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1 – 10 of over 8000
Article
Publication date: 16 April 2019

Jason Tang, Toni Repetti and Carola Raab

Restaurants typically have small profit margins and with the pressure of increasing food and labor costs, management is looking to revenue as a way to maintain and drive profits…

1687

Abstract

Purpose

Restaurants typically have small profit margins and with the pressure of increasing food and labor costs, management is looking to revenue as a way to maintain and drive profits. One technique to increase revenue is through revenue management practices, but management needs to be aware of their customers’ reactions to these practices prior to implementation. The paper aims to discuss this issue.

Design/methodology/approach

This study utilizes linear regression to determine the impact of select restaurant revenue management practices, customers’ familiarity with revenue management in general and in restaurants specifically, and customers’ demographics on perceived fairness of revenue management practices in casual and fine-dining restaurants.

Findings

Results indicate that customers find certain restaurant revenue management practices, such as charging premium prices on certain days of the week, fair in both casual and fine-dining restaurants, while others are not in either. Non-refundable reservation fees were found to be fair for fine-dining establishments only. Increased familiarity with restaurant revenue management was associated with higher perceptions of fairness for both casual and fine dining. Age was the only demographic studied that affected perceived fairness.

Originality/value

This study is the only known study to simultaneously evaluate the impact of price and duration restaurant revenue management techniques in combination with customer demographics and revenue management familiarity on consumer perceptions of fairness.

Details

Journal of Hospitality and Tourism Insights, vol. 2 no. 1
Type: Research Article
ISSN: 2514-9792

Keywords

Article
Publication date: 3 April 2018

Reza Etemad-Sajadi

The purpose of this paper is to investigate the application of revenue management practices to the restaurant industry. The author wants to observe customers’ readiness to accept…

1380

Abstract

Purpose

The purpose of this paper is to investigate the application of revenue management practices to the restaurant industry. The author wants to observe customers’ readiness to accept revenue management practices based on price variation, booking policy, table management, and control duration. The author also wants to measure the impact of these four practices on customer patronage intention.

Design/methodology/approach

A survey was conducted with 251 respondents. As the author had several latent variables, partial least squares, a variance-based structural equation modeling method, was used.

Findings

The author found that the majority of these practices are perceived unfair. The only two practices that are considered as fair are price variation between lunch/dinner, and cancellation in case of late. The most unfairly felt practice is the policy-related time spent at the table. The results also showed that the perceived fairness of these practices influences customer patronage intention. The author observed that price variation according to the lunch/dinner period, weekday/weekend period, and time of the day will influence the desire to frequent the restaurant. Booking policy will also impact customer patronage intention. The table management and control duration policies do not impact customer patronage intention, even if these practices are perceived unfair.

Practical implications

Restaurant managers, desiring to apply revenue management practices, should be aware of the fact that practices linked to price variation will have a stronger influence on the customer intention to revisit the company than control duration practices. Moreover, restaurant managers must “educate” their clients by clearly communicating the advantages of these practices for the customers.

Originality/value

Even if several studies focused on the fairness perceived of revenue management practices in hospitality industry, there is a lack of research about the impact of price variation and control duration on patronage intention, especially for the restaurant industry. This is the first time the author measured the concrete impact of price variation, booking policy, table management, and control duration on patronage intention. Moreover, the author integrated several new practices that have never been studied in the past such as the date of booking (e.g. 5 percent reduction if the booking was done four days in advance) or the fact of changing tables for dessert and coffee.

Details

International Journal of Quality & Reliability Management, vol. 35 no. 4
Type: Research Article
ISSN: 0265-671X

Keywords

Article
Publication date: 18 January 2018

Oswald Mhlanga

Restaurants are characterised by predictable, seasonal factors and unpredictable, individual customer demand, which make it difficult for restaurateurs to attain efficiency. A…

1557

Abstract

Purpose

Restaurants are characterised by predictable, seasonal factors and unpredictable, individual customer demand, which make it difficult for restaurateurs to attain efficiency. A combination of these two factors, macro-predictability and micro-uncertainty, produces economic risks, which make it difficult for restaurants to attain operational efficiency. The purpose of this study is to identify factors impacting restaurant efficiency in South Africa.

Design/methodology/approach

By using primary and secondary sources, data were collected from 16 different types of restaurants in South Africa, for the period 2012-2016, on a variety of parameters. A two-stage empirical analysis was carried out, which involved the estimation of operational efficiencies during the first stage by using data envelopment analysis (DEA) and determination of factors impacting restaurant performance in South Africa during the second stage by using two-way random-effects generalised least squares and Tobit regression models.

