** 0.8 ** 0.8 0.8 0.7 1.0 0.6 ** 0.8 ** ** ** 0.8 ** ** ** 0.8 0.8 0.8 0.8 1.3 ** 0.8 0.7 ** 1.0 ** 0.5 0.8 1.3 All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check $25.00 to $32.99 $33.00 and Over Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over ** Insufficient data Lower Quartile 0.5 ** 0.5 ** 0.5 0.4 0.4 0.5 0.4 ** 0.5 ** ** ** 0.5 ** ** ** 0.4 0.5 0.5 0.5 0.7 ** 0.4 0.4 ** 0.5 ** 0.4 0.5 0.7 Upper Quartile 1.4 ** 1.5 ** 1.1 1.3 1.1 1.5 1.0 ** 1.1 ** ** ** 1.5 ** ** ** 1.1 1.6 1.2 1.3 1.6 ** 1.1 1.0 ** 1.6 ** 0.9 1.2 1.8 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 71 Exhibit C-4 Full Service Restaurants (Average Check Per Person $25 and Over) Cost per Dollar of Sales* Total Cost of Sales 31.9 ? ** 32.0 ? 27.3 ? 32.5 31.8 32.7 31.8 ? 33.4 ** 33.1 ? ** ** ** 31.8 ** ** ** 31.6 32.3 ? 31.8 32.4 ? 28.6 ** 33.9 ? 32.9 ** 31.3 ** 34.4 ? 32.7 29.9 Total Payroll and Benefits 33.7 ? ** 33.7 ? 40.8 ? 34.2 32.9 31.2 33.7 ? 37.4 ** 30.2 ? ** ** ** 35.5 ** ** ** 33.0 33.4 ? 33.7 33.3 ? 36.1 ** 32.9 ? 34.7 ** 33.7 ** 34.3 ? 32.4 34.1 All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check $25.00-$32.99 $33.00 and Over Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over * All amounts are medians ** Insufficient data Prime Cost 65.7 ? ** 66.1 ? 69.5 ? 67.9 65.7 64.1 64.9 ? 70.9 ** 64.5 ? ** ** ** 67.3 ** ** ** 64.6 66.3 ? 65.1 65.6 ? 66.4 ** 65.0 ? 66.9 ** 65.5 ** 67.6 ? 66.9 64.8 72 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit C-5 Full Service Restaurants (Average Check per Person $25 and Over) Number of Employees* Number of Employees per Restaurant Part-Part-Time Part Time (Under 20 Full Time (20-34 Hours) Hours) 13 15 5 ** 13 ** 16 13 10 18 9 ** 12 ** ** ** 14 ** ** ** 12 13 14 12 30 ** 11 12 ** 18 ** 5 12 35 ** 15 ** 12 16 10 12 16 ** 21 ** ** ** 12 ** ** ** 10 15 14 12 25 ** 11 10 ** 18 ** 8 14 23 ** 5 ** 5 5 4 5 5 ** 10 ** ** ** 3 ** ** ** 3 5 4 4 9 ** 4 5 ** 5 ** 2 4 6 All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check $25.00-$32.99 $33.00 and Over Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over * All amounts are medians ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 73 Exhibit C-6 Full Service Restaurants (Average Check per Person $25 and Over) Annual Employee Turnover* All Employees 50% ** 50% 37% ** 50 35 45% 62 ** 59% ** ** ** 50 ** ** ** 53 51% 49 49% 56 ** 47% 66 ** 49 ** 38% 50 53 Salaried Employees 40% ** 40% ** ** 36 26 40% 34 ** 50% ** ** ** 40 ** ** ** ** 50% 33 25% 51 ** ** 50% ** 40 ** ** 40 50 Hourly Employees 55% ** 55% 47% ** 57 46 50% 67 ** 60% ** ** ** 56 ** ** ** ** 55% 57 55% 56 ** ** 72% ** 50 ** 50% 64 58 All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check $25.00-$32.99 $33.00 and Over Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over * 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-2s and the number of employees. ** Insufficient data 74 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit C-7 Full Service Restaurants (Average Check per Person $25 and Over) Employee Information* Amount per Full-Time Equivalent Employee Total Payroll Total Sales and Benefits $ 60,408 $ 19,839 ** $ 60,460 ** $ 53,765 63,236 58,101 $ 60,408 59,063 ** $ 61,145 ** ** ** 60,460 ** ** 57,210 $ 56,003 65,525 $ 60,107 59,860 ** $ 62,064 63,236 ** 59,770 ** $ 51,208 59,862 68,593 ** $ 19,529 ** ** $ 20,217 16,981 $ 19,790 20,505 ** $ 18,160 ** ** ** 19,749 ** ** 18,893 $ 17,920 20,919 $ 18,557 22,303 ** $ 18,902 19,641 ** 19,708 ** $ 16,555 18,417 23,001 All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check $25.00-$32.99 $33.00 and Over Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over Full-Time Equivalent Employees Per 100 Per 100 Average Total Restaurant Seats Daily Covers 30.6 21.3 23.1 ** 29.8 ** 31.4 29.8 23.5 32.6 28.1 ** 38.7 ** ** ** 26.8 ** ** 20.8 28.6 32.0 25.0 50.6 ** 26.1 25.6 ** 32.7 ** 15.0 23.5 54.8 ** 21.3 ** 23.1 20.9 18.4 22.1 20.3 ** 22.2 ** ** ** 21.6 ** ** 18.7 21.2 22.2 20.8 24.6 ** 20.8 20.4 ** 21.8 ** 16.1 19.9 26.1 ** 23.1 ** 24.9 22.4 22.2 23.8 26.3 ** 23.9 ** ** ** 26.8 ** ** 22.0 20.3 25.2 23.8 22.4 ** 23.9 28.6 ** 22.7 ** 23.9 21.3 23.1 * 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. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 75 Exhibit C-8 Full Service Restaurants (Average Check per Person $25 and Over) Take-Out/Drive Through, Outside Catering and Banquet Service - Ratio to Total Sales* Take-Out/ Drive Through 2% ** 2% ** ** 2% ** 2% ** ** ** ** ** ** ** ** ** ** ** 2% ** 2% ** ** ** ** ** 2% ** ** ** ** Outside Catering 1% ** 1% ** ** 2% ** 1% ** ** ** ** ** ** ** ** ** ** ** 1% 1% 1% ** ** ** ** ** 1% ** ** ** ** Banquet Service 5% ** 5% ** ** 6% ** 5% ** ** ** ** ** ** 5% ** ** ** ** 5% 3% 6% ** ** ** ** ** 4% ** ** ** 1% All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check $25.00-$32.99 $33.00 and Over Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over * All amounts are medians ** Insufficient data 76 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit C-9 Full Service Restaurants (Average Check per Person $25 and Over) Statement of Income and Expenses All Restaurants Amount per Seat Lower Quartile 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 (Loss) Before Income Taxes $ 5,167 1,759 7,120 1,524 497 2,036 4,529 2,158 249 0 118 244 ** 73 ** 0 150 51 4,387 0 0 $ (205) Median $ 8,020 3,454 12,007 2,654 940 3,764 7,843 3,838 667 9 263 414 545 160 84 0 363 437 7,437 32 19 $ 206 Upper Quartile $ 13,374 5,329 18,777 4,206 1,601 5,736 13,010 6,351 1,552 61 426 581 978 264 290 70 964 917 13,104 166 126 $ 1,173 Lower Quartile 67.7% 21.3 100.0 27.9 24.2 27.1 64.6 27.2 3.9 0.0 1.3 2.4 ** 0.8 ** 0.0 1.5 0.5 58.5 0.0 0.0 (2.0%) Ratio to Total Sales* Median 72.5% 27.5 100.0 32.3 29.3 31.9 68.1 33.7 6.5 0.1 2.2 3.5 6.1 1.3 0.9 0.0 4.2 3.4 65.9 0.3 0.2 1.8% Upper Quartile 78.7% 32.3 100.0 36.9 33.9 35.4 72.9 41.5 12.0 0.6 3.5 4.8 8.6 1.4 2.4 0.7 6.5 5.9 76.7 1.3 1.8 6.8% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 77 Exhibit C-10 Full Service Restaurants (Average Check per Person $25 and Over) Statement of Income and Expenses - Amount per Square Foot* All Restaurants Lower Quartile Sales Food Beverage Total Sales Gross Profit on Sales Utility Services $151.27 48.52 209.93 145.09 6.56 Median $295.93 105.69 415.53 275.10 11.18 Upper Quartile $442.53 190.92 638.10 452.67 18.24 Type of Establishment Food and Food Only Beverage ** N/A ** ** ** $295.93 107.08 416.63 280.33 11.18 Menu Theme American Hamburger (varied) Mexican Asian ** ** ** ** ** $323.03 112.57 428.61 275.10 12.50 ** ** ** ** ** ** ** ** ** ** Italian ** ** ** ** ** Steak/ Seafood $248.00 95.75 343.75 258.75 10.58 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All amounts are medians unless otherwise stated. ** Insufficient data N/A Not applicable 78 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Menu Theme Regional ** ** ** ** ** Other $217.59 107.08 317.65 274.54 10.00 Average Check $25.00 to $33.00 $32.99 and Over $230.43 100.00 377.70 237.76 10.54 $303.97 131.99 428.37 300.77 11.89 Hotel ** ** ** ** ** Restaurant Location Shopping Sole Center or Mall Occupant $285.71 107.14 392.86 281.79 15.71 $295.74 100.00 