Dennis Reynolds

An Exploratory Investigation of Multiunit Restaurant Productivity Assessment Using Data Envelopment Analysis

SUMMARY Conventional approaches to assessing unit-level productivity, such as labor-cost percentages or basic ratio analysis including sales per labor hour, are limited in utility because they integrate too few operational characteristics to portend true operational efficiency. Moreover, current parametric approaches impose a functional form relating independent variables uniformly to dependent variable(s) and provide only an average by which other operations are compared. Data envelopment analysis (DEA), a linear-programming-based benchmarking technique that explicitly considers weighted outputs and inputs, is introduced as an alternative. DEA does not require any assumptions about functional form and calculates a maximal performance measure for all units in the population. As an exploratory investigation, data from 38 same-brand midscale restaurants were analyzed. Results, which include relative-to-best efficiency valuations, suggest that data envelopment analysis offers considerable potential for managers looking to accurately assess productivity. The viability of key variables as part of the DEA application is also discussed.

Understanding Menu Psychology: An Empirical Investigation of Menu Design and Consumer Response

Abstract For years, menu designers have operated on the premise that menu layout affects sales directly. The supporting research in this area has, however, been sparse. To evaluate this relationship empirically, an experiment was conducted in an independent, casual-dining restaurant located at a large, northeastern university. The first treatment integrated manipulations of price location on menus but did not result in significantly different average-check totals. The second tested the effects of displaying specific items more prominently on the menu. Again contrary to the hypothesis, this failed to affect the probability that guests would purchase either of the selected items. The concluding discussion addresses implications for restaurateurs and the future of menu design.

An Evaluation of Guests’ Preferred Incentives to Shift Time-variable Demand in Restaurants:

Asked for their reactions to specific demand-shifting tactics based on revenue management, patrons of a restaurant in Ithaca, New York, indicated that they generally would be willing to shift their dining time to off-peak hours in exchange for discounts on menu items. Better than three-quarters of the 367 respondents agreed that they would accept an incentive for dining at an off-peak time. Specific results and conclusions are detailed below.

An Exploratory Investigation into Behaviorally Based Success Characteristics of Foodservice Managers

This exploratory study qualitatively examines foodservice managers’ behaviorally based success characteristics as identified through interviews with executives from 17 leading chain-restaurant organizations. In addition, similarities and differences between these success characteristics and what the relevant literature describes as traits common to overall management success are compared. Results of this study suggest that unit-level managers in the chain-restaurant industry must possess a manifold set of characteristics similar to their brethren in nonhospitality fields. However, chain-restaurant managers may be differentiated in terms of an overarching focus on people—both customers and employees—and ethics.

Productivity Analysis: In the On-site Food-service Segment

On-site food service has evolved into a major segment of the multiunit restaurant industry, with 1998 sales expected to exceed

A Comparison of the Influence of Purchaser Attitudes and Product Attributes on Organic Wine Preferences

80 billion. Surprisingly, productivity analysis of on-site food service is still performed using measures that fail to capture the complexity of todays operations. Traditional partial-factor productivity measures do not account for relationships among resources. Labor productivity, in particular, is often used as a surrogate for overall operational performance, without regard to other relevant variables. Aggregate and multiple-factor measures are more robust, meaningful measures than partial-factor measures for analyzing actual operational productivity. Moreover, multiple-factor productivity measurement allows managers to compare diverse operations. Using multiple-factor or aggregate productivity measures, as outlined in the article, allows managers to compare self-operated units with contracted operations, thereby providing a basis for such decisions as whether to outsource. Properly conceived and applied measures enable managers to evaluate the relationships between productivity and management policies. They serve as a barometer for monitoring the effectiveness of operational changes such as new production methods, integration of work teams, and implementation of new technology.

Burnout in Full-Service Chain Restaurants

Despite considerable theoretical support for the proposition that wine consumers’ purchase decisions would be influenced by whether a wine was organic, this study found that taste overwhelmed all other considerations in respondents’ selection of wine. This experimental study used sensory evaluation in conjunction with a survey of participants’ attitudes toward sustainability and other environmental issues. The study’s methodology was supported theoretically by a means–end approach, evaluative conditioning, and consumer involvement. Despite the strong theoretical underpinnings that suggested personal attitudes would drive purchase decisions, the results indicate that taste alone consistently influenced participants’ preference for wines. Once the respondents tasted the wine, the fact that the wine was organic had no further influence on the wine purchase decision.

Multi‐factor menu analysis using data envelopment analysis

This study of managerial burnout in restaurants found that a higher percentage of assistant managers (AMs) than general managers (GMs) had high emotional exhaustion, experienced high depersonalization, and fell into the high-burnout category on personal accomplishment. AMs perceive far less personal accomplishment than GMs. The percentage of single, never-married AMs in the high-burnout range was high. That group exhibited the most emotional exhaustion while married AMs showed the most depersonalization. More female than male AMs suffered from emotional exhaustion and reported receiving exceptional support from their GMs, but more female than male AMs also reported receiving minimal support.

Strengthening the F&B purchaser-supplier partnership: Actions that make a difference

Purpose – The purpose of this paper is to develop a multi‐dimensional, holistic model that: avoids the variable interdependency found in earlier tools; and integrates multiple factors that characterize menu item costs more accurately by considering more than gross profit.Design/methodology/approach – Using data gathered during a three‐month period from three same‐brand units of a full‐service chain restaurant firm, the paper applies data‐envelopment analysis (DEA), a non‐parametric approach that accounts for both controllable (discretionary) and uncontrollable (non‐discretionary) variables, producing a single relative‐to‐best index based on an efficiency rating calculated on a 0 to 1 scale.Findings – The findings suggest that the DEA‐equipped model, which is not constrained by the limitations of traditional matrix approaches, supports a more robust approach by incorporating more cost determinants than traditional menu engineering approaches.Research limitations/implications – The paper consists of only a ...

How to make your Facebook posts attractive: A case study of a leading budget hotel brand fan page

Abstract When vendors and purchasers work as partners, such key attributes as trust and communication will cement their relationship and provide a competitive advantage.