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Restaurant operating expenses and their effects on profitability enhancement

International Journal of Hospitality Management·Paid Content ·22 December 2017
Restaurant firms need efficient cost management strategies due to highly competitive market conditions and the weak financial structure of the restaurant industry. In this regard, the objectives of this study were to examine the operating expenses of restaurant firms and their impact on profitability enhancement by business segment and firm size. This study found that high prime costs (food costs and salary expenses) could be a major concern for full-service restaurant businesses and cause lower profitability compared with their limited-service counterparts. Improving the operational performance of full-service restaurants depends on sophisticated cost retrenchment skills, such as balancing productivity and revenues while minimizing quality detrimental. Further, firm size had an impact due to economies of scale decreasing food costs. Sung Gyun Mun, SooCheong (Shawn) Jang

Effects of tourists' local food consumption value on attitude, food destination image, and behavioral intention

International Journal of Hospitality Management·Paid Content · 5 December 2017
Ja Young (Jacey) Choe, Seongseop (Sam) Kim Despite the importance of understanding food consumption value from tourists' perspectives, few studies have explored how experiencing local food in a destination shapes tourists' consumption value. This study explores the effect of tourists' local food consumption value on their perceptions and behaviors. Tourists' cultural background is used as a moderating variable. The findings show that tourists' local food consumption value effectively explains tourists' attitudes toward local food, food destination image, and behavioral intentions. In addition, the cultural background of tourists partially moderates the relationships between the proposed constructs. This study is the first empirical application of consumption value theory to the context of tourists' local food experiences.

Identifying competitors through comparative relation mining of online reviews in the restaurant industry

International Journal of Hospitality Management·Paid Content · 5 December 2017
Song Gao, Ou Tang, Hongwei Wang, Pei Yin It is of importance for restaurants to identify their competitors to gain competitiveness. Meanwhile, opinion-rich resources like online reviews sites can be used to understand others opinion toward restaurant services. We thus propose a novel model to extract comparative relations from online reviews, and then construct three types of comparison relation networks, enabling competitiveness analysis for three tasks. The first network help restaurants analyze market structure for their positioning. The second network enables to identify top competitors using competitive index and dissimilarity index. The third network help restaurants identify strengths and weaknesses through aspects-comparison relation mining. Finally, the market environment is illustrated in a visual way according to the three types of networks.

Alcohol and other drug use in Michelin-starred kitchen brigades

International Journal of Hospitality Management·Paid Content · 5 December 2017
Charalampos Giousmpasoglou, Lorraine Brown, John Cooper This paper aims to explore chefs' experiences of the use of alcohol and other drugs (AOD) in Michelin-starred restaurants in Britain and Ireland. In total, 54 Head Chefs were interviewed in this study, which found AOD use to be part of their occupational culture. The work context plays a key role in this phenomenon in that harsh working conditions (such as heat, stress and long hours) provide fertile ground for AOD use as a means of self-medication and as a coping strategy. This study observes a normalisation of drinking to unwind. Even if this practice is detrimental to health, it is the coping mechanism used by chefs to deal with the stresses associated with the high end kitchen environment.

Optimization of menu-labeling formats to drive healthy dining: An eye tracking study

International Journal of Hospitality Management·Paid Content · 5 December 2017
Eojina Kim, Liang (Rebecca) Tang, Chase Meusel, Manjul Gupta This study examines customers' visual attention when choosing food and beverage items of a fast-food menu. Three formats on menu labeling were examined, including numeric, color-coded, and physical activity-based formats. An experimental choice paradigm combined with eye tracking technology explored customers' visual attention, preferences for format, and menu choices. The study revealed that customers increased visual attention and chose healthier selections when viewing physical activity-based labeling, and customers preferred physical activity-based formats over numeric or color-coded labeling. Overall, the physical activity-based labeling on calorie information app to be the most effective format for inducing healthy choices.

