What cost factors should restaurant managers consider before deciding to process their own fresh ...

The two primary cost factors restaurant managers must consider before deciding to process their own fruits and vegetables rather than buying them in a pre-processed market form are product costs and labor costs.

Product cost will no doubt be lower when an operation processes its own fruits and vegetables. Alternatively, however, labor cost will be higher. Managers must carefully assess the product savings achieved and the labor costs incurred when making the decision to process their own fruits and vegetables rather than buying them in a preprocessed market form.