• The Korean Journal of Franchise Management
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• v.5 no.1
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• pp.65-84
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• 2014

The purpose of this study is to review the theories and cases of performance sharing in the franchise industry to present a method for more effective franchise performance-sharing. To that end, this study reviewed the theory on resource dependence and the theory on inequality to describe the performance-sharing between the franchisor and the franchisee and their relationship. It also looked at the cases of a week-in cooler system at 'Beer Market', the allocation of fees for alcoholic beverage sales to franchisees, the scholarship program of 'Onigiri and Ikyudon' and 'Bonsamo' which is a franchisees' committee for Bonjuk to introduce examples of performance-sharing. Through a theoretical review and case review, this study presents five types of methods for performance-sharing. First, 'the sharing of core competence by the franchise company; second, 'the establishment of a royalty culture'; third, 'scientific analysis of markets and establishment of a revenue forecast system'; fourth, 'reinforced financial support from the franchisor'; and lastly, 'the positive application of franchisees' committees'. Such methods are expected to provide a groundwork for mutual benefit and co-prosperity between franchisor and franchisee.

• The Korean Journal of Franchise Management
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• v.13 no.3
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• pp.1-15
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• 2022

Purpose: In the restaurant sector, it has been known that consumers' positive perception of brands influences their positive WOM intention, and information sources play an important role in increasing credibility by enhancing consumer awareness and developing differentiated brands. This study examines the effects of information sources (e.g., advertisement, WOM, SNS) on trust (cognitive and affective) and, WOM and eWOM intention in the restaurant context. In the model, cognitive and affective trust play mediating roles in the relationships between information sources (e.g., advertisement, WOM, SNS) WOM and eWOM intention. Research design, data, and methodology: Research models and hypotheses were developed according to the research direction. The survey questionnaire items were developed and used appropriately according to the contents of this paper based on prior studies. All constructs were measured with multiple items developed and validated in prior studies. A total of 502 responses were collected from an online survey. The research model was evaluated using SmartPLS 4.0. Frequency analysis was performed to understand the demographic characteristics of the survey respondents. The reliability, convergent validity, and discriminant validity were assessed using measurement model analysis. The proposed model was verified using the structural equation model. Results: Advertisement, WOM, and SNS information sources all had a positive effect on affective trust, whereas only WOM had a significant effect on cognitive trust. In addition, affective trust had a positive effect on cognitive trust and eWOM intention but did not affect WOM intention. Finally, cognitive trust was found to have a positive effect on both WOM intention and eWOM intention. Conclusions: This study redefines the concept of where restaurant service companies should focus when providing consumers with information about their products and services. As a result, the conceptual framework of positive word of mouth intention to increase new customer visits to the restaurant brand has been expanded. In addition, this study not only presents an information source management strategy for restaurant brands, but also presents practical implications for resource allocation guidelines for customer management in the restaurant sector.

• Culinary science and hospitality research
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• v.6 no.1
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• pp.225-252
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• 2000

This study aims to examine theoretical frame work of franchise restaurant, the characteristics of store manager's job and the level of their job satisfaction through an empirical investigation. Job satisfaction survey study shows that store managers consider important all work to be attended to as part of their duty with service management on top. It is also found that the majority of store managers consider their aptitude as most important job satisfaction factor and those, who are satisfied with their job content, advancement and the prospect, are more proactive in delivering qualify service and more than willing to commit themselves to their duties. Regrading demographical variables, store managers with scholarly competence and higher pay level are more likely to be satisfied with their job but married men are not satisfied with the work environment in general. Ergo, Businesses should correspond by capitalizing on those store managers content with their duty thus collecting additional information and providing opportunities to further contribute to the business. For those dissatisfied individuals, however, businesses should determine their demands and by educational training supply a motive therefore making possible the conversion of such individuals to satisfied store managers and their active participation in business management. But, as with any study, this one has a number of limitation which constraints the generalizability of the empirical findings. It has not been for long since franchise restaurants established in domestic market and has been few studies regarding this topic there. Furthermore, managers are not willing to release operation related data. Therefore, further study are urged to overcome this limitation and should examine other dimensions of job satisfaction such as relations between revenue and profit with the level of store manager's job satisfaction remain to be investigated.

