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Article
Publication date: 12 August 2019

Business model innovation in the Indian hospitality industry: A study of the willingness to outsource specialty restaurants in luxury hotels

Sonia Bharwani, David Mathews and Amarpreet Singh Ghura

This study aims to explore the reasons for the rise of independent, stand-alone restaurants and ascertains the benefits of outsourcing food and beverage (F&B) in luxury…

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Abstract

Purpose

This study aims to explore the reasons for the rise of independent, stand-alone restaurants and ascertains the benefits of outsourcing food and beverage (F&B) in luxury hotels in India from the perspectives of the strategic partners involved in such an alliance. The study also proposes different formats for F&B outsourcing in luxury hotels.

Design/methodology/approach

An exploratory study was carried out by collecting primary data from 16 Hotel General Managers and F&B operations experts through qualitative, semi-structured, personal and in-depth interviews. NVivo12 software was used to carry out a qualitative thematic analysis of the data. The primary data collected were triangulated with secondary data gathered through literature review of academic papers, industry reports and studies on the trends of restaurants in luxury hotels being outsourced.

Findings

The study focusses on the antecedents of the rise of stand-alone restaurants in the Indian hospitality industry. To combat the competitive disruption arising because of this trend, the study posits the business model innovation of outsourcing F&B operations in luxury hotels.

Practical implications

The benefits of a strategic alliance from the perspective of both parties – the luxury hotel and Michelin-star chef or branded/marquee restaurant – are elucidated. Further, three broad formats, which can be adopted for speciality restaurant outsourcing are also proposed. Practitioners, researchers and educationists in the hospitality industry would find the implications of this study useful in the context of the present customer-centric business environment where hotels are constantly striving to meet the exponentially rising bar of guest expectations in an increasingly globalised milieu.

Originality/value

The study proposes a preliminary road map for internationalisation of F&B operations through the business model innovation of outsourcing operations of in-house specialty restaurants by luxury hotels in the Indian context.

Details

Worldwide Hospitality and Tourism Themes, vol. 11 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/WHATT-04-2019-0018
ISSN: 1755-4217

Keywords

  • Innovation
  • Outsourcing
  • Hospitality
  • Michelin
  • Food and beverage service
  • Specialty restaurant

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Case study
Publication date: 31 July 2017

Balqis restaurant: how to move on?

Farzana Quoquab, Shazwani Binti Ahmad, Wan Nurul Syazwani Binti Wan Danial and Jihad Mohammad

This case can be used in marketing management as well as consumer behaviour courses.

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Teaching notes available

Abstract

Subject area

This case can be used in marketing management as well as consumer behaviour courses.

Study level/applicability

This case is suitable to use in advanced undergraduate levels, MBA and MSc in marketing courses that cover topics related to market segmentation and marketing mix strategies.

Case overview

This case highlights the dilemma of an entrepreneur and a manager of a restaurant who were to take a decision about the sustainability of their restaurant business. Balqis Restaurant was owned by Danny who was a retiree from Telekom Malaysia. He wanted to open a restaurant business after he came back from his long holiday trip. He conducted market research to find a suitable place to open his Arabic restaurant. He assigned Waleed Masood Abdullah as the manager of Balqis Restaurant. Finally, in June 2010, he opened his long awaited restaurant at Gombak, Kuala Lumpur. The restaurant was known as Qasar before the name was changed to Balqis in 2015 because of copyright issues related to Saba’ restaurant at Cyberjaya. The restaurant was well managed under Danny’s supervision for 4 years and successfully won customers’ hearts and loyalty before he decided to give full responsibility to Waleed in March 2014. Danny trusted Waleed because he taught and trained him. However, under Waleed’s management, Balqis started to lose its customers. Waleed also started to branch out the restaurant to different places in different states; one in Ipoh, and the other in Perak. He invested much money on renovation for all three branches, but one of the restaurants closed down in September 2014. This is because of the fact that they could no longer bear the cost of operations for the restaurant. However, he failed to learn from the mistake; they set up another restaurant, which was in Kuantan, in the same month. The sales were not that encouraging but it did show gradual improvement; yet, they once again sold it to another Arab businessman. Waleed realized his failure in managing the restaurant business in August 2015. He again opted to open another new branch which was questioned by Danny. He was in a rush to open it by the end of December 2015 to ensure that the additional profits from the current restaurants could cover the variables costs if the new restaurants were launched. Based on that, the owner had to make a decision about whether a new branch should be opened or whether they should just retain their restaurant in Gombak.