415.31 275.02 11.28 Other $168.81 60.97 244.58 148.33 7.79 Under $500 ** ** ** ** ** Sales Volume ($000s) $500 to $1,000 to $999 $1,999 $162.03 78.10 225.48 150.49 8.96 $205.63 85.52 331.04 237.76 10.85 $2,000 and Over $420.00 146.15 607.26 405.34 16.84 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 79 Exhibit C-11 Full Service Restaurants (Average Check Per Person $25 and Over) Statement of Income and Expenses - Amount per Seat Type of Establishment Food Only Lower Quartile 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 (Loss) Before Income Taxes ** N/A ** ** N/A ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** Median ** N/A ** ** N/A ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** Upper Quartile ** N/A ** ** N/A ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** Food and Beverage Lower Upper Quartile Median Quartile $ 5,167 1,568 7,120 1,524 498 2,036 4,529 2,158 288 0 118 244 ** 68 ** 0 150 50 3,549 0 0 $ (1,443) $ 8,020 3,432 12,067 2,654 978 3,767 7,947 3,893 669 10 260 416 554 158 84 0 363 437 6,583 41 18 $ 17 $ 13,545 5,327 18,958 4,206 1,609 5,769 13,160 6,351 1,552 62 420 586 979 261 286 57 964 908 12,375 177 108 $ 661 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data N/A Not Applicable 80 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit C-12 Full Service Restaurants (Average Check Per Person $25 and Over) Statement of Income and Expenses - Ratio to Total Sales* Type of Establishment Food Only Lower Quartile 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 (Loss) Before Income Taxes ** N/A ** ** N/A ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** Median ** N/A ** ** N/A ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** Upper Quartile ** N/A ** ** N/A ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** Food and Beverage Lower Upper Quartile Median Quartile 67.5% 21.7 100.0 27.9 24.1 27.1 64.6 27.2 2.9 0.0 1.1 2.3 ** 0.7 ** 0.0 1.5 0.4 52.9 0.0 0.0 (1.8%) 72.1% 27.9 100.0 32.3 29.2 32.0 68.0 33.7 6.1 0.1 2.1 3.3 5.9 1.2 0.8 0.0 4.2 3.4 64.5 0.4 0.2 1.9% 78.3% 32.5 100.0 36.9 34.0 35.4 72.9 41.5 11.7 0.6 3.4 4.8 8.4 2.0 2.2 0.6 6.5 5.8 73.9 1.4 0.9 6.8% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data N/A Not Applicable (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 81 Exhibit C-13 Full Service Restaurants (Average Check per Person $25 and Over) Statement of Income and Expenses - Amount per Seat Affiliation Single Unit - Independent Multi-Unit -Company Operated Lower Upper Lower Upper Quartile Median Quartile Quartile Median Quartile 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 (Loss) Before Income Taxes $ 4,802 1,266 6,715 1,474 471 1,856 4,326 $ 7,901 3,114 11,425 2,524 929 3,615 7,424 $ 12,422 4,873 17,655 3,893 1,538 5,538 12,329 $ 7,955 2,013 9,768 2,467 641 3,404 6,757 $ 11,376 3,997 15,394 3,332 1,154 4,844 10,842 $ 16,992 6,578 23,498 4,629 1,829 6,448 17,089 2,110 194 0 114 224 ** 61 ** 0 134 0 4,340 4 $0 $ (265) 3,636 664 12 205 377 600 160 90 0 330 259 6,840 41 $21 $ 88 5,626 1,426 93 372 496 981 264 294 46 710 592 12,011 143 $147 $ 640 3,338 448 0 258 408 ** 100 ** (101) 311 455 6,029 0 ** $ 154 5,670 1,015 6 443 594 236 166 81 0 642 824 10,924 0 ** $ 480 9,310 1,600 14 695 784 620 261 286 64 1,457 1,138 15,056 134 ** $1,871 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data 82 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit C-14 Full Service Restaurants (Average Check per Person $25 and Over) Statement of Income and Expenses - Ratio to Total Sales* Affiliation Single Unit - Independent Multi-Unit -Company Operated Lower Upper Lower Upper Quartile Median Quartile Quartile Median Quartile 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 (Loss) Before Income Taxes 67.4% 20.6 100.0 29.8 24.5 28.3 64.4 71.8% 28.2 100.0 32.9 30.0 32.4 67.6 79.4% 32.6 100.0 37.4 36.2 35.6 71.7 68.8% 24.0 100.0 27.3 24.1 26.3 64.9 72.9% 27.1 100.0 29.8 26.4 28.6 71.4 76.0% 31.2 100.0 36.1 31.3 35.1 73.7 27.1 2.8 0.0 1.1 2.1 ** 0.8 ** 0.0 0.0 0.0 59.0 0.0 0.0 (2.6%) 33.3 7.4 0.1 1.8 3.2 6.5 1.4 0.9 0.0 1.4 2.7 66.9 0.4 0.2 1.0% 41.6 13.7 1.1 3.6 4.5 9.6 2.2 2.4 0.2 5.5 6.5 78.6 1.4 1.8 5.2% 31.6 4.6 0.0 2.0 2.9 ** 0.7 ** ** 3.5 3.1 58.5 0.0 ** 1.3% 36.1 5.5 0.0 2.7 3.8 ** 0.9 1.0 ** 4.9 4.0 64.2 0.0 ** 3.7% 41.7 6.4 0.1 3.0 4.8 6.4 1.7 2.6 ** 6.2 5.5 72.7 0.4 ** 8.9% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 83 Exhibit C-15 Full Service Restaurants (Average Check per Person $25 and Over) Statement of Income and Expenses - Amount per Seat Sales Volume ($000) Between $500 and $999 Between $1,000 and $1,999 Lower Upper Lower Upper Quartile Median Quartile Quartile Median Quartile 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 (Loss) Before Income Taxes $ 2,957 1,183 4,534 1,165 477 1,796 2,792 1,492 110 0 102 151 ** 42 ** 0 122 ** 3,207 0 ** $ (248) $ 4,829 2,000 7,333 1,710 748 2,409 4,716 2,634 439 7 169 214 477 71 104 11 350 ** 5,600 11 ** $ 25 $ 7,626 3,015 10,160 2,501 1,053 3,736 6,232 3,528 780 52 279 347 771 124 247 83 554 ** 6,831 66 ** $ 149 $ 5,159 1,399 7,428 1,486 427 1,854 4,594 2,310 388 0 111 324 ** 98 ** 0 118 ** 4,387 4 ** $ (264) $ 7,668 2,602 10,743 2,396 769 3,493 6,882 3,653 593 20 193 425 558 156 70 0 214 ** 6,523 57 ** $ 76 $ 9,181 4,043 13,320 2,957 1,435 4,127 9,394 4,886 1,220 116 353 498 897 231 217 0 623 ** 9,597 98 ** $ 1,148 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data 84 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Sales Volume ($000) $2,000 and Over Lower Upper Quartile Median Quartile $ 11,250 3,495 15,000 2,753 887 3,942 10,611 4,745 671 0 193 377 ** 164 ** (49) 242 343 8,762 0 0 $ 12 $ 14,018 4,833 18,929 4,226 1,322 5,700 13,230 6,290 1,417 11 374 561 713 233 99 0 727 855 13,254 36 19 $ 640 $ 18,960 6,609 24,587 5,633 1,823 6,912 18,400 8,996 2,320 55 646 784 1,795 377 379 34 1,453 1,349 18,500 319 130 $ 1,860 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 85 Exhibit C-16 Full Service Restaurants (Average Check per Person $25 and Over) Statement of Income and Expenses - Ratio to Total Sales* Sales Volume ($000) Between $500 and $999 Between $1,000 and $1,999 Lower Upper Lower Upper Quartile Median Quartile Quartile Median Quartile 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 (Loss) Before Income Taxes 63.0% 21.9 100.0 29.9 29.8 29.9 60.2 26.8 1.6 0.0 1.3 2.3 ** 0.6 ** 0.0 1.3 ** 58.0 0.0 ** (4.3%) 71.4% 28.6 100.0 34.0 32.0 34.4 65.6 34.3 7.5 0.1 2.7 3.8 6.5 0.9 1.7 0.2 5.2 ** 64.9 0.4 ** 0.7% 78.1% 37.0 100.0 37.9 41.2 39.8 70.1 45.5 10.5 0.6 3.6 4.9 9.6 1.7 2.8 0.8 8.5 ** 75.3 1.0 ** 1.9% 67.3% 21.2 100.0 30.0 24.5 28.5 64.2 27.6 4.0 0.0 1.0 2.7 ** 1.0 ** 0.0 1.1 ** 57.5 0.0 ** (2.7%) 70.6% 29.4 100.0 32.3 30.7 32.7 67.3 32.4 5.6 0.2 1.9 3.9 5.4 1.6 0.9 0.0 2.8 ** 64.7 0.5 ** 1.3% 78.8% 32.7 100.0 39.1 35.8 35.8 71.5 38.8 13.4 1.3 3.0 4.9 8.0 2.6 2.3 0.0 5.4 ** 73.8 0.9 ** 6.6% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data 86 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Sales Volume ($000) $2,000 and Over Lower Upper Quartile Median Quartile 70.0% 22.9 100.0 26.3 23.9 25.9 67.5 28.4 4.8 0.0 1.2 2.3 ** 0.8 ** (0.2) 2.1 2.5 59.4 0.0 0.0 0.1% 72.6% 