Why not eat alone? The effect of other consumers on solo dining intentions and the mechanism

International Journal of Hospitality Management·Paid Content ·15 November 2017
Publication date: March 2018 Source:International Journal of Hospitality Management, Volume 70 Author(s): EunSol Her, Soobin Seo The radical change in contemporary lifestyles and demographics has led to the sharp increase of solo consumers in the marketplace, calling for an understanding of solo consumption behaviors. This study examines the determinants of solo dining intentions with respect to the other consumers in the restaurant, and its underlying mechanism through anticipated loneliness and the anticipated negative evaluation from others. Using a scenario-based, 2 (group type of other diners: in-group vs. out-group)×2 (crowding level: high vs. low) between-subjects experimental design, online survey data were collected from 248 participants. Findings reveal that the group type of other diners (i.e., mostly solo diners vs. group diners) is a major predictor of solo dining intentions. The effect is further found to be greater by high-crowding (vs. low-crowding), and mediated by ant
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A within-restaurant analysis of changes in customer satisfaction following the introduction of service inclusive pricing or automatic service charges

International Journal of Hospitality Management·Paid Content ·11 November 2017
Many U.S. restaurants have recently adopted no-tipping policies or are considering doing so. This study examines the effects of such moves away from tipping on restaurant’s online customer ratings. The results indicate that (i) restaurants receive lower online customer ratings when they eliminate tipping, (ii) online customer ratings decline more when tipping is replaced with service-charges than when it is replaced with service-inclusive-pricing, and (iii) less expensive restaurants experience greater declines in online customer ratings when replacing tipping with either alternative than do more expensive restaurants. These findings provide a strong argument for the retention of tipping, especially among lower- and mid-tier restaurants.

The theory of planned behavior and the norm activation model approach to consumer behavior regarding organic menus

International Journal of Hospitality Management·Paid Content ·24 October 2017
This study's purpose is to explore consumers' intention to choose organic menu items at restaurants and their intention to visit restaurants featuring organic menu items. The study model was developed using the theory of planned behavior and the norm activation model. With a total of 461 responses, the results from structural equation modeling indicated that attitude, subjective norm, perceived behavioral control, and personal norm are determinants of intention to choose organic menu items, which eventually lead to consumers' intention to visit restaurants featuring organic menu items. Theoretical and managerial implications of the research are discussed.
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Exogenous factors of the creative process and performance in the culinary profession

International Journal of Hospitality Management·Paid Content ·21 October 2017
Support for creativity was only connected to three out of five stages of the creative process, namely, idea preparation, verification of artwork, and creative performance. • Similar result on tolerance to difference was associated to three stages only. • Work demand was linked to one stage in the process, namely, creative performance. • Creative self-regulatory efficacy was also positively associated with all the five stages in the creative process. • All factors have a positive relationship with creative performance.

Substance use for restaurant servers: Causes and effects

International Journal of Hospitality Management·Paid Content ·11 October 2017
Restaurant industry employees have historically exhibited a high tendency toward substance use. To address this phenomenon, this study aimed to assess if a restaurant front-of-house server’s work stress contributes to alcohol and illicit substance use. Specifically, it was hypothesized that a server’s role stress (conflict and ambiguity) would stimulate substance use. Also, this study tested the impact of substance use on job and life satisfaction, and the moderating effect of self-control on the relationship between role stress and substance use. The results demonstrated that role ambiguity had a positive influence on substance use. Servers’ drug use had a positive influence on job satisfaction, but no significant influence was found for alcohol use. As hypothesized, job satisfaction significantly increased life satisfaction. Lastly, self-control moderated the relationship between role stress and substance use. Detailed results and implications of the findings are provided in the main body of this paper.
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Is unfamiliarity a double-edged sword for ethnic restaurants?

International Journal of Hospitality Management·Paid Content ·25 September 2017
Last week, the Commercial Aviation Corp. of China Ltd. (Comac) announced that the C919, China’s first homemade large passenger jet, had chalked up its 730th pre-order. Those numbers won’t necessarily make the Boeing Co. or Airbus SE quake; Boeing estimates Chinese airlines alone will require 5,420 new single-aisle planes by 2036. Ultimately, though, they could herald the end of global aviation’s great duopoly.
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Understanding and projecting the restaurantscape: The influence of neighborhood sociodemographic characteristics on restaurant location

