Restaurant Industry Research Articles

What explains profit inefficiency in the restaurant industry? Evidence from Sweden

This study investigates the drivers of profit inefficiency in the restaurant industry. Assuming that restaurants operate under monopolistic competition, we first present a characterization of the factors that explain restaurants’ departure from the profit frontier, focusing on the role of business experience, number of outlets, service model, restaurant typology, and COVID-19 shock. Based on Stochastic Frontier Analysis, we estimate how these factors explain the differences in profit inefficiency across firms using a panel dataset of 4128 restaurants in Sweden in the period 2017–2021. We find that the average level of profit efficiency is low (46%). Inefficiency increases with years in operation and is significantly higher among limited-service restaurants and single-outlet firms. Interestingly, no significant difference in profit inefficiency is detected during the COVID-19 pandemic. Our findings provide valuable insights for profit efficiency management.

Pengaruh Kinerja Kualitas Layanan, Kualitas Produk, Kepuasan Pelanggan dan Niat Beli Ulang pada Restoran Hoka-Hoka Bento di Kabupaten Tangerang

The fast food restaurant industry has experienced rapid growth and has become one of the important sectors in the culinary business, fast food restaurant business actors continue to innovate to meet the needs and desires of consumers. The intention to repurchase is the most important part that must be considered by restaurant business actors which directly impacts the sustainability and growth of the business. This study aims to fill the knowledge gap about the role of service quality performance on product quality, customer satisfaction, and repurchase intention in Hoka-Hoka Bento restaurant customers in the Tangerang Regency area. Data collection was obtained through a questionnaire distributed online in June 2024. The sampling method used is non-probability sampling with purposive sampling technique The data analysis technique used is Partial Least Square-Structural Equation Modeling (PLS-SEM). The results of data processing show that the performance of service quality,product quality, and customer satisfaction have a positive and significant effect on repurchase intentions. This research contributes to companies to improve service quality performance in forming repurchase intentions in consumers. Further research is expected to use a larger scale of respondents and use different platforms.

Examining the impact of workforce reductions on firm performance

Though workforce reduction strategies have been widely adopted to improve firm performance in the tourism and hospitality industry, empirical evidence of the effects of workforce reductions on performance has been inconclusive. Based on dynamic capabilities theory, this study develops a model and empirically analyzes the impacts of workforce reductions on firm performance across the lodging, airline, and restaurant industries. Further, this study examines whether an industry-specific business model could explain the relationship between workforce reductions and performance. Findings show that while the disruption of organizational processes due to workforce reductions could be detrimental to a firm’s dynamic capabilities and financial outcomes, this relationship is moderated by the specific business model the firm adopts. Our study extends previous research by highlighting the important role of a specific business model in explaining the relationship between workforce reductions and firm performance.

Empowering the restaurant industry: hyper ledger framework for safer and more transparent food supply chains

Empowering the restaurant industry: hyper ledger framework for safer and more transparent food supply chains

Optimizing digital menus for enhanced purchase intentions: insights from India’s restaurant industry in the post-COVID-19 era

Optimizing digital menus for enhanced purchase intentions: insights from India’s restaurant industry in the post-COVID-19 era

Are There Any Differences in the Implementation of Crisis Management Throughout the Initial Phase, During, and After the COVID-19 Pandemic? A Study from the Restaurant Industry in Indonesia

This study aims to investigate the optimal micro-level decision-making priorities as perceived by business actors or restaurant managers in relation to the COVID-19 pandemic. The Importance Performance Analysis (IPA) analysis method is employed to assess these priorities at three distinct stages: the initial phase, the ongoing phase, and the post-pandemic phase. The COVID-19 pandemic triggered a substantial shift in crisis management practises, both during and in the aftermath of the crisis. The most significant enhancements were observed in the realm of collaboration with fellow merchants, promotion of novel services, and use of outsourced or freelance personnel. In the context of the pandemic, certain attributes have demonstrated persistent significance and utilisation across all stages. These attributes include the provision of discounts, advertising across diverse media channels, introduction of new menus, supply of masks for employees, availability of disinfectants in restaurant premises, and the dissemination of COVID-19 prevention information to both employees and visitors. Keywords: COVID-19, crisis management practices, Importance Performance Anaysis (IPA), restaurant