27.4 100.0 30.6 26.5 29.9 70.1 34.1 6.5 0.0 2.0 2.8 5.5 1.3 0.7 0.0 4.6 3.5 65.9 0.2 0.0 3.8% 77.1% 30.0 100.0 34.0 29.9 32.5 74.1 40.1 10.3 0.4 3.1 3.9 7.4 1.9 2.0 0.3 6.3 5.3 73.7 1.6 1.3 8.1% (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 87 Exhibit C-17 Full Service Restaurants (Average Check per Person $25 and Over) Statement of Income and Expenses - Amount per Seat Menu Theme American (varied) Lower Quartile 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 (Loss) Before Income Taxes $ 5,425 1,740 7,569 1,764 556 2,400 4,709 2,608 304 0 117 258 ** 63 ** 0 192 49 4,712 6 ** $ (271) Median $ 8,394 3,531 12,196 2,898 1,164 4,004 7,677 4,074 716 13 187 431 552 131 84 0 398 566 7,582 57 ** $ 203 Upper Quartile $ 15,359 5,380 21,592 4,784 1,687 6,824 13,717 7,459 1,608 81 372 626 1,022 245 271 0 1,453 1,089 16,104 105 ** $ 1,407 Lower Quartile $ 3,739 1,004 4,787 1,152 442 1,753 2,915 1,562 118 0 109 200 ** 70 ** 0 154 ** 3,172 8 ** $ (301) Steak/Seafood Median $ 8,566 3,115 12,188 2,596 887 3,841 8,402 3,650 464 3 260 409 436 221 60 0 249 ** 6,834 21 ** $ 32 Upper Quartile $ 12,037 4,899 17,365 4,360 1,627 5,927 12,245 5,371 1,322 70 501 561 804 342 282 122 516 ** 10,416 341 ** $ 238 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data 88 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit C-18 Full Service Restaurants (Average Check per Person $25 and Over) Statement of Income and Expenses - Ratio to Total Sales* Menu Theme American (varied) Lower Quartile 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 (Loss) Before Income Taxes 67.0% 20.4 100.0 29.0 24.2 28.1 63.4 28.4 3.2 0.0 0.9 2.4 ** 0.5 ** 0.0 2.1 0.9 57.7 0.0 ** (2.6%) Median 73.3% 26.7 100.0 32.2 29.9 31.8 68.2 35.5 7.0 0.1 1.5 3.2 5.7 1.0 0.7 0.0 4.7 3.3 64.0 0.4 ** 2.2% Upper Quartile 79.6% 33.0 100.0 37.9 38.3 36.6 71.9 41.1 10.5 1.0 3.0 4.8 9.9 1.9 2.4 0.0 6.3 4.9 73.8 1.1 ** 6.6% Lower Quartile 70.8% 21.1 100.0 31.7 25.2 30.8 61.8 24.7 2.8 0.0 1.5 2.7 ** 1.1 ** 0.0 1.1 ** 62.5 0.1 ** (3.5%) Steak/Seafood Median 74.1% 25.9 100.0 35.6 30.0 33.1 66.9 30.2 5.2 0.0 2.8 4.2 5.4 1.7 0.9 0.0 3.8 ** 66.9 0.5 ** 1.1% Upper Quartile 78.9% 29.2 100.0 38.8 34.0 38.2 69.2 36.4 11.0 0.8 3.8 4.9 6.8 2.9 2.8 2.5 5.5 ** 76.9 2.4 ** 2.7% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 89 Exhibit C-19 Full Service Restaurants (Average Check per Person $25 and Over) Statement of Income and Expenses - Amount per Seat Metropolitan/Non-Metropolitan Location Inside MSA*** Outside MSA*** Lower Upper Lower Upper Quartile Median Quartile Quartile Median Quartile 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 (Loss) Before Income Taxes $ 5,303 1,770 7,333 1,636 571 2,126 4,810 2,151 291 0 120 261 ** 82 ** 0 151 59 4,401 0 0 $ (157) $ 8,235 3,454 12,353 2,661 1,000 3,763 8,049 3,999 692 10 286 427 538 165 79 0 363 452 8,016 30 19 $ 212 $ 13,186 5,488 18,726 4,222 1,651 5,772 12,959 6,395 1,531 55 444 591 978 268 291 65 911 917 13,808 110 126 $ 1,199 $ 4,623 1,060 5,934 1,278 395 1,606 3,486 2,341 148 0 102 152 ** 21 ** 0 ** ** ** ** ** ** $ 7,882 1,600 9,550 2,435 666 3,765 6,190 3,138 497 4 172 298 530 126 113 0 ** ** ** ** ** ** $ 13,326 3,818 18,605 3,907 1,420 5,563 12,967 5,513 1,316 64 278 494 853 222 243 73 ** ** ** ** ** ** Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data *** Metropolitan statistical area 90 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit C-20 Full Service Restaurants (Average Check per Person $25 and Over) Statement of Income and Expenses - Ratio to Total Sales* Metropolitan/Non-Metropolitan Location Inside MSA*** Outside MSA*** Lower Upper Lower Upper Quartile Median Quartile Quartile Median Quartile 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 (Loss) Before Income Taxes 67.4% 22.0 100.0 28.1 24.3 27.1 64.8 28.3 4.0 0.0 1.3 2.4 ** 0.8 ** 0.0 1.6 0.6 58.6 0.0 0.0 (2.0%) 72.1% 27.9 100.0 32.0 29.2 31.8 68.2 34.2 6.3 0.1 2.3 3.4 6.2 1.3 0.9 0.0 4.2 3.5 66.6 0.3 0.2 1.8% 78.0% 32.6 100.0 36.2 33.6 35.2 72.9 40.8 10.9 0.5 3.6 4.8 8.7 2.2 2.3 0.7 6.3 5.7 75.7 1.2 1.7 7.1% 70.6% 16.8 100.0 26.9 23.5 29.1 63.5 26.2 3.6 0.0 1.1 1.6 ** 0.5 ** 0.0 ** ** ** ** ** ** 76.6% 23.4 100.0 36.0 30.0 34.1 65.9 33.1 7.7 0.1 1.5 3.8 6.0 1.1 1.0 0.0 ** ** ** ** ** ** 83.2% 29.4 100.0 38.5 39.5 36.5 70.9 44.3 12.4 0.7 3.1 4.9 7.4 2.1 2.4 0.6 ** ** ** ** ** ** Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data *** Metropolitan statistical area (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 91 Exhibit C-21 Full Service Restaurants (Average Check per Person $25 and Over) Statement of Income and Expenses - Amount per Seat Average Check $25.00-$32.99 Lower Quartile 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 (Loss) Before Income Taxes $ 4,222 1,247 5,917 1,275 461 1,786 3,644 1,701 277 1 115 217 ** 64 ** 0 150 0 3,999 0 0 $ (234) Median $ 7,198 2,695 9,785 2,355 773 3,359 6,399 3,629 630 15 223 416 394 151 78 0 311 236 6,631 17 19 $ 74 Upper Quartile $ 13,006 4,949 17,720 3,950 1,322 5,396 12,521 5,668 1,312 74 330 581 763 262 280 76 796 904 11,190 92 106 $ 579 $33.00 and Over Lower Upper Quartile Median Quartile $ 6,395 1,903 8,015 1,770 672 2,587 5,841 2,716 229 0 156 267 ** 83 ** 0 176 280 4,790 0 0 $0 $ 8,505 3,816 12,694 2,730 1,256 4,030 8,797 4,321 1,009 6 342 418 714 166 84 0 408 550 8,265 44 37 $ 313 $ 14,462 5,766 21,063 4,339 1,820 6,335 14,761 6,688 1,787 53 589 613 1,219 272 291 71 1,081 939 14,344 248 380 $ 1,841 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data 92 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit C-22 Full Service Restaurants (Average Check per Person $25 and Over) Statement of Income and Expenses - Ratio to Total Sales* Average Check $25.00-$32.99 Lower Quartile 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 (Loss) Before Income Taxes 69.7% 21.2 100.0 29.7 23.9 28.0 63.6 27.9 4.1 0.0 1.3 2.8 ** 0.8 ** 0.0 1.3 0.0 62.5 0.0 0.0 (2.7%) Median 74.4% 25.6 100.0 33.1 29.1 32.3 67.7 33.4 6.3 0.2 2.2 4.0 5.6 1.4 1.1 0.0 3.7 3.3 66.9 0.4 0.2 1.3% Upper Quartile 78.8% 30.3 100.0 37.3 33.3 36.4 72.0 41.5 12.1 0.7 3.1 4.9 8.0 2.7 2.5 0.7 6.2 6.4 75.4 1.2 0.9 4.2% $33.00 and Over Lower Upper Quartile Median Quartile 66.9% 23.4 100.0 27.6 25.0 27.0 64.7 26.9 3.9 0.0 1.3 2.3 ** 0.8 ** 0.0 1.6 2.2 57.2 0.0 0.0 0.0% 70.6% 29.4 100.0 31.2 29.7 31.8 68.2 33.7 6.6 0.0 2.6 3.2 6.5 1.2 0.7 0.0 5.0 4.0 64.9 0.4 0.5 3.7% 76.6% 33.1 100.0 36.7 34.3 35.3 73.0 40.7 12.4 0.5 3.9 4.5 9.5 1.9 2.2 0.7 6.9 5.4 77.8 1.7 2.6 9.2% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 93 Exhibit C-23 Full Service Restaurants (Average Check per Person $25 and Over) Income Differential Amount per Seat Profit Lower Quartile 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 (Loss) Before Income Taxes $ 5,734 1,778 7,700 1,696 584 2,384 5,530 2,210 471 0 158 279 ** 112 ** 0 175 58 4,575 0 0 $ 206 Median $ 8,505 3,855 12,909 2,735 1,045 3,864 8,864 4,180 1,111 6 301 447 523 173 88 0 408 564 8,016 19 19 $ 583 Upper Quartile $ 15,411 5,941 21,309 4,278 1,665 6,089 14,589 7,344 1,979 40 445 615 1,012 260 288 86 1,283 962 14,167 133 108 $ 1,865 Lower Quartile $ 4,611 1,264 6,094 1,445 675 1,845 3,677 2,763 249 0 115 288 ** 57 ** (28) 