• The Korean Journal of Franchise Management
• /
• v.9 no.1
• /
• pp.41-51
• /
• 2018

Purpose - In franchise system, how to build the relationship between the franchisor and franchisee through influence strategy is very important, because it affects on the long-term orientation like recontract intentions. Thus, this study examines the effect of mandatory influence strategy on relationship satisfaction, relationship trust, and recontract intentions in the context of food-service franchise industry. This study suggests the guidelines on how franchisor uses their influence strategy on franchisee to maintain and increase the recontract intentions. Research design, data, and methodology - This study examines the structural relationship between mandatory influence strategy, relationship satisfaction, relationship trust, and recontract intentions from the franchisee's perspective. Mandatory influence strategy divide into three sub-dimensions such as request, legalistic plea, threat. In order to test the purposes of this study, research model and hypotheses were developed. Every constructs were measured by multiple items tested and developed in the previous research. Also, the constructs utilized in this research are measured using 7-point scales anchored by "1=strongly disagree" and 7=strongly agree". The data were collected from 496 owner and owner manager franchisees and were analyzed using SPSS 21.0 and Smart PLS 3.0. program. Analysis of frequency was conducted to identify the demographics and general characteristics of the survey subjects. In order to measure the reliability and validity of the measurement tools, confirmatory factor analysis and correlation analysis were conducted and structural model analysis was conducted to verify the proposed research model. Result - The results of this study are as follows. First, this research found that mandatory influence strategy is positively related to relationship satisfaction and relationship trust, but not to recontract intention directly. Second, this research also found that the full mediating role of relationship satisfaction and relationship trust between the mandatory influence strategy and recontract intention. Conclusions - The findings of this research indicate that franchisor should use properly mandatory influence strategy to improve recontract intentions through relationship satisfaction and relationship trust. Due to the nature of food-service franchise industry, which needs high relationship quality, franchisor must manage their franchisee using influence strategy in order to improve satisfaction and trust. If franchisee perceives higher relationship quality, they will show higher intention to recontract. At the end of this paper, limitations and future research directions were suggested.

• The Korean Journal of Franchise Management
• /
• v.9 no.3
• /
• pp.31-43
• /
• 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.

• The Korean Journal of Franchise Management
• /
• v.5 no.1
• /
• pp.85-108
• /
• 2014

This study provides the information about size, financial structure, profitability and growth of franchisors using financial data(asset, liability, equity, sales volume, operating income and net income) in uniform franchise offering circular of fair trade commission. The data were collected from 1,050 franchisors in various business fields: fast food, family restaurant, bakery, agriculture & fishery and liquor shop in the uniform franchise offering circular in 2012 and 2011. Results of this study are as follows: For company size, median of total assets was KRW 675 million and the accumulated median assets rate was 0.48%, but the accumulated median company numbers were 49.9%, which showed small size. For financial structure, 525 companies were below 200% debt ratio, while 314 (29.9%) companies were in over 200% debt, and 211 (20.1%) companies were impaired in capital. These also showed financial structure was vulunerable. For profitability, median of ROA for total companies were only 4.72%, which showed low profitability. For growth, median of growth rate for sales were 7.57% per year, which showed mature industry. In overall, the results showed franchisors should improve their financial status.

• Culinary science and hospitality research
• /
• v.23 no.7
• /
• pp.1-10
• /
• 2017

This study proposed SNS big data analysis method of food service industry in the 4th industrial revolution. This study analyzed the keyword of the fourth industrial revolution by using Google trend. Based on the data posted on the SNS from January 1, 2016 to September 5, 2017 (1 year and 8 months) utilizing the "Social Metrics". Through the social insights, the related words related to cooking were analyzed and visualized about attributes, products, hobbies and leisure. As a result of the analysis, keywords were found such as cooking, entrepreneurship, franchise, restaurant, job search, Twitter, family, friends, menu, reaction, video, etc. As a theoretical implication of this study, we proposed how to utilize big data produced from various online materials for research on restaurant business, interpret atypical data as meaningful data and suggest the basic direction of field application. In order to utilize positioning of customers of restaurant companies in the future, this study suggests more detailed and in-depth consumer sentiment as a basic resource for marketing data development through various menu development and customers' perception change. In addition, this study provides marketing implications for the foodservice industry and how to use big data for the cooking industry in preparation for the fourth industrial revolution.

