INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
Page 3484
www.rsisinternational.org
Cost Management Practices and Common Problems Encountered by
Selected Coffee Shops in Bangued, Abra
Miguel, Lyca Faye B.
College of International Tourism and Hospitality Management, Lyceum of the Philippines University,
Manila Philippines
DOI: https://dx.doi.org/10.47772/IJRISS.2025.910000284
Received: 30 October 2025; Accepted: 05 November 2025; Published: 11 November 2025
ABSTRACT
This study explored the cost management practices, and common challenges faced by selected locally owned
coffee shops in Bangued, Abra. Using a quantitative descriptive-correlational research design, the study aimed
to assess the level of cost management practices across labor, food, and operational expenses, and to determine
whether demographic factors influence these practices. A total of 52 respondents, including 12 owners/managers
and 40 employees, participated through a validated self-made questionnaire.
Data were collected through a validated self-made questionnaire with three sections covering demographic
profiles, cost management practices, and common problems across labor, food, and operational costs. The
instrument demonstrated good to excellent reliability (Cronbach's α ranging from 0.765 to 0.853). Statistical
analysis employed frequency distributions, weighted means, and chi-square tests.
Findings revealed that most respondents were young, male, and relatively new to the industry, with limited
training exposure. Overall, coffee shops demonstrated very high effectiveness in managing costs, particularly in
food cost control, followed by labor and operational costs. While demographic factors such as age, sex,
education, and training hours showed no significant impact, years of service were found to correlate positively
with food and operational cost management. Labor cost management, however, appeared unaffected by
experience.
Despite strong cost management performance, coffee shops still encountered moderate challenges, especially in
labor and operational expenses, largely due to the service-intensive nature of the business and reliance on
equipment and utilities. Food and beverage costs posed fewer issues.
The study suggests that continuous training, energy-efficient practices, and leveraging employee experience may
further enhance cost efficiency. Future research is encouraged to explore additional variables that may influence
cost management outcomes such as ownership structure, managerial expertise, education, and diversity. Lastly,
consider conducting cross-country or comparative studies to better understand how different ownership
structures influence cost management practices and to improve the generalizability of the findings.
Keywords: cost management, coffee shops, labor costs, food costs, operational costs
INTRODUCTION
The food and beverage industry remains to be one of the most attractive sectors for startup entrepreneurs due to
its relatively low barriers to entry, low to moderate initial capital requirements, and ease of establishment (Mun
and Jang, 2017). Additionally, the industry benefits from consistent demand as food and beverages are basic
human needs. Among the various types of food service establishments, coffee shops have emerged as particularly
popular ventures. According to Azahra et al. (2024) Drinking coffee is deeply ingrained in many cultures around
the world, it's beyond a morning ritual but becomes a social experience that brings people together. Today, coffee
shops serve multiple functions beyond simply serving beverages. They have evolved into social hubs where
people gather for different reasons such as business meetings, networking, socialization, and even provide quiet
spaces where students can study. Moreover, coffee is one of the most widely consumed beverages globally,
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
Page 3485
www.rsisinternational.org
contributing significantly to the widespread popularity of coffee establishments (Tumanan & Lansangan, 2011).
Increasing disposable incomes, changing lifestyles, and a rising coffee culture among consumers across the globe
are contributing to the overall growth of the market.
While industry giants such as Starbucks have historically dominated the coffee market, recent years have
witnessed a notable proliferation of small-scale and locally-owned coffee shops. This trend demonstrates both
the enduring popularity of coffee culture and the perceived viability of coffee shop ventures as profitable
investments, encouraging numerous entrepreneurs to enter this market segment.
This phenomenon has been particularly evident in Abra province, specifically in its capital, Bangued, where
there has been a remarkable boom in the coffee shop industry in recent years. The emergence of numerous coffee
establishments in this relatively small urban center presents an interesting case study for examining the
operational dynamics of small-scale coffee businesses.
According to Zainol et. al (2023) Most food service restaurants are relatively small, and in many cases their
management is often less experienced, which contributes to insufficient or weak control systems being exercised.
Moreover, Lymar and Gumeniuk (2019) mentioned that one of the main reason most restaurants are not able to
manage their finances and suffer losses is that they are not able to keep their restaurant costs in check. Restaurant
Cost Control is essential as it allows to identify the area of expenses and take corrective and preventive measures
to keep a healthy ratio between expenses and finances.
Given this context, the researcher was prompted to conduct this study to gain insights into the cost management
practices employed by these coffee shops, as well as to identify the common challenges and problems these
establishments encounter when operating in a small town or small-scale environment. Understanding these
factors will contribute valuable knowledge to the existing literature on small business management and provide
practical insights for current and prospective coffee shop entrepreneurs in similar settings.
Objective/Statement of the Problem
This study seeks to address the lack of information regarding how locally owned coffee shops in Bangued, Abra
effectively manage their labor, food, and operational costs, and whether the profiles of owners and employees
influence these cost management practices.
Specifically, it aims to answer the following questions:
1. What is the profile of the owners/managers and employees of locally owned coffee shops in Bangued, Abra?
2. What is the level of cost management practices employed by these coffee shops in terms of labor, food, and
operational costs?
3. Is there a significant relationship between the respondents’ profiles and their cost management practices?
4. What are the common challenges encountered in managing labor, food, and operational costs?
Hypothesis
H
0:
There is no significant relationship between the profile of the respondents and the level of cost management
practices of the locally owned restaurants in Abra.
Significance of the Study
This study provides valuable insights that can benefit the following stakeholders:
Owners and Managers of Coffee Shops: It provides a clearer understanding of areas needing improvement,
including employee perspectives, enabling them to enhance their cost management practices and overall
operations.
Local Government Unit: The findings can guide local authorities in supporting coffee shops more effectively,
such as through organizing targeted seminars and training programs to improve business practices.