International Journal of Hospitality Management·Paid Content ·17 August 2017
To better understand the location patterns of different types of restaurants across the United States, we investigate the relationship between neighborhood sociodemographic characteristics and restaurant location using a unique data set from 2013 covering 30,772 U.S. zip codes. The estimation results from negative binomial regression models confirm the significant impacts of various sociodemographic factors (e.g., population density, median age, median household income, average household size, educational attainment, gender distribution, housing tenure, neighborhood urbanization) on restaurant location. We also project future restaurant growth potential based on model estimates and projected changes in sociodemographic characteristics by 2020. The results are analyzed, and several metropolitan areas in Texas and Florida are identified as having high potential for growth. Lastly, implications are provided for restaurant real estate practitioners.

Hospitality service climate, employee service orientation, career aspiration and performance: A moderated mediation model

International Journal of Hospitality Management·Paid Content ·10 August 2017
This study tested a moderated mediation model involving hospitality employees' service climate perception, service orientation, career aspiration and service performance. Using a sample of 500 frontline service employees in ten restaurants of a hospitality chain company in China, the study found that employees' service orientation partially mediated the relationship between service climate and self-reported/supervisor-reported service performance. Furthermore, career aspiration moderated the mediation effect of service orientation between service climate and self-reported service performance. However, such a moderating effect was not confirmed when service performance was measured by supervisors' ratings. The study highlights the importance of employees' service orientation and career aspiration in hospitality human resource management practices. Publication date: October 2017 Source:International Journal of Hospitality Management, Volume 67 Author(s): Yiqiong Li, Songshan (Sam) Huang

The impact of personal and functional aspects of restaurant employee service behaviour on customer satisfaction

International Journal of Hospitality Management·Paid Content ·21 July 2017
Employee behaviour plays a significant role in satisfying restaurant customers, however, there is a paucity of research highlighted personal and functional aspects of employee behaviour and their influence on customer satisfaction. Accordingly, this study aims to bring a deeper insight of the impact of restaurant employee service behaviour on customer satisfaction. Using survey approach, the current study collected data from 212 tourists who had a dining experience in Jordan. The results of data analysis showed that both functional and personal aspects of service behaviour where able to explain customer satisfaction, with higher contribution of personal aspects over the functional ones. Depending on study’s findings, some implications were suggested including a recommendation to foodservice managers to adopt reinforcement programs that improve functional and personal aspects of their employees. A further recommendation was proposed to marketers, to give a higher attention to personal aspects of foodservices in their marketing activities.

An innovative approach to the intellectual property in haute cuisine

International Journal of Hospitality Management·Paid Content ·29 June 2017
The paper investigates the relationship between the culinary innovation process (divided in two stages: idea generation and idea transformation) and the role of creativity protection. The aim is to understand how chefs protect their creativity and their innovation outcomes. The analysis is based on a sample of 132 Italian Michelin-starred chefs. The study sheds light on creativity and innovation domains in the hospitality environment where organizations have to continuously innovate in order to maintain a defensible competitive position. It identifies five “barriers against imitation” by competitors: “listening to clients’ needs”; “chef’s own creativity”, “systematic approach to creativity”; “knowledge based feasibility”; “accumulated professional skills”. The paper represents an initial effort to examine creativity protection concepts in the gastronomy sector, which are still unexplored. It contributes to a better understanding of how to protect the intellectual property in a sector where the applicability of law-based intellectual property systems is very low.

Theme restaurants' servicescape in developing quality of life: The moderating effect of perceived authenticity

International Journal of Hospitality Management·Paid Content ·23 June 2017
This study was designed to investigate the role of servicescape, customer emotion, satisfaction, and perceived authenticity (PA) in the generation process of theme restaurant customers’ quality of life. We employed a survey methodology that used the data collected from theme restaurant customers, conducted structural analysis, and tested for metric invariance. Results showed that our theoretical model explained a sufficient amount of variance in overall quality of life; the hypothesized relationships in our research framework were generally supported; and customer emotion, satisfaction, and subjective well-being were significant mediators. Moreover, the proposed moderating impact of PA was partially supported. Overall, our empirical findings provide a significant contribution toward advancing the knowledge of how servicescape dimensions, customer emotion, satisfaction, subjective well-being, and quality of life are related. Finally, we share insight into how these relationships are affected by PA in the formation of theme restaurant customers’ quality of life.

