Comparison of Cost Structures of Food Stores and Eating and Drinking Places

Terry L. Crawford and Leland W. Southard

No 323921, Miscellaneous Publications from United States Department of Agriculture, Economic Research Service

Abstract: Eating and drinking places have increased their dollar share of the total food market. They have a gross margin estimated at 2½ times that of food stores. Although gross margins for the two differ greatly because of the kinds of functions and services performed, individual operating expenses as a share of gross margin are similar. Labor, the largest expense, accounts for slightly over 40 percent of the gross margin of both type of businesses. Operating expenses as a proportion of sales tend to be lower for larger firms, indicating higher profit ratios.

Keywords: Financial Economics; Labor and Human Capital; Marketing (search for similar items in EconPapers)
Pages: 16
Date: 1970-08
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uersmp:323921

DOI: 10.22004/ag.econ.323921

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