• Title/Summary/Keyword: Franchise Performance

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A Study on the Education Programs for Employees in Coffee Restaurants from the Employers' Viewpoint (수요자 관점에서 커피 전문점 종사원을 위한 교육 프로그램)

  • Min, Kye-Hong
    • Culinary science and hospitality research
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    • v.15 no.3
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    • pp.271-283
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    • 2009
  • The purpose of this study is to make analyses on the importance and performance of the foodservice management, foodservice service, and the courses related to coffee in the colleges providing a coffee related curriculum, in order to determine which courses are required in the education programs for employees needed by the coffee restaurants as the employers' viewpoint. The analysis methods were frequency analysis, T-test and IPA analysis. The result are as followings. First, the performance was lower than the importance when it comes to importance and performance with the coffee related courses recognized by the staff in the coffee restaurants, particularly with a big gap in the theory of cost control and coffee theory. Second, in the IPA analysis of the importance and performance of the curriculum, quadrant - I as a weak item includes the cost control, foodservice marketing, and coffee theory courses. Quadrant - II includes the foodservice, coffee extraction practice, Espresso, Caffe Latte and Cappuccio, and Latte Art courses. Pertaining to the quadrant - III are those courses lack of the necessity, including the foodservice management, foodservice franchise, practical English in service, and coffee roasting. Quadrant - IV contains those course of less importance but of higher performance such as the practicum work experience. As part of limitations of study, specialties of staffs working for coffee franchise shops were not reflected due to lacking in pre-conducted studies and the samples couldn't be recognized to represent all coffee franchise shops since the sampling districts were restricted only to Seoul metropolitan area.

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The Impact of Foodservice Franchisee's Perceived Justice on Cohesiveness, Relationship Satisfaction, and Franchisee's Long-Term Orientation (외식프랜차이즈 가맹점의 지각된 공정성이 응집성, 관계만족, 그리고 가맹점의 장기지향성에 미치는 영향)

  • Hur, Soon-Beom;Chang, Jang-Yee;Lee, Jae-Gyu
    • The Korean Journal of Franchise Management
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    • v.9 no.3
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    • pp.31-43
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    • 2018
  • Purpose - This study examines the role of foodservice franchisee's perceived justice(distributive, procedural, and interactional) in developing long-term orientation to franchisor and investigate the mediating role of cohesiveness and relationship satisfaction in the relationship between franchisee's perceived justice and long-term orientation to franchisor. Research design, data, and methodology - We collected data from managers and owners in foodservice franchisees located in Seoul, Korea. Among a total of 500 questionnaires, 500 questionnaires were returned. After excluding 36 invalid respondent questionnaires, 496 valid questionnaires(response rate of 99.2%) were analyzed using frequency, confirmatory factor analysis, correlations analysis, and structural equation modeling with SPSS 21 and SmartPLS 3.0. Result - The findings of this study are as follows: First, distributive justice and interactional justice had positive effects on cohesiveness, but procedural justice did not. Second, distributive justice and interactional justice had positive effects on relationship satisfaction, but procedural justice did not. Third, cohesiveness and relationship satisfaction had positive effects on franchisee's long-term orientation to franchisor. Conclusions - The implications of this study are as follows. First, this study found that procedural justice can create a high cohesiveness and identification of franchisee and also maintain a cooperative relationship with the franchisor. Second, this findings suggest that the perceived distributional and interactional justice can improve the satisfaction with the franchisor and thus positively influence the intention to maintain the relationship and the intention to recontract. Third, the results of this study indicate that the cohesiveness of franchisees can play a pivotal role to improve their satisfaction with the franchisor and pursue mutual development by continuously maintaining stable business relationship with franchisor. The findings of this study are subject to at least three limitations. First, the research subject is limited to the food service franchise shops in Seoul area, so the sample was not nationally representative of the franchise stores. Second, the perceived fairness is measured only from the point of view of the franchisee, and this study has a limitation to examine the difference between the perceived franchisee's and franchisor's justice. Third, Future research needs to identify more closely the relationships between perceived fairness and long-term orientation by gathering specific quantitative data such as the renewal rate and the business performance.