172 0 4,792 3 0 $ (789) Loss Median $ 7,668 2,899 10,743 2,547 909 3,665 6,882 3,893 526 27 261 449 580 156 93 0 415 344 7,560 58 12 $ (397) Upper Quartile $ 10,796 3,854 16,478 3,215 1,363 5,106 11,510 5,622 1,159 76 327 573 794 430 383 6 956 797 11,952 186 162 $ (234) Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data 94 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Ratio to Total Sales* Profit Lower Quartile 67.4% 23.7 100.0 27.8 24.1 27.0 64.9 26.9 4.9 0.0 1.3 2.4 ** 0.8 ** 0.0 1.9 0.7 57.9 0.0 0.0 1.8% Median 71.4% 28.6 100.0 31.2 28.9 31.8 68.2 33.7 7.1 0.0 2.3 3.3 6.2 1.3 0.9 0.0 4.7 3.5 63.2 0.2 0.1 4.5% Upper Quartile 76.3% 32.6 100.0 36.0 33.2 35.1 73.0 38.8 13.2 0.3 3.4 4.3 8.5 2.1 2.0 0.8 6.3 5.1 73.4 0.8 1.4 9.8% Lower Quartile 68.5% 21.0 100.0 29.8 27.6 29.9 61.6 32.5 4.0 0.0 1.4 3.2 ** 0.9 ** (0.2) 2.0 0.0 65.9 0.0 0.0 (7.3%) Loss Median 73.8% 26.2 100.0 34.5 30.6 33.4 66.6 37.4 6.7 0.2 2.3 4.2 5.4 1.7 1.2 0.0 5.2 3.5 72.0 0.5 0.3 (4.3%) Upper Quartile 79.0% 31.5 100.0 38.7 39.1 38.4 70.1 45.0 10.6 1.0 3.6 4.9 7.3 2.3 3.0 0.1 7.6 8.6 82.7 1.7 1.6 (2.1%) (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 95 Section D - Limited Service Restaurants* Exhibit D-1 presents the characteristics of the 140 respondents in the Limited Service Restaurants category of this year's study. Almost one half (47.9%) of the respondents represent independent restaurants and 38.6% reported that they were the sole occupant of their location. Restaurants with sandwiches/subs/deli menu themes represent 18.6% of this sample. The median ratio of income before income taxes to total sales is 5.9% or $560 per seat. *Includes quickservice and fast casual restaurants. Highlights o Median average check is $8.00. o Median total sales per full-time equivalent employee is $63,365. o Median food sales are $10,000 per seat and median beverage sales are $1,197 per seat. o Median total sales per square foot is $314.69. o Median income before income taxes is 5.9% of total sales. o Median total cost of sales is 31.9% of total sales. Characteristics o 47.9% of limited service restaurants are single units, i.e., independents. o 37.1% of the responding establishments have sales volume of $1,000,000 and over. o 18.6% of the respondents report a sandwiches/subs/deli menu theme. o 92.8% of the respondents operate their businesses in locations with less than 7,500 square feet and 90.0% of the respondents have less than 200 seats. 96 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit D-1 Composition of Participating Limited Service Restaurants Number of Respondents: 140 Percentage of Respondents Type of Establishment: Food Only 72.1% Food and Beverage 27.9 Years in Business: 1 to 5 Years 5 to 10 Years Over 10 Years Region: 1 Northeast Northcentral South West Average Check: 2 Under $7.50 $7.50 and Over Percentage of Respondents Ownership: Sole Proprietorship Partnership Public Corporation Private Corporation Not Specified Menu Theme: Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Italian Asian Other Sales Volume: 3 Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over Restaurant Location: Hotel Shopping Center or Mall Sole Occupant Other Not Specified Total Number of Seats: Under 100 100 to 149 150 to 199 200 to 399 400 and Over Not Specified Total Restaurant Square Footage: Under 2,500 2,500 to 4,999 5,000 to 7,499 7,500 and Over Not Specified 15.7% 6.4 4.3 70.7 2.9 18.0% 18.0 64.0 4.3% 31.4 35.7 28.6 34.3% 60.0 5.7 9.3% 1.4 1.4 12.9 18.6 13.6 5.0 2.9 2.9 32.0 Affiliation: Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Not Specified Profit versus Loss: 3 Profit Loss Lease versus Own: Own Land and Building Lease Land and Building Lease Land and Own Building Own Land and Lease Building Not Specified 47.9% 34.3 15.7 2.1 33.6% 29.3 26.4 10.7 79.2% 21.8 1.4% 34.3 38.6 23.6 2.1 20.0% 50.7 0.7 2.1 26.5 66.4% 17.9 5.7 6.4 2.1 1.5 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. 47.1% 37.1 8.6 6.4 0.8 2 3 Per person, all meals For respondents specifying (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 97 Exhibit D-2 Limited Service Restaurants Average Check Total Median $ 8.00 $ 7.50 12.00 ** $ 8.50 7.10 8.00 $ 8.00 7.30 ** ** ** ** $ 8.00 ** ** ** 5.60 $ 8.00 8.20 7.50 $ 8.00 ** ** 8.00 $ 8.00 8.30 $ 8.00 ** All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Italian Other Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over ** Insufficient data Lower Quartile $ 5.20 $ 5.00 8.90 ** $ 5.00 5.20 7.00 $ 5.30 5.10 ** ** ** ** $ 7.00 ** ** ** 5.00 $ 7.00 5.20 4.80 $ 6.30 ** ** 5.20 $ 5.10 5.20 $ 5.10 ** Upper Quartile $ 11.20 $ 8.50 ** ** $ 12.10 9.90 9.00 $ 10.80 10.30 ** ** ** ** $ 8.50 ** ** ** 9.70 $ 10.70 15.40 8.50 $ 12.40 ** ** 10.90 $ 10.30 12.60 $ 9.00 ** 98 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit D-3 Limited Service Restaurants Average Daily Seat Turnover Total Median 3.1 3.5 1.6 ** 3.5 5.3 1.7 3.8 ** ** ** ** ** 2.8 ** ** ** ** 6.8 6.5 2.7 2.4 5.4 ** 1.9 ** ** 3.6 1.7 2.6 5.1 ** All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check Under $7.50 $7.50 and Over Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over ** Insufficient data Lower Quartile 1.3 2.0 0.7 ** 1.4 2.6 0.7 1.7 ** ** ** ** ** 1.9 ** ** ** ** 2.4 3.5 0.9 0.9 3.4 ** 0.8 ** ** 1.8 0.7 1.3 3.0 ** Upper Quartile 6.5 7.6 3.8 ** 5.2 8.4 2.8 8.1 ** ** ** ** ** 3.4 ** ** ** ** 11.5 12.6 3.9 3.9 9.1 ** 3.6 ** ** 7.4 3.5 4.6 8.6 ** (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 99 Exhibit D-4 Limited Service Restaurants Cost per Dollar of Sales* Total Cost of Sales 31.9 ? 31.6 ? 32.3 ** 32.9 ? 30.9 33.2 30.8 ? 36.3 ** ** ** ** 34.7 ? ** ** ** ** 28.0 28.1 ? 33.5 34.6 ? 28.1 34.6 34.7 ? ** ** 30.6 34.6 ? 30.9 30.6 ** Total Payroll and Benefits 29.4 ? 28.7 ? 30.7 ** 30.5 ? 27.4 29.6 28.3 ? 35.6 ** ** ** ** 30.1 ? ** ** ** ** 27.1 27.3 ? 30.0 29.0 ? 27.6 30.5 29.3 ? ** ** 29.3 30.3 ? 29.8 27.4 ** All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check Under $7.50 $7.50 and Over Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over * All amounts are medians ** Insufficient data Prime Cost 60.7 ? 59.3 ? 63.7 ** 61.3 ? 58.0 61.5 58.1 ? 71.0 ** ** ** ** 67.3 ? ** ** ** ** 55.3 56.3 ? 63.2 61.6 ? 56.1 64.8 66.5 ? ** ** 59.3 65.7 ? 