What is a common reason for low ROI in deli operations?

High overhead costs relative to sales is a common reason for low ROI in deli operations because overhead encompasses all fixed costs associated with running the deli, such as rent, utilities, equipment maintenance, and labor. When these costs are disproportionately high compared to the revenue generated from sales, it inhibits the overall profitability of the deli department. Essentially, if a deli is spending a significant amount of money to operate but is not generating enough sales to cover these costs, the return on investment diminishes significantly. This situation can occur due to factors like inefficient staffing, excessive inventory costs, or outdated equipment, leading to lower margins and ultimately a lower ROI.

In contrast, while high marketing expenses, low supplier quality, and poor product placement can certainly affect overall business performance, they do not directly link to the structural cost framework that can severely restrict profitability as overhead costs do.