Balancing Cost Management and Service Excellence: Supplier Relationship Challenges in Italian Restaurants

This research explores the challenges and strategies Italian restaurants employ to balance cost management with service excellence, a key issue in the competitive restaurant industry. The study examines the interplay between supplier relationships, operational efficiency, labor management, service quality, sustainability, and the integration of technology. Data was collected through in-depth interviews with 41 restaurant owners and managers, providing insights into the complexities of maintaining high standards while managing operational costs. The findings reveal that supplier relationships are critical to ensuring both cost-efficiency and quality, with long-term partnerships and local sourcing being central to achieving favorable terms. Waste reduction and inventory control were identified as effective cost management strategies, with technology playing a significant role in improving operational efficiency. However, small businesses faced barriers in adopting technology due to high initial costs. Labor costs, particularly for skilled staff, were highlighted as a major concern, with employee retention strategies such as training and creating a positive work environment being essential to maintaining service standards. Sustainability emerged as an increasing priority, with many restaurants adopting eco-friendly practices, although these efforts often came with added costs. The research also emphasizes the importance of menu engineering, pricing strategies, and customization options in balancing customer demand with profitability. This study offers valuable insights for restaurant owners and operators, highlighting the need for a comprehensive approach that integrates multiple strategies to achieve both financial sustainability and service excellence.