Willingness to pay in negative restaurant service encounters

International Journal of Hospitality Management·Paid Content · 7 June 2017
The aim of this research is to propose and test a comprehensive research model to understand the influence of food quality, service quality, ambiance, and value on consumer WTP in negative service encounters. Using DINESERV as the theoretical background, a mixed methodology (ANOVA and structural equation modeling) was utilized for the study using a between-subjects experimental design. Data was collected using an online survey from students (Study 1) as well as restaurant consumers (Study 2). The structural equation modeling provided evidence for the arguments that food quality, ambiance, and value are significant predictors of customer WTP in a negative restaurant service encounter. Theoretical and managerial implications were discussed.
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Understanding the dimensions of customer relationships in the hotel and restaurant industries

International Journal of Hospitality Management·Paid Content ·17 May 2017
The purposes of this research were, first, to examine the dimensionality of hospitality customer relationships and, second, to develop a multi-dimensional customer relationship scale validated with both antecedent measures of marketing effectiveness and effect measures of financial performance. While hospitality marketing research has frequently focused on the relationships between various marketing actions and different dimensions of customer relationships, there is a lack of research examining customer relationships as a multi-dimensional construct. For both the hotel and restaurant industries, scale development procedures with confirmatory factor analyses were used to identify the dimensions of customer relationships: engagement, motivation, commitment, cross-buying, word of mouth, and defection. The nomological validity of these dimensions was tested using the antecedent of service quality and the effect of customer lifetime financial value. The paper concludes by articulating, first, the theoretical and practical applications of the proposed scale and, second, an agenda for future research.
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Drivers and resources of customer co-creation: A scenario-based case in the restaurant industry

International Journal of Hospitality Management·Paid Content ·13 April 2017
The aim of this study was to build and test a model that explores customer co-creation by integrating drivers and resources that promote customer co-creation. This study used a scenario-based survey that combines respondents’ personal experiences of dining at a full-service restaurant and their responses to the hypothetical scenario of the co-creation experience. The population of the study was restaurant customers in the United States who visited any full-service restaurant within the previous three months before the survey date. Using convenience sampling, respondents were recruited from the Amazon Mechanical Turk. A total of 501 responses were used for data analysis using a two-step approach of structural equation modeling. This study found that customers with a higher level of knowledge, self-efficacy, and motivation are more likely to participate in the co-creation experience. In addition, the results supported the role of the customer as a resource integrator during the co-creation experience.
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Restaurant servers' risk perceptions and risk communication-related behaviors when serving customers with food allergies in the U.S.

International Journal of Hospitality Management·Paid Content · 6 April 2017
Communication between and among customers with food allergies and foodservice staff has become a concern in the restaurant industry. The purpose of this research was to explore the perceived risks and risk communication-related behaviors of restaurant servers when serving customers with food allergies in the U.S. An online survey instrument was developed based on interviews with full service restaurant managers, pilot-tested, and distributed through an online survey research firm. The results indicated that most servers lacked knowledge about food allergies and perceived that initiating communication and preventing allergic reactions were mostly the responsibilities of customers with food allergies. Servers’ risk reduction and communication behaviors were affected by their perceived severity of food allergy reactions, previous training, sources of media exposure, and the perceived responsibilities of preventing food allergy reactions. Restaurateurs and foodservice educators may use these findings to develop training and strategies for food allergy risk communication in the restaurant industry.
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Impact of hotel-restaurant image and quality of physical-environment, service, and food on satisfaction and intention

International Journal of Hospitality Management·Paid Content ·31 March 2017
This study developed a theoretical framework in which overall image, image congruence, and quality of physical environment, service, and food affect guests’ satisfaction and intentions to revisit a luxury hotel restaurant and visit other restaurants of the same hotel by considering the influence of conspicuousness as a moderator. The measurement model assessment revealed that all items included an acceptable level of measurement quality. Results of the structural analysis indicated that the research variables were in general significantly associated; quality dimensions and satisfaction had a mediating role; and the impact of satisfaction and overall image on decision formation was greater than that of other variables. Moreover, the structural invariance model assessment indicated that conspicuousness acted as a significant moderator. Overall, our proposed theoretical framework was found to include a sufficient power in predicting patrons’ intentions for luxury hotel restaurant products. Using this quantitative approach, our research objectives were wholly achieved.
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Does offering an organic food menu help restaurants excel in competition? An examination of diners' decision-making