Unveiling deceptive tactics: exploring fraudulent online ratings in the restaurant industry and their impact on consumer choice

Unveiling deceptive tactics: exploring fraudulent online ratings in the restaurant industry and their impact on consumer choice

Predictors of preventative behavior in the restaurant industry: learning from the COVID-19 pandemic

ABSTRACT This study used a structural model to analyze the health beliefs and prevention expectations of consumers in order to better understand their health risk behavior and their experience with restaurant precautionary measures. The findings indicated the perceived severity of COVID-19 during the pandemic led to a significant increase in the consumers’ preventative behaviors. Likewise, the customers’ perceived severity of the COVID-19 threat enhanced their concerns about the safety of restaurant service. Based on the moderating effect, we found that lower trust in restaurant precautionary measures weakened the otherwise positive relationship between the consumers’ perceived severity of the COVID-19 threat and their preventative behavior. Recommendations can help the restaurant prepare for future public health concerns.

A typology of brand knowledge associations projected in brand-generated signals

Purpose The extensive brand associations research lacks organisation when it comes to the used information cues. This paper aims to systematically map and categorise the brand knowledge associations’ components and develop a typology applicable to any brand. Design/methodology/approach Using the restaurant and hotel industries in four different European cultural clusters as contexts, this work uses well-established systematic qualitative analysis approaches to categorise, code and model pictorial content in two studies. A four-stage sampling process identified Instagram brand-posted signals (photos), 243 from 26 restaurants in Madrid, Paris and Rome for study one and 390 from 29 hotels in Moscow, Berlin and Stockholm for study two. Adhering to relevant guidelines, the manual coding procedures progressed from 246 for restaurants and 231 for hotels initially generated free information coding inductive codes to a theory-informed categorisation. Quantitative analysis complemented the qualitative analysis, revealing the information cues relative utilisation. Findings For both studies, the analysis produced a typology consisting of two high-level and five lower-level brand knowledge association categories, namely: (a) brand characteristics consisting of the brand as a symbol, the brand as a product and the brand as a person, and (b) brand imagery consisting of user imagery and experience imagery. The five lower-level categories comprise of sub-categories and dimensions, providing a more comprehensive understanding of the brand associations conceptual structure relevant to brands operating in any industry. Research limitations/implications Researchers can use this typology to holistically encapsulate brand associations or design projects aiming to deepen brand knowledge association aspects/dimensions understanding. Practical implications Managers can use this typology to portray brands. Some of the identified lower-level categories and/or sub-categories and dimensions are likely to need customisation to fit specific contexts. Originality/value The suggested categorisation offers a solid, comprehensive framework for effectively categorising and coding brand knowledge associations and proposes a new theory in the form of a typology.

Understanding Conflict in the Franchised Restaurant Industry: Insights from Court Records

Relationships between franchisees and franchisors are susceptible to conflicts. This exploratory study employed a content analysis using a data triangulation of New York court records (23 cases, 3 dismissed) spanning from 1957 to 2016 and IFA corporate databases to explore the causes of conflict in the franchised restaurant industry. The findings revealed that the courts dismissed three lawsuits on jurisdictional grounds at the preliminary litigation stage. Out of the 20 cases, the courts found that 13 cases filed by the franchisees had no meritorious causes of action. This leads to a belief that the franchisees did not obtain sufficient advice from their attorneys or that they did not arbitrate their conflicts before filing the lawsuits. The primary theoretical implication of this study is that parties in franchising may recognize the red flags in conflict before advancing to the litigation stage. This would help the parties of interest to mitigate the tension in their relationship. Among the practical implications of this study include the recommendation for a better franchising regulation which safeguards the interests of all stakeholders. Policymakers should consider mandating arbitration clauses in the franchising agreements to balance the relationship between franchisees and franchisors.