Expected learning outcomes

The learning objectives of using this case are as follows. 1. Knowledge enhancement: to help students in understanding the problems faced by a restaurant in expanding its market; to make students aware that a properly blended marketing mix is the key to business success and to broaden students’ views and understanding in targeting the proper market segment in formulating an effective marketing strategy. 2. Skills building: to be able to identify the best marketing strategic decisions to manage the restaurant business for its survival and to develop students’ ability to analyse the existing situation to come up with a viable and effective solution. 3. Attitudinal: to help the students to have intellectual openness in accepting different ways of finding solutions for a particular problem and to assist students in making the right move at the right time.

Supplementary materials

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Subject code

CSS 8: Marketing.

Details

Emerald Emerging Markets Case Studies, vol. 7 no. 3
Type: Case Study
DOI: https://doi.org/10.1108/EEMCS-05-2016-0094
ISSN: 2045-0621

Keywords

  • Marketing mix
  • Market segmentation/target markets
  • Market research/consumer behaviour

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Article
Publication date: 11 April 2016

The way forward: human capital development in the hotel industry in Nigeria

Belinda Nwosu and Trevor Ward

The purpose of this paper is to review contributions made to the strategic question about human capital development issues in the hotel industry in Nigeria and how they…

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Abstract

Purpose

The purpose of this paper is to review contributions made to the strategic question about human capital development issues in the hotel industry in Nigeria and how they can be addressed.

Design/methodology/approach

Based on the strategic question, a critical analysis of each contribution was carried out to identify the key themes, and then the issues, impacts and proposed solutions related to each theme.

Findings

The findings show eight key themes related to the human capital development question in the hotel industry in Nigeria.

Research limitations/implications

The findings create a framework to kick-start a conversation by all stakeholders in the hotel industry in Nigeria. The lack of reliable data in many areas is a limitation in reaching empirically based quantitative conclusions. It would be useful to include a wider range of stakeholders in the conversation.

Originality/value

All ten articles have contributed different perspectives to the conversation; all confirm that an engagement of all industry stakeholders is critical if a sustainable resolution is to be achieved.

Details

Worldwide Hospitality and Tourism Themes, vol. 8 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/WHATT-11-2015-0049
ISSN: 1755-4217

Keywords

  • Nigeria
  • Tourism
  • Hotel industry
  • Human capital development
  • Hotel development
  • Training and education

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Article
Publication date: 1 January 1997

INTERNATIONALIZATION OF JAPANESE DEPARTMENT STORES

Brenda Sternquist

Japanese department stores have gained significant market‐share in several Pacific Rim countries. In this paper, factors related to internationalization are discussed…

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Abstract

Japanese department stores have gained significant market‐share in several Pacific Rim countries. In this paper, factors related to internationalization are discussed. Dunning's eclectic approach is considered as a framework for explaining internationalization. Profits, number of employees, and dollars spent for research and development are independent variables used to predict internationalization. Japanese department stores with international offices versus no international offices were correctly classified 83% of the time. Those retailers with international offices had greater profit, more employees, and more R&D funds than those without international offices. A two by two matrix focusing on growth and store format is presented to explain Japanese retailers' international expansion. Propositions for future research are presented.

Details

International Journal of Commerce and Management, vol. 7 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/eb047343
ISSN: 1056-9219

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Book part
Publication date: 19 November 2012

Pricing: From Good to World Class

Craig Zawada and Mike Marn

Many companies have made progress in pricing – instituting pricing rules, creating pricing organizations, and getting high-level visibility on pricing performance. Few…

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Abstract

Many companies have made progress in pricing – instituting pricing rules, creating pricing organizations, and getting high-level visibility on pricing performance. Few, however, have truly turned pricing into a competitive advantage. Unfortunately, the growing complexity of pricing demands that companies take their pricing capabilities to the next level of performance. This chapter outlines some of the ways that companies can take their pricing capabilities to a higher level of performance. Managers should look at these ideas and identify one or two areas where they will take their capabilities not just to good but to a level of world class. Those that do will increasingly be able to outperform their competitors and drive significant value to the company's bottom line.

