Information about http://www.census.gov/epcd/naics/naics_03.pdf

Part III - PROPOSED NEW INDUSTRY STRUCTURE FOR FOOD SERVICES AND…

Tags: additional detail, aggregates, american industry classification, attache, brief description, committee meeting, comparability, data users, digit level, final decision, food services, foodservices, industry classification system, industry structure, interested data, jack e triplett, naics structure, north american industry classification system, ottawa canada, structure xx,
Pages: 13
Language: english
Created: Mon Jun 3 09:03:07 1996

Display cached document

Page 1

Page 2

Page 3

Page 4

Page 5

Page 6

Page 7

Page 8

Page 9

Page 10

Page 11

Page 12

Page 13

Part III - PROPOSED NEW INDUSTRY STRUCTURE FOR FOOD SERVICES AND
DRINKING PLACES AND ACCOMMODATIONS

Section A - NAICS Structure and Narrative

NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM

(NAICS)

AGREEMENT Number 3

This Document represents the proposed agreement on the structure of the North America
n
Industry Classification System (NAICS) for the following industries:

Foodservices and Drinking Places
Accommodations

The detailed NAICS structure along with a brief description of the structure is attache d
(Attachments 1 and 2). Each country agrees to release a copy of the proposed NAICS structure
to interested data users . Comments received will beshared among the countries and discussions
held before a final decision on the structure is made. Each country may add additional detailed
industries, below the 4-digit level of NAIC as necessary to meet national needs, so long as this
S,
additional detail aggregates to a 4-digit NAICS l vel in order to ensure full comparability among
e
the three countries. This NAICS structure was presented and provisionally accepted at th e
NAICS Committee meeting held on May 18 and 19 in Ottawa, Canada.

ACCEPTED: Signature Date

Canada /s/ Jacob Ryten 5/19/95

Mexico /s/ Enrique Ordaz 5/19/95

United States /s/ Jack E. Triplett 5/19/95
ATTACHMENT 1

NAICS STRUCTURE

XX FOODSERVICES AND DRINKING PLACES

XXX Full-Service Restaurants
XXXX Full-Service Restaurants

XXX Limited-Service Eating Places
XXXX Limited-Service Restaurants and Cafeterias
XXXX Refreshment Places

XXX Special Foodservices
XXXX Foodservice Contractors
XXXX Caterers
XXXX Mobile Caterers

XXX Bars, Taverns, and Other Drinking Places (Alcoholic Beverages)
XXXX Bars, Taverns, and Other Drinking Places (Alcoholic Beverages)

XX ACCOMMODATIONS

XXX Traveler Accommodations
XXXX Hotels and Motels, except Casinos
XXXX Casino Hotels
XXXX Other Traveler Accommodations

XXX Recreational and Other Accommodations
XXXX Recreational Vehicle Parks and Camps
XXXX Rooming and Boarding Houses
ATTACHMENT 2

North American Industry Classification System

Draft Classification for: Foodservices and Drinking Places
Accommodations

Representatives of the statistical agencies of Canada, Mexico and the United States have
agreed to a draft industry classification for Foodservices and Drinking Places and
Accommodations. These are further subdivided into six industry groups and ten industries.

Achievements of Objectives

The classification meets the objectives for the North American Industry Classification
System. It is comprised of industries which group establishments with similar production
processes, that is, it applies the production-oriented economic concept. The hierarchical
structure also follows the production concept.
The classification achieves comparability for the three participating countries. Based on
existing data, all three countries expect to be able to publish data regularly at the NAICS 4-
digit industry level of the NAICS structure with the exception of Casino Hotels, which will be
published only in the United States. All countries agree on the detailed definitions of the
industries.
The classification improves comparability with other countries. The grouping of the
Accommodations Subsector with the Foodservices and Drinking Places Subsector achieves
comparability with the International Standard Industrial Classification of All Eocnomic
Activities (ISIC, Revision 3) of the United Nations at the 2-digit level, with the exception of
doughnut shops which are included in the Foodservices and Drinking Places Subsector in
NAICS and in the Manufacturing Division in ISIC. This means that the NAICS classification
is the same as, or part of, a single ISIC 2-digit Division.
Other objectives of the NAICS project have also been met. New industries for different
types of restaurants have been designated. These classifications reflect changes in the
industry which have occurred in the past but have never been identified in the classification
system.
In addition to the above objectives of the NAICS project, the classification meets the
objectives of an industry classification. The industries are homogeneous and they are
economically significant. Finally, disruptions at the NAICS industry level to time series have
been kept to a minimum. In the United States, the major changes to existing classifications at
the country level establish additional detail in the industry group, which can readily be linked
to construct time series.
FOODSERVICES AND DRINKING PLACES