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
Page 3486
www.rsisinternational.org
Potential Entrepreneurs: This study offers practical information on the cost management strategies employed by
existing coffee shops, which can inform and guide future entrepreneurs planning to establish similar businesses.
Future Researchers: The study serves as a reference and foundation for conducting similar research on cost
management practices in locally owned businesses or related fields.
REVIEW OF RELATED LITERATURE CONCEPTUAL FRAMEWORK
Effective cost management is an essential foundation for achieving operational efficiency and financial success
across industries, including the restaurant sector. Pramanick, A., Sharma, S., & Slath, A. (2025). Cost
management is a key aspect of enterprise management system; it is closely linked to economic benefits and is
fundamental in improving organizational performance. Effective cost control requires thorough attention to
every detail, as it enables enterprises to achieve their operational targets and production goals by precisely
adjusting the expenses of their operational activities (Chang, 2024).
In a competitive and increasingly complex business environment, cost management has emerged as a pivotal
strategy for achieving operational efficiency and sustaining profitability. Companies today face multifaceted
pressures, from rising raw material costs and fluctuating market demands to the need for innovation and
sustainable practices. By integrating cost management into overall business strategy, organizations can better
control spending, streamline operations, and maximize financial outcomes (Kumar, 2024).
Cost cutting, in simple terms, refers to the act of reducing expenses to improve profitability. Various cost-cutting
strategies include reducing the number of employees, limiting benefits, lowering raw material costs by ordering
in bulk instead of small quantities, decreasing portion sizes, modifying standard recipes, and using substitutes.
Additionally, it involves minimizing overhead expenses such as rent and utilities (Awasthi, Nain, & Roy, 2020).
As an important component of the world economy, the restaurant sector contributes much more than meals. It
stimulates the growth of local business, draws tourists, and acts a hub for cultural exchange (Pramanick, A.,
Sharma, S., & Slath, A. 2025). In the restaurant industry, which is highly competitive and dynamic, cost control
is crucial for maintaining profitability and financial sustainability. While established national and multi-chain
foodservice operators employ strict food cost control procedures, less is known about the cost control practices
of small, single-unit restaurants (Barnard, 2009). This is particularly important as increases in labor, food, and
rent costs complicate cost management for many hospitality businesses (Alonso & Krajsic, 2014).
Cost Control strategy is an essential element of any food service operations planning. It is one of the several
vital elements necessary for the operation to be able to effectively compete in the marketplace (Penaflor, 2023).
Hence, effective cost management is crucial for its profitability and financial sustainability. Operational costs
have been proven difficult to control especially for the emerging fast-casual restaurants because of many factors,
among others include poor management systems, high levels of theft and the increasing economic crisis (Gumbo,
2023). Therefore, optimizing cost is significant in contemporary business operations, especially restaurants,
since it is the foundation for maximizing profitability (Kankam-Kwarteng et al., 2019).
Restaurants need efficient cost management strategies due to highly competitive market conditions. A
restaurant's overhead costs cover rent, utilities, maintenance, and the interplay between fixed and variable costs
and are key to developing pricing strategies. high prime costs (food costs and salary expenses) could be a major
concern for full-service restaurant businesses and cause lower profitability (Mun & Jang, 2018). Through careful
monitoring and optimization of cost components, restaurants can secure competitive pricing, improve service
standards, increase customer satisfaction, and ensure long-term business viability (Mun & Jang, 2018). The
effective application of cost control measures, supported by modern technology and staff training, is essential
for restaurants to thrive in a competitive market while maintaining profitability.
THEORETICAL FRAMEWORK
This study is anchored on the RBV theory that explains the importance of internal resources for achieving the
sustainable competitive advantage (Barney, 1991). RBV Theory emphasizes that an internal analysis of the
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
Page 3487
www.rsisinternational.org
differences in resource of business even within the same industry can be a source of a sustainable competitive
advantage A Business is said to have a competitive advantage when it can produce more economically and/or
better satisfy customer needs. Further, Resource-Based View Theory explains the role of various resources, both
tangible and intangible resources, in creating and maintaining a company’s competitive advantage. (Mailani et
al., 2024) In this study it investigates how locally owned coffee shops manage their internal resources specifically
in terms of labor, food cost, and operational costs which are internal capabilities which are central to RBV and
factors that affects competitive advantage.
Conceptual Framework
This study was guided by the model below.
INDEPENDENT VARIABLES DEPENDENT VARIABLES
Figure 1. Research Paradigm
The paradigm shows the relationship between the independent and dependent variables of the study. The
independent variables refer to the profile of the owner-managers and employees of locally owned coffee shops
in Bangued, Abra. The dependent variables pertain to the level of cost management practices employed by these
coffee shops, specifically in terms of labor, food, and operational costs. Furthermore, the study also identifies
the common challenges encountered by these establishments.
METHODOLOGY
Research Design
This study employed a quantitative descriptive correlational research design. It is descriptive because it aims to
determine the profile of respondents and the level of cost management practices, as well as the common
challenges encountered by the locally owned coffee shops in Abra. It is correlational as it seeks to examine
whether significant relationships exist between respondents’ profiles and their cost management practices in the
terms of labor, food, and operational costs.
Population and Sample
The respondents of this study were the owners and managers and their employees of locally owned coffee shops
in Bangued, Abra. A total enumeration sampling technique was employed, including all 12 owners/managers
and 40 employees, for a total of 52 respondents.
Research Limitations
This study employed a total enumeration and focused specifically on locally-owned coffee shops in Bangued,
Abra. Due to geographic concentration of the sample, the findings may not be generalizable to coffee shops
Profile of the Respondents
a.Level of Cost Control
Management Practices of the
Locally-owned Coffee Shop in
Bangued along the following:
b.Labor Cost
c.Food Cost
d.Operational Cost
Common Challenges Encountered
in Managing Labor, Food, and
Operational Costs
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
Page 3488
www.rsisinternational.org
located in larger urban areas with different market conditions, customer preferences, and socio-political or
regulatory environments.
