Profit Measurement of Menu Items: In Hong Kong's Chinese Restaurants

Wai Hung Chan, Norman Au

Research output: Journal article publicationJournal articleAcademic researchpeer-review

18 Citations (Scopus)

Abstract

The long-time calculation for gross profit of a menu item is selling price less food cost, but such other inputs as labor and energy are not negligible. Moreover, not only are labor and energy usually not included in the calculation, but food costs are often not updated frequently as menu items and recipes change, owing to the complexity of making the update. A survey of operators of Chinese restaurants in Hong Kong (freestanding chain restaurants, as well as restaurants in hotels and clubs) found that the respondents support the idea of updating menu costs and considering labor and energy expenses. However, the difficulties of measuring the inputs, including numerous uninventoried food items typical of Chinese cooking, undermine a more precise profit calculation of menu items in Chinese restaurants in Hong Kong.
Original languageEnglish
Pages (from-to)70-75
Number of pages6
JournalCornell Hotel and Restaurant Administration Quarterly
Volume39
Issue number2
DOIs
Publication statusPublished - 1 Jan 1998

ASJC Scopus subject areas

  • Tourism, Leisure and Hospitality Management

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