ABSTRACT

The study analyzed the factors affecting profitability of restaurants in Abia state. Aba the commercial city of Abia state was chosen for the study, the two major market of Anna and Ahia Ohuru was chosen for the study. The study las four objectives which nclüd,e the socio economic characteristics of the restaurants, examination of the restaurants products base on categories and price, analysis of the factors affecting the profitability of the restaurants and to determine the relationship between the price and profit realized by the restaurants. In testing the hypothesis one it was found that labor size, size of the restaurants, location, price and asset were found to significant and related to profit, multiple regression was used to test the hypothesis. Hypothesis two was achieved with the aid of correlation analysis; the result shows that there is a strong negative relationship existing between profit and price of the restaurants in the study area. It was found that due to the demand of food is high in Anna international market this resulted to high prices in the market. It recommended that government should look into the restaurant business and the operators should adequately consider the price of the foods as it affects there profit.