Elias Bros. Restaurants, Inc. v. Treasury Department

*146Weaver, J.

Petitioner-appellee, Elias Brothers Restaurants, Inc., owns the Big Boy restaurant chain. Twenty-five percent of the Big Boy restaurants are company owned and operated. The remaining seventy-five percent are franchised. Food for both company-owned and franchised restaurants is produced at a facility called the Commissary, which Elias Brothers owns and operates.

We are asked to determine whether the cost of equipment and supplies used at Elias Brothers’ Commissary for production of food and beverages for its company-owned restaurants is exempt from use tax.1 We find that Elias…