Effect of Customers' Psychological Power on Service Expectation and Response to Service Failure in a Restaurant Context

  • KIM, Ji-Hern;AHN, So Jung
    • The Korean Journal of Franchise Management
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    • v.11 no.3
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    • pp.19-26
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    • 2020
  • Purpose: The old axion to put the customers first (e.g., customers are king, customers are always right) has been taken for granted in the service sector. In addition, many companies in South Korea are providing customer-first education for employees at their contact points to strengthen their competitiveness. However, excessive increase in the psychological power of the customer can lead to a problem of abuse of power, called 'Gap-jil.' Despite these concerns, most companies hardly discard policies to give high priority to customers because of the assumption that it enhances customer satisfaction leading to organizational performance. However, in recent years, some franchise catering companies have posted warnings about the abuse of power by customers, and a movement to pursue a power-balancing between service providers and their customers is spreading. Research design, data, and methodology: This research is conducted to reconsider the principle of the customer-first perspective and to create a basis for arguments that can solve the problem of abuse of power, which is recognized as a serious social problem. In this research, we test and analyze the effect of customers' psychological power in the context of a restaurant on expectation for service and response to service failure. Result: The result of an experimental study shows that the effect of psychological power on customer satisfaction can be somewhat negative. Also, customers with high psychological power are more likely to have high service expectations. Especially high psychological power of customers causes a difference in the expectation level of human factors such as employee attitude, while the difference in expectations of non-human factors such as restaurant atmosphere was not statistically significant. In addition, when customers with high psychological power encounter service failure situation, they are more likely to feel disappointment and regret with a service provider. Meanwhile, the effect of psychological power on complaining behaviors are not significant. Conclusions: The findings of this research provide meaningful implications that the service providers should reconsider their existing corporate culture and management policies that put customers first. In addition, the result of this research is provided meaningful opportunities to review the management philosophy for the company's customers and the education philosophy for the employee education.

The Effect of International Franchise Corporate's Service Quality and Customer Assets on Corporate Performance: Focused on the Vietnam Market (국제 프랜차이즈 기업의 서비스품질과 고객자산이 기업성과에 미치는 영향: 베트남 시장을 중심으로)

  • Ock, Jung-Won;Yun, Dae-Hong;Anh, Le Thi Minh
    • Korea Trade Review
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    • v.43 no.3
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    • pp.27-46
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    • 2018
  • By conducting a survey on Vietnamese customers' attitude towards domestic and international franchise coffee shops, the purpose of this research is to examine the impacts of service quality and customer equity on customer satisfaction, customer trust and customer loyalty. Based on this research's results, solutions for service improvements were considered to help franchise coffee shops improve customer satisfaction, customer trust and customer loyalty. Specific results were as follows. First results suggest that service quality has positive impact on customer satisfaction and customer trust. Secondly, in terms of customer equity, relationship equity has positive impacts on customer satisfaction and customer trust; However, although brand equity has positive impacts on customer satisfaction, it does not affect customer trust. Finally, customer trust has direct and positive influences on customer satisfaction and customer loyalty. Based on these results, this research proposes practical and theoretical implications and limitations for future research.

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Identifying Differentiating Attributes of Local Coffee Shops in Daegu (대구 커피전문점의 시장 경쟁력 요인 도출 - 지역 자생 커피프랜차이즈 성공 요인을 중심으로 -)

  • Jeong, Jae-Won;Kim, Seung Gyu
    • Culinary science and hospitality research
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    • v.21 no.6
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    • pp.312-330
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    • 2015
  • Domestic coffee franchise market in South Korea has been rapidly growing along with developing the global coffee franchises as well as entering domestic franchise companies into the beverage market. Competitions in the markets are getting more accelerated and local franchises and owner-operated coffee shops are losing their market shares gradually as a result. Local franchises and owner-operated coffee shops in Daegu, however, are notable in that they are maintaining the competitiveness in the markets. This is a unique phenomenon, which deserves to be analyzed to identify the successful attributes as a case study. Important Performance Analysis (IPA) method has been employed for analyzing and its gap(i.e., difference between importance and performance) analysis shows that the price and quantity of coffee are the most important differentiating attributes of local and owner-operated coffee franchises in Daegu.

