why are gift cards considered liabilities for restaurants rather than revenue?

Question

why are gift cards considered liabilities for restaurants rather than revenue?

In: Economics

Answer 1

It’s a liability because at a later date the holder could/will use it. They take the money today but they still owe you the meal at some point in the future. That meal carries costs of goods sold and payroll costs, etc. it remains a liability until it so redeemed or it expires.