IRS Business Code for Restaurants: 722511 Guide
Direct answer: irs business code for restaurants is 722511 for full-service restaurants and 722513 for limited-service restaurants, on Schedule C, Line B. Full-service means guests order, are served while seated, and pay after eating. Limited-service means guests order and pay before eating. Caterers use 722300. Bars use 722410.
Key Takeaways
- irs business code for restaurants = 722511 for full-service, 722513 for limited-service, on Schedule C Line B.
- Full-service means guests order, are served while seated, and pay after eating. Limited-service means guests order and pay before eating.
- Cafeterias and buffets use 722514. Snack and nonalcoholic beverage bars use 722515. Drinking places use 722410.
- Caterers and food service contractors use 722300, not a restaurant code.
- Food trucks and ghost kitchens are limited-service: 722513.
- The code is a label only. It does not change your tax, your deductions, or your self-employment tax.
irs business code for restaurants: 722511 vs. 722513
The code comes from the Principal Business or Professional Activity Codes chart at the back of the Instructions for Schedule C (Form 1040). Under Food Services & Drinking Places, the chart lists six entries. The two restaurant entries are “722511 Full-service restaurants” and “722513 Limited-service restaurants.” One of those two fits most restaurant owners.
The difference is not the menu or the price. It is how guests order and pay. In a full-service restaurant, guests sit down, order from a server, are served while seated, and pay after eating. In a limited-service restaurant, guests order at a counter, pay before eating, and often pick up their own food. That one test decides the code.
To learn the full lookup method, including the chart-versus-NAICS trap, see IRS Business Code Lookup: Schedule C Activity Codes Guide.
The Six Restaurant and Food Service Codes
| Code | Chart entry | Use it when |
|---|---|---|
| 722511 | Full-service restaurants | Guests order, are served while seated, and pay after eating |
| 722513 | Limited-service restaurants | Guests order and pay before eating |
| 722514 | Cafeterias, grill buffets, & buffets | Guests serve themselves from a buffet or cafeteria line |
| 722515 | Snack & nonalcoholic beverage bars | Main sales are snacks, coffee, juice, or soft drinks |
| 722410 | Drinking places (alcoholic beverages) | Main sales are alcoholic drinks, with little or no food |
| 722300 | Special food services (including food service contractors & caterers) | You cater events or run a contracted food service |
Most sit-down restaurants use 722511. Most fast-food spots, cafes, and takeout counters use 722513. A buffet restaurant uses 722514, even if it has table service. A coffee shop that sells mostly drinks and pastries uses 722515. A bar that sells mostly alcohol uses 722410. A caterer uses 722300.
The official chart is in the IRS Instructions for Schedule C (Form 1040).
Full-Service vs. Limited-Service: The One Test
Ask one question: when do guests pay? If they pay after the meal, it is full-service. If they pay before the meal, it is limited-service.
A steakhouse with table service is 722511. A diner with counter seating where guests order at the counter and pay at the register is 722513, even if the food is served to the table. A fast-casual spot where guests order on a screen and pick up a tray is 722513. A pizza place with delivery and a small dining room is 722513 if most guests order and pay at the counter.
Mixed operations need one code. A restaurant with a sit-down dining room and a busy takeout counter picks the side that brings in most gross receipts. If dine-in sales lead, use 722511. If takeout and counter sales lead, use 722513. The IRS rule is about principal source of sales or receipts, not about the fancier half of the business.
The same rule applies to other fields. A security guard firm that also runs a cleaning business picks by receipts too. For that work, see IRS Business Code for Security Guards: 561600 Guide.
Food Trucks, Ghost Kitchens, and Catering
A food truck is limited-service. Guests order at a window and pay before eating. Food trucks use 722513. The fact that the kitchen moves does not change the code.
A ghost kitchen is limited-service too. There is no dining room at all. Guests order online and the food is delivered or picked up. Delivery-only operations fall under the same 722513 code, because they share the limited-service model.