Findings

The results clearly show that the ability of restaurants to succeed will not be determined by their size but by their type, location and revenue per available seat. While the study finds various factors impacting on operational efficiency, the survival of restaurants in South Africa seem to be determined by cost efficiency, which brings in better market performance through lowering cost of sales.

Practical implications

The results have implications for restaurant managers in that if they want to improve cost efficiency, they must manage restaurant capacity and customer demand in a way that maximises revenue. To stimulate demand during periods of low demand, management could consider strategies that attract more customers or encourage upselling, whereas during periods of high demand, management may consider raising prices or reducing meal durations. The results indicate that DEA is a useful tool to identify factors impacting restaurant efficiency and could enhance the service data and revenue management with regards to restaurant efficiency in South Africa.

Originality/value

To the best of the author’s knowledge, this paper is the first that attempts to identify factors impacting restaurant efficiency in South Africa by using DEA. The findings could enhance the service data and revenue management with regards to restaurant efficiency in South Africa.

Details

Tourism Review, vol. 73 no. 1
Type: Research Article
ISSN: 1660-5373

Keywords

Article
Publication date: 4 October 2011

Robin B. DiPietro, H.G. Parsa and Amy Gregory

The purpose of this paper is to determine the relationship between QSC (quality, service and cleanliness) inspection scores and financial performance in quick service restaurants.

2855

Abstract

Purpose

The purpose of this paper is to determine the relationship between QSC (quality, service and cleanliness) inspection scores and financial performance in quick service restaurants.

Design/methodology/approach

Restaurant QSC inspection data were collected from 25 quick service restaurants of an international chain over a period of 18 months. Audited financial data were also collected for these participating restaurants. Using SPSS software, the data were analyzed for possible relationships between the restaurant QSC scores and the financial performance measured as total unit sales per week, revenues per available seat per week, and gross operating income for each month. Restaurant unit size is measured by total revenues per month.

Findings

Contrary to the commonly held belief, the relationship between QSC variable and restaurant performance is weak. This study found there was a “V” curve in QSC inspections and financial performance when restaurant size was chosen as the moderating variable.

Research limitations/implications

The specific items measured in the QSC may differ across organizations, although the broad categories remain constant. Certain operational factors such as price changes, special promotions, additional restaurant openings in the specific area, and local economic conditions could have confounded the results.

Practical implications

The knowledge obtained from this study could help restaurant organizations determine the level of weighting given to a specific inspection variable. This study also suggests the use of FQSC inspections instead of traditional QSC to emphasize financial performance (F). This study demonstrates the liability and limitations of tying QSC inspections to merit raises and bonus plans as normally done in restaurants.

Originality/value

This paper is the first empirical study to analyze the QSC inspections of restaurants related to financial performance. In contrast to the past studies with food safety/health inspections, the current study focuses directly on QSC inspections conducted more frequently and in greater detail by the quick service restaurants with emphasis on operational and financial performance.

Details

International Journal of Contemporary Hospitality Management, vol. 23 no. 7
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 7 August 2009

Breffni M. Noone, Sheryl E. Kimes, Anna S. Mattila and Jochen Wirtz

Restaurant operators can process a greater number of customers and increase revenues by reducing service encounter duration during high demand periods. Actions taken to reduce…

8971

Abstract

Purpose

Restaurant operators can process a greater number of customers and increase revenues by reducing service encounter duration during high demand periods. Actions taken to reduce duration may be experienced by customers as an increase in the pace of the service encounter. While achieving a reduction in duration may be appealing from a revenue perspective, will customers' perceptions of the resulting pace of the service encounter negatively impact their satisfaction? The aim of this paper is to propose that, in the context of restaurant experiences that are hedonic and extended in nature, the overall relationship between perceived service encounter pace and satisfaction follows an inverted U‐shape.

Design/methodology/approach

Respondents were asked to recall a recent (i.e. within the last three weeks) restaurant experience, write a description of that experience, and then complete scales that measured their perceptions of pace and satisfaction with the experience.

Findings

The relationship between perceived pace and satisfaction has an inverted U‐shape. This holds both at the level of the overall service encounter and by service stage within the encounter. The effect of perceived pace on satisfaction is moderated by service stage, with a greater tolerance of a faster pace during the post‐process stage than during the pre‐process or in‐process stages.

Practical implications

The results of this study have implications for the application of revenue management strategies for duration control. Management need to consider the negative effect that service encounter pace can have on consumer satisfaction. Service stage should also be factored into strategy development for duration control.

Originality/value

This paper extends the wait time literature, demonstrating that as the perceived pace of the service encounter increases, satisfaction increases, but only up to a point, beyond which it decreases as perceived pace continues to increase.