60.7 57.1 ** 100 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit D-5 Limited Service Restaurants Number of Employees* Number of Employees per Restaurant Part-Part-Time Part Time (Under 20 Full Time (20-34 Hours) Hours) 5 6 4 5 6 ** 5 6 5 6 5 ** ** ** ** 5 ** ** ** ** 5 5 6 4 6 7 3 ** ** 6 2 5 8 ** 6 8 ** 5 10 4 7 4 ** ** ** ** 7 ** ** ** ** 7 7 6 4 10 6 6 ** ** 7 3 5 10 ** 4 2 ** 5 4 1 4 4 ** ** ** ** 4 ** ** ** ** 4 4 3 2 4 10 2 ** ** 5 1 4 6 ** All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check Under $7.50 $7.50 and Over Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over * All amounts are medians ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 101 Exhibit D-6 Limited Service Restaurants Annual Employee Turnover* All Employees 60% 55% 62 ** 88% 50 59 72% 67 ** ** ** ** ** 65% ** ** ** 73 70% 60 53% 88 ** ** 79% ** 58 ** 86% 63 59 Salaried Employees 33% 42% 25 ** 33% 33 ** 33% 21 ** ** ** ** ** 23% ** ** ** ** 25% 25 ** 33% ** ** 58% ** 27 ** 33% 33 33 Hourly Employees 71% 73% 71 ** 97% 59 64 79% 71 ** ** ** ** ** 76% ** ** ** ** 75% 69 64% 92 ** ** 85% ** 67 ** 94% 67 64 All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check Under $7.50 $7.50 and Over Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over * 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-2s and the number of employees. ** Insufficient data 102 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit D-7 Limited Service Restaurants Employee Information* Amount per Full-Time Equivalent Employee Total Payroll Total Sales and Benefits $ 63,365 $ 19,369 $ 61,558 65,004 ** $ 60,220 68,208 57,297 $ 67,059 53,731 ** ** ** ** $ 52,110 ** ** ** ** $ 68,842 61,542 $ 57,818 68,605 60,942 $ 54,800 ** ** 62,785 $ 51,390 66,948 68,049 ** $ 17,831 19,807 ** $ 19,094 18,107 16,671 $ 18,617 19,584 ** ** ** ** ** ** ** ** 19,322 $ 18,054 19,369 $ 15,682 19,345 19,915 $ 15,481 ** ** 18,681 $ 15,021 19,469 18,798 ** All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check Under $7.50 $7.50 and Over Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over Full-Time Equivalent Employees Per 100 Per 100 Average Total Restaurant Seats Daily Covers 13.1 18.1 5.3 11.9 14.1 ** 11.3 15.0 11.4 14.4 9.5 ** ** ** ** 12.0 ** ** ** 11.4 13.6 13.2 8.8 16.4 15.3 8.4 ** ** 15.4 6.5 11.9 17.8 ** 22.2 14.9 ** 17.1 22.8 15.7 18.7 ** ** ** ** ** 17.0 ** ** ** 21.8 24.9 16.8 14.5 23.6 ** 16.9 ** ** 22.2 11.9 17.4 22.6 ** 4.9 7.6 ** 5.2 4.0 9.0 4.6 6.4 ** ** ** ** 6.5 ** ** ** 2.8 2.8 7.4 6.6 4.8 4.4 5.9 ** ** 5.3 7.7 6.2 4.1 ** * 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. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 103 Exhibit D-8 Limited Service Restaurants Take-Out/Drive Through, Outside Catering and Banquet Service - Ratio to Total Sales* Take-Out/ Drive Through 45% 65% 20 ** 30% 60 ** 40% ** ** ** ** ** 32% ** ** ** ** 70 70% 30 38% 70 ** ** ** ** 45% 50% 43 35 ** Outside Catering 10% 10% ** ** 10% ** ** 10% ** ** ** ** ** ** ** ** ** ** ** ** 10% 9% ** ** ** ** ** 7% ** ** ** ** All Restaurants Type of Establishment Food Only Food and Beverage Restaurant Location Hotel Shopping Center or Mall Sole Occupant Other Profit versus Loss Profit Loss Menu Theme Hamburger Steak/Seafood Chicken Pizza Sandwiches/Subs/Deli American (varied) Mexican Asian Italian Other Average Check Under $7.50 $7.50 and Over Affiliation Single Unit - Independent Multi-Unit - Company Operated Multi-Unit - Franchise Operated Ownership Sole Proprietorship Partnership Public Corporation Private Corporation Sales Volume Under $500,000 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 and Over * All amounts are medians ** Insufficient data Banquet Service 10% ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** 104 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit D-9 Limited Service Restaurants Statement of Income and Expenses All Restaurants Amount per Seat Lower Quartile 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 (Loss) Before Income Taxes $ 5,917 259 6,250 2,048 144 2,109 4,182 1,832 200 0 54 181 ** 57 ** 0 74 0 3,989 0 0 $ 99 Median $ 10,000 1,197 11,243 3,858 359 3,850 6,649 3,239 807 0 111 368 714 163 92 0 179 324 6,277 50 0 $ 560 Upper Quartile $ 17,905 3,643 19,444 5,942 1,153 6,024 12,797 5,352 1,553 5 333 584 1,401 336 262 177 416 1,043 10,531 136 91 $ 1,774 Lower Quartile 93.7% 0.0 100.0 27.6 22.9 27.6 63.6 25.0 3.1 0.0 0.4 2.0 ** 0.7 ** 0.0 0.5 0.0 54.4 0.0 0.0 0.6% Ratio to Total Sales* Median 100.0% 0.0 100.0 32.0 28.9 31.9 68.1 29.4 5.9 0.0 1.1 3.0 7.7 1.4 1.1 0.0 1.7 3.9 59.3 0.5 0.0 5.9% Upper Quartile 100.0% 6.3 100.0 36.6 36.3 36.4 72.4 34.9 13.5 0.0 3.1 4.3 10.4 1.5 2.4 1.7 3.9 7.0 68.6 1.2 0.4 13.0% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 105 Exhibit D-10 Limited Service Restaurants Statement of Income and Expenses - Amount per Square Foot* All Restaurants Lower Upper Quartile Median Quartile Sales Food Beverage Total Sales Gross Profit on Sales Utility Services $165.21 ** 185.43 111.17 5.29 $305.95 ** 314.69 223.71 9.56 $480.68 24.77 488.38 343.04 15.99 Type of Establishment Food and Food Only Beverage $339.76 N/A 339.76 230.13 9.68 $220.09 32.50 265.41 183.83 9.38 Menu Theme Other $384.68 ** 405.51 288.88 13.67 Average Check Under $7.50 $7.50 and Over $392.67 ** 405.51 291.48 13.33 $259.72 0.00 284.68 183.73 8.99 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All amounts are medians unless otherwise stated. ** Insufficient data N/A Not applicable 106 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Hotel ** ** ** ** ** Restaurant Location Shopping Center or Mall Sole Occupant $320.93 0.00 335.09 230.54 9.15 $357.41 ** 358.28 249.13 12.41 Other $175.00 ** 224.77 149.12 5.56 Under $500 $157.29 ** 181.33 104.11 6.34 Sales Volume ($000s) $500 to $1,000 to $999 $1,999 $343.75 ** 343.75 233.73 10.35 $382.10 ** 385.76 267.77 12.80 $2,000 and Over ** ** ** ** ** (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 107 Exhibit D-11 Limited Service Restaurants Statement of Income and Expenses - Amount per Seat Type of Establishment Food Only Lower Quartile 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 (Loss) Before Income Taxes $ 7,075 N/A 7,075 2,381 N/A 2,381 4,476 2,045 367 0 49 181 ** 58 ** 0 74 24 2,805 0 0 $ (394) Median $ 11,251 N/A 11,251 4,144 N/A 4,144 6,699 3,248 889 0 90 360 784 171 103 30 121 629 5,287 50 0 $ 347 Upper Quartile $ 21,540 N/A 21,540 6,196 N/A 6,196 14,813 5,167 1,606 4 334 629 1,565 352 302 284 312 1,055 9,993 135 28 $ 1,570 Lower Quartile $ 3,832 233 5,396 1,268 154 1,863 3,042 1,666 145 0 76 188 ** 57 ** 0 106 ** 2,430 13 ** $0 Food and Beverage Median $ 8,825 1,045 9,785 2,707 250 3,367 6,179 3,122 340 0 190 378 485 131 75 0 248 ** 4,263 49 ** $ 43 Upper Quartile $ 14,331 2,735 15,275 4,850 688 4,953 10,493 5,352 1,429 19 303 538 1,099 213 260 41 554 ** 10,360 133 ** $ 736 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data N/A Not Applicable 108 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit D-12 Limited Service Restaurants Statement of Income and Expenses - Ratio to Total Sales* Type of Establishment Food Only Lower Quartile 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 (Loss) Before Income Taxes 100.0% N/A 100.0 27.2 N/A 27.2 63.6 24.9 2.8 0.0 0.3 2.0 ** 0.7 ** 0.0 0.5 0.6 54.8 0.0 0.0 0.9% Median 100.0% N/A 100.0 31.6 N/A 31.6 68.4 28.7 5.4 0.0 0.9 2.8 8.1 1.4 1.2 0.3 1.4 5.9 56.6 0.4 0.0 6.0% Upper Quartile 100.0% N/A 100.0 36.3 N/A 36.3 72.6 34.0 14.8 0.0 2.9 4.0 10.8 2.0 2.6 2.0 2.9 7.0 64.4 1.1 0.1 14.2% Lower Quartile 77.9% 1.8 100.0 30.0 26.3 29.9 63.0 25.8 0.8 0.0 0.6 1.9 ** 0.5 ** 0.0 1.1 ** 44.2 0.1 ** 0.1% Food and Beverage Median 93.5% 6.9 100.0 32.3 30.0 32.3 67.5 30.7 5.6 0.0 1.4 3.3 4.0 1.2 0.8 0.0 3.8 ** 60.6 0.5 ** 4.5% Upper Quartile 98.3% 23.1 100.0 37.1 40.3 36.7 69.7 36.5 10.1 0.3 2.7 4.7 9.3 2.2 1.9 0.5 4.6 ** 68.3 1.7 ** 9.6% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data N/A Not Applicable (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 109 Exhibit D-13 Limited Service Restaurants Statement of Income and Expenses - Amount per Seat Affiliation Single