HACCP cost analysis in retail food establishments

The adoption of Hazard Analysis Critical Control Points (HACCP) in foodservice establishments is voluntary. Investment in HACCP usually requires a diverse set of financial and non-financial resources. Such costs can create constraints for management to adopt HACCP voluntarily, unless the costs versus expected benefits are known and can be evaluated.This study addresses a critical gap in understanding the costs associated with HACCP in foodservice establishments. We propose a costing framework based on a recent study conducted to assess HACCP implementation costs in selected foodservice establishments.This study chose a qualitative research design through an organizational ethnographic approach and case study based assessment of costs.The six establishments surveyed included two of each of the following: restaurants, grocery stores, and convenience stores, serving ready-to-eat foods.The proposed costing framework characterizes costs and their characteristics. Such a framework would be valuable in understanding management biases and preferences in handling food safety.The discussions suggest a gap in management's understanding of perceived versus actual costs. For example, most HACCP implementation costs were ongoing, except for the cost of buying new equipment. Personnel costs (wages) were a significant portion of these ongoing costs. None of the establishments surveyed incurred costs for public communication/consumer awareness regarding HACCP or food safety. Lack of effective communication of HACCP and food safety principles could create an information asymmetry and have negative implications for consumers' perception of food safety.The development of a costing framework could systematically address research regarding management decision-making by making foodservice HACCP costs more transparent. Copyright