The service sector: approaches to cost optimization

This article examines the organization of financial and economic activities in service sector organizations amidst their transformation into the digital economy, which requires continuous management oversight of expenditure indicators incorporated into the cost of services provided. Currently, the food service industry faces several challenges and problems, with rising costs being a key issue. A morphological analysis has formed a comprehensive range of approaches to managing costs in service sector organizations, as well as the necessary conditions for their practical application, along with their advantages and disadvantages. A phased scheme for cost planning in service sector organizations is recommended. A spiral model of a continuous cycle for implementing cost reduction plans is proposed. The research concludes that cost optimization is a complex and multifaceted process, offering a thorough analysis and accumulated experience. The practical value of the research lies in the fact that the calculation methods and cost optimization approaches can be utilized by experienced managers to enhance operational efficiency and improve financial performance in service sector organizations.