What is a common expense area in deli operations?

Labor costs represent a significant expense in deli operations because they encompass the salaries and wages of employees involved in various functions within the deli, including food preparation, customer service, and overall management. This expense is crucial in ensuring the deli operates efficiently and meets customer demands. Employees play a vital role in providing quality service, preparing food safely, and maintaining inventory levels, all of which directly impact customer satisfaction and operational success.

While advertising costs, transportation costs, and utilities are also expenses to consider, labor costs generally account for the largest portion of operating expenses in the context of a deli. These costs have a direct effect on the deli's ability to serve customers, maintain product quality, and drive sales, making them a central focus in managing deli operations effectively.