Unit - Independent Lower Upper Quartile Median Quartile 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 (Loss) Before Income Taxes $ 4,585 0 5,149 1,638 218 1,936 3,354 1,372 121 0 55 149 ** 38 ** 0 34 0 3,412 6 0 $ 100 $ 8,262 0 8,938 2,934 346 3,243 5,215 2,414 402 0 139 305 492 88 57 0 222 0 5,150 68 8 $ 530 $ 12,397 265 13,540 4,553 984 4,597 8,419 3,769 970 11 333 464 912 194 206 44 375 400 8,133 176 134 $ 1,552 Multi-Unit -Company Operated Lower Upper Quartile Median Quartile $ 9,468 0 10,334 3,384 ** 3,223 7,829 3,466 564 0 53 379 ** 170 ** 0 77 109 7,010 0 0 $ (132 ) $ 15,809 0 15,710 4,990 ** 4,980 11,241 4,632 1,091 0 86 582 1,280 311 115 137 158 1,047 10,409 0 0 $ 935 $ 23,252 1,182 22,655 6,195 ** 6,233 16,507 6,410 1,553 2 276 705 1,932 442 311 474 543 1,442 12,626 125 0 $ 3,247 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data 110 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit D-14 Limited Service Restaurants Statement of Income and Expenses - Ratio to Total Sales* Affiliation Multi-Unit -Company Operated Lower Upper Quartile Median Quartile 95.7% 0.0 100.0 27.0 ** 26.9 68.4 100.0% 0.0 100.0 28.0 ** 28.1 71.9 100.0% 5.3 100.0 31.7 ** 31.6 73.1 Single Unit - Independent Lower Upper Quartile Median Quartile 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 (Loss) Before Income Taxes 95.0% 0.0 100.0 30.5 28.1 30.6 59.7 100.0% 0.0 100.0 34.7 33.0 34.6 65.4 100.0% 5.0 100.0 40.4 61.3 40.3 69.4 Multi-Unit -Franchise Operated Lower Upper Quartile Median Quartile 80.6% 0.0 100.0 21.3 ** 21.4 64.1 100.0% 0.0 100.0 34.6 ** 34.6 65.4 100.0% 19.4 100.0 35.9 ** 35.9 78.6 21.9 1.7 0.0 0.5 1.5 ** 0.5 ** 0.0 ** ** 18.1 0.1 0.0 0.0% 29.0 5.3 0.0 1.4 3.4 4.3 1.1 0.7 0.0 ** ** 52.0 0.9 0.1 2.6% 34.7 12.2 0.1 3.5 5.3 9.3 2.1 2.0 0.0 ** ** 61.6 2.0 1.5 10.8% 25.4 3.7 0.0 0.4 2.3 ** 0.9 ** 0.0 ** 2.4 55.1 0.0 0.0 (6.3%) 27.6 5.2 0.0 0.6 3.1 7.8 1.6 0.7 1.1 ** 6.3 59.3 0.0 0.0 3.8% 33.7 7.7 0.0 2.9 4.0 9.9 2.0 3.0 2.4 ** 7.0 68.4 0.4 0.0 11.4% 29.4 14.7 0.0 0.9 2.0 ** 1.1 ** ** ** ** ** ** ** (8.7%) 30.5 16.4 0.0 1.3 2.4 9.8 1.5 1.7 ** ** ** ** ** ** 5.3% 35.1 18.5 0.0 1.7 2.9 12.2 1.9 5.4 ** ** ** ** ** ** 11.8% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 111 Exhibit D-15 Limited Service Restaurants Statement of Income and Expenses - Amount per Seat Sales Volume ($000) Between $500 and $999 Lower Upper Quartile Median Quartile $ 5,917 0 6,464 1,940 ** 2,174 4,345 $ 9,333 0 10,000 3,342 ** 3,466 6,330 $ 16,686 556 16,752 5,541 ** 5,663 10,645 Under $500 Lower Quartile 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 (Loss) Before Income Taxes $ 3,665 0 4,445 1,135 ** 1,403 2,571 Median $ 5,821 0 6,250 2,088 ** 2,222 3,770 Upper Quartile $ 9,539 553 9,566 4,050 ** 4,275 6,034 Between $1,000 and $1,999 Lower Upper Quartile Median Quartile $ 10,240 0 10,240 3,600 ** 3,490 6,172 $ 14,630 0 14,979 4,367 ** 4,404 10,591 $ 21,768 92 22,292 6,079 ** 6,120 15,687 1,145 72 0 28 162 ** 25 ** 0 34 ** 2,754 2 ** $0 1,915 289 0 97 295 536 71 50 0 158 ** 4,567 67 ** $ 234 3,236 925 3 334 471 936 168 191 44 238 ** 6,327 188 ** $ 639 2,053 125 0 54 201 ** 40 ** 0 76 ** 3,919 ** ** $ 35 2,894 550 0 111 357 819 131 47 0 224 ** 5,200 ** ** $ 341 4,542 1,718 6 336 457 1,294 333 478 165 337 ** 9,204 ** ** $ 1,628 3,386 821 0 58 229 ** 146 ** 0 74 719 5,677 0 0 $ 207 4,442 1,195 0 89 555 1,187 254 147 34 103 1,055 9,995 0 0 $ 946 6,191 1,794 5 263 693 1,740 390 215 347 534 1,479 12,626 70 7 $ 3,273 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data 112 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit D-16 Limited Service Restaurants Statement of Income and Expenses - Ratio to Total Sales* Sales Volume ($000) Between $500 and $999 Lower Upper Quartile Median Quartile 92.9% 0.0 100.0 25.1 ** 25.1 64.1 100.0% 0.0 100.0 30.3 ** 30.9 69.1 100.0% 7.1 100.0 36.7 ** 35.9 74.9 Under $500 Lower Quartile 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 (Loss) Before Income Taxes 90.7% 0.0 100.0 30.0 ** 30.2 59.2 Median 100.0% 0.0 100.0 34.7 ** 34.6 65.4 Upper Quartile 100.0% 15.2 100.0 42.0 ** 40.8 69.8 Between $1,000 and $1,999 Lower Upper Quartile Median Quartile 99.0% 0.0 100.0 27.7 ** 27.6 65.4 100.0% 0.0 100.0 30.1 ** 30.6 69.4 100.0% 1.0 100.0 34.6 ** 34.6 72.4 23.7 1.7 0.0 0.4 2.0 ** 0.5 ** 0.0 1.5 ** 55.4 0.0 0.0 (1.2%) 30.3 6.1 0.0 1.2 4.0 8.0 0.9 1.2 0.0 2.7 ** 62.8 1.0 0.0 3.8% 37.6 12.6 0.0 3.8 5.7 12.6 2.1 3.0 0.9 3.9 ** 70.4 2.2 1.5 15.5% 27.2 2.2 0.0 0.4 2.0 ** 0.7 ** 0.0 0.5 0.0 51.1 0.1 ** 0.6% 29.8 4.9 0.0 1.7 2.8 6.5 1.3 1.0 0.0 2.0 1.0 59.4 0.5 ** 5.0% 31.4 14.7 0.0 4.1 4.4 9.9 2.0 3.1 1.7 3.5 5.9 69.8 1.1 ** 15.8% 25.0 5.2 0.0 0.4 2.3 ** 1.4 ** 0.0 0.5 6.7 56.0 0.0 0.0 3.1% 27.4 6.7 0.0 0.7 3.0 8.7 1.6 0.8 0.3 0.8 7.0 59.2 0.0 0.0 8.3% 35.0 13.2 0.0 1.3 3.7 10.0 2.0 1.7 2.4 2.1 7.0 65.4 0.5 0.1 12.3% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 113 Exhibit D-17 Limited Service Restaurants Statement of Income and Expenses - Amount per Seat Menu Theme Sandwiches/Subs/Deli Lower Quartile 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 (Loss) Before Income Taxes $ 6,604 0 6,201 2,337 ** 2,212 3,935 1,250 72 0 71 159 ** 41 ** 0 ** ** 3,660 ** ** $ 116 Median $ 8,965 0 8,965 3,245 ** 3,000 5,339 2,872 708 4 89 203 634 98 58 0 ** ** 4,518 ** ** $ 610 Upper Quartile $ 10,320 0 10,240 4,456 ** 4,194 6,387 3,257 1,601 10 259 368 740 163 147 30 ** ** 5,598 ** ** $ 904 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data 114 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit D-18 Limited Service Restaurants Statement of Income and Expenses - Ratio to Total Sales* Menu Theme Sandwiches/Subs/Deli Lower Quartile 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 (Loss) Before Income Taxes 100.0% 0.0 100.0 34.0 ** 32.5 60.0 21.3 0.8 0.0 0.9 2.0 3.4 0.6 0.0 0.0 ** ** 43.9 ** ** 2.0% Median 100.0% 0.0 100.0 35.9 ** 34.7 65.3 30.1 8.7 0.0 1.1 2.7 6.9 1.3 1.2 0.0 ** ** 56.9 ** ** 5.3% Upper Quartile 100.0% 0.0 100.0 40.4 ** 40.0 67.5 35.1 18.3 0.1 2.9 3.9 10.4 1.8 2.4 0.7 ** ** 60.5 ** ** 13.5% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 115 Exhibit D-19 Limited Service Restaurants Statement of Income and Expenses - Amount per Seat Metropolitan/Non-Metropolitan Location Inside MSA*** Lower Upper Quartile Median Quartile 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 (Loss) Before Income Taxes $ 6,106 0 6,805 2,116 159 2,350 4,311 1,994 216 0 59 178 ** 50 ** 0 75 0 4,004 0 0 $ 100 $ 10,321 0 11,338 4,100 351 4,100 7,421 3,260 822 0 120 379 758 162 80 0 175 425 6,376 32 0 $ 630 $ 20,738 846 21,677 6,085 1,223 6,160 14,618 5,590 1,582 6 350 647 1,443 352 260 182 445 1,050 11,788 136 113 $ 2,415 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data *** Metropolitan statistical area 116 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit D-20 Limited Service Restaurants Statement of Income and Expenses - Ratio to Total Sales* Metropolitan/Non-Metropolitan Location Inside MSA*** Lower Upper Quartile Median Quartile 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 (Loss) Before Income Taxes 94.0% 0.0 100.0 27.6 23.4 27.6 64.2 25.0 2.7 0.0 0.4 2.0 ** 0.7 ** 0.0 0.5 0.0 55.0 0.0 0.0 0.8% 100.0% 