What Do Menu Costs Do?
Menu costs refer to the expenses incurred by a business to change the prices of their products or services. These costs can be both direct, such as the cost of reprinting menus and updating pricing information, as well as indirect, such as the time and effort spent by managers and staff to adjust prices. Menu costs can impact a business’s profitability, as they increase the overall expenses and may make it harder to respond quickly to changes in the market or customer demand.