THEORETICAL ASPECTS OF REPUTATION MANAGEMENT IN THE RESTAURANT INDUSTRY

Abstract

The article addresses the theoretical aspects of reputation management of restaurant establishments in modern competitive conditions. We have determined that reputation occupies a leading position within the general management of any restaurant establishment type. That has led to the study of theoretical reputation management and the development of recommendations for improving the management of a restaurant establishment’s reputation. A brief analysis of the concepts ‘reputation’ and ‘image’ was carried out. Previous research has indicated that ‘reputation’ reflects a global perception of the highest respect and regard for an organisation. The concept of ‘reputation management’ is outlined as a general phenomenon that does not necessarily arise in response to a reputation problem. Considerable attention goes to the components of any business that contribute to the successful promotion of the company on the market according to the International Reputation Institute (currently called ‘RepTrak’): emotional appeal of the company, product quality, management reputation, relations with partners, financial indicators, and social responsibility. For effective reputation management, areas of knowledge that affect the concept of reputation and, accordingly, which contribute to this concept with their accents, are highlighted: psychology and marketing, economics, strategic management, sociology, theories of organisation, and accounting (finance). We also highlight an auxiliary reputation structure for novice entrepreneurs in the restaurant business. The need to develop a reputation management strategy is substantiated, which includes the following stages: research, strategy development, and implementation. The article considers components of situational management: ORM – reputation management, SERM – search engine marketing, HM – hidden marketing. Situational reputation management is a standardised work on typical problems of a short nature. The relationship with the hospitality model, which covers humanitarian, technological, functional, and commercial concepts, is a concept characteristic of accommodation facilities. However, restaurant establishments also operate to meet guests’ needs and provide services. Therefore, it is reasonable to use this concept to explain the importance of reputation with the example of the basic hospitality models. As a result of the study, we formulated recommendations for reputation management in the restaurant industry, including: improving the quality of service in the establishment; expanding the concept of advertisement of the establishment; organising feedback and control over the reputation of the establishment; cooperation with other popular similar establishments of the city/region. Keywords: restaurant industry, reputation, image, reputation management.