A coffee cart or juice stand is different. If the main sales are drinks and snacks, the code is 722515, Snack & nonalcoholic beverage bars. A coffee shop that sells mostly coffee and pastries uses 722515, not 722513.
Catering is not a restaurant at all in the chart. A caterer who cooks off-site and serves at weddings, offices, and parties uses 722300, Special food services. A restaurant owner who also caters should check the receipts. If catering brings in most receipts, the code is 722300. If the dining room brings in most receipts, the code is 722511 or 722513. A food truck driver who delivers for a restaurant is not a caterer. Delivery drivers have their own code: see IRS Business Code for Delivery Drivers: 492000 Guide.
What to Put on Line A and Line B
Line A asks for your principal business or profession in words. Keep it short and honest. Good examples include “full-service restaurant,” “limited-service restaurant,” “food truck,” or “catering service.” Pick the words that match the work that brings in most receipts.
Line B asks for the code from the instructions. Enter 722511 for a full-service restaurant, 722513 for a limited-service restaurant, 722514 for a buffet, 722515 for a snack or beverage bar, 722410 for a drinking place, or 722300 for catering. Check that Line A and Line B agree. If Line A says “full-service restaurant” and Line B says 722513, the return contradicts itself. That mismatch is easy to avoid and worth a second look before you file.
If your operation shifts from year to year, the code can shift too. A restaurant that closed its dining room and went takeout-only should use 722513 this year. Check it fresh each year instead of copying last year’s return.
What Restaurant Owners Get Wrong Most
Using 722511 for every restaurant. Full-service is only one of two restaurant codes. A fast-food spot, a takeout counter, and a food truck are limited-service: 722513.
Using a restaurant code for catering. Catering is 722300, Special food services. A caterer who uses 722511 mislabels the business.
Using a restaurant code for a bar. A bar that sells mostly alcohol is 722410, Drinking places. A restaurant with a bar is still a restaurant if food sales lead. Check which side brings in most receipts.
Picking a code by the sign instead of receipts. The IRS rule is about principal source of sales or receipts. A cafe that earns most money from catering uses 722300, even if the sign says “cafe.”
Thinking the code changes deductions. The code is a label only. It does not change your deductions, your food costs, or your self-employment tax. Deductions depend on ordinary and necessary business expenses, not on which code you enter.
Restaurant income is self-employment income, so it is different from wages. To check what the IRS has on file for you, see How to Read an IRS Account Transcript: Step-by-Step Guide.
Once your return is filed, you can follow Tax Refund Status to track any refund. Any refund the IRS issues posts to your transcript as IRS Code 846: Refund Issued.
Related Guides
- IRS Transcript Codes: Complete List and Meanings
- IRS Business Code Lookup: Schedule C Activity Codes Guide
- IRS Business Code for Security Guards: 561600 Guide
- IRS Business Code for Online Sales: Pick by Product Guide
FAQ
What is irs business code for restaurants?
It is 722511 for full-service restaurants and 722513 for limited-service restaurants, on Schedule C, Line B. Pick by how guests order and pay.
What is the difference between 722511 and 722513?
In a 722511 full-service restaurant, guests order, are served while seated, and pay after eating. In a 722513 limited-service restaurant, guests order and pay before eating.
What code do food trucks use?
Food trucks use 722513, Limited-service restaurants. Guests order at a window and pay before eating, which is the limited-service model.
What code do caterers use?
Caterers use 722300, Special food services. Catering is a separate chart entry from restaurants, so a caterer should not use 722511 or 722513.
What code do bars use?
Bars that sell mostly alcoholic drinks use 722410, Drinking places. A restaurant with a bar still uses a restaurant code if food sales bring in most receipts.
What code do coffee shops use?
A coffee shop that sells mostly drinks and snacks uses 722515, Snack & nonalcoholic beverage bars. A coffee shop where guests order full meals at a counter uses 722513.
Disclaimer: This post is general information only and is not tax advice. Every tax situation is different. For advice about your own Schedule C, consult a qualified tax professional or contact the IRS directly.