TaxBandits Knowledge Base

What qualifies as a “Large Food or Beverage Establishment”?

A food or beverage operation is any business that provides food or drinks for consumption on the premises. However, it does not include fast-food establishments where customers order at a counter and carry their food elsewhere.

If you operate multiple locations, each location is treated separately, and you must file a separate Form 8027 for each. Even within the same building, different activities may be considered separate establishments if:

• Customers occupy separate areas while dining.

• Gross receipts for each activity are recorded separately (e.g., a hotel with a restaurant, coffee shop, and bar).

• Different service styles operate at other times, such as a cafeteria-style lunch service versus a full-service dinner restaurant.