Details

Journal of Service Management, vol. 20 no. 4
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 31 January 2020

Basak Denizci Guillet

The purpose of this study is to examine the evolution of revenue management (RM) research’s intellectual structure in hospitality and tourism in an effort to initiate a creative…

2752

Abstract

Purpose

The purpose of this study is to examine the evolution of revenue management (RM) research’s intellectual structure in hospitality and tourism in an effort to initiate a creative discourse for RM scholars.

Design/methodology/approach

Co-citation analysis was used to examine the reference list of 343 articles over a 35-year period (1983-2018). Co-citation analysis focused on subject clustering and source knowledge evolution. Five periods were created to investigate the evolution of the RM field in the hospitality and tourism industry. The paradigm shift approach was adopted to acquire a better understanding of scientific evolution.

Findings

Findings indicated that from a Kuhnian perspective, RM research in hospitality and tourism did not go beyond the normal science phase. There is no current indication of anomalies in the form of conflict or questioning of the existing paradigms in RM research in hospitality and tourism. This might change, as the research in this realm develops further and evolves.

Research limitations/implications

This study identified issues related to research themes that have the potential of moving RM research in hospitality and tourism to the next level, enabling the paradigm shift in this discipline.

Originality/value

This study is instrumental in its outlook on the evolution of RM research’s intellectual structure in hospitality and tourism. In addition, it is the first study that considers the concept of paradigm shift in RM research context in hospitality and tourism.

Details

International Journal of Contemporary Hospitality Management, vol. 32 no. 2
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 10 April 2017

Robin DiPietro

The purpose of this paper is to present a review of the foodservice and restaurant literature that has been published over the past 10 years in the top hospitality and tourism…

7890

Abstract

Purpose

The purpose of this paper is to present a review of the foodservice and restaurant literature that has been published over the past 10 years in the top hospitality and tourism journals. This information will be used to identify the key trends and topics studied over the past decade, and help to identify the gaps that appear in the research to identify opportunities for advancing future research in the area of foodservice and restaurant management.

Design/methodology/approach

This paper takes the form of a critical review of the extant literature that has been done in the foodservice and restaurant industries. Literature from the past 10 years will be qualitatively assessed to determine trends and gaps in the research to help guide the direction for future research.

Findings

The findings show that the past 10 years have seen an increase in the number of and the quality of foodservice and restaurant management research articles. The topics have been diverse and the findings have explored the changing and evolving segments of the foodservice industry, restaurant operations, service quality in foodservice, restaurant finance, foodservice marketing, food safety and healthfulness and the increased role of technology in the industry.

Research limitations/implications

Given the number of research papers done over the past 10 years in the area of foodservice, it is possible that some research has been missed and that some specific topics within the breadth and depth of the foodservice industry could have lacked sufficient coverage in this one paper. The implications from this paper are that it can be used to inform academics and practitioners where there is room for more research, it could provide ideas for more in-depth discussion of a specific topic and it is a detailed start into assessing the research done of late.

Originality/value

This paper helps foodservice researchers in determining where past research has gone and gives future direction for meaningful research to be done in the foodservice area moving forward to inform academicians and practitioners in the industry.

Details

International Journal of Contemporary Hospitality Management, vol. 29 no. 4
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 11 May 2015

Basak Denizci Guillet and Ibrahim Mohammed

The purpose of this study was to examine hospitality revenue management (RM) research in the recent decade, to identify emergent issues/topics and suggest directions for future…

10526

Abstract

Purpose

The purpose of this study was to examine hospitality revenue management (RM) research in the recent decade, to identify emergent issues/topics and suggest directions for future research.

Design/methodology/approach

A systematic process of literature review involving content analysis was adopted. The process involved searching for published articles in three major online databases for hospitality and tourism journals, evaluating and selecting the relevant articles, analyzing and synthesizing the findings of the selected papers and organizing the findings to determine what is known and what is yet to be known.

Findings

The paper established a broad range of topics that have engaged the attention of hospitality and tourism researchers in contemporary times. These topics were structured into seven major themes constituting the core activities of hospitality RM process and another eight themes covering the factors influencing the practice of RM.

Practical implications

The classification of the literature into core activities of RM process and factors influencing RM serves as a useful guide for practitioners and academics to trace relevant literature on various aspects of RM and to visibly notice the gaps in the existing literature.

Originality/value

By developing an RM framework and using it to evaluate existing literature, this study brings cohesion into the hospitality and tourism RM literature.