Data Gathering Instrument
The researcher used a self-made questionnaire that was content validated by three experts to ensure its validity.
The questionnaire consisted of three parts: the first part collected the demographic profile of the respondents;
the second part assessed the level of cost management practices regarding labor, food, and operational costs; and
the third part identified problems encountered in labor, food, and operational cost management. All the variables:
labor, food, and operational costs were measured using a five-point Likert-scale, ranging from strongly agree to
strongly disagree.
To assess the level of cost management practices implemented by the coffee shops, as perceived by the
owner/manager and employees, as well as the common problems encountered by the coffee shops in terms of
cost management practices the following scale, descriptive ratings, and overall interpretations were used:
Scale
Mean Range
Descriptive Rating
5
4.50 – 5.00
Always (A)
4
3.50 – 4.49
Often (O)
3
2.50 – 3.49
Sometimes (S)
2
1.50 – 2.49
Rarely (R)
1
1.00 – 1.49
Never (N)
Following validation, the instrument underwent pilot testing to determine its reliability, yielding the following
results:
On the level of Cost Management Practices along Labor, Food, and Operational Cost.
Dimension
Mean
SD
Cronbach's α
Interpretation
Labor Cost
3.93
0.696
0.852
Good
Food Cost
3.66
0.732
0.827
Good
Operational Cost
3.76
0.649
0.785
Acceptable
On the Common Challenges encountered by the locally owned coffee shops in Bangued, Abra.
Dimension
Mean
SD
Cronbach's α
Interpretation
Labor Cost
4.66
0.508
0.765
Acceptable
Food and Beverage Cost
4.41
0.653
0.837
Good
Operational Cost
4.01
0.717
0.853
Good
Data Gathering Procedures
The researcher first obtained a complete list of registered locally owned coffee shops in Abra from the
Department of Trade and Industries (DTI). Permission was then sought from the owners/managers to conduct
the study. Upon approval, the questionnaire was distributed, allowing ample time for owners, managers, and
employees to respond. Respondents were informed about their rights; purpose of the study and participation was
voluntary through informed consent. The questionnaires were personally retrieved by the researcher, then
organized, tallied, and subjected to statistical analysis.
Statistical Treatment of Data
The researcher used frequency and percentage distributions to analyze respondents’ profiles. Weighted means
were employed to evaluate the level of cost management practices, and the common challenges faced. Chi-
square Test was used to examine significant relationships between respondents’ profiles and their cost
management practices, enabling a scientific presentation, analysis, and interpretation of data.
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
Page 3489
www.rsisinternational.org
RESULTS AND DISCUSSION
Table 1. Profile of the Respondents
Age
Owner/Manager
Employees
Frequency
Percentage
Frequency
Percentage
21 to 30 years old
8
66.7%
38
95.0%
31 to 40 years old
2
16.7%
2
5.0%
41 to 50 years old
1
8.3%
-
-
51 years old and above
1
8.3%
-
-
Total
12
100%
40
100%
Sex
Frequency
Percentage
Frequency
Percentage
Female
5
41.7%
18
45.0%
Male
7
58.3%
22
55.0%
Total
12
100%
40
100%
Educational Attainment
Frequency
Percentage
Frequency
Percentage
College Graduate
9
75.0%
23
57.5%
Highschool Graduate
3
25.0%
17
42.5%
Total
12
100%
40
100%
Years in Service
Frequency
Percentage
Frequency
Percentage
5 years below
10
83.3%
39
97.5%
6 to 10 years
1
8.3%
-
-
16 years and above
1
8.3%
1
2.5%
Total
12
100%
40
100%
Hours of Relevant Training/Seminars
Frequency
Percentage
Frequency
Percentage
Less than 8 hours
4
33.3%
18
45.0%
17 to 24 hours
2
16.7%
2
5.0%
9 to 16 hours
5
41.7%
20
50.0%
25 hours or more
1
8.3%
-
-
Total
12
100%
40
100%
Age. The data reveal that the majority of the owners/managers are within the age group of 21 to 30 years old
(66.7%). On the other hand, almost all employees are also in the 21 to 30 years old age group (95.0%), with only
5.0% falling within 31 to 40 years old.
Sex. In terms of sex distribution, 58.3% of owners/managers are male while 41.7% are female. Among
employees, the distribution is more balanced with 55.0% male and 45.0% female.
Educational Attainment. Most of the owners/managers (75.0%) are college graduates, while the remaining
25.0% finished only high school. Among employees, 57.5% are college graduates, and 42.5% are high school
graduates.
Years in Service. The majority of owners/managers (83.3%) have been in service for five years or below.
Similarly, almost all employees (97.5%) have worked for five years or below, with only 2.5% having more than
16 years of service.
Hours of Relevant Training/Seminars. With regard to training, most owners/managers (41.7%) had attended
9 to 16 hours of relevant training, followed by 33.3% with less than 8 hours, 16.7% with 17 to 24 hours, and
only 8.3% with 25 hours or more. For employees, the distribution is similar: 50.0% had 9 to 16 hours, 45.0%
had less than 8 hours, and only 5.0% had 17 to 24 hours.
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
Page 3490
www.rsisinternational.org
Table 2. Item Mean Rating of the Labor Cost Management Practices by Owner/Manager and Employees of
Locally-owned Coffee Shops in Abra
LABOR COST
Owner/Manager
Employee
As a Whole
Mean
DR
Mean
DR
Mean
DR
1. The coffee shop trains employees to work in all areas of
operation to save man power.
4.75
A
4.58
A
4.67
VH
2. The coffee shop uses a flexible work schedule to adjust
to different levels of activity.
4.67
A
4.28
O
4.48
H
3. The coffee shop includes staff about adjustments to the
schedule.
4.75
A
4.47
O
4.61
VH
4. The coffee shop creates a positive workplace to keep
employees happy and reduce turnover.
