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Q: Business, Fast Food restaurants, Accounting ( No Answer,   1 Comment )
Subject: Business, Fast Food restaurants, Accounting
Category: Business and Money > Accounting
Asked by: benros-ga
List Price: $50.00
Posted: 04 Aug 2006 09:59 PDT
Expires: 10 Aug 2006 06:58 PDT
Question ID: 752570
what are the typical line items of an Income Statement of a fast food
(preferably "Quiznos Subs" specifically) restaurant? I am looking for
the line items titles, at least, and each line's value as a percent of
Revenues, if possible.
There is no answer at this time.

Subject: Re: Business, Fast Food restaurants, Accounting
From: blackout12-ga on 07 Aug 2006 22:42 PDT
Are you talking about a specific franchise, or the head company (in
this case, QIP Holder LLC)?

Typically, franchises include the following items in their income statements:

Sales Revenues:  Quizno's has several sources of revenues.  For
reporting purposes however, they tend to be consolidated into "sales",
though the details may be reported elsewhere.  For Quizno's, they

Restaurant revenue:  how much have they received from customers on
selling their food and beverages at their counters.

Catering revenue:  Since Quizno also caters, we can expect a source of
revenue from this segment.

Cost of food and beverages sold:  Cost of goods sold makes up the most
significant expense on their income statements.  Supplies, such as
paper and packaging, tend to be included here as well.

Selling, General, and Administration Expense:  The next highest
expense as a cost of doing business.

Wages/Salaries Expense:  Cost of keeping employees at each franchise.

Maintenance and Repairs Expense:  Needed to keep assets in proper operation.

Rent Expense:  The area, be it land or part of a building, vehicles,
or equipment, would most likely be rented.  You can expect this item
to appear because of it.

Amortization/Depreciation Expense:  Appears if the franchise has
ownership of tangible assets.  If an asset is rented, typically
amortization/depreciation is not recorded.

Royalty/Franchise/Licensing Expense:  The price for being "Quizno",
paid to the head company.

Advertising Expense:  Advertising on the radio and TV is a cost.

Insurance Expense:  Yet another cost for most businesses and persons alike.

Utilities Expense:  Electricity, water, gas, comes at a price to the
business to operate.

Interest Expense:  Borrorwing costs are here.  Some may classify it as
a nonoperating expense, but depends on the nature of borrowing.

Other/miscellaneous Expenses:  There are sometimes expenses that don't
belong in the previous categories.  Minor efficiencies of the petty
cash fund, tend to go in here, if not elsewhere.  They are assumed to
be immaterial and are not unusual.

Income taxes:  Be it the IRS in the United States or CRA in Canada,
expect an amount here (negative if the franchise has suffered losses).

Net Income:  Revenues - All Expenses, including taxes

There are variations in reporting, but typically Revenues and Expenses
are sufficient headings for such a franchise.

As for percentages of revenue, that I am not sure about.  It may vary
from franchise to franchise.  I would expect that selling, general and
administration expenses would be approximately 25% of total revenues,
while wages/salaries expenses are approximately 25% of total revenues
as well.  A reasonable amount of net income could be 10%, but again it
varies from franchise to franchise.

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