0.0 100.0 31.6 29.0 31.6 68.4 29.0 5.8 0.0 1.2 3.0 7.9 1.4 1.0 0.2 1.7 4.6 58.9 0.4 0.0 5.8% 100.0% 6.7 100.0 36.2 36.7 36.2 72.4 34.6 13.2 0.0 3.4 4.2 10.5 2.0 2.4 1.7 3.9 7.0 67.4 1.2 0.6 13.1% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data *** Metropolitan statistical area (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 117 Exhibit D-21 Limited Service Restaurants Statement of Income and Expenses - Amount per Seat Average Check Under $7.50 Lower Quartile 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 (Loss) Before Income Taxes $ 9,300 0 9,531 3,151 ** 3,223 5,681 2,884 653 0 47 206 ** 159 ** 0 75 240 6,470 0 0 $ 216 Median $ 15,483 0 15,678 4,542 ** 4,490 11,360 4,427 944 0 97 610 1,379 311 150 51 90 1,055 9,508 0 0 $ 1,216 Upper Quartile $ 26,789 141 31,061 7,406 ** 7,450 23,559 7,281 1,598 0 383 843 2,378 458 306 490 266 1,498 14,194 64 0 $ 3,273 Lower Quartile $ 5,610 0 5,976 1,876 149 2,021 3,791 1,645 173 0 64 185 ** 52 ** 0 74 0 3,815 16 0 $ 96 $7.50 and Over Median $ 9,333 0 9,537 3,213 250 3,393 5,944 3,013 708 0 120 315 600 125 73 0 226 122 5,272 78 12 $ 461 Upper Quartile $ 15,809 867 15,741 5,470 887 5,572 10,560 4,528 1,531 11 316 463 1,115 223 246 107 496 687 10,176 189 125 $ 1,407 Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. ** Insufficient data 118 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Exhibit D-22 Limited Service Restaurants Statement of Income and Expenses - Ratio to Total Sales* Average Check Under $7.50 Lower Quartile Sales Food Beverage Total Sales Cost of Sales Food Beverage Total Cost of Sales Gross Profit Operating Expenses 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 (Loss) Before Income Taxes 88.1% 0.0 100.0 26.0 ** 26.4 66.3 25.0 5.0 0.0 0.3 1.6 ** 0.9 ** 0.0 0.5 2.7 56.0 0.0 0.0 0.7% Median 100.0% 0.0 100.0 28.1 ** 28.1 71.9 27.3 5.5 0.0 0.6 3.0 9.9 1.4 0.9 0.3 0.5 7.0 58.5 0.0 0.0 8.8% Upper Quartile 100.0% 11.9 100.0 33.8 ** 33.7 73.6 35.9 14.3 0.0 1.5 4.0 11.7 2.0 1.8 2.3 2.7 7.0 66.8 0.3 0.0 14.0% Lower Quartile 95.5% 0.0 100.0 29.5 27.2 29.7 63.3 25.5 2.1 0.0 0.6 2.1 ** 0.7 ** 0.0 1.0 0.0 51.4 0.2 0.0 1.1% $7.50 and Over Median 100.0% 0.0 100.0 33.7 30.4 33.5 66.5 30.0 6.4 0.0 1.6 3.0 5.9 1.4 1.1 0.0 2.1 2.0 59.7 0.6 0.0 5.3% Upper Quartile 100.0% 5.5 100.0 37.2 39.1 36.7 70.3 34.8 12.7 0.1 4.0 4.4 9.1 2.0 3.0 1.5 3.9 6.1 69.3 1.7 1.3 12.0% Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 119 Exhibit D-23 Limited Service Restaurants Income Differential Amount per Seat Profit Lower Quartile 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 (Loss) Before Income Taxes $ 5,958 ** 6,000 2,091 ** 2,097 3,878 1,732 267 0 56 181 ** 65 ** 0 74 16 3,954 0 0 $ 266 Median $ 10,782 ** 11,440 3,850 ** 3,766 7,790 3,519 847 0 102 366 698 176 92 32 151 684 6,972 32 0 $ 807 Upper Quartile $ 20,707 ** 21,471 6,079 ** 6,083 14,237 5,496 1,582 5 308 629 1,503 352 194 305 404 1,117 11,864 138 70 $ 3,219 Lower Quartile ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** Loss Median ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** Upper Quartile ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** Note: Computations include respondents that provided zeroes and numerical amounts. Computations for operating expenses also include imputed zeroes, when applicable. * All ratios are based as a percentage of total sales except food and beverage costs, which are based on their respective sales. ** Insufficient data 120 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Ratio to Total Sales* Profit Lower Quartile 96.5% 0.0 100.0 27.5 22.7 27.3 65.1 24.9 4.2 0.0 0.4 2.0 ** 0.9 ** 0.0 0.5 0.6 53.1 0.0 0.0 4.4% Median 100.0% 0.0 100.0 30.7 29.0 30.8 69.2 28.3 5.6 0.0 1.1 3.0 7.5 1.5 1.0 0.3 1.5 6.0 58.2 0.4 0.0 8.9% Upper Quartile 100.0% 3.5 100.0 35.0 41.4 34.9 72.7 30.8 13.1 0.0 3.0 4.0 10.0 2.0 1.9 2.3 3.7 7.0 64.2 1.3 0.2 14.9% Lower Quartile ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** Loss Median ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** Upper Quartile ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 121 Analyze Your Operation A 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. 122 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP WORKSHEET Complete and Compare Statement of Income and Expenses Column 1 Your Figures (Dollars) 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 Sales per Seat Food Beverage Total Daily Seat Turnover (customers ? seats ? 365 days) $ $ $ $ $ $ $ Your Figures % Restaurant Industry Report % Variance + or $ Column 2 Your Figures (% of Sales) % Column 3 Restaurant Industry Report % Column 4 Variance + or - (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 123 Sample Survey Your participation in the Restaurant Industry Operations Survey will help us to provide the most comprehensive report possible and I am certain you will find this report essential to your business. The information you submit will be kept strictly confidential and will be used only by Deloitte & Touche LLP in compiling totals for the report. Please fill out the survey completely and accurately by the July 15, 2009 deadline. Thank you for your participation in the Restaurant Industry Operations Survey, making this study possible. Sincerely yours, Michael Gibbons Chairman of the Board National Restaurant Association Note: Publication scheduled for 2010. Surveys must be filled out completely and accurately. This portion will be separated from your survey as soon as it is received to protect the confidentiality of your responses. 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 July 15, 2009 deadline. In completing the financial portion of the survey, you may wish to have your accountant supply the data and simply send Deloitte & Touche LLP your latest 12-month detailed financial statement, and they will complete the financial portion of the survey for you. Remember, you must still complete Section I on the following page. S 124 M A P E L (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Section I. General 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. 11. Does restaurant offer: (if offered, your best estimate of percentage of total sales) Take out/drive-thru Outside catering Banquet services Yes Yes Yes No No 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 5. Are you a franchisee or franchisor? (check one) 1 Franchisee 2 Franchisor 3 Both 4 Neither 6. Primary type of business (check one) Full service 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 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 8. Primary menu theme: (check one) 1 Hamburger 2 Pizza 3 Chicken 4 Steak/seafood 5 Sandwiches/subs/deli S M A 17. Average number of paid restaurant employees that work during a typical week: (provide best estimate) Salaried _______1 _______3 _______5 _______7 Hourly _______2 _______4 _______6 _______8 P E L # ___________1 # ___________2 # ___________3 Full-time (35 hours or more) Part-time (20 to 34 hours) Part-time (less than 20 hours) TOTAL 18. Number of W-2s your restaurant sent last year: (provide best estimate) Salaried employees Hourly employees TOTAL 6 American (varied) 7 Mexican 8 Asian 9 Italian 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 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 125 Section II. Statement of Income and Expense Please completely fill out all financial data for the most recently completed fiscal year. 