• Journal of the FoodService Safety
• /
• v.2 no.2
• /
• pp.67-77
• /
• 2021

Concerns regarding work and food safety in foodservice operations are growing. The purpose of the study is to suggest guidelines for designing foodservice facilities, including school foodservices and Korean restaurants. A case of a franchise restaurant specializing in a Korean food item, Seolleongtang, was used to explain the facility design. The contents of the manual included ways to determine space allocation, calculate the application of utilities and the diameters of supply utility pipelines, and suggestions on how to decide on air conditioning equipment. The standards of the American Gas Association and the Japan Foodservice Equipment Association (JFEA) were applied to design the restaurant space. The JFEA standards and knowledge based on experience and statistics were applied to calculate the usage of utilities like fuel and water. The standards of JFEA and the Society of Heating, Air-Conditioning, and Sanitary Engineers of Japan were applied to calculate the diameters of the water supply and drainage pipelines. For the setting of the heating, ventilation, and air conditioning systems, three ways to carry out the calculation of effective ventilation were explained, as well as options to dicide the standard parameters of the duct and ventilation fans. This manual can contribute to the design of effective and efficient foodservice facilities and help secure the work safety of foodservice employees thereby ensuring food safety.

• Culinary science and hospitality research
• /
• v.17 no.5
• /
• pp.92-107
• /
• 2011

The purpose of this study was to understand the effect of the characteristics of coupons purchased through a social shopping site upon customer satisfaction and future behavior intention. Based on total 332 samples who had bought franchise restaurant coupons and used them before, this study reviewed reliability and fitness of the research model and verified total 4 hypotheses with AMOS and SPSS program. The hypothesized relationships among the models were tested simultaneously by using a structure equation model(SEM). The proposed model provided an adequate fit to the data, ${\chi}^2$=309.795(df=103, p<.001), CMIN/DF=3.008, RMR=.103, GFI=.912, NFI=.927, CFI=.950, RMSEA=.074. The result showed that the coupon proneness(${\beta}$=.645) and price sensitivity(${\beta}$=-.315) had a significant influence on restaurant satisfaction(p<.001) and only coupon proneness(${\beta}$=1.040) had a significant influence on coupon satisfaction(p<.001). Also, restaurant satisfaction had a positive significant influence on restaurant customers' revisit intention(${\beta}$=.603, p<.001) and coupon users' repurchase intention(${\beta}$=.335, p<.001). Furthermore, coupon satisfaction had a positive significant influence on coupon repurchase intention(${\beta}$=.353, p<.001) but had a negative significant influence on restaurant revisit intention(${\beta}$=-.263, p<.001). Limitations and future research directions were also discussed.

• The Korean Journal of Franchise Management
• /
• v.11 no.2
• /
• pp.41-51
• /
• 2020

Purpose: Fast food franchise companies are trying a variety of innovative services to increase their competitiveness in response to changes in population composition in the fast food market and rapid changes in consumption trends due to technological development. From this point of view, franchise companies that have focused on offline store operations are providing O2O (offline to online) service as a core service for customer convenience. This new attempt is a strategy to increase loyalty by applying an interaction method based on understanding the characteristics of new generation consumers. However, existing studies are focused on the relationship between O2O service and acceptance, so very little is known about how O2O service affects customer loyalty. Therefore, this study examines the impacts of customer involvement and relative advantages of fast food O2O service on customer brand engagement (cognitive and affective engagement) and store loyalty for MZ(Millennials - Z) generations. Research design, data, and methodology: In order to achieve the purposes of this research, several hypotheses were developed. The data were collected from 247 questionnaires in their 16-30s and were analyzed using SPSS 22.0 and SmartPLS 3.0 program. Measurement model analysis was carried out to assess convergent and discriminant validity. Also, common method bias was tested using the values of VIF (variance inflation factor). The hypotheses was tested using structural equation modeling. Result: First, involvement has a positive effect on cognitive and affective engagement. Second, relative advantages have has a positive effect on cognitive and affective engagement. Third, cognitive influences affective engagement. Finally, both cognitive and affective engagement affect store loyalty, but affective engagement has a stronger effect on store loyalty than cognitive engagement. Conclusions: In the process of consumer-brand interaction, it was confirmed that store loyalty was influenced by cognitive and affective engagement sequentially. However, the results show that affective engagement has a relatively stronger on store loyalty than cognitive engagement. Therefore, it is necessary to establish an O2O service strategy to maintain long-term loyal customers by inducing cognitive participation with high-involved consumer, as well as affective interaction, in order to obtain new customers and increase customer loyalty.

