Estimate the Yearly Sales of a Restaurant You Know Well

Quick Overview

A product manager estimation exercise: choose a restaurant you know and estimate how much revenue it brings in over a year. It tests how you define revenue, break the estimate into drivers, state round-number assumptions, carry the arithmetic through cleanly and sanity-check the final figure.

Estimate the Yearly Sales of a Restaurant You Know Well

Company: Google

Role: Product Manager

Category: Product / Decision Making

Difficulty: medium

Interview Round: Other

Pick a restaurant you know well, such as a favorite place or one you order from often, and estimate how much revenue it takes in over a year. Walk the interviewer through how you break the problem into parts, the assumptions you choose and why, the arithmetic, and how you would check that the final figure is believable. ```hint Build from what you can observe Think about what you would notice on a visit: how many people the room holds, how busy it gets at different meals and on different days, what a typical bill comes to, and how much food leaves as takeout. Each of those can become one factor you estimate separately. ``` ### Clarifying Questions - Does "revenue" mean the total sales the restaurant takes in, or what remains after paying for ingredients, staff and rent? - Should tips and sales tax count, given that tips usually go to staff and tax is passed on to the government? - Should takeout, delivery-app orders and private events be included alongside dine-in sales? - Should the estimate describe a normal trading year rather than one disrupted by a long closure or a renovation? ### What a Strong Answer Covers - A precise definition of revenue agreed before calculating: gross sales versus profit, and how tips, tax and delivery-app commissions are treated. - A short description of the chosen restaurant (format, size, price level, opening days) that grounds every later assumption. - An equation that separates dine-in sales by meal period and type of day from takeout, delivery and other income. - Round-number assumptions labeled as assumptions, with the arithmetic carried correctly through to a yearly total. - A sanity check from a second angle and a view of which assumptions move the answer most. ### Follow-up Questions - Which single assumption has the largest effect on your total, and how would you pin it down with one visit to the restaurant? - Part of the takeout volume arrives through delivery apps that keep a commission. How would you adjust the estimate if the interviewer wants the money the restaurant actually receives? - How would you turn this revenue estimate into an estimate of the restaurant's yearly profit?

Overview: A product manager estimation exercise: choose a restaurant you know and estimate how much revenue it brings in over a year. It tests how you define revenue, break the estimate into drivers, state round-number assumptions, carry the arithmetic through cleanly and sanity-check the final figure.

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Google
Sep 12, 2025
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Pick a restaurant you know well, such as a favorite place or one you order from often, and estimate how much revenue it takes in over a year. Walk the interviewer through how you break the problem into parts, the assumptions you choose and why, the arithmetic, and how you would check that the final figure is believable.

Clarifying Questions Guidance

  • Does "revenue" mean the total sales the restaurant takes in, or what remains after paying for ingredients, staff and rent?
  • Should tips and sales tax count, given that tips usually go to staff and tax is passed on to the government?
  • Should takeout, delivery-app orders and private events be included alongside dine-in sales?
  • Should the estimate describe a normal trading year rather than one disrupted by a long closure or a renovation?

What a Strong Answer Covers Guidance

  • A precise definition of revenue agreed before calculating: gross sales versus profit, and how tips, tax and delivery-app commissions are treated.
  • A short description of the chosen restaurant (format, size, price level, opening days) that grounds every later assumption.
  • An equation that separates dine-in sales by meal period and type of day from takeout, delivery and other income.
  • Round-number assumptions labeled as assumptions, with the arithmetic carried correctly through to a yearly total.
  • A sanity check from a second angle and a view of which assumptions move the answer most.

Follow-up Questions Guidance

  • Which single assumption has the largest effect on your total, and how would you pin it down with one visit to the restaurant?
  • Part of the takeout volume arrives through delivery apps that keep a commission. How would you adjust the estimate if the interviewer wants the money the restaurant actually receives?
  • How would you turn this revenue estimate into an estimate of the restaurant's yearly profit?