Limitations of the Classification

There are some limitations to the draft foodservices and drinking places hierarchy. A
number of related industries which provide foodservices as a secondary activity are not
included. These are such activities as dinner theaters, dinner cruises, and fraternal
organizations that provide foodservices to their members. These activities are not included in
this industry subsector but will be classified in other service related industry subsectors based
on their primary activity.

Constraints on the NAICS Classification

A number of industries which can appropriately be defined in terms of production
distinctions could not be published in all countries because of considerations of size and
confidentiality. In addition, the way activities are combined in establishments differs to some
extent in the different countries. It is anticipated that each country will publish additional
categories which comprise sub-divisions of NAICS industries, to present data for activities
which are nationally significant.

A General Outline

The foodservices and drinking places grouping of industries is defined to include
establishments that are primarily engaged in preparing meals, snacks, and beverages to
customer order for immediate consumption, primarily on the premises. Within the subsector
Food Services and Drinking Places, the industry groups (Full-Service Restaurants; Limited-
Service Eating Places; Special Foodservices, and Bars, Taverns, and Other Drinking Places)
reflect the level of service provided. The NAICS industries are described below.
Full-Service Restaurants provide a complete menu of full meals and full waiter/waitress
service.
Limited-Service Eating Places provide a limited menu, limited waiter/waitress service, or
both. This group is separated into limited-service restaurants and cafeterias. Limited-Service
includes fast food and take out, plus cafeterias which are distinguished based on the cafeteria-
style serving equipment. Refreshment places include doughnut shops, pretzel shops, cookie
shops, coffee shops, and other such locations that primarily prepare and provide a single-item
menu of food and drink for immediate consumption. Establishments that primarily resell food
and drink prepared elsewhere, and which do not provide an eating place, are classified in
retail trade.
Special Foodservices provide foodservices under special conditions. The group
distinguishes Foodservice Contractors, Caterers, and Mobile Caterers. Foodservice
Contractors operate under a long term contract to provide foodservices primarily in
institutional, office, or industrial locations. Caterers provide event-based foodservice for both
households (weddings, etc.) and industrial accounts (trade shows, etc.). Mobile Caterers are
distinguished based on the use of a specialized vehicle and mobile service. Food carts that
prepare foods rather than merely selling food prepared elsewhere are classified in this
industry.
Bars, Taverns, and Other Drinking Places (Alcoholic Beverages) are distinguished based
on the use of special equipment, training and skills in the preparation and serving of alcoholic
beverages.

Some Changes to National Classification

This section highlights some of the significant changes to existing national industry
classifications. For foodservices, all countries have had separate industries based on food
versus alcoholic beverages; however, this draft proposes new detail for the U.S. and a
redefinition of many of the industries for both Canada and Mexico.
For Canada, this draft regroups the activities included in CSIC 9211, 9212, and 9213.
Full-Service includes some of the operations that are currently in CSIC 9211 and 9212. The
remaining establishments in these industries, namely those providing limited service are
combined with the establishments in CSIC 9213 to form the Limited-Service Eating Places
industry of NAICS. New detail for foodservices contractors, caterers, and mobile caterers has
been established from within CSIC 9214.
For Mexico, parts of CMAP 931011 (all but cafeterias, dining cars, and vending
machines), 931013, and 931015 are combined in the full-service classification. CMAP
931012 (except industrial cafeterias), 931014, and 931015 make up the new Limited-Service
Eating Place industry group.
For the United States, USIC 5812 is split into separate detail for full-service, limited-
service, and special services restaurants with additional U.S. detail for special services
including foodservice contractors, caterers, and mobile caterers, a total of six new industries.