4.92
A
4.70
A
4.81
VH
5. The coffee shop limits overtime hours to control labor
expenses.
4.17
O
4.00
O
4.09
H
Sub Mean
4.65
VH
4.41
H
4.53
VH
Table 2 shows the item mean rating of the labor cost management practices of locally-owned coffee shops in
Abra as assessed by both owners/managers and employees. Results reveal that the practices were generally rated
Very High, with an overall mean of 4.53. Specifically, both owners/managers (𝑥 = 4.65) interpreted as “Very
High” and employees (𝑥 = 4.41) interpreted as “High”. Both perceived that these practices were consistently
implemented in their respective workplaces.
Among the indicators, Item 4, “The coffee shop creates a positive workplace to keep employees happy and reduce
turnover.” obtained the highest overall mean of 4.81, interpreted as “Very high”. This implies that the locally
owned coffee shops’ give strong emphasis on maintaining a supportive and motivating work environment, which
is critical in reducing employee turnover. According to Awasthi et al. (2020) when people leave organization,
their skills and experience is also lost, and it’s very difficult to restore. Therefore, it is necessary to retain
minimum manpower to keep operations smooth and continuous.
On the other hand, item 5, “The coffee shop limits overtime hours to control labor expenses.” received the lowest
overall mean rating of 4.09, which is interpreted as “High”. This indicates that while overtime control is
practiced, it is not as strongly implemented compared to other strategies. Choi et al. (2009) explained that in
labor scheduling, restaurant managers often face two main challenges: overstaffing which increases labor costs
and understaffing which leads to lost business opportunities.
Table 3. Item Mean Rating of the Food Cost Management Practices by Owner/Manager and Employees of
Locally-owned Coffee Shops in Abra
FOOD AND BEVERAGE COST
Owner/Manager
Employee
As a Whole
Mean
DR
Mean
DR
Mean
DR
1. The coffee shop uses the FIFO (First-In, First-Out) method to
manage inventory.
4.83
A
4.67
A
4.75
VH
2. The coffee shop uses standardized recipes to control portion
sizes and costs.
4.75
A
4.83
A
4.79
VH
3. The coffee shop trains staff on proper measuring techniques to
reduce product waste.
4.92
A
4.70
A
4.81
VH
4. The coffee shop negotiates volume discounts with suppliers for
frequently used ingredients.
4.50
A
4.22
O
4.36
H
5. The coffee shop conducts regular inventory counts to track
food and beverage usage.
4.83
A
4.70
A
4.77
VH
Sub Mean
4.77
VH
4.62
VH
4.70
VH
Table 3 shows the item mean rating of the food cost management practices of locally-owned coffee shops in
Abra as assessed by both owners/managers and employees. The findings indicate that these practices were
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
Page 3491
www.rsisinternational.org
implemented at a “Very High” level, with an overall mean of 4.70. Specifically, owners/managers (𝑥 = 4.77)
rated the practices slightly higher than employees (𝑥 = 4.62), but both groups consistently affirmed strong
application of food cost control measures. According to Barnard 2009, identifying and allocating direct raw
material is a best practice for ensuring profitability in the food service operations.
Among the indicators, item 3, which states “The coffee shop trains staff on proper measuring techniques to
reduce product waste.” obtained the highest mean 4.81, which falls under “Very High”. This implies that the
locally owned coffee shops’ places great importance on minimizing waste through proper handling and accurate
measurement of ingredients. Okumus (2019) emphasizes in his study that food waste continues to be a vital
concern in the hospitality industry, often occurs during the preparation stage because of the staff errors. He
further suggested that employee training is one of the key strategies in reducing food waste.
Meanwhile, item 4, which states “The coffee shop negotiates volume discounts with suppliers for frequently used
ingredients.” obtained the lowest overall mean of 4.36, though still rated as “High”. This suggests that while
supplier negotiation is practiced, it is not as strongly practiced as compared to other methods of controlling food
and beverage costs. Awasthi et al. (2020) mentioned in their study that changing supplier is better option instead
of compromising on quality or quantity of food.
Table 4. Item Mean Rating of the Operational Cost Management Practices by Owner/Manager and Employees
of Locally owned Coffee Shops in Abra
OPERATING EXPENSE COST
Owner/Manager
Employee
As a Whole
Mean
DR
Mean
DR
Mean
DR
1. The coffee shop uses energy-efficient appliances to reduce
electricity consumption and lower utility bills.
4.42
O
3.98
O
4.20
H
2. The coffee shop tracks and reviews all utility expenses regularly
and implements cost saving practices.
4.67
A
4.28
O
4.48
H
3. The coffee shop conducts preventive maintenance on equipment
to avoid costly repairs.
4.33
O
4.35
O
4.34
H
4. The coffee shop provides regular training to staff on the correct
and safe use of equipment to prevent damage, ensure operational
efficiency, and extend the equipment’s lifespan.
4.75
A
4.60
O
4.68
VH
5. The coffee shop uses digital tools and technology to cut costs,
save on paper and printing, and make daily operations more
efficient.
4.33
O
4.28
O
4.31
H
Sub Mean
4.50
VH
4.30
H
4.40
H
Table 4 shows the item mean rating of the operational cost management practices of locally-owned coffee shops
in Abra as assessed by both owners/managers and employees. The results indicate that these practices were
implemented at a High level, with an overall mean of 4.40. Owners/managers (𝑥 = 4.50) rated the practices
slightly higher than employees (𝑥 = 4.30), but both groups affirmed that operational cost control strategies are
consistently observed in their establishments. According to Karvounidi et. al. (2024) As sustainability and eco-
friendly practices are highly valued in the contemporary tourism and hospitality industry, there is an increasing
consumer demand for eco-friendly products and services.
