COST MANAGEMENT IN THE HOSPITALITY INDUSTRY IN THE CONTEXT OF THE ECONOMIC CRISIS - NECESSITY OR STRATEGY

Gina GILET Dobrota () and Emilia Gabroveanu ()
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Gina GILET Dobrota: Romanian American University, Bucharest
Emilia Gabroveanu: Romanian American University, Bucharest

Romanian Economic Business Review, 2023, vol. 18, issue 2, 25-30

Abstract: Cost management represents a very smart economic move and it is undoubtedly essential in today’s economy tried by the economic crisis due to the pandemic and the war in Ukraine. Most companies have already faced the need to reduce costs, but companies should resort to this strategy without frustrating employees and taking drastic or visible measures that can affect customers. If until now it was an aspect taken into consideration when businesses encountered problems, at the present time it is definitely a necessity. In addition to the economic crisis, cost management also becomes important in an era of digital transformations. In this context, the HORECA industry, one of the hardest-hit industries during the pandemic, nevertheless experienced a strong development regarding the home delivery segment, a category in which digitalization is accentuated. Many companies have expanded their activity on deliveries in a chaotic way, without studies and development plans. Regardless of whether they were just catering companies with delivery or restaurants that wanted to survive, these companies allocated too much funds, which now burdens their budgets and endangers their business profitability. Thus, in this context, the present study aims to analyze the impact of cost reduction in public catering units.

Keywords: food industry; pandemic era; economic crisis; cost management (search for similar items in EconPapers)
Date: 2023
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