The non-linear price effect on guest satisfaction of the Michelin-starred restaurants

ABSTRACT Existing studies on the price–satisfaction relationship in the tourism industry are limited, particularly those examining the causality in the restaurant industry. This study examines the effect of price on guest satisfaction based on a sample of 439 customers in 8 Taiwanese Michelin-starred restaurants during the period of January 2022 to April 2022. Theories suggest two opposite price effects on satisfaction: the positive price effect represents the signal of expected quality while the negative price effect is associated with the guests’ perception of sacrifice. The empirical results indicate an inverted U-shaped impact of the restaurant price on food satisfaction but the price does not affect service and physical environment satisfaction. Moreover, the restaurant price–food satisfaction relationship could be affected by the moderating influence of the star rating system to become a U-shaped function (for one-starred restaurants).

Analysing brand attachment for restaurant table booking mobile application

PurposeRestaurant table booking (RTB) mobile apps are transforming how consumers reserve tables in the restaurants of their choice. This study analyses how RTB mobile apps influence brand attachment (BA) and brand commitment (BC), highlighting the moderation effect of desire for uniqueness (DU) by integrating visual content theory and social exchange theory.Design/methodology/approachData [N = 414] were collected through the survey method from consumers having experience in using RTB mobile apps. The data were analysed through structural equation modelling using AMOS and SPSS PROCESS macro to examine moderated relationship.FindingsThe results confirm that content aesthetic quality, perceived technical interactivity and brand investments influence BA and BC in the RTB mobile app and also confirm the moderating role of the DU.Originality/valueThe present work is among the first to study the sources of BA in the RTB mobile app domain. Thus, it contributes to the literature on the restaurant industry to understand consumers' BA behaviour to achieve BC.

레스토랑 비건 메뉴 속성이 고객 만족과 추천 의도에 미치는 영향

Objective : This study was conducted to verify the relationship between the attributes of vegan menus perceived by consumers who have experienced vegan menus in restaurants, restaurant satisfaction, and intention to recommend. Methods : This study conducted an online survey, collected a total of 300 questionnaires, and used 277 of them for statistical analysis. This study used SPSS 24.0 and AMOS 23.0 programs for the statistical analysis and employed confirmatory factor analysis and structural equation analysis for demographic characteristics, general characteristics of the subjects, and reliability and validity verification. Results : All three attributes of vegan menu quality (menu quality, variety, and price) had a significant positive (+) effect on restaurant satisfaction. In particular, variety among the attributes of vegan menus had the most significant influence on satisfaction. In addition, restaurant satisfaction had a significantly positive (+) influence on the intention to recommend. Hence, all hypothesises were verified. Implications : Based on these research results, this study proposed an academically valuable study for vegan menus in the restaurant industry. Moreover, this study contributes to provide various marketing implications using vegan menus in restaurants.

외식산업 서빙로봇의 서비스품질이 지각된 가치와 혁신성 및 장기지향성에 미치는 영향

Objective : This study examined how ease of use, stability, convenience, and reliability of serving robots in the restaurant industry affect perceived value, innovativeness, and long-term orientation of the customers. Method : This study conducted a survey and collected a total of 235 valid responses among consumers who used serving robots in Seoul restaurants in May 2024. Results : Ease of use, convenience, and reliability had a significant influence on the perceived value, innovativeness, and long-term orientation. Stability, however, did not significantly affected long-term orientation. Implications : The findings highlight the importance of enhancing ease of use, convenience, and reliability in serving robots to boost customer satisfaction and foster long-term relationships.

