• Journal of Distribution Science
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• v.11 no.1
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• pp.25-34
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• 2013

Purpose - This study examines the adverse press coverage that has increased in proportion to the remarkable growth of various kinds of franchise businesses in the food service industry. Today, the trust of franchisees in relation to their franchisor, and the maintenance of good relations between the two, has become a significant social issue. This study investigates relationship satisfaction and the long-term commitment between the franchisor and franchisee. Research design, data, methodology - We used a path analysis to investigate the relationship between justice and trust, trust and relationship satisfaction, justice and relationship satisfaction, trust and long-term commitment, and relationship satisfaction and long-term commitment. Structural Equation Modeling and a Sobel test were used to investigate the mediating effects of trust and relationship satisfaction. Data were collected from 237 Food Franchisees in Seoul and Gyeonggi Province in order to test the theoretical model and its hypotheses. Two research methodologies are generally used in the distribution management field. For this study, an empirical method was used. Results - A causal analysis was carried out to test if the research model has a sufficient fit index (for instance, χ² = 46.694, df = 10, p = .000, GFI = 0.946, AGFI = 0.850, RMR = 0.034, NFI = 0.966, CFI = 0.973), and the results showed that the model was sufficient, thus demonstrating the suitability of the research model. Each hypothesis had a positive influence, both on long-term commitment and relationship satisfaction. Justice with the franchisor had a positive influence on trust. Relation satisfaction cognized by franchisees was found to positively influence long-term commitment. The franchisee perception of justice in relation to the franchisor had no significant influence on long-term commitment. The study investigated the hypothesis that trust could mediate justice and long-term commitment, and that relationship satisfaction could also mediate long-term commitment Both trust and relationship satisfaction were found to be important for long-term commitment. Specifically, trust sub-factors and justice sub-factors influenced long-term commitment. Identification-based and knowledge-based trust were more important than calculus-based trust. Distributive justice was deemed more important than procedural justice; distributive justice should thus be strengthened. Conclusions - Both franchisor and franchisee were independent businesses. Evidently however, the franchisor could not ensure profit without long-term commitment from the franchisee. As for the success of the franchise business, the franchisor should carry out appropriate strategies leading to a satisfactory relationship. For example, transparency makes it possible to maintain and enhance trust and to improve relationship satisfaction. Just relations between franchisor and franchisee should make it possible to maintain and enhance the franchisee's trust. The franchisor should provide a variety of information with respect to the franchisee's business success. Finally, in order to improve the franchisee's long-term commitment, the franchisor should ensure a just approach with trust and relationship satisfaction among their strategies.

• The Korean Journal of Franchise Management
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• v.9 no.4
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• pp.33-43
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• 2018

Purpose - In hotel industry, quality of leader-member exchange(LMX) relationship is very critical, because it impacts on the employee's work attitude and behaviors. Thus, this research examines the effect of LMX on employee loyalty in the context of hotel business and identifies mediating roles of work stressors, work role performance in the relationship between LMX and employee loyalty. This research suggests the guidelines for how hotel leaders should manage their employees and build employee loyalty that improve management and business performance. Research design, data, and methodology - This study tests the structural relationship between LMX, work stressors, work role performance, and employee loyalty. Work role performance divide into three sub-dimensions such as individual task proficiency, individual task adaptivity, and individual task proactivity. In order to examine the purposes of this research, research model and hypotheses were developed. All constructs were measured with multiple items developed and tested in the previous studies. The data were collected from 113 franchise hotel employees and were analyzed using SPSS 22.0 and SmartPLS 3 program. Result - The findings of this research are as follows. First, leader-member exchange(LMX) have significant positive impacts on work stressors, work role performance, and employee loyalty. Second, work stressors have significant negative impacts on work role performance and employee loyalty. Third, work role performance has significant positive impact on employee loyalty. Conclusions - The outcomes of this research indicate that hotel leaders should focus on the dyadic relationship with their employees how to improve employee productivity through LMX relationship. In turn, the quality of this relationship influences employees's work attitudes and behaviors. As a result of increasing job demands in hotel business which relies heavily on human resources, the hotel leader must find ways to prevent or reduce stressors and associated strains. If hotel employees perceive the high quality of LMX relationship, they improve their work role performance which influences loyalty. Therefore, the hotel leaders should develop monetary or non-monetary reward system for the employees and, make an efforts to have unique social exchange relationships with employees.

