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Given that most operations have both a service aspect (interacting directly with the patron) and production facet (making ready meals or drink to be consumed), the primary prices incurred during these activities often decide the feasibility or success of the operation. This is very true as the primary product (e.g., food and drinks) is perishable; ordering the right amount requires ability and experience.
Whereas many factors influence the profitability of foodservice operations, key issues include kind of business, location, price control and revenue margin, gross sales and advertising strategies, and human assets administration. We have already examined the several types of operation, and their relative revenue margins. Let’s take a look at the opposite profitability considerations in additional element.