ACCOMMODATIONS

Limitations and Constraints of the NAICS Classification

There are some limitations to the draft accommodations structure. Accommodation
establishments, especially hotels and motels, provide many services other than lodging. For
example, many establishments have restaurants. Others have recreational facilities. Small
establishments with very limited lodging facilities may offer no amenities at all. Hotels and
motels are accordingly not homogeneous with respect to the services they provide. Moreover,
this is by far the largest industry in the subsector. Nevertheless, no acceptable way was found
to clearly demarcate the hotel and motel industry into more detailed industries that would be
collectible in all three countries, and would apply to the operations of the industry in all three
countries. Each country may add additional detailed industries, below the 4-digit level of
NAICS, as necessary to meet national needs, so long as this additional detail aggregates to a
NAICS industry level in order to ensure full comparability among the three countries.

A General Outline

The accommodations area is defined to include establishments that are primarily engaged
in providing short-term accommodations. The industry groups and industries within
accommodations have been grouped based on the various levels of services and facilities
provided. The NAICS industries are described below.

Hotels and Motels primarily provide traditional types of lodging services to travelers. In
addition to lodging, a range of other services may be provided.
Casino Hotels include both lodging and gaming casinos as an integrated facility. Both the
lodging and gaming services are generally major operations and a separate industry has been
created to classify these establishments. Casino Hotels are classified in this industry
regardless of whether separate data are available for the gambling and hotel activities of these
establishments. This industry is becoming large in the United States, though it does not
currently exist in Canada and Mexico.
Other Traveler Accommodations include bed and breakfast establishments, hostels, and
other establishments which provide lodging to travelers but provide few of the types of
ancillary services that hotels and motels commonly provide.
Recreational Vehicle Parks and Camps provide special types of accommodations for
travelers, vacationers, and others. The facilities are often outdoors (such as campsites) and
are recreational in nature.
Rooming and Boarding Houses include establishments renting rooms, with or without
board, for indefinite periods. This industry primarily includes establishments known as
rooming houses and student residences.

Changes to the National Classifications

This section highlights some changes to each countrys current industry classification of
accommodations. The most significant are:
For the United States, the distinction between membership and non-membership
organizations that provide lodging has been deleted from the classification. Such activities
will be classified based upon the type of accommodations being provided. The current
industry for hotels and motels (SIC 7011) has been divided into four NAICS industries. Also,
separate industries for recreational vehicle parks and sporting camps have been combined.
For Canada, the proposal regroups four existing industries (CSICs 9111, 9112, 9113,
9114) into two NAICS industries within the Traveler Accommodations industry group. In
addition, three existing industries have been combined into a recreational vehicle parks and
camp industry.
For Mexico, the proposal regroups three existing industries (CMAPs 932001, 932002,
932012) into two NAICS industries within the industry group for traveler accommodations.
Section B - Annex: United States National Industry Detail

As explained in the Structure presentation of this notice, the three country agreement on
NAICS envisions that each country may choose to develop national detailed industries below
the NAICS industry level, so long as the national detail can be aggregated to the NAICS
classification, thus assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the two NAICS industry subsectors
covered in Part III of this notice. In the following tables, proposed 5-digit detail is indicated in
italics. For cases where no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-
digit industries will also represent the most detailed U.S. industries.
TABLE 1
The definitions of status codes are as follows: E-existing industry; N-new industry; R-revised industry; and * means "part of". The abbreviation NEC is used for Not Elsewhere Classified.

1997 NAICS & U.S. DESCRIPTION STATUS 1987 USIC 1987 USIC DESCRIPTION
CODE CODE

XX Foodservices and Drinking Places

XXX Full-Service Restaurants
XXXX Full-Service Restaurants N 5812 * Eating Places

XXX Limited-Service Eating Places

XXXX Limited-Service Restaurants and Cafeterias

XXXXX Limited-Service Restaurants N 5812 * Eating Places (Limited-Service Restaurants)

XXXXX Cafeterias N 5812 * Eating Places (Cafeterias)

XXXX Refreshment Places N 5812 * Eating Places (Refreshment Places)

5461* Retail Bakeries (Snacks)
XXX Special Foodservices

XXXX Foodservice Contractors N 5812 * Eating Places (Food Service Contractors)

XXXX Caterers N 5812 * Eating Places (Caterers)

XXXX Mobile Caterers N 5963 * Direct Selling Establishments (Mobile Caterers)

XXX Bars, Taverns, and Other Drinking Places (Alcoholic Beverages)