Among the indicators, the highest mean rating was obtained by item 4, “The coffee shop provides regular
training to staff on the correct and safe use of equipment to prevent damage, ensure operational” as evidenced
by mean score of 4.68 with a descriptive rating of “Very High”. This suggests that the locally owned coffee
shops’ conducts trainings on proper equipment handling as a means of reducing unnecessary expenses and
prolong the lifespan of their equipment. According to Karvounidi et. al. (2024) Proper maintenance is essential
for preventing equipment failure and avoiding additional costs from energy loss. Predictive maintenance is a
strategic approach used in various industries
On the other hand, item 1, which states “The coffee shop uses energy-efficient appliances to reduce electricity
consumption and lower utility bills.” received the lowest overall mean of 4.20, interpreted as “High”. This
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
Page 3492
www.rsisinternational.org
indicates that while the use of energy-efficient appliances is being implemented, it is not as fully maximized
compared to other operational strategies. The integration of energy-saving technologies and energy-efficient
lighting, can significantly reduce energy consumption, lower operating costs, and enhance environmental
sustainability (Uzoigwe & Kongolo, 2024).
Table 5. Summary of Labor, Food, and Operational Cost Management Practices in Locally-owned Coffee Shops
in Abra
Owner/Manager
Employee
As a Whole
Mean
DR
Mean
DR
Mean
DR
LABOR COST
4.65
VH
4.41
H
4.53
VH
FOOD COST
4.77
VH
4.62
VH
4.70
VH
OPERATIONAL COST
4.50
VH
4.30
H
4.40
H
Overall Mean
4.64
VH
4.44
H
4.54
VH
Table 5 presents the summary of labor, food, and operational cost management practices of locally-owned coffee
shops in Abra as assessed by both owners/managers and employees. The overall mean rating of 4.54 indicates
that these practices were carried out at a “Very High” level, and that the locally owned coffee shops implements
effective cost management practices in terms of food, labor and other operational costs.
When comparing among the three, food cost management practices obtained the highest overall mean of 4.70,
interpreted as “Very High”. This suggests that coffee shops place great importance on effectively controlling
food-related expenses, particularly through inventory monitoring, recipe standardization, and waste reduction to
ensure profitability. According to Mun and Jang (2017), Food costs are the foremost and largest portion of
expenses for a restaurant business. Given the critical role of food cost in profit maximization, it is imperative
that food costs be diligently monitored and maintained in operations (Barnard, 2009).
Labor cost management practices followed with an overall mean of 4.53 (Very High), showing that strategies
such as staff training, flexible scheduling, and employee involvement are strongly observed. Meanwhile,
operational cost management practices received the lowest overall mean of 4.40, though still rated as “High.”
This implies that while practices such as preventive maintenance, utility tracking, and staff training on equipment
use are implemented, there is slightly less consistency compared to food and labor cost controls.
Comparing the perspectives of the two groups, owners/managers consistently provided higher ratings (𝑥= 4.64)
than employees (𝑥 = 4.44). This suggests that while both groups perceive cost management practices as being
implemented very highly, owners/managers tend to practice these more than their employees. This may be
because they are directly responsible for overseeing operations and are more concerned about overall financial
performance of their business and its long-term success.
Table 6. Relationship Between the Profile and the Level of Cost Management Practices of the Locally
Restaurants in Bangued, Abra.
Variables (Profile)
Satisfaction
Indicator
Chi-square
Test
Df
p-value
Critical
Value
(α=0.05)
Decision
Age
Labor Cost
4.7
12
0.967
21.026
Insignificant; Ho: Accepted
Food Cost
1.61
9
0.996
16.919
Insignificant; Ho: Accepted
Operational Cost
5.64
12
0.933
21.026
Insignificant; Ho: Accepted
Sex
Labor Cost
4.12
4
0.389
9.488
Insignificant; Ho: Accepted
Food Cost
3.35
3
0.34
7.815
Insignificant; Ho: Accepted
Operational Cost
2.7
4
0.61
9.488
Insignificant; Ho: Accepted
Educational Attainment
Labor Cost
2.32
8
0.97
15.507
Insignificant; Ho: Accepted
Food Cost
6.08
6
0.414
12.592
Insignificant; Ho: Accepted
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
Page 3493
www.rsisinternational.org
Operational Cost
3.08
8
0.929
15.507
Insignificant; Ho: Accepted
Years in Service
Labor Cost
13.4
8
0.099
15.507
Insignificant; Ho: Accepted
Food Cost
25.8
6
<0.001
12.592
Significant; Ho: Rejected
Operational Cost
26.9
8
<0.001
15.507
Significant; Ho: Rejected
Hours of Relevant
Trainings/Seminars
Labor Cost
6.03
12
0.914
21.026
Insignificant; Ho: Accepted
Food Cost
6.94
9
0.643
16.919
Insignificant; Ho: Accepted
Operational Cost
6.87
12
0.866
21.026
Insignificant; Ho: Accepted
Table 6 presents the relationship between the profile of respondents and the level of cost management practices
of locally-owned restaurants in Bangued, Abra. The results of the Chi-square test reveal that most profile
variables, such as age, sex, educational attainment, and hours of relevant trainings/seminars, yielded insignificant
results across labor, food, and operational costs, as the computed p-values were greater than the 0.05 level of
significance. This indicates that these characteristics do not significantly influence the cost management
practices of the respondents.
For years in service, however, a different result was observed. While its relationship with labor cost was found
to be insignificant (p = 0.099 > 0.05), its relationship with both food cost (χ² = 25.8, p < 0.001) and operational
cost (χ² = 26.9, p < 0.001) was significant. The null hypothesis was therefore rejected in these cases. This finding
suggests that employees’ length of service has a direct influence on their ability to manage food and operational
costs effectively. Those with longer years of service may have gained more practical knowledge and experience,
enabling them to implement cost-saving strategies more efficiently.
