Restaurant Franchising, 3rd Edition

254 Restaurant Franchising

Other income includes income from sources other than food and bev-

erages, such as vending machines, cigarettes, merchandise, and newspaper

sales.

Total income is the gross profi t plus other income.

Controllable expenses, as the name implies, are those expenses that can

be controlled. They are based on management decisions and are directly

related to the effi ciency of the restaurant’s operation.

Payroll includes all salaries and wages.

Employee benefi ts include expenses for medical insurance, compensa-

tions, and other benefi ts paid to or for the employees.

Direct operating expenses are those items directly related to services ...