Details

Visionary Pricing: Reflections and Advances in Honor of Dan Nimer
Type: Book
DOI: https://doi.org/10.1108/S1069-0964(2012)0000019017
ISBN: 978-1-78052-996-7

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Article
Publication date: 1 March 2003

New developments concerning wages and hours in the restaurant industry

Andrea Chuang and Brian H. Kleiner

Segments the US restaurant business as quick service and drive‐in, and goes on to discuss each of these components in more detail. Elaborates on employee costs, showing…

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Abstract

Segments the US restaurant business as quick service and drive‐in, and goes on to discuss each of these components in more detail. Elaborates on employee costs, showing these rise percent wise as the restaurant’s profile does also, but emphasizes that labour laws only allow full‐time employees to have entitlement to full medical benefits. Notes that the quick service restaurant chains include such as McDonalds, Burger King, etc., and the drive‐in area includes both public and speciality sectors. Concludes that only the tip of the iceberg has been touched here with regard to wages and time in the industry.

Details

Management Research News, vol. 26 no. 2/3/4
Type: Research Article
DOI: https://doi.org/10.1108/01409170310783871
ISSN: 0140-9174

Keywords

  • Restaurants
  • Fast‐food restaurants
  • Employee rights

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Article
Publication date: 24 May 2013

Relationships between lifestyle of health and sustainability and healthy food choices for seniors

Myung‐Ja Kim, Choong‐Ki Lee, Woo Gon Kim and Joung‐Man Kim

The purpose of this paper is to examine the structural relationships among lifestyle of health and sustainability (LOHAS), healthy food choices, trust, and emotional…

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Abstract

Purpose

The purpose of this paper is to examine the structural relationships among lifestyle of health and sustainability (LOHAS), healthy food choices, trust, and emotional loyalty and the moderating role of age between seniors and non‐seniors in restaurants.

Design/methodology/approach

Partial least squares (PLS)‐graph software (version 3.0) was used to analyze the measurements and structural models. The authors employed a PLS regression analysis for both the formative and reflective constructs in the empirical test of the research model.

Findings

The study revealed that the senior market segment differs from the non‐senior market segment in the following ways: the magnitude of impact of LOHAS on healthy food choices is much stronger for senior diners than for non‐senior diners and the impact of LOHAS on trust and emotional loyalty is greater for seniors than non‐seniors.

Research limitations/implications

The results of this study can guide the restaurant industry in its research on the implications of LOHAS for seniors.

Practical implications

Restaurant marketers should develop different strategies for the senior and non‐senior market segments, and they need to focus on target segments rather than attempting to appeal to the market as a whole.

Originality/value

This paper assists researchers and practitioners by shedding light on the differences among LOHAS, healthy food choices, trust, and emotional loyalty between senior and non‐senior diners.

Details

International Journal of Contemporary Hospitality Management, vol. 25 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/09596111311322925
ISSN: 0959-6119

Keywords

  • LOHAS
  • Senior
  • Healthy food choices
  • Partial least squares
  • Trust
  • Emotional loyalty
  • Elderly people
  • Food products
  • Hospitality services

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Article
Publication date: 25 November 2014

SWOT analysis of the truffles market in Greece

Vaia Tsitsipati and Christodoulou Athanasios

The purpose of this paper is to investigate the suitability of Greece as a possible market for truffles. Primary data were collected and analysed in a systematic and…

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Abstract

Purpose

The purpose of this paper is to investigate the suitability of Greece as a possible market for truffles. Primary data were collected and analysed in a systematic and detailed way to highlight the strengths, weaknesses, opportunities and threats of this prospective market development.

Design/methodology/approach

A multi-stage survey was conducted using qualitative and quantitative research methods. The data obtained were analysed using the SWOT analysis method.

