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Twenty years of change in the structure, costs, and financial performance of food chains

Author

Listed:
  • Edward W. McLaughlin

    (Assistant Professor in the Food Industry Management Program, Department of Agricultural Economics, Cornell University)

  • Gerard F. Hawkes

    (Extension Associate in the Food Industry Management Program, Department of Agricultural Economics, Cornell University)

Abstract

The cost and performance dimensions of the food retailing industry have undergone considerable change over the past two decades. Changing consumers, new technology, and intensified competition are among the factors shaping a new food retailing environment. As consumers exhibit greater preference for labor intensive service departments, for example, labor expenses, payroll as well as benefits have continued to grow as a percent of sales. It is chiefly this phenomenon that has been responsible for food chain operating costs increasing at a relatively greater rate than gross margins. The net performance result is that food chain profitability, however defined, has declined.

Suggested Citation

  • Edward W. McLaughlin & Gerard F. Hawkes, 1986. "Twenty years of change in the structure, costs, and financial performance of food chains," Agribusiness, John Wiley & Sons, Ltd., vol. 2(1), pages 103-118.
    • Handle: RePEc:wly:agribz:v:2:y:1986:i:1:p:103-118
    DOI: 10.1002/1520-6297(198621)2:1<103::AID-AGR2720020110>3.0.CO;2-2
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    Cited by:

    1. Capps, Oral, Jr., 1988. "Defining Management Responsibilities In The Retail Food Distribution Industry," Journal of Food Distribution Research, Food Distribution Research Society, vol. 19(2), pages 1-7, September.

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