Investigating the Impact of Menu Labeling on Revenue and Profit in a Foodservice Operation

Abstract

Executives and foodservice managers are concerned about the possible adverse financial impact of menu labeling. To examine the financial impact of four menu labeling approaches, a 23-week study was conducted in a hospital cafeteria. A quasi-experimental, single group, interrupted time-series design was used to test hypotheses that mean differences in the item sales, revenue, and gross profit derived from the menu-labeled items would not differ among four menu-labeling conditions. No significant changes observed in the study provide empirical evidence that menu labeling did not significantly impact sales, revenue, or gross profit.

KEYWORDS:

• foodservice operation
• menu labeling
• cafeteria
• profitability
• financial outcomes