Findings

The survey highlighted the market characteristics of truffles in Greece. These were sorted into four categories: strengths, weaknesses, opportunities and risks. Results show that truffles have an attractive mix of qualities; however, issues such as the lack of intermediary and customer knowledge and the limited communication of their benefits need to be overcome.

Research limitations/implications

Findings showed that the use of SWOT analysis in specialized food products provides marketers and professionals’ insight and guidance into designing their marketing activities.

Practical implications

Truffles production or trading requires strong commitment by professionals who want to succeed in this market field.

Social implications

Truffles market growth could contribute to the social welfare through the creation of supplemental income, the cultivation of arid fields and the conservation of natural resources due to their environmentally friendly manner of production.

Originality/value

For the first time, SWOT analysis is used to investigate the factors that shape the market of specialized products in the food sector.

Details

British Food Journal, vol. 116 no. 12
Type: Research Article
DOI: https://doi.org/10.1108/BFJ-12-2012-0293
ISSN: 0007-070X

Keywords

  • Marketing strategy
  • Specialized products
  • SWOT analysis
  • Truffles

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Article
Publication date: 11 July 2016

Classifying restaurants to improve usability of restaurant research

Bonnie Farber Canziani, Barbara Almanza, Robert E. Frash, Merrick J. McKeig and Caitlin Sullivan-Reid

This paper aims to review existing restaurant classifications within the literature in the restaurant management field. The authors discuss intra-industry ramifications of…

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Abstract

Purpose

This paper aims to review existing restaurant classifications within the literature in the restaurant management field. The authors discuss intra-industry ramifications of the limited use of recognized typologies and the need to prescriptively guide the description of restaurant context in the literature to communicate the internal and external validity of findings.

Design/methodology/approach

Restaurant categories from accepted typologies are used as keywords to collect 345 empirical studies from ten relevant journals serving the global restaurant management discipline. Content analysis of titles, abstracts and methodology sections is used to examine three propositions regarding the standardization, rationalization and efficiency of restaurant classification in imparting restaurant context in published works.

Findings

Findings show inconsistent use of existing typologies and limited use of effective restaurant descriptors to inform users about the situational context in which data were gathered or hypotheses were tested. There is a general preference for categories commonly associated with those of the National Restaurant Association.

Research limitations/implications

Researchers should standardize descriptions of restaurants in manuscript titles, abstracts and methods sections, thereby enhancing integration of international research, the ability to conduct macro-level industry studies, and communication of findings to practitioners for operational use.

Originality/value

Recommendations are offered to optimize the use of restaurant classification so that the content of empirical studies may be more effectively accessed, digested and compared, thereby enhancing the communication of advances in the restaurant management body of knowledge to practitioners and other researchers.

Details

International Journal of Contemporary Hospitality Management, vol. 28 no. 7
Type: Research Article
DOI: https://doi.org/10.1108/IJCHM-12-2014-0618
ISSN: 0959-6119

Keywords

  • Restaurant
  • Research methodology
  • Typology
  • Validity
  • Industry classification
  • Food service

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Article
Publication date: 1 November 2000

Marketing works: a study of the restaurants on Bornholm, Denmark

Szilvia Gyimóthy, Charlotte R. Rassing and Stephen Wanhill

Commencing in the late 1980s in Europe, regional development policy has seen a switch of emphasis from large automatic grants to attract inward investment projects…

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Abstract

Commencing in the late 1980s in Europe, regional development policy has seen a switch of emphasis from large automatic grants to attract inward investment projects, towards small and medium enterprises (SMEs) and indigenous growth. From a tourism perspective, this blends well with models of community tourism development, particularly in peripheral areas. The task of co‐ordinating local actions usually falls on public agencies, but development is often made doubly difficult because there is a dichotomy between the market stance of tourist bureaux and the supply‐oriented approach of small traders. Such is the case of the restaurant industry on Bornholm, which fails to match the expectations of the visitors in their menu structures. This article analyses the extent of the gap between demand and supply in terms of the visitors’ experiences.

Details

International Journal of Contemporary Hospitality Management, vol. 12 no. 6
Type: Research Article
DOI: https://doi.org/10.1108/09596110010343648
ISSN: 0959-6119

Keywords

  • Denmark
  • Restaurants
  • Marketing
  • Menus

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