The significant relationship between years in service and food and operational cost management aligns with
organizational theory wherein organizations learn regardless of whether they apply systematic learning
approaches by changing or modifying their mental models, rules, processes or knowledge, maintaining or
improving their performance and learning from their past experiences (Basten & Haamann, 2018).
Table 7. Mean Ratings of Common Labor Cost Related Problems in Locally Owned Coffee Shops in Abra
LABOR COST
Mean
SD
DR
1. The coffee shop experiences high labor costs due to overstaffing.
2.69
1.25
Sometimes
2. The coffee shop experiences difficulty maintaining consistent staffing levels due
to seasonal fluctuations in business.
2.58
1.07
Rarely
3. The coffee shop experiences labor shortages due to high competition in the area.
2.60
1.29
Sometimes
4. Competition with other businesses increases wage expectations in our area.
2.67
1.31
Sometimes
5. Training new employees requires significant time and adds to overall labor costs.
3.06
1.18
Sometimes
Sub Mean
2.72
1.03
Moderate
Table 7 presents the mean ratings of common labor cost-related problems encountered by locally-owned coffee
shops in Abra. The overall sub-mean of 2.72 indicates that these problems were experienced only sometimes,
suggesting that while labor issues exist, they are not consistently severe across establishments.
Among the indicators, item 5, “Training new employees requires significant time and adds to overall labor
costs.” Obtained the highest mean (𝑥 = 3.06) with a descriptive rating of Sometimes. This implies that although
hiring and training are essential, they place additional strain on labor expenses.
On the other hand, the least experienced problem was item 2,“The coffee shop experiences difficulty maintaining
consistent staffing levels due to seasonal fluctuations in business.” (𝑥 = 2.58) with a descriptive rating of
“Rarely”. This suggests that seasonal demand does not pose a significant challenge for most coffee shops,
possibly because flexible scheduling practices are already in place, and the fact that most of these establishments
are small-scale, requiring only a few staff members; thus, finding or retaining manpower is not a major concern.
Overall, the results show that labor cost-related problems occur occasionally but are not highly prevalent and
major issue among locally-owned coffee shops in Abra. The primary concern is the cost and effort of training
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
Page 3494
www.rsisinternational.org
new employees, while issues such as seasonal staffing challenges are less significant. According to Yandrasevich
(2011) Investing in capable and responsible staff is necessary for the success of the company. Continuous
training and employee empowerment continue to be necessary along with strong supervision to help build
employee loyalty and increased productivity. Such investment therefore lowers labor costs, which results in a
more competitive and efficient team environment.
Table 8. Mean Ratings of Common Food Cost Related Problems in Locally-Owned Coffee Shops in Abra
FOOD AND BEVERAGE COST
Mean
SD
DR
1. The coffee shop has trouble maintaining consistent food costs due to fluctuating
supplier prices.
2.83
1.20
Sometimes
2. The coffee shop faces high food and beverage costs due to frequent spoilage.
2.40
1.21
Rarely
3. The coffee shop experiences inconsistent portion sizes, which results in increased
food and beverage expenses.
2.21
1.21
Rarely
4. The coffee shop encounters theft or pilferage of ingredients, which contributes to
rising food and beverage costs.
2.00
1.27
Rarely
5. The coffee shop has ineffective forecasting methods, resulting in excess
preparation and product waste.
2.13
1.25
Rarely
Sub Mean
2.32
1.08
Low
Table 8 presents the mean ratings of common food cost-related problems encountered by locally-owned coffee
shops in Abra. Among the listed issues, the most common concern was item 1, “The coffee shop has trouble
maintaining consistent food costs due to fluctuating supplier prices.” with a mean of 2.83 with a descriptive
rating of “Sometimes”.
On the other hand, item 4, which states “The coffee shop encounters theft or pilferage of ingredients, which
contributes to rising food and beverage costs.” Obtained the lowest mean of 2.32 with a descriptive rating of
“Rarely”, this indicates that theft is rarely experienced by the coffee shops.
According to Lymar and Gumeniuk (2019) Food cost is one of the biggest expenses in running a restaurant.
Therefore, monitoring and controlling food costs can help a manager make better decisions and maximize profits.
Moreover, he noted that a restaurant manager can implement strategies such as sales forecasting, goal setting,
menu engineering, staff training, employee meal policies, theft prevention, and inventory management to
effectively manage and keep food cost at low level.
Table 9. Mean Ratings of Operational Cost Related Problems in Locally Owned Coffee Shops in Abra
OPERATING COST
Mean
SD
DR
1. The coffee shop experiences high utility expenses, including electricity, water, and
gas.
3.13
1.14
Sometimes
2. The coffee shop experiences frequent repairs and equipment breakdowns, leading
to rising maintenance expenses.
2.60
1.01
Sometimes
3. The coffee shop lacks energy-saving equipment, which contributes to higher
electricity bills.
2.67
1.17
Sometimes
4. The coffee shop deliveries and transportation costs increase their operating
expenses
2.35
1.12
Rarely
5. The coffee shop spends too much on office and store supplies.
2.60
1.09
Sometimes
Sub Mean
2.67
0.95
Moderate
Table 9 presents the mean ratings of operational cost-related problems encountered by locally owned coffee
shops in Abra. The results reveal that the most pressing issue is item 1, “The coffee shop experiences high
utility expenses, including electricity, water, and gas.” which obtained the highest mean of 3.13 with a
descriptive rating of “Sometimes”.
Meanwhile, item 4, “The coffee shop deliveries and transportation costs increase their operating expenses”
were rated lower, with a mean of 2.35 with a descriptive rating of “Rarely”. This might be because most of the
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
Page 3495
www.rsisinternational.org
coffee shop does not offer delivery services, or when it comes to ordering their raw materials they follow or do
routine ordering to manage their transportation cost.
