We run a business that works from 5pm to 8pm in the evenings.  We keep
snacks around for the employees (cokes, bottle water, snacks).  Is
this deductable.  The business is a sole prop and is run out of my
home with 5-7 people.  Any idea where we put this expense on the tax
forms?

Tax rules list this under fringe benefits.  
Take a look at this publication, page 7, "Meals and Lodging".  
http://www.irs.gov/pub/irs-pdf/p535.pdf

See also, "De Minimus Benefits" in this publication on page 6.
http://www.irs.gov/pub/irs-pdf/p15b.pdf

http://www.thetntsite.com/

Thanks.  It gives me a good place to start researching the issue

Absolutely --this is deductable. I did the same thing when I owned a
carpet and upholstery cleaning business and wanted to keep my sales
personnel onsite all day. I had a CPA prepare my returns so I don't
know where he put it.

Even Google provides free food to it's workers, in certain locations
(Mountain View for sure):

Benefits . . . WAY Beyond the Basics*
://www.google.com/support/jobs/bin/static.py?page=benefits.html&benefits=us#bwbb
..."Food
Hungry? Check out our free lunch and dinner ? our gourmet chefs create
a wide variety of healthy and delicious meals every day. Got the
munchies? Google also offers snacks to help satisfy you in between
meals..."

I can guarantee Google deducts this.  Call your [local] IRS office and
ask them where to report the amount, they're very helpful.

~~Cynthia