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

Authors: Abel Duarte Alonso; Vlad Krajsic

Addresses: School of Marketing Tourism and Leisure, Edith Cowan University, 100 Joondalup Dr., Joondalup, 6027 WA, Australia ' School of Business, University of Western Sydney, Locked Bag 1797, Penrith South DC, NSW 2571, Australia

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.

Keywords: hospitality industry; cost management; knowledge-based theory; KBT; tacit knowledge; restaurant owner-managers; perceptions; small restaurant businesses; small restaurants; small businesses.

DOI: 10.1504/IJLTM.2014.059265

International Journal of Leisure and Tourism Marketing, 2014 Vol.4 No.1, pp.31 - 49

Received: 09 Oct 2013
Accepted: 02 Dec 2013

Published online: 07 Aug 2014 *

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