A Study on Partnership of Food Service Industry (외식프랜차이즈 본부와 가맹점간 파트너쉽에 관한 연구)

  • Lee, jung-chul;Shin, kang-hyun
    • Proceedings of the Korea Contents Association Conference
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    • 2008.05a
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    • pp.339-342
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    • 2008
  • Franchisors court additional franchisees as marketing partners for continued growth in sales revenue. Competitive climate, potential franchisees have their choice of suitors and are likely to scrutinize them carefully. As this research makes, franchisors affiliated with chains that forge strong partnerships are to achieve superior performance. The chain that promises a strong partnership is more have its choice of prospective franchise partners. Developing strong partnerships can use to recruit high quality franchisees. If franchisors with to experience the benefits of a strong franchise partnership, they must be willing to work on behalf of the partnership, perform roles that may extend beyond their traditional boundaries, and resolve their disagreement to the benefit of the partnership rather than to their own benefit. Strong partnerships require sacrifices on the part of both the franchisees and franchisors. However, These sacrifices have substantial payoffs in terms of franchisor performance as well as the performance of the relationship as a whole.

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The Impact of Corporate Entrepreneurship on Employee Commitment and Performance: Evidence from the Korean Food Franchising Sector (조직 기업가 정신이 구성원의 조직몰입과 성과에 미치는 영향: 한국 외식 프랜차이즈 산업)

  • Park, Hee-Hyun;Lew, Yong-Kyu
    • The Korean Journal of Franchise Management
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    • v.7 no.2
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    • pp.5-14
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    • 2016
  • Purpose - Competitive industry structure and recent economic depression challenge a survival of Korean small- and medium-sized food franchising companies (SMFCs), albeit the explosive growth of the Korean food service industry for last few decades. Against this backdrop, it examines how these SMFCs overcome liabilities of smallness and resource scarcity to strengthen competitive advantage in the market. To tackle this, in this article we focus on corporate entrepreneurship and human resources as a knowledge-based asset for these SMFCs. Furthermore, the ratio of employee turnover is high in SMFCs. We view that such brain-drain may result in poor performance of the Korean SMFCs. As such, we pay attention to the role of organizational commitment to an organization as a solution for enhancing individual-level employees' loyalty toward their organization. Research design, data, and methodology - Our research question is to what extent corporate entrepreneurship (i.e., innovative organizational culture, organizational autonomy, and administrative innovation) affects an individual-level attitude toward the organization and, in turn, employee creativity and satisfaction in the Korean SMFCs context. We collected data from employees in SMFCs for three months. A total of 126 valid questionnaires were collected, and analyzed the data using partial least squares path modeling. Results - The reliable and valid measurement model feed into testing the structural model. Our findings suggest that innovative organizational culture and organizational autonomy positively affect employee commitment. Particularly, organizational autonomy has a greater effect than innovative culture on employee commitment. However, the relationship between administrative innovation and employee commitment is not significant. We also find that employee commitment positively affects both employee creativity and satisfaction. Conclusions - Our contribution to the existing franchising business and management literature is twofold. First, the conceptual model includes three antecedents in the organizational entrepreneurship dimension to organizational commitment. Second, we conceptualize organizational commitment as employee commitment, and validate its impact on employee creativity and job satisfaction at an individual performance level. Overall, this article suggests that it is critically important for the Korean SMFCs to develop corporate entrepreneurship in order to facilitate employees' positive attitudes toward their organizations.

Research Framework for International Franchising (국제프랜차이징 연구요소 및 연구방향)

