What type of business is a restaurant?

Answer 1

Lets look at it this way. Manufacturing business converts raw materials into a product. Now this may sound like your business, but ask yourself this, did you farm it? Since the answer is no (didn't convert corn seed into corn fields, didn't convert chickens into poultry meat), then we can move onto the next business. Merchandisers are businesses that buy pre-fabricated products from a supplier and sell that exact same product at a mark-up to the consumer. You don't sell raw chicken breasts to your consumers, so we can knock merchandising business right out of there. The last is a service business. You are providing a product yes, but with that product you are also offering the intangible "product" of cooking procedures, table service, and a nice table to eat at. Since the primary source of your income comes from the ability to cook and serve delicious food, then you are offering an intangible product, hence you are a service business.