First, labor costs account for a large proportion in the price structure of catering products. Because catering products can't be mechanized in large quantities, but processed in small batches according to customers' needs, most products can't be stored, and waiters must provide services directly to customers, thus the labor cost is greatly increased. Labor cost is an important factor that cannot be ignored in pricing.

Second, there are many cost leaks. Ningbo catering managers pointed out that catering costs and expenses are greatly influenced by management. There are many links in the process of cost control, promotion and sales control of food and beverage: procurement-acceptance-storage-distribution-processing, cutting and cooking-catering service-catering promotion-sales control. Poor control of a certain link may lead to an increase in costs.

thirdly, variable cost is the basis of the price structure of catering products. There are some similarities between catering products and other enterprise products, that is, raw materials must be purchased for production. In the price structure of products, the cost of raw materials accounts for a large proportion. Except for depreciation, overhaul and maintenance in operating expenses, which are beyond the control of catering managers, most other expenses and food and beverage costs are within the control of catering managers. These costs and expenses are directly related to the quality of cost control by Ningbo catering managers, and these costs and expenses account for a large proportion of operating income.