• The Korean Journal of Franchise Management
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• v.10 no.2
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• pp.19-32
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• 2019

Purpose - This paper aims to investigate the mediating effects of relationship fairness factors between franchisor's support services and performance(re-contract intention) in food service franchise. More specifically, fairness was measured into distributive, procedure, interaction, and information, franchisor's support service was divided into pre-start support services (initial support services) and post-start support services (continued support services), and performance (re-contract intent) was measured using 3 items such as re-contract, contract extension, and recommendation. Research design, data, and methodology - The population for the survey is the head of franchises in the metropolitan area (Seoul/Gyeonggi), which operates a restaurant franchise, and samples included a wide range of overseas/domestic brands and regions. The survey was conducted from August 1 to September 30, 2018 through the survey agency. The survey was conducted together with a telephone interview and a direct visit by the investigator. A total of 205 questionnaires were collected and retrieved, 4 questionaires containing missing information were excluded and 201 responses were used for analysis. Results - The results shows that franchisor's initial support services have significant positive effects on procedural, interpersonal, and informational relationship fairness, and continuous support services have significant positive effects on distributive, procedural, interpersonal, and informational relationship fairness. This study also shows that informational and procedural fairness have significant positive effects on performance(re-contract intention). Finally, continuous services a significant positive effect on performance(re-contract intention). Conclusions - The results show that franchisor make a manual, and should improve fairness through regular investigation whether support services was executed as promised in the manual after franchisee operation. In addition, information fairness and procedural fairness have been shown to increase performance(re-contract intention). These results mean that the franchisor's headquarters should provide product and service support for the merchant in accordance with the manual and management policy to reduce asymmetry in information and improve procedural fairness to enhance performance(re-contract intention).

• The Korean Journal of Franchise Management
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• v.12 no.2
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• pp.7-21
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• 2021

Purpose: One of the characteristics of service companies such as foodservice franchise is that it is easy to imitate, so many brands can imitate the menu that is popular with consumers. Therefore, foodservice franchise company should develop a brand that customers can identify from other brands in order differentiate it from its competitors. In order make the foodservice franchise company identifiable from other brands, it is possible through communication with customers. Therefore, this study proposes a new research model to analyze customer loyalty through online advertising and online word of mouth trust and immersion. Online was provided to customers through a mixture of advertisements and word of mouth, but previous studies have only considered online advertisements or online word of mouth. In addition, we want to verify the difference according to gender, which is an important variable in researching the online information processing behavior of customers. Research design, data, and methodology: The questionnaire of this study was surveyed on 20 years of age or older who have visited the restaurant franchise store within the last 3 months among the foodservice franchise companies operating SNS. During the survey period, 400 surveys were surveyed for a total of 20 days from April 1 to April 20, 2020. Result: The research results are as follows. First, in this study, the effect of online advertisement and online word of mouth on trust and immersion was studied. Second, this study verified the social influence theory in online advertising and online word of mouth. Third, the effect of online advertising and online word of mouth on loyalty according to gender was verified. Fourth, compared to existing advertisements, online advertisements are suitable for marketing by foodservice franchise companies because they can interact with consumers, modify advertisements immediately, execute extensive advertisements at low cost, segment the market, and measure advertisement effectiveness. The recent online expansion has been expanded to mobile-based, allowing foodservice franchisees to provide new communication services such as SMS (Short Message Service), multimedia messaging services, and location-based services. Fifth, a foodservice franchise company can increase brand awareness through online marketing or induce the use of offline stores. Sixth, franchisor can grow into a sustainable company only when they use resources efficiently. Conclusions: Trust is important in foodservice franchise information. This trust has a significant impact on customer commitment and loyalty.

