|
|
Article: Profitable manual foodservice part 3: structuring the management fee.
- Article from:
- Automatic Merchandiser
- Article date:
- May 1, 2001
- Author:
CopyrightCOPYRIGHT 2001 Johnson Hill Press, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Manual food can be profitable if vendors:
1) understand all the costs,
2) communicate them to the customer, and
3) give the customer payment options
In my last article, I discussed the differences between a P&L, a subsidy and a management fee operating format for operating manual foodservice profitably. You will recall that under a P&L or subsidy format, the risk of earning a profit or incurring a loss remains with the operator.
The location may make a negotiated subsidy payment to the operator, but the location does not guarantee the operator will earn a profit.
Under a management fee format, the location assumes the ...