Overall, the sub-mean of 2.67 with a descriptive rating of “Sometimes” indicates that operational cost-related
problems are encountered on an occasional basis by the locally owned coffee shop in Abra, with utilities and
energy inefficiencies emerging as the most common concerns. According to Gumbo and Sukdeo (2024)
Operational costs have been proven difficult to control because of many factors including poor management
systems, theft, and the increasing economic crisis. Furthermore, they emphasized that monitoring energy
consumption and other expenses such as rentals, marketing, and tax expenses can prove to be helpful in lowering
utility costs.
Table 10. Summary Table on the Common Problems encountered by Locally-owned Coffee Shops in Abra in
terms of Labor, Food and Beverage, and Operational Cost.
Mean
SD
DR
Labor Cost
2.72
1.25
Moderate
Food Cost
2.32
1.07
Low
Operational Cost
2.67
1.29
Moderate
Overall Mean
2.57
1.03
Moderate
The summary results reveal that labor cost-related problems obtained the highest mean score of 2.72 with a
descriptive rating of “Moderate”, indicating that issues such as overstaffing, wage competition, and the high
cost of training employees are relatively frequent challenges faced by the locally owned coffee shops’ in Abra.
Operational cost-related problems followed with a mean of 2.67 with a descriptive rating of “Moderate”,
suggesting that high utility expenses, equipment breakdowns, and supply costs occasionally strain business
operations.
On the other hand, food and beverage cost-related problems had a lower mean of 2.32 with a descriptive rating
of “Low”, implying that while fluctuations in supplier prices and issues of spoilage or waste exist, they are not
as persistent as labor and operating costs.
The overall mean of 2.57 with a descriptive rating of “Moderate” signifies that locally-owned coffee shops in
Abra do experience cost-related challenges, but not at an extreme or critical level. These findings imply that
while financial constraints exist, they are still manageable. However, if left unaddressed, these problems
especially in labor and operational costs may escalate and significantly affect profitability. Thus, owners should
prioritize efficient labor management, adopt energy-saving equipment, and strengthen cost-control strategies to
sustain competitiveness, gain more profit, and ensure long term business sustainability and success.
CONCLUSION
Based on the findings of the study, the following conclusions were drawn:
1. Most of the coffee shop owners, managers, and employees in Abra are young (aged 21–30), male, and
relatively new to the industry, with five years or less of experience. While owners and managers tend to
be college graduates, many employees have only completed high school. Training and seminars are
limited, with the majority of the respondents attending just only 9–16 hours of relevant seminars.
2. The findings reveal that overall, the coffee shops in Abra are doing a very excellent job in managing their
cost, with an overall mean of 4.54 described as “Very High”. Meaning to say that the coffee shops use
strategies to reduces cost effectively such as recipe standardization, inventory monitoring, and fostering
positive workplace culture. Among the three areas, food cost management was rated the highest (𝑥 =
4.70), followed by labor cost (𝑥 = 4.53), while operational cost ranked lowest (𝑥 = 4.40), While all areas
are rated highly, operational efficiency, particularly in energy-saving measures, could need more
attention than the other areas.
3. Most socio-demographic variables such as age, sex, educational attainment, and training hours do not
significantly affect cost management practices in locally owned coffee shops in Abra. This suggests that
effective cost management is more about practical application than personal demographics. However,
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
Page 3496
www.rsisinternational.org
years in service showed a significant relationship with food and operational cost management, indicating
that experience plays a crucial role in cost-saving measures. Experienced staff tend to be better at
minimizing waste, spotting quality issues early, and using resources wisely. Interestingly, experience
doesn't seem to influence labor cost management, likely due to unpredictable factors such as employees
absenteeism, seasonal demand, and human factors such as motivation.
4. The study reveals that locally owned coffee shops in Abra face moderate cost-related challenges with an
overall mean of (𝑥 = 2.57) described as "Moderate". Labor costs present the greatest concern with an
overall mean of (𝑥 = 2.72) described as “Moderate” primarily due to the given service-intensive nature
of the hospitality or food and beverage industry. Operational costs come in second with an overall mean
of (𝑥 = 2.67) with a descriptive rating of “Moderate”, reflecting the reality that coffee shops depend
heavily on equipment, utilities, and supplies that can be unpredictable in terms of both cost and reliability.
Food and beverage costs rank lowest in terms of problems (𝑥 = 2.32) with descriptive rating of “Low”.
This suggests that the locally owned coffee shops are doing well in managing ingredients, inventory, and
waste.
RECOMMENDATIONS
In light of the conclusions, the following recommendations are hereby presented:
1. The locally owned coffee shops are encourage to invest in continuous training programs and seminars to
strengthen employees’ skills and to enhance their competency, boost confidence, to contribute to a more
efficient operation.
2. The locally owned coffee shops may look into energy-efficient technologies, appliances, equipment, as
well as stricter utility monitoring, and broader adoption of digital tools to help reduce operational
expenses.
3. The coffee shop owner/manager might find value in leveraging the expertise of long-serving employees
by involving them in decision-making, mentoring newer staff, and helping develop best practices for cost
control.
4. Coffee shop owner/manager may look into installing energy-efficient equipment to lower utility costs,
establishing cross-training programs to maintain flexible staffing levels, sourcing affordable yet quality
raw materials, and implementing robust inventory management systems.
5. The coffee shop owner/manager may consider Benchmarking against industry standards to gain insights
and ideas for improvement.
6. To the future researchers to consider expanding the geographical scope to include coffee shops across
multiple provinces or urban areas with varying economic development level and market dynamics.
7. To future researcher are encouraged to examine additional variables that may influence cost management
practices such as ownership structure, education specifically in business or hospitality, managerial
expertise, culture and diversity to provide a more nuanced understanding how governance moderates
ownership monitoring and shape cost management outcomes.
8. Future researchers are likewise encouraged to conduct cross country studies or comparison with
businesses that have different ownership structures. Doing so would enhance the generalizability of the
findings of the study and could provide a deeper insight into how ownership structures influences cost
management practices.