  • Kim, Ju-Young;Lim, Young-Kyun;Shim, Jae-Duck
    • Journal of Global Scholars of Marketing Science
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    • v.18 no.4
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    • pp.61-118
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    • 2008
  • The purpose of this research is to construct research framework for international franchising based on existing literature and to identify research components in the framework. Franchise can be defined as management styles that allow franchisee use various management assets of franchisor in order to make or sell product or service. It can be divided into product distribution franchise that is designed to sell products and business format franchise that is designed for running it as business whatever its form is. International franchising can be defined as a way of internationalization of franchisor to foreign country by providing its business format or package to franchisee of host country. International franchising is growing fast for last four decades but academic research on this is quite limited. Especially in Korea, research about international franchising is carried out on by case study format with single case or empirical study format with survey based on domestic franchise theory. Therefore, this paper tries to review existing literature on international franchising research, providing research framework, and then stimulating new research on this field. International franchising research components include motives and environmental factors for decision of expanding to international franchising, entrance modes and development plan for international franchising, contracts and management strategy of international franchising, and various performance measures from different perspectives. First, motives of international franchising are fee collection from franchisee. Also it provides easier way to expanding to foreign country. The other motives including increase total sales volume, occupying better strategic position, getting quality resources, and improving efficiency. Environmental factors that facilitating international franchising encompasses economic condition, trend, and legal or political factors in host and/or home countries. In addition, control power and risk management capability of franchisor plays critical role in successful franchising contract. Final decision to enter foreign country via franchising is determined by numerous factors like history, size, growth, competitiveness, management system, bonding capability, industry characteristics of franchisor. After deciding to enter into foreign country, franchisor needs to set entrance modes of international franchising. Within contractual mode, there are master franchising and area developing franchising, licensing, direct franchising, and joint venture. Theories about entrance mode selection contain concepts of efficiency, knowledge-based approach, competence-based approach, agent theory, and governance cost. The next step after entrance decision is operation strategy. Operation strategy starts with selecting a target city and a target country for franchising. In order to finding, screening targets, franchisor needs to collect information about candidates. Critical information includes brand patent, commercial laws, regulations, market conditions, country risk, and industry analysis. After selecting a target city in target country, franchisor needs to select franchisee, in other word, partner. The first important criteria for selecting partners are financial credibility and capability, possession of real estate. And cultural similarity and knowledge about franchisor and/or home country are also recognized as critical criteria. The most important element in operating strategy is legal document between franchisor and franchisee with home and host countries. Terms and conditions in legal documents give objective information about characteristics of franchising agreement for academic research. Legal documents have definitions of terminology, territory and exclusivity, agreement of term, initial fee, continuing fees, clearing currency, and rights about sub-franchising. Also, legal documents could have terms about softer elements like training program and operation manual. And harder elements like law competent court and terms of expiration. Next element in operating strategy is about product and service. Especially for business format franchising, product/service deliverable, benefit communicators, system identifiers (architectural features), and format facilitators are listed for product/service strategic elements. Another important decision on product/service is standardization vs. customization. The rationale behind standardization is cost reduction, efficiency, consistency, image congruence, brand awareness, and competitiveness on price. Also standardization enables large scale R&D and innovative change in management style. Another element in operating strategy is control management. The simple way to control franchise contract is relying on legal terms, contractual control system. There are other control systems, administrative control system and ethical control system. Contractual control system is a coercive source of power, but franchisor usually doesn't want to use legal power since it doesn't help to build up positive relationship. Instead, self-regulation is widely used. Administrative control system uses control mechanism from ordinary work relationship. Its main component is supporting activities to franchisee and communication method. For example, franchisor provides advertising, training, manual, and delivery, then franchisee follows franchisor's direction. Another component is building franchisor's brand power. The last research element is performance factor of international franchising. Performance elements can be divided into franchisor's performance and franchisee's performance. The conceptual performance measures of franchisor are simple but not easy to obtain objectively. They are profit, sale, cost, experience, and brand power. The performance measures of franchisee are mostly about benefits of host country. They contain small business development, promotion of employment, introduction of new business model, and level up technology status. There are indirect benefits, like increase of tax, refinement of corporate citizenship, regional economic clustering, and improvement of international balance. In addition to those, host country gets socio-cultural change other than economic effects. It includes demographic change, social trend, customer value change, social communication, and social globalization. Sometimes it is called as westernization or McDonaldization of society. In addition, the paper reviews on theories that have been frequently applied to international franchising research, such as agent theory, resource-based view, transaction cost theory, organizational learning theory, and international expansion theories. Resource based theory is used in strategic decision based on resources, like decision about entrance and cooperation depending on resources of franchisee and franchisor. Transaction cost theory can be applied in determination of mutual trust or satisfaction of franchising players. Agent theory tries to explain strategic decision for reducing problem caused by utilizing agent, for example research on control system in franchising agreements. Organizational Learning theory is relatively new in franchising research. It assumes organization tries to maximize performance and learning of organization. In addition, Internalization theory advocates strategic decision of direct investment for removing inefficiency of market transaction and is applied in research on terms of contract. And oligopolistic competition theory is used to explain various entry modes for international expansion. Competency theory support strategic decision of utilizing key competitive advantage. Furthermore, research methodologies including qualitative and quantitative methodologies are suggested for more rigorous international franchising research. Quantitative research needs more real data other than survey data which is usually respondent's judgment. In order to verify theory more rigorously, research based on real data is essential. However, real quantitative data is quite hard to get. The qualitative research other than single case study is also highly recommended. Since international franchising has limited number of applications, scientific research based on grounded theory and ethnography study can be used. Scientific case study is differentiated with single case study on its data collection method and analysis method. The key concept is triangulation in measurement, logical coding and comparison. Finally, it provides overall research direction for international franchising after summarizing research trend in Korea. International franchising research in Korea has two different types, one is for studying Korean franchisor going overseas and the other is for Korean franchisee of foreign franchisor. Among research on Korean franchisor, two common patterns are observed. First of all, they usually deal with success story of one franchisor. The other common pattern is that they focus on same industry and country. Therefore, international franchise research needs to extend their focus to broader subjects with scientific research methodology as well as development of new theory.

