72 - Accommodation and Food Services
The North American Industry Classification System (NAICS) is essential for categorizing businesses within the US economy. One vital NAICS code for entrepreneurs, government contractors, and industry analysts alike is NAICS Code 72: Accommodation and Food Services. This sector plays a pivotal role in hospitality and foodservice, impacting millions of consumers daily. Whether you're a small caterer or a large hotel chain, understanding this code can help identify your industry classification for contracting, compliance, or market analysis.
What is NAICS Code 72?
NAICS Code 72 encompasses establishments that primarily provide:
- Lodging — Offering overnight accommodations to customers.
- Food and Beverage Services — Preparing meals, snacks, and beverages for immediate consumption.
This broad classification includes everything from hotels and motels to full-service restaurants, bars, caterers, and similar hospitality businesses.
Sector Overview: Accommodation and Food Services
The Accommodation and Food Services sector is divided into two primary subsectors:
- Accommodation
- Establishments offering lodging and related services.
- Food Services and Drinking Places
- Businesses preparing and serving food and drinks directly to customers.
These enterprises serve individuals traveling for business or leisure, as well as local customers seeking dining or catering services.
Typical Business Activities Under NAICS 72
Some common business activities within NAICS Code 72 include:
- Operating hotels, motels, inns, and resorts.
- Managing full-service and limited-service restaurants.
- Running bars, pubs, and nightclubs.
- Providing catering services for events and organizations.
- Operating cafeterias, buffets, food trucks, and snack bars.
NAICS Code 72 Details: Table Summary
| NAICS Code | Title | Description | Typical Business Types | Sector |
|---|---|---|---|---|
| 72 | Accommodation and Food Services | Establishments providing lodging and/or preparing meals, snacks, and beverages for immediate consumption. | Hotels, Motels, Full-Service Restaurants, Caterers, Bars | Accommodation and Food Services |
Size Standards for NAICS Code 72: Eligibility for Small Business Programs
The U.S. Small Business Administration (SBA) determines size standards based on either average annual receipts or the number of employees. Below are typical standards for NAICS 72:
| Subsector | Size Standard (Small Business) |
|---|---|
| Accommodation (Hotels, etc.) | 1,500 employees |
| Food Services and Drinking Places (Restaurants, Caterers) | $8 million in average annual receipts |
These size standards help define eligibility for various federal contracting and assistance programs.
Examples of Businesses Under NAICS Code 72
Here are some examples of business types classified under NAICS 72:
- Hotels and Motels — Marriott, Hilton, Holiday Inn.
- Full-Service Restaurants — Olive Garden, Outback Steakhouse.
- Caterers — Local event catering companies, corporate catering services.
- Bars and Nightclubs — Sports bars, jazz clubs.
- Limited-Service Eating Places — Fast food outlets, snack bars.
Frequently Asked Questions (FAQ) About NAICS Code 72
What businesses are included in NAICS Code 72?
The code includes businesses providing lodging and/or food services such as hotels, motels, full-service restaurants, caterers, bars, and similar establishments.
What is the importance of knowing the NAICS code for my business?
Knowing your NAICS code helps identify your industry category for government contracting, compliance, financing, and market research purposes.
Can a food truck fall under NAICS 72?
Yes, food trucks preparing and serving meals for immediate consumption are classified under NAICS Code 72.
What size standards apply to food service businesses?
Typically, food service businesses under NAICS 72 have a size standard of $8 million in average annual receipts to qualify as a small business.
How does NAICS 72 relate to government contracting?
NAICS codes, including 72, are used by federal agencies to identify supplier categories, allowing businesses to find contracting opportunities relevant to their industry.
Conclusion
NAICS Code 72 is a crucial classification covering the Accommodation and Food Services sector, containing businesses that provide lodging and immediate consumption food services. Understanding this code, along with its size standards and examples, is essential for businesses seeking to navigate government contracting, market analysis, or industry compliance effectively. Whether you're operating a boutique hotel or a neighborhood restaurant, NAICS 72 is your gateway to identifying and leveraging your market sector!