ACKNOWLEDGEMENTS
The author would like to thank the participating coffee shops establishment in the province of Abra for taking
the time to participate in this research endeavor, as well as the author’s colleagues and peers for the valuable
insights and in helping with the data analysis of the study.
REFERENCES
1. Alonso, A. D., & Krajsic, V. (2014). Cost management and small restaurant businesses: a complex
balance and the role of management. International Journal of Revenue Management, 8(1), 1.
https://doi.org/10.1504/ijrm.2014.067331
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
Page 3497
www.rsisinternational.org
2. Awasthi, A., Nain, A., & Roy, A. (2020). A study on cost cutting and control in food and beverage service
department. International Journal of Scientific & Technology Research, 9(3), 1717–1719.
3. Azahra, D. A., Apriliani, Z. A., Muabdan, M., Khumayah, S., & Wulandari, S. (2024). Coffee culture:
Gen Z and coffee shops. Indonesian Journal of Multidisciplinary Science, 3(9).
https://doi.org/10.55324/ijoms.v3i9.906
4. Barnard, M. W. (2009). A Case study to examine the application of food cost theories in menu pricing
and cost control management within a new restaurant operation. UNLV Theses, Dissertations,
Professional Papers, and Capstones. https://doi.org/10.34917/1651750
5. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1),
99–120. https://doi.org/10.1177/014920639101700108
6. Basten, D., & Haamann, T. (2018). Approaches for Organizational Learning: A literature review. SAGE
Open, 8(3). https://doi.org/10.1177/2158244018794224
7. Chang, M. (2024). Research on modern corporate cost management and cost control methods.
International Journal of Global Economics and Management, 2(3), 320–326.
https://doi.org/10.62051/ijgem.v2n3.38
8. Choi, K., Hwang, J., & Park, M. (2009). Scheduling restaurant workers to minimize labor cost and meet
service standards. Cornell Hospitality Quarterly, 50(2), 155–167.
https://doi.org/10.1177/1938965509333557
9. Gumbo, M. (2023). Investigating the Cost Planning and Control Operations in Fast Casual Restaurants
in Johannesburg South. University of Johannesburg (South Africa).
10. Gumbo, M., & Sukdeo, N. (2024). Measures and Challenges of Cost Control in Fast Casual Restaurants:
Case of Johannesburg, South Africa. IEOM Society International, USA.
https://doi.org/10.46254/af05.20240242
11. Kankam-Kwarteng, C., Osman, B., & Donkor, J. (2019). Innovative low-cost strategy and firm
performance of restaurants. Asia Pacific Journal of Innovation and Entrepreneurship, 13(3), 266–281.
https://doi.org/10.1108/apjie-05-2018-0034
12. Karvounidi, M. D., Alexandropoulou, A. P., & Fousteris, A. E. (2024). Towards sustainable hospitality:
Enhancing energy efficiency in hotels.International Research Journal of Economics and Management
Studies, 3(6), Article IRJEMS-V3I6P145. https://doi.org/10.56472/25835238/IRJEMS-V3I6P145
13. Kumar, R. (2024). Optimizing Business Efficiency through Strategic Cost Management: A Framework
for Profit Maximization in SMEs. International Journal for Multidisciplinary Research, 6(6).
https://doi.org/10.36948/ijfmr.2024.v06i06.31845
14. Lymar, V., & Gumeniuk, O. (2019). Management of food cost in restaurant business, 3, 146–154.
https://doi.org/10.31558/2307-2318.2019.3.15
15. Mailani, D., Hulu, M. Z. T., Simamora, M. R., & Kesuma, S. A. (2024). Resource-Based view theory to
achieve a sustainable competitive advantage of the firm: Systematic literature review. International
Journal of Entrepreneurship and Sustainability Studies, 4(1), 1–15.
https://doi.org/10.31098/ijeass.v4i1.2002
16. Mun, S. G., & Jang, S. (2017). Restaurant operating expenses and their effects on profitability
enhancement. International Journal of Hospitality Management, 71, 68–76.
https://doi.org/10.1016/j.ijhm.2017.12.002
17. Okumus, B. (2019). How do hotels manage food waste? evidence from hotels in Orlando, Florida.
Journal of Hospitality Marketing & Management, 29(3), 291–309.
https://doi.org/10.1080/19368623.2019.1618775
18. Penaflor, M. (2023). Pricing strategies used in Restaurants to help them reach their target profit.
19. Pramanick, A., Sharma, S., & Slath, A. (2025). Optimizing restaurant performance metrics through menu
cost management. Academy of Marketing Studies Journal, 29(4), 1-20.
20. Uzoigwe, D. O., & Kongolo, D. (2024). Energy-Efficient Maintenance Practices in Food Processing:
Strategies for Sustainability and Cost Reduction; A review. International Journal of Research and
Innovation in Applied Science, IX(VII), 153–163. https://doi.org/10.51584/ijrias.2024.907015
21. Tumanan, M. a. R., & Lansangan, J. R. G. (2011). More than just a cuppa coffee: A multi-dimensional
approach towards analyzing the factors that define place attachment. International Journal of Hospitality
Management, 31(2), 529–534. https://doi.org/10.1016/j.ijhm.2011.07.012
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025
Page 3498
www.rsisinternational.org
22. Yandrasevich, S. (2011). Controlling labor costs in restaurant management: A review of the internal
marketing concept as a method for enhancing operating efficiency (Master’s thesis, University of
Nevada, Las Vegas). UNLV Theses, Dissertations, Professional Papers, and Capstones, 1076.
http://dx.doi.org/10.34917/2462728
23. Zainol, N. A., Mustafa, E., Razak, R. A., & Ahmad, R. (2023). Determining Cost Control Technique and
Overcoming Challenges in Daily Operations: Perspectives from The Foodservice Managers. Journal of
Tourism Hospitality and Environment Management, 8(31), 15–25.
https://doi.org/10.35631/jthem.831002