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Importance of Partnership in Food Service Industry Franchise Enterprise (외식프랜차이즈기업의 파트너쉽의 중요성)

  • Lee, Jung-Chul;Shin, Kang-Hyun
    • The Journal of the Korea Contents Association
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    • v.9 no.6
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    • pp.390-398
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    • 2009
  • This study researches on the two types. First, Researched into important perception, relationship maintenance perception, relationship improvement, relationship recognition between franchisor and franchisee, Seconds, Researched into correlation between franchisor and franchisee at function achievement and relationship maintenance, conflict resolve and relationship maintenance, function achievement and compare with competitor. If franchisor with to experience the benefits of a strong franchise partnership, they must be willing to work on behalf of the partnership, perform roles that may extend beyond their traditional boundaries, and resolve their disagreement to the benefit of the partnership rather than to their own benefit. Strong partnerships require sacrifices on the part of both the franchisees and franchisors. However, These sacrifices have substantial payoffs in terms of franchisor performance as well as the performance of the relationship as a whole.

Storytelling Strategy of and Its Potential to Evolve into Transmedia Franchise (<자이언트 펭TV> 스토리텔링 전략과 트랜스미디어 스토리텔링으로의 가능성)

  • Cho, Hee-Young
    • Journal of Korea Entertainment Industry Association
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    • v.14 no.3
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    • pp.211-227
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    • 2020
  • This study intends to analyze the storytelling strategy of EBS's YouTube channel , which has been creating a remarkable cultural phenomenon since April 2019, and to examine the potential for its transition to transmedia franchise. Based on Henry Jenkins'seven principles of transmedia storytelling, shows satisfactory relevance in all but 'multiplicity'out of the 10 capacities consisting of the principles. In particular, was found excellent in terms of core capacities such as 'spreadability', 'immersion', 'worldbuilding', 'continuity', 'drillability' and 'performance'. In addition, critical discourse analysis(CDA) in sociocultural practice dimension of the keywords of the related news articles has discovered that is strongly linked to the following five values: 'social integration', 'resistance against authoritarianism', 'self-dignity and reasonable individualism', 'gender neutrality' and 'ecologism', indicating the reason why the work has been able to resonate so extraordinarily with participants across all generations. By answering the two chosen research questions, this study has proved that has high potential to be successful in evolving into transmedia franchise, while keeping building a new realm of edutainment storytelling by cleverly exploiting EBS's unique identity as a public education broadcaster. is viewed as an exceptional property capable of advancing transmedia storytelling in the local market; thus, productive arguments and contemplation over its evolution in storytelling needs to continue so that it can maintain a long-lasting positive influence.