• Journal of Convergence for Information Technology
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• v.7 no.6
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• pp.259-265
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• 2017

This study reviewed the existing studies in order to set up a strategy that can achieve the trust and business performance of the franchisers, who are actually operating franchised business, breaking from the research trend centered around franchise headquarters and added the factors of the franchise headquarters' strategy for expanding franchises, including word-of-mouth communication and advertising & publicity and added the exercise of recruitment agency outsourcing, flagship store, recently utilized often as preceding variables to verify the causal relation between the trust of the franchiser and the business performance of the franchise. The implications of this study, it can be concluded that the government authority for the attraction of healthy franchises can continuously attract franchises and enter the market can continuously attract franchises by increasing the trust of the franchises, and powerfully investing and managing them for the effort through word-of-mouth marketing. It is expected that this study will be helpful in the establishment of a business strategy for forming a continuous relationship as well as the franchise head office's strategy for the recruitment of new franchises.

• 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.

• The Korean Journal of Franchise Management
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• v.4 no.1
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• pp.1-24
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• 2013

The purpose of this work is to analyze the case that Yeongju Municipality Government of Gyeongbuk and Jung Donuts Co., Ltd., a franchise company, activated local economy through Farm's Franchise Commercialization (FCC) and to establish the concept of FCC. As a food service franchise company, Jung Donuts specializes in making and selling glutinous rice donuts. In cooperation with Commodity Dept. of Yeongju Municipality Government, the company cultivates raw materials under contract. Such farm's franchise business has the following advantages: First, it is meaningful in the point that it contributes to opening a new market of local agricultural products in a stable way. In short, by using most agricultural products of Yeongju as raw materials, the business serves as a stable market for farmers. Secondly, it is possible to set a reasonable price through stable supply of raw materials. It is to advantages of both producers and consumers. Thirdly, the business brings about the effect of employment rise. It can cause increases in employment of franchise head office and its agencies, and of the Commodity Dept.. Lastly, it produces the promotion effect of local special products. By expanding its agencies across the country, a franchise business can promote the items of raw materials in terms of marketing. The successful FCC needs to meet three requirements as follows. The first one is to establish systematic logistic system. Stable logistic system is required in order to directly distribute and deliver products to nationwide agencies by a producing place. The second one is constant R&D activity. Through the activity of R&D of raw materials and equipment, they should be used most effectively. The third one is to build mutual trust relationship. For long-term business achievements, it is required to establish mutual trust relationship in which relevant entities share their visions with each other and cooperate with each other.

• Journal of Distribution Science
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• v.12 no.12
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• pp.19-26
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• 2014

Purpose - This paper aims to test the effects of Korean food service franchisors' and franchisees' TSI (Transaction Specific Investment) on dependence and trust toward the franchisor and re-contract intention. The study examines the effects of both franchisors' and franchisees' TSI on dependence and trust, as compared with Ganesan (1994). Research design, data, and methodology - Data were collected from 495 Korean food service franchisees and analyzed with structural equation modeling using path analysis through SPSS 18.0 and AMOS 18.0. Results - 1) The franchisor's TSI has positive effects on the franchisee's dependence and trust toward the franchisor. 2) The franchisee's TSI has a positive effect on the franchisee's dependence toward the franchisor. 3) The franchisee's dependence and trust have positive effects on commitment. 4) The franchisee's dependence, trust, and commitment have a positive effect on re-contract intention. Conclusions - The franchisor's and franchisee's TSI affect the franchisee's dependence and trust toward the franchisor. The franchisee's dependence and trust influence commitment and re-contract intention. This has managerial implications for franchisors striving to raise franchisees' re-contract intention.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.7 no.3
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• pp.27-37
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• 2012