Women empowerment in restaurants: effects of femvertising, purplewashing and feminist identity on consumers’ willingness to pay a premium

Purpose Despite the increasing popularity of women-owned businesses in the marketplace, relatively few studies in the hospitality literature have focused on these businesses. Hence, this study aims to examine the impact of femvertising and purplewashing on consumers’ willingness to pay a premium at women-owned restaurants, as well as the role of feminist self-identification and psychological closeness underlying these associated effects. The study aims to provide insights into women-owned restaurant marketing strategies and to highlight the importance of authentic brand activism in consumer behavior in the restaurant industry. Design/methodology/approach Building on Construal Level Theory, this paper conducts two online experiments with 486 US participants who have dined at or ordered takeout from a restaurant. The studies aim to investigate consumers’ opinions about brand activism strategies (i.e. femvertising and purplewashing) in restaurants. Findings The results of two experimental studies indicate that a femvertising strategy increases consumers’ willingness to pay a premium for a women-owned restaurant compared to a non-women-owned restaurant. Moreover, consumers who identify more strongly as feminists are more likely to pay more for women-owned restaurants when purplewashing is absent (vs present). Additionally, psychological closeness serves as an underlying mechanism that explains these effects. Practical implications This study provides clear and actionable recommendations to help business stakeholders, owners and managers to market and advertise women-owned restaurants. For example, women-owned restaurant practitioners should feature women empowerment messaging in their advertisements to attract more consumers. However, they should avoid using purplewashing and other inauthentic brand activism practices in advertisements. Originality/value This research contributes to the hospitality literature on women entrepreneurship by exploring the effective marketing strategies of women-owned restaurants and investigating how to advertise women-owned businesses in the hospitality field. To the best of the authors’ knowledge, it is also the very first study to explore the role of femvertising and purplewashing in consumers’ food-related decision-making.

Exploring the impact of environmental dimension in corporate social responsibility on restaurants’ customer retention

PurposeThis study aims to integrate the four-dimensional corporate social responsibility (economic, legal, ethical and philanthropic responsibility) with environmental responsibility. It also aims to measure how service quality and corporate image mediate the effects of the five CSR dimensions on customer retention.Design/methodology/approachThis research employs structural equation modelling to test the proposed conceptual model. About 217 valid questionnaires were collected online from customers of restaurants in Tehran.FindingsThe results show that legal, ethical, philanthropic and environmental dimensions positively and significantly impact corporate image and service quality. Moreover, corporate image and service quality mediate the effects of the five CSR dimensions on customer retention.Practical implicationsManagers may learn that by enhancing their environmental responsibility, they are also working on increasing service quality and corporate image and, in turn, customer retention. Restaurants can differentiate themselves from competitors and attract and retain environmentally conscious customers, ultimately contributing to their competitive advantage.Originality/valueThis research extends Carroll’s dimensions by incorporating environmental responsibility, demonstrating its potential to boost service quality and corporate image for customer retention. A noteworthy contribution is introducing environmental responsibility as a novel dimension of CSR within the restaurant and food industry. Recognising the increasing importance of environmental sustainability in academic and societal discourse, it was crucial to consider the environment as a distinct aspect of this research.

Integrating TRA and SET to Influence Food Waste Reduction in Buffet-Style Restaurants: A Gender-Specific Approach

As one of the major greenhouse gas emission contributors, the food service industry, particularly buffet-style restaurants, is responsible for reducing food waste. This study explores the factors that shape consumer behavior toward food waste reduction in buffet-style restaurants based on the Theory of Reasoned Action (TRA) and Social Exchange theory (SET), as well as analyzing the gender differences in these determinants, offering practical insights for the restaurant industry. This study also uses structural equation modeling and group analysis to examine a total of 547 valid responses gathered through an online survey, including 286 male (52.3%) and 258 female (47.2%) respondents. The findings underscore the attitudes, subjective norms, and establishment policies that emerge as critical drivers of consumer behavior in buffet-style dining settings. Notably, significant gender differences are observed in attitudes and establishment policies. In light of these results, we recommend strategies that include enhancing consumer attitudes and implementing penalty policies within restaurant operations. Restaurants could display visual signs and images related to reducing food waste, provide detailed portion size information, and apply monetary fines for excess waste to reduce consumers’ food waste intentions. These strategies are particularly effective for male consumers, who are more influenced by these factors compared to female consumers. This research contributes valuable guidance for the industry’s efforts to address food waste concerns, emphasizing gender differences and promoting environmentally responsible behavior among consumers.