Details

International Journal of Contemporary Hospitality Management, vol. 27 no. 4
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 24 May 2013

Chin‐Yi Fang, Pao‐Yu (Jessie) Peng and Wei‐Ta (Woody) Pan

The purpose of this study is threefold: to use an innovative metafrontier‐to‐data‐envelopment analysis (MDEA) model incorporating multiple outputs and inputs – including the item…

1882

Abstract

Purpose

The purpose of this study is threefold: to use an innovative metafrontier‐to‐data‐envelopment analysis (MDEA) model incorporating multiple outputs and inputs – including the item revenue, gross profit, food costs, time‐driven labor costs, and other operating expenses (OOEs) – to distinguish four quadrants based on efficiency and profit to offer different strategies to the restaurateur under study; to compare the proficiency levels of the different meal categories of the à la carte and combo set menus using the metatechnology ratio (MTR) via the MDEA; and to use slack‐based analyses with simulation to improve the financial performance of a teppanyaki‐style restaurant.

Design/methodology/approach

Six months of point of sale (POS) data are obtained from a teppanyaki‐style restaurant. The proposed inputs are categorized into total food costs, total labor cost, the number of processes, and OOEs. Two outputs (total revenue and gross profit) are used to assess the efficiency of the menu items. The MTR is used to differentiate the proficiency level of the heterogeneous meal categories and to create four quadrants based on the efficiency index and financial performance.

Findings

The MTR is lower for the combo set category than for the à la carte category. Four quadrants are obtained based on the efficiency and financial performance to provide further menu suggestions. The MDEA analysis yields menu suggestions that could enhance the overall efficiency and profitability of the menu items. A simulation using these two models is conducted and shows that the restaurant profitability would be 22 percent greater using the MDEA than using the menu engineering model.

Research limitations/implications

Because there are no publicly listed teppanyaki‐style restaurants in Taiwan and it is difficult to find the same menu in different restaurants, this study consists of only a single restaurant, and the results may not be generalizable to other types of restaurants.

Originality/value

This paper contributes to menu analysis by establishing an efficiency index and using financial performance as criteria for determining which menu items to improve in a teppanyaki‐style restaurant. The MTR of the metafrontier model can differentiate the proficiency level of the heterogeneous categories, such as à la carte and combo set menus. This paper offers empirical results pertaining to the classification of menu items and describes a slack‐based analysis for improving menu items.

Details

International Journal of Contemporary Hospitality Management, vol. 25 no. 4
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 25 January 2019

Muhittin Cavusoglu

This study aims to examine the utilization of Front of House (FOH) and Back of House (BOH) technology applications in different types of US restaurants along with their level of…

6054

Abstract

Purpose

This study aims to examine the utilization of Front of House (FOH) and Back of House (BOH) technology applications in different types of US restaurants along with their level of IT management and explore the importance of these technology applications to restaurant operations.

Design/methodology/approach

Survey data were collected from 500 randomly selected restaurant technology managers who subscribe to Hospitality Technology Magazine. The sample group represented 67,299 restaurant units. Data analysis was organized into three parts (descriptive, exploratory factor analysis, and independent samples t-test).

Findings

For FOH, the top-five point of sale (POS) technologies used are POS hardware, touchscreen, POS software, gift card integration and integrated credit card swipe into POS. At the BOH, the top-five POS technologies used are accounting/financial software, enterprise reporting, inventory management software, kitchen printers and company intranet.

Originality/value

This is one of the first studies to include a variety of technologies used in restaurants. Most existing studies focus on a single technology or a small number of them. However, this study provides an overall perspective on a variety of restaurant technologies from FOH to BOH. It also includes mobile POS technologies.

研究目的

本论文旨在研究美国各种类型饭店的前厅(FOH)和后厨(BOH)的各种科技应用系统以及其信息科技管理水平, 此外, 本论文还分析了这些科技应用对于饭店运营的重要性。

研究设计/方法/途径

本论文采用问卷采样形式, 从订阅了酒店科技杂志(Hospitality Technology Magazine)的饭店科技经理中随机抽取500名经理为问卷样本, 此样本代表了67,299家饭店。数据分析方法共分为三个部分(描述型、因子分析、和独立样本t检定)。

研究结果

对于FOH而言, 排名前五的POS科技包括POS硬件、触摸屏、POS软件、礼品卡管理、和信用卡与POS系统链接。对于BOH而言, 排名前五的POS科技包括会计/财务软件、企业报表、库存管理软件、厨房打印机、和公司内网。

研究原创性/价值

本论文是仅存的几篇研究多样饭店科技的文章之一。大多数文章只是关注一种或者少数几种科技。然而, 本论文提供从FOH到BOH多种饭店科技的分析研究, 包括移动POS科技等。

关键词 饭店科技、前厅科技、后厨科技、移动POS

Details

Journal of Hospitality and Tourism Technology, vol. 10 no. 1
Type: Research Article
ISSN: 1757-9880

Keywords

1 – 10 of over 8000