The short- and long-run implications of restaurant advertising

Abstract

ABSTRACTEach year, restaurants spend billions of dollars on advertising and employ millions of people in an effort to capture a portion of the large sums of money consumers spend on food away from home. While the food-away-from-home market is substantial, it is not clear if advertising provides an effective tool for attracting diners. The purpose of this study is to examine the short- and long-term effects of advertising on restaurant sales through the use of more recently adopted econometric techniques.