How have U.S. restaurant tips changed over time?

This research note analyzes tipping percentages from academic studies of restaurant tipping and finds that tipping rates have increased over the past half century. This finding provides some evidence that tipping benefits tippers beyond helping them avoid social disapproval (Azar, 2004) and that tipping is used by consumers to compete for positional (zero-sum) benefits such as exceptional service and high status (Lynn, 2015). Since rising tipping rates increase the costs to consumers of dining out as well as pay-disparities between front-of-house and back-of-house staff, this is a trend the restaurant industry may want to try to end.

Selection of wines for wine lists in restaurants of Bosnia-Herzegovina: A comparative study

This study examines the wine list strategy preferences among restaurateurs in Bosnia and Herzegovina, focusing on identifying which criteria are deemed most and least important. A structured analysis categorizes strategies based on their frequency of selection as “Most Important” and “Least Important,” establishing a clear hierarchy of value among various criteria. The findings highlight two predominant strategies: “Preference for local wine” and “High reputation brand,” which is significant in the decision-making process. Restaurateurs consistently prioritize these strategies, with a dual emphasis on promoting local wine traditions and responding to market demands for reputable brands. The study underscores a pragmatic approach among Bosnian-Herzegovinian restaurateurs, who prioritize familiarity and perceived market security in their wine selections, potentially at the expense of enhancing gastronomic experiences and customer education. Further analysis using Z-scores confirmed the statistical significance of these findings, identifying Strategy Choices 4 and 6 with notably high Z-scores, indicating their distinct importance compared to other criteria. This quantitative approach enhances the understanding of how these strategies stand out within the surveyed context, emphasizing their relevance in shaping wine list strategies. The study contributes insights into the strategic decision-making processes of Bosnian-Herzegovinian restaurateurs regarding wine selection, highlighting the dominance of local wine preference and brand reputation considerations. It underscores potential areas for improvement in integrating gastronomic expertise and enhancing customer experiences, suggesting avenues for future research and strategic refinement in the local restaurant industry.

Economic Substantiation of Innovative Solutions for Direct Cooperation between Manufacturers and Restaurants

The traditional supply chain management between manufacturers and restaurants is not effective enough, considering its high costs, long turnaround times and reliance on third parties, which creates challenges to profitability and agility. This study aims to find out how this system helps optimise costs and supply chain management within the restaurant industry. Data was obtained through manager interviews for some middling and high-end restaurants presenting some operational issues confronted before and after the system was installed. A sample of 50 restaurants was selected using a stratified sampling technique, targeting various restaurant categories. A structured questionnaire was designed to interview restaurant managers on operational efficiency, cost reduction, and supply chain performance. The logistics costs, transaction costs and overall efficiency improvements, among other quantitative metrics, were monitored for the first and second intervals. To achieve this, the analysis used a difference-in-difference methodology, where restaurants before and after the implementation of the system were compared concerning specific performance indicators.Data was processed using SPSS Statistics 27, ensuring accuracy and reliability in the analysis. The findings show that wastage management cost efficiency has improved to 15%, while significant decreases have also been observed regarding transaction time and logistics costs. This also resulted in a substantial decline in time-to-order delivery which positively influences operational speed. Based on these findings, it is suggested that direct trade models would benefit the restaurant business in terms of cost savings and enhanced performance. The policy recommendations include promoting digital supply chain platforms using tax credits, assisting SMEs with government-sponsored projects, and facilitating direct interaction between producers and consumers.