Cost Management Practices and Common Problems Encountered by Selected Coffee Shops in Bangued, Abra

Abstract

This study explored the cost management practices, and common challenges faced by selected locally owned coffee shops in Bangued, Abra. Using a quantitative descriptive-correlational research design, the study aimed to assess the level of cost management practices across labor, food, and operational expenses, and to determine whether demographic factors influence these practices. A total of 52 respondents, including 12 owners/managers and 40 employees, participated through a validated self-made questionnaire.
Data were collected through a validated self-made questionnaire with three sections covering demographic profiles, cost management practices, and common problems across labor, food, and operational costs. The instrument demonstrated good to excellent reliability (Cronbach's α ranging from 0.765 to 0.853). Statistical analysis employed frequency distributions, weighted means, and chi-square tests.
Findings revealed that most respondents were young, male, and relatively new to the industry, with limited training exposure. Overall, coffee shops demonstrated very high effectiveness in managing costs, particularly in food cost control, followed by labor and operational costs. While demographic factors such as age, sex, education, and training hours showed no significant impact, years of service were found to correlate positively with food and operational cost management. Labor cost management, however, appeared unaffected by experience.
Despite strong cost management performance, coffee shops still encountered moderate challenges, especially in labor and operational expenses, largely due to the service-intensive nature of the business and reliance on equipment and utilities. Food and beverage costs posed fewer issues.
The study suggests that continuous training, energy-efficient practices, and leveraging employee experience may further enhance cost efficiency. Future research is encouraged to explore additional variables that may influence cost management outcomes such as ownership structure, managerial expertise, education, and diversity. Lastly, consider conducting cross-country or comparative studies to better understand how different ownership structures influence cost management practices and to improve the generalizability of the findings.