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Study on the Relationship among the Size, Marketing Competency, Operational Characteristics and Financial Performance of Food Service Franchising  

Kang, Seok-Woo (Dept. of Hotel, Restaurant & Culinary Arts, Daegu Health College)
Na, Young-Sun (Dept. of Hotel & Culinary Arts, Sinansan University)
Publication Information
Culinary science and hospitality research / v.20, no.6, 2014 , pp. 175-189 More about this Journal
Abstract
This study was intended to provide fundamental data concerning franchising companies' characteristics and performance in foodservice business by employing financial data from the firms' IDS(Information Disclosure Statements). Multiple regression analysis method was used to identify any correlations among franchising size, marketing competency, operational characteristics, and performance according to technique based upon 169 IDS data as of 2013. In terms of franchisor size and performance, the number of company-operated stores had statistically significant corelation with sales, net income, the total number of stores, and the number of franchisees. With respect to marketing competency and performance, advertising expenses showed statistically significant correlation with sales, the total number of stores, promotion expenses with sales, net income, and the total number of stores. On the other hand, there was no statistically significant correlation with current year's net income. At last, present study found significant correlations among business years, sales, current year's net income, and the total number of stores by regarding operational characteristics and performance, but there was no significant correlation between brands and performance. This study is cross-sectional study which is a limitation to be overcome in further studies. In addition, it is required to review the possibility for franchise management style to contribute to expanding the Korean traditional foods.
Keywords
information disclosure statements; financial performance; marketing competency; operational characteristics; size; food service; franchising;
Citations & Related Records
Times Cited By KSCI : 3  (Citation Analysis)
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