What does "gross profit" refer to in deli operations?

Gross profit in deli operations refers to the difference between revenue and the cost of goods sold (COGS). This figure represents the amount of money that remains after the direct costs associated with the production of the deli items have been deducted from total sales revenue. This calculation is fundamental in understanding how much profit a deli can make on its products before accounting for other expenses such as operating costs, wages, and overhead. By focusing on gross profit, deli operators can assess their pricing strategy, cost control measures, and overall financial health of their operations, making it a key metric for managing profitability. Understanding gross profit is crucial for making informed business decisions within the deli environment.