• The Korean Journal of Franchise Management
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• v.10 no.1
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• pp.33-42
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• 2019

Purpose - Since the number of cafés operated by using cultural marketing in Jeju Special Self-Governing Province is increasing, this study emphasizes the necessity of cultural marketing, which is a different strategy of specialty coffee shops, focusing on Jeju Island. The purpose of this study is to investigate the effect of positive effects of service quality and brand image on customer satisfaction through cultural marketing. Research design, data, and methodology - It emphasizes the necessity of cultural marketing of specialty coffee shops, and how the positive effects of service quality and brand image brought through cultural promotion, culture support, cultural support, cultural enterprise influence customer satisfaction. The results of this study are as follows. In order to verify the research hypothesis of this study, Jeju residents who have experience using cultural marketing conducted in coffee shops in Jeju Island are targeted. The cafe in Jeju area, which runs from April 4 to April 14, 2018. A total of 110 copies of the questionnaire were distributed, and the final 100 copies were used as final empirical analysis data. Result - The results of the study are as follows. First, promotion and culture business activities have positive influence on brand image. Second, production and cultural business activities had positive effects. Third, brand image has a positive effect on customer satisfaction. Fourth, service quality has a positive effect on customer satisfaction. Conclusions - The implications of this study are following as: First, if you want to grow into a cultural enterprise in the province by enhancing your brand image, you need to prioritize cultural direction and business direction for cultural companies among sub-factors of cultural marketing. Second, it is necessary to improve the customer satisfaction through the improvement of the brand image considering the composition of the stores in the city, the facilities and the atmosphere, and the consumer tendency such as product and customer age.

• The Korean Journal of Franchise Management
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• v.12 no.1
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• pp.7-19
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• 2021

Purpose: According to the growth of technology in the service industry, the interaction service between customer and employee has recently been transformed into between customer and technology by Self Service Technology (SST) requiring direct interaction with customers. In this context, self service technology such as unmanned ordering system installed at the store is actively introduced at the work place to reduce labor costs by food and retail company and the research for self-service technology which is rapidly replacing existing face-to-face service is needed. As the growth speed of SST is rapid, many researchers have studied the characteristics of SST, in every sector of business worldwide. Among the characteristics, attributes, Self Service Technology Quality (SSTQUAL) to evaluate SST is important because it may cause the customer's behavior. Thus, this research focuses on the effects of SSTQUAL on SST Satisfaction and SST continuance usage intention. This research suggests the guidelines for how Restaurant Company should prepare SST and build their customer satisfaction and continuance usage that increase the sales. Research design, data and methodology: This study tests the structural relationship between SSTQUAL of unmanned ordering system, SST satisfaction and SST continuance usage. SSTQUAL divided into four sub-dimensions and two categories, cognitive service attributes (Convenience, Functionality) and affective service attributes (Enjoyment, Assurance). In order to achieve the purposes of this research, research model and hypotheses were developed based on previous researches. All constructs were measured with multiple items developed and tested in the previous studies. The data were collected from 524 customers experiencing SST and were analyzed through SPSS 25.0 and SmartPLS 3.0 statistical package program. Results: The findings of this research are as follows. First, all SSTQUAL have significant positive impacts on SST satisfaction. Second, SST satisfaction has significant positive impact on SST continuance intention. Third, cognitive service attributes and affective service attributes had wealth of explanation of service attribute more than a single dimension. Conclusions: The implications of this study are as follows. Overall, Restaurant Company should manage SSTQUAL consisting of not only cognitive service attributes (Convenience, Functionality) but also affective service attributes (Enjoyment, Assurance) to satisfy customers basically regardless of the type of restaurant.

• The Korean Journal of Franchise Management
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• v.13 no.3
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• pp.45-55
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• 2022