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. For a guide to terminology used in this section, please see the Explanation of Terms. Remember, all information provided will be kept strictly confidential. Current 12 months ended: Month _________ SALES Food Beverage (alcoholic) Total sales COST OF SALES Food Beverage (alcoholic) Total cost of sales GROSS PROFIT (line 3 minus line 6) OPERATING EXPENSES Restaurant operating expenses Salaries and wages Employee benefits Direct operating expenses Music and entertainment Marketing Utility services Restaurant occupancy costs Repairs and maintenance Depreciation Other expense/(income) Total restaurant operating expenses General and administrative expenses Corporate overhead Total operating expenses INTEREST EXPENSE OTHER EXPENSES INCOME BEFORE INCOME TAXES Year 2008 __________________1 __________________2 __________________4 __________________5 S M A __________________8 __________________9 __________________10 __________________11 __________________12 __________________13 __________________14 __________________15 __________________16 __________________17 P E L _________________3 _________________6 _________________7 __________________18 __________________19 __________________20 _________________21 _________________22 _________________23 _________________24 We are attempting to obtain information on the breakdown of 2 categories of expenses. Please provide the following data in dollars: Marketing Advertising Promotion Marketing Research Public Relations/Publicity Other Total (Same as line 12 in Sec. II) 2008 Utilities __________1 Electricity __________2 Gas __________3 Water __________4 Water Removal __________5 Other __________6 Deduct Credits Total (Same as line 13 in Sec. II) 2008 ___________1 ___________2 ___________3 ___________4 ___________5 ___________6 ___________7 126 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP Information Regarding Regional And State Restaurant Industry Operations Reports Dear Restaurant Industry Operations Report 2010 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 LLP. With your purchase of this report, you are entitled to three 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. 2010 Edition Regional Restaurant Industry Operations Reports are available for the following regions: Regions: East North Central IL, IN, MI, OH, WI East South Central AL, KY, MS, TN Middle Atlantic NJ, NY, PA Mountain AZ, CO, ID, MT, NV, NM, UT, WY New England CT, ME, MA, NH, RI, VT Pacific AK, CA, HI, OR, WA South Atlantic DE, DC, FL, GA, MD, NC, SC, VA, WV West North Central IA, KS, MN, MO, ND, NE, SD West South Central AR, LA, OK, TX To order three regional and/or available state reports, send an e-mail to askus@restaurant.org listing the reports you have selected. If you prefer, you may order by calling the National Restaurant Association's Knowledge Center at 800 424 5156 ext. 5959. Reports will be sent via e-mail. National Restaurant Association Research and Knowledge Group (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP 127 Additional Information For additional restaurant industry operations data beyond the scope of this report, contact the National Restaurant Association's Knowledge Center at +1 800 424 5156, ext. 5959. Several state and regional restaurant industry operations reports are available. For information on joining the National Restaurant Association, call the Membership Department at +1 800 424 5156, extension 5983, or visit our Web site at www.restaurant.org/join. For more information on Deloitte's Consumer & Industrial Products Practice, please contact: Craig Giffi Vice Chairman and National Managing Principal Consumer & Industrial Products Industries Deloitte & Touche LLP Tel: +1 216 830 6604 e-mail: cgiffi@deloitte.com Lawrence Hutter Global Practice Director Consumer and Industrial Products Industries Deloitte Touche Tohmatsu Tel: +44 20 7303 8648 e-mail: lhutter@deloitte.com Adam Weissenberg Vice Chairman and National Managing Partner Tourism, Hospitality & Leisure Practice Consumer and Industrial Products Industries Deloitte & Touche LLP Tel: +1 973 683 6789 e-mail: aweissenberg@deloitte.com Bill Michalisin National Director of Marketing Consumer and Industrial Products Industries Deloitte Services LP Tel: +1 904 665 1548 e-mail: wmichalisin@deloitte.com Steven Steinhauser Director, Restaurant Industry Practice Consumer and Industrial Products Industries Deloitte & Touche LLP Tel: +1 213 688 3231 e-mail: ssteinhauser@deloitte.com Thomas Marriott National Consumer & Industrial Products Consulting Leader Deloitte Consulting LLP Tel: +1 973 602 5340 e-mail: tmarriott@deloitte.com Ellen MacNeil National Consumer & Industrial Products Tax Leader Deloitte Tax LLP Tel: +1 202 378 5220 e-mail: ellenmacneil@deloitte.com John Scheffler National Consumer & Industrial Products Assurance Leader Deloitte & Touche LLP Tel: +1 415 783 6827 e-mail: jscheffler@deloitte.com Brett Sherman National Consumer and Industrial Products Enterprise Risk Services Leader Deloitte & Touche LLP Tel: +1 973 683 6364 e-mail: bssherman@deloitte.com Christopher Lindsey National Consumer and Industrial Products Financial Advisory Services Leader Deloitte Financial Advisory Services LLP Tel: +1 212 436 3815 e-mail: clindsey@deloitte.com 128 (C) 2010 by the National Restaurant Association and Deloitte & Touche LLP About the National Restaurant Association Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry. Together with the National Restaurant Association Educational Foundation, our goal is to lead America's restaurant industry into a new era of prosperity, prominence, and participation, enhancing the quality of life for all we serve. We exist to help our members -- the cornerstone of their communities -- build customer loyalty, rewarding careers, and financial success. We create value for our members in five ways: o Advocacy and representation Building and sustaining positive public opinion and a favorable political environment o Tools and solutions Helping grow revenues, increase profitability, and develop employees o Education and networking Providing opportunities to connect and learn from each other o Research and insights Anticipating and preparing for emerging trends that could impact restaurants o Responsible stewardship Providing thought leadership to inspire community involvement and impact This publication contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not, by means of this publication, rendering business, financial, investment, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms. Please see www.deloitte. com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. (C) 2010 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu For further information contact: National Restaurant Association Research and Knowledge Center 1200 Seventeenth Street, NW Washington, DC 20036-3097 202.331.5900 E-mail: askus@restaurant.org Web: www.restaurant.org