XXXX Bars, Taverns, and Other Drinking Places (Alcoholic Beverages) E 5813 Drinking Places (Alcoholic Beverages)

XX Accommodations

XXX Traveler Accommodations

XXXX Hotels and Motels, except Casino Hotels R 7011* Hotels and Motels (Hotels and Motels, Except
Casino Hotels)

7041* Organization Hotels and Lodging Houses, on
Membership Basis (Except Hotels)

XXXX Casino Hotels N 7011* Hotels and Motels (Casino Hotels)

XXXX Other Traveler Accommodations
XXXXX Bed and Breakfast Inns N 7011* Hotels and Motels (Bed and Breakfast Inns)

XXXXX All Other Traveler Accommodations N 7011* Hotels and Motels (Except Hotels, Motels and
Bed and Breakfast Inns)

XXX Recreation and Other Accommodations 7041* Organization Hotels and Lodging Houses, on
Membership Basis (Except Hotels)

XXXX Recreational Vehicle Parks and Camps

XXXXX Sporting and Recreation Camps E 7032 Sporting and Recreational Camps

XXXXX Recreational Vehicle Parks and Campgrounds E 7033 Recreational Vehicle Parks and Campgrounds

XXXX Rooming and Boarding Houses R 7021 Rooming and Boarding Houses

7041* Organization Hotels and Lodging Houses, on
Membership Basis (Rooming and Boarding
Houses)
TABLE 2

The abbreviation "pt" means "part of". @ means time series break has been created that is greater than 3% of the 1992 revenues for the 1987 SIC industry.

1987 USIC
CODE 1987 USIC DESCRIPTION 1997 U.S. DESCRIPTION

5812@ Eating Places Full-Service Restaurants
Limited-Service Restaurants
Cafeterias
Refreshment Places (pt)
Foodservice Contractors
Caterers

5813 Drinking Places Bars, Taverns, and Other Drinking
Places (Alcoholic Beverages)

7011 Hotels and Motels Hotels and Motels, except Casino Hotels (pt)
Casino Hotels
Bed and Breakfast Inns
All Other Traveler Accommodations, NEC

7021 Rooming and Boarding Houses Rooming and Boarding Houses (pt)

7032 Sporting and Recreational Camps Sporting and Recreation Camps

7033 Recreational Vehicle Parks and Campsites Recreational Vehicle Parks and Campgrounds
7041@ Organization Hotels and Lodging Houses, on Membership BasisHotels and Motels, except Casino Hotels (pt.) Rooming and Boarding Houses (pt)
Description of Changes to the U.S. System

1. Foodservices and Drinking Places - Seven new industries are added to the 1997
industry structure for this industry subsector. New industries are the following:

Full-Service Restaurants from part of 1987 Industry Code 5812, Eating Places.

Limited-Service Restaurants from part of 1987 Industry Code 5812, Eating
Places.

Cafeterias from part of 1987 Industry Code 5812, Eating Places.

Refreshment Places from parts of 1987 Industry Code 5812, Eating Places and
Industry Code 5461, Retail Bakeries.

Foodservice Contractors from part of 1987 Industry Code 5812, Eating Places.

Caterers from part of 1987 Industry Code 5812, Eating Places.

Mobile Caterers transferred from part of 1987 Industry Code 5963, Direct
Selling Establishments.

The number of Foodserving and Drinking Places increased from 2 in 1987 to 8
in 1997. For time series linkage, 1 of the 2 1987 industries is comparable
within three percent of the 1997 industries. The other industry was split into 7
new industries.

2. Accommodations - Three new industries are added to the 1997 industry structure for
this industry subsector. New industries are the following:

Casino Hotels from part of 1987 Industry Code 7011, Hotels and Motels.

Bed and Breakfast Inns from part of 1987 Industry Code 7011, Hotels and
Motels.

Other Traveler Accommodations, NEC from part of 1987 Industry Code 7011,
Hotels and Motels.

One industry was deleted from this industry subsector.

Organization Hotels and Lodging Houses, on Membership Basis were deleted
and the accommodations were split between Hotels and Motels, except Casino
Hotels and Rooming and Boarding Houses.

The number of 1997 Accommodations Industries increased from 5 in 1987 to 7 in
1997. For time series linkage, 4 of the 5 1987 industries are comparable within three
percent of the 1997 industries.