The purpose of this study is to review the effect of internal marketing on job satisfaction in food service industry. In order to verify and achieve the purposes mentioned above, questionnaire data are gathered and analysed from 438 employees and their superiors for measuring employees' service quality fromKangwon province. Multiple regression is applied to test the proposed 2 hypotheses: the relationship between internal marketing and intrinsic job satisfaction, and the relationship between internal marketing and extrinsic job satisfaction. Empirical survey's findings are as follows; First, management support, internal communication and employment security have positive relationships with intrinsic job satisfaction. Second, management support, training & education has positive effect on extrinsic job satisfaction and employment security have positive relationships with extrinsic job satisfaction.

• The Korean Journal of Franchise Management
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• v.9 no.3
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• pp.45-55
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• 2018

Purpose - Non-verbal Communication with customers in restaurant business can play an important role because it affects customer behavior and attitudes as a means to develop and maintain long-term relationships with customers. The purpose of this study is to analyze the effect of non-verbal communication with customers and the effect of the influence on customer satisfaction, trust, and revisit intention. Research design, data, methodology - In order to verify the research models and hypotheses of this study, questions were prepared for each variable and data were collected through questionnaires. The questionnaire survey was conducted from March 27, 2018 to April 17, 2018, for those who agreed with the citizens of the Jeju area who visited the restaurant recently. 50 out of 100 were conducted by internet survey and 50 were surveyed. Thus, a total of 100 responses were used using structural equation modeling with Smartpls 3.0. Results - The results of the study are as follows. First, non-verbal communication has a significant impact on customer emotion. Second customer emotion have a significant impact on customer trust and satisfaction. Third, Customer satisfaction had positive a significant effect on revisit intention. Fourth, Customer trust had positive a significant effect on revisit intention. Conclusions - The implications of this study are following as: The food service company should continuously provide non-verbal communication training to employees so that they can respond to customers with the right attitude and bright smile. In particular, in the case of restaurant franchises, customer response manuals should be created and distributed to the franchisees, and a regular training program for the franchisees should be implemented to provide the same service to the customer. Second, CEOs should have to worry about what kind of experience he or she has left since leaving the store. It is also necessary to constantly look at what customers experience in their stores or in their brands, and what emotions they form through their experiences. Third, the more satisfied or trusted customers are formed through the service of the employee, the more loyal the restaurant business will be, and the more likely it is to make continuous revisit and positive word-of-mouth activities..

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

• Korean journal of food and cookery science
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• v.30 no.4
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• pp.412-418
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• 2014

This study considered the selection attributes of bakery consumers and schematized characteristic attributes of being selected by customers by image through a correspondence analysis in terms of own preferring bakery. Self-administrated questionnaires were completed by consumers (452 samples), and the data were analysed by frequency, chi-square, one-way ANOVA, reliability analysis and correspondence analysis. According to the survey results regarding the mean value on bakery selection attributes, it was shown to be in the order of taste ($4.73{\pm}0.70$), sanitation ($4.70{\pm}0.68$), service ($4.21{\pm}0.84$), price ($4.03{\pm}0.92$), consideration ($4.01{\pm}0.96$), communication ($4.01{\pm}0.96$), health ($3.99{\pm}0.98$), and location ($3.83{\pm}0.99$). In the analysis of difference with regard to the selection attributes according to the preferred bakery, both consideration ($4.05{\pm}0.90$) and communication ($3.98{\pm}0.93$) showed a high value in individual bakery, thereby presenting a significant difference (p<0.05). As a result of having carried out correspondence analysis in order to prepare an image map according to the preferred bakery, the selection attributes of employees' service and communication showed the closest image map to individual bakery. Location and sanitation were very close to franchise bakery. Further, other bakery shops were schematized in a relatively close distance to price.