Small restaurant businesses and the importance of knowledge of cost management: an exploratory study

Document Type

Journal Article

Publisher

Inderscience

Faculty

Faculty of Business and Law

School

School of Business / Markets and Services Research Centre

RAS ID

17661

Comments

Duarte Alonso, A. , & Krajsic, V. (2014). Small restaurant businesses and the importance of knowledge of cost management: an exploratory study. International Journal of Leisure and Tourism Marketing, 4(1), 31-49. Available here

Abstract

The ability of hospitality owners and managers, including those of small businesses, to manage the costs of their operations is critical to guaranteeing the business's long-term survival. Through semi-structured, in-depth interviews with small restaurant owners and managers, this study examines several areas related to knowledge of cost management from the perspective of this group of hospitality businesses. The findings illustrate that respondents' cost management knowledge is closely related to problem-solving strategies in addressing labour, food, rent, and other costs. Similarly, knowledge of managing these costs is suggested as vital for future owners and managers. Given the very competitive nature of the hospitality industry, coupled with the constant concern of balancing costs, revenues, and low margins, the findings have important implications for practitioners and academics; in addition, potential avenues for future investigation are suggested.

DOI

10.1504/IJLTM.2014.059265

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