International Journal of Hospitality Management·Paid Content ·30 March 2017
This study aims to examine whether the presence of an organic food menu can positively influence diners’ decision-making. A 3 (restaurant segment: quick service vs. casual dining vs. fine dining) by 2 (price discrepancy between competing restaurants: small vs. large) scenario-based experiment was conducted with 405 U.S. consumers. MANCOVA results indicate that using organic ingredients offers a greater advantage for the quick-service segment regarding perceived food quality, attitudes towards the restaurant, and willingness to select, compared to casual and fine dining segments. The magnitude of a premium price of organic ingredients negatively influences such advantage in the process of consumers’ decision-making. When a large (vs. small) premium price is charged for using organic ingredients, customers’ preferences for the restaurant (over its rival) significantly drops to such an extent that customers are more willing to choose the competitor (i.e., rival restaurant with a conventional menu). Discussions and implications are further elaborated.
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Is restaurant franchising capital a substitute for or a complement to debt?

International Journal of Hospitality Management·Paid Content ·29 March 2017
Shimao Property Holdings Limited (SEHK:813), a leading Chinese property developer and operator, and Starwood Capital Group, a leading global private investment firm, announced today that controlled affiliates of the two companies will establish a new hotel joint venture based in China. Under the terms of the agreement, the venture will be owned 51% by Shimao and 49% by Starwood Capital Group.
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The antecedents and outcomes of food safety motivators for restaurant workers: An expectancy framework

International Journal of Hospitality Management·Paid Content ·27 March 2017
Individual food handlers’ motivations to comply with established guidelines in restaurant organizations were explored in this national study of 755 restaurant managers and employees in the United States. Using expectancy theory, workers’ motivations to comply with stated food safety regulations were measured. Overall, the results indicated support for expectancy theory and the proposed extension of this framework to restaurant employees’ perceptions of food safety and sanitation. However, there was no support in the model for restaurant workers to follow food sanitation regulations in the relationship between extrinsic valence and motivation. It was determined that this relationship is moderated by the length of time the employee has worked in the restaurant industry.
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Effects of ingredients, names and stories about food origins on perceived authenticity and purchase intentions

International Journal of Hospitality Management·Paid Content ·29 January 2017
Twitter users are using a tweet by Trump Hotels in 2011 to attack the U.S. President Donald J. Trump’s new ban on all travelers from seven Muslim-majority countries. The hotel chain’s rather innocuous question “Tell us your favorite travel memory – was it a picture, a souvenir, a sunset? We’d love to hear it!” received few responses when first posted in October of 2011. But over the last eight hours hundreds have posted responses which call out the company’s figurehead for his decision to bar refugees and other visitors from Iran, Iraq, Libya, Somalia, Sudan, Syria, and Yemen. For a hotel brand with a small following on Twitter, it’s now easily one of the brand’s most popular tweets.
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Restaurants and the single-serve wine by-the-glass conundrum: Risk perception and reduction effects

International Journal of Hospitality Management·Paid Content ·23 December 2016
This study examines risk perception and how wine by-the-glass (WBG) consumption acts as a risk reduction strategy (RRS) in the restaurant environment. An 18-item scale measures the hierarchy and perception of each risk type specific to WBG consumption. Females and those aged between 18 and 45 years are the main groups attracted to drink WBG. WBG consumption decreases mainly social, psychological and physical risks. Due to its risk reducing effect, consumers use WBG as opportunity to try new and more expensive wines, or to try new wines before deciding to buy a 750 mL bottle. The fact that they do not have to share with anyone and that less money can be spent per transaction also helps encourage ‘adventurous’ behaviour. This means that WBG consumers do not drink the same wines they usually buy in 750 mL bottles in restaurants, and no cannibalization of these wines takes place.

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