• Information Systems Review
• /
• v.24 no.3
• /
• pp.43-68
• /
• 2022

With the growing demand for online food delivery (OFD) services via Online to Offline (O2O) platforms, it is required for academic researchers to identify the success factors of OFD businesses. In line with this, this research examines the impact of the core service attributes of a restaurant (hygiene, interactivity, trust,and popularity) on business success in the OFD platform context from the perspective of information asymmetry. Furthermore, the moderating effects of hygiene factor between the core service attributes and the success of restaurants are evaluated. We utilize 1,146 restaurants registered on the largest OFD platform in Korea. The results of this study demonstrate that hygiene (certification), trust (franchise), popularity (favorite) factors have positive impacts on the success of OFD businesses. Moreover, we find that franchise restaurants with high response rates to customer reviews and inquiries achieve higher sales when they have hygiene certifications than those without the certification do. The key findings bear significant contributions to prior literature by empirically substantiating the pivotal role of service quality signals in fostering restaurant success on the OFD platforms. In addition, this study provides business implications for restaurants in O2O platform.

• Culinary science and hospitality research
• /
• v.16 no.1
• /
• pp.226-238
• /
• 2010

This study investigates the recovery of trust and provision of a contract between a franchiser and a franchisee in the food service industry. It has come to the following results after analyzing the inter-affections among the franchisers' conditions, the trust level of their support and their intention to contract. First, such factors as experience, confidence, and expertise of a franchisee have significant effects on the terms of a franchiser. Second, ad support, experience, expertise, confidence, and capital factors have significant effects. Third, such factors as history of a franchiser, the number of its franchisees, its brand have significantly influence on trust. Fourth, educational support, utilization of job instruction and purchasing of packages have significant effects on intention to contract.

• The Korean Journal of Franchise Management
• /
• v.11 no.1
• /
• pp.19-29
• /
• 2020

Purpose - To understand the assessment basis of customers' coffee shop experience and give more practical advices to the franchised coffee shops which are poorly managed in the competitive market, this study identified factors to measure the quality of customer experience and explored the relationship between these factors and customer satisfaction and loyalty. Further, this study analyzed which role self-efficacy played in the structural relationship between the quality assessment factors, satisfaction and loyalty of franchised coffee shops. Research design, data, methodology - The data were collected from respondents who had visited franchised coffee shops within the previous month through online survey. The questionnaires were surveyed from February 11 to February 14, 2019. A total of 318 responses were collected after excluding four of incomplete or uncandid responses. A structural equation modeling approach was used to examine the proposed hypothesis and a confirmatory factor analysis was employed to verify the four dimensions of quality assessment. Results - The findings of this study are as follows. First, the three of quality assessment variables significantly influenced on satisfaction except environmental quality. Second, economic and service quality significantly influenced on self-efficacy but environmental and menu quality didn't. Third, satisfaction significantly influenced on loyalty but not on self-efficacy. Fourth, self-efficacy significantly influenced on Loyalty. Conclusions - This study identified the four dimensions to assess the franchised coffee shop service - menu, environment, service and economic quality and verified these four dimensions are valid as indicators to measure the quality of customers' coffee shop experience. Further, by empirically testing the structural relationships among these quality assessment dimensions, satisfaction, self-efficacy and loyalty, this study provided theoretical foundations to explore the relationship between customer and the franchised stores in restaurant businesses. For the industry, the study findings showed that customers highly appreciated menu and economic quality of the service rather than the stores' interior. This indicate that the franchised coffee shops need to focus more on the basics of coffee such as taste and menu variety and economic value than the decoration of the store, which are often over-invested nowadays.