Purpose: Consumers' experience of functional attributes is remembered, and the experience lowers the cost of consumers' input from their point of view and reduces uncertainty. It also plays an important role in consumers' positive emotions and responses. Accordingly, if information search costs are reduced in terms of the costs perceived by consumers about restaurants, a strategy differentiated from other companies can be established. Therefore, this study investigated the effect of functional congruence of restaurant stores on information search cost reduction, positive/negative emotions, and loyalty. Research Design, Data, and Methodology: This study investigated functional congruence, information search cost reduction, and positive/negative emotions. The structural relationship between loyalty was analyzed. To verify this, a research hypothesis was established based on previous studies and a research model was constructed. The questionnaire items were modified and used according to the current study, based on previous studies. The data were collected using the questionnaire method from 187 people who had dining out experience. Frequency analysis was performed to confirm demographic characteristics. Reliability, convergent validity, and discriminant validity of the collected data were verified. The research model was analyzed with a structural equation modeling (SmartPLS 4). Results: The findings show that functional congruence had significant positive effects on information search cost reduction and positive emotion, but no significant effect on negative emotion. Information search cost reduction had significant positive effects on positive emotion/negative emotion but did not significantly affect loyalty. Lastly, both positive and negative emotions had significant positive effects on loyalty. Conclusion: Based on transaction cost theory, this study found how functional congruence and information search cost reduction influence consumers' emotions. The functional attributes of restaurants were perceived by customers as information, thus uncertainty was decreased. Finally, appropriate management strategies and implications of functional congruence and information search cost in the restaurant were suggested.

• The Korean Journal of Franchise Management
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• v.9 no.3
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• pp.7-18
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• 2018

Purpose - Consumers have a variety of strategies to find information about restaurants they want to visit. Consumers can search for and use information from a variety of sources before purchasing a product or service. The development of the Internet has made that consumers could access various informations easily. Therefore, this study classified commercial information provided by restaurants, public information shared by other unknown consumers, and personal information shared by customers' personal experiences or friends/family. This study is information sources influence on enjoyment, attitude and visit intention. Research design, data, methodology - In order to verify the research hypothesis, this study created questionnaires for each variable. Hypothesis analysis data were collected through surveys. In order to develop research hypotheses for this study, the scales was developed. The survey was conducted by an online survey company. Among the online panels owned by survey company, those who have visited restaurants through at least one of the 11 sources provided in this study within the last 3 months were surveyed. The survey period was 10 days from March 5 to 14, 2017. A total of 1,500 e-mails and messages were sent back to 301 of them, and 288 were used for analysis except for 13 missing responses. The data was analyzed by using SPSS 21.0 and AMOS 21.0. Results - As a result of analysis, commercial and personal information have a positive effect on enjoyment, but general information did not affect enjoyment. In addition, personal information has a positive effect on attitude, but commercial information and general information did not affect attitude. It was found that commercial information influenced attitude by mediation of pleasure, and pleasure had no significant effect on visit intention. Finally, attitude has a significant effect on visit intention. Conclusions - The restaurant needs to provide accurate information through its homepage or brochure. Accurate information that is not exaggerated can save customers's the cost of believing on a restaurant and the cost of searching for other information. The restaurant which provides unfaithful advertisement would be excluded from customer's choice because customers perceive it as a unreliable restaurant. The marketing of restaurant should be carried out through customer-oriented for the visit of customers. And restaurants need to provide optimized services to their first-time customers in order to increase their revisit.

• Asia-Pacific Journal of Business
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• v.10 no.2
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• pp.65-77
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• 2019

The after China's reform and opening up, the country has been facing the era of material abundance based on its economic power. The Chinese food industry has been growing along with economic growth, high quality, and diversified customer needs. Also, as Chinese people have strong attachment to food, many food franchise companies have been also growing rapidly. As the Chinese government encourages and supports the field of food franchises, so that the quality and quantity of the Chinese restaurant industry have been improved largely. Meanwhile with the support of the Korean government to enter the overseas market, the number of Korean franchise companies are increasing to operate their business in China. Under the influence of Chinese food industrial climate, Korean companies are also in search of global market advancement to China. However, the risks in China are unexpectable, which means that the recent move of China is literally showing rugby action, criticism of operating businesses in China has been climbed up and the domestic SMEs are seriously considering whether to stay or leave. This study investigates the environmental risks of Chinese enterprises, in which the food franchise companies could experience, to manage any risks from entering the Chinese market with uncertainty. Through SWOT analysis and cases, strategies to avoid the risks are suggested for Korean companies to enter the Chinese markets. Therefore, this study researches in the current status of Chinese and Korean restaurants, explores any risks in China in terms of exports to China and market advance, develops strategies to avoid those risks, and provides essential suggestions for entering into Chinese market.