• Journal of the Korea Society of Computer and Information
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• v.24 no.5
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• pp.139-147
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• 2019

This study is conducted to analyze how Social Media characteristics of restaurant franchise affect customer decision making and redelivery intention and find out how to do Social Media marketing which is getting important. Through this study, we will understand the direction of Social Media management. In this study, we had 220 users to respond questionnaires who looked up about restaurant franchise through Social Media. In the previous research, we classified the Social Media characteristics about the restaurant franchise into the fields of liveliness, agreement, reliability, communication, accuracy, and entertainment. In order to verify the hypothesis, we conducted single regression analysis and multiple regression analysis and verified the relationship between variables. First, we found that Social Media characteristics of restaurant franchise has a positive relationship with favorability. Second, Social Media characteristics of restaurant franchise has a positive relationship with satisfaction. Third, favorability has a positive effect on satisfaction. Fourth, favorability has a positive effect on the intention of re-inquiry and redeliver. Fifth, satisfaction has a positive effect on the revisit and intention to redirect. As a result of the study, we found that restaurant franchise will gain trust of customers if they take into account the characteristics of Social Media of restaurant franchise and conduct customized marketing according to the head office of restaurant franchise and perform continuous feedback and management in order to improve customer's favorability and loyalty.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.10 no.3
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• pp.660-664
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• 2009

Over the past several years many researchers have attempted to explore the determinants of franchise restaurant success. This study is a research on the critical success factors of the franchise restaurant management which is expanding. The purpose of this study is to present right information to the managers of franchise restaurant fur their marketing and sales. The information is achieved from studying customers' intention. I also measured customers' satisfaction fur management of franchise restaurant and assessed maturation extent. In conclusion, The results show franchise restaurant's menu, atmosphere and accessibility are a considerable level in research results. However, franchise restaurant's brand, service, food, price and size are low level(determinants fact). Therefore, franchise managers have to complement a those factors. The result indicated that the points in time of forecast about the franchise restaurants CSFs are in 5 years mainly.

• Journal of Distribution Science
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• v.9 no.2
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• pp.123-129
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• 2011

The restaurant franchise industry is one that could benefit significantly from the use of intranet technology, from its potential for improving communications between franchisors and franchisees, to providing easier inventory and ordering processes. However, there is a level of trepidation among potential users about whether the technology would improve their work performance. This study sought to examine the relationships between perceived uncertainty and perceived usefulness of intranet technology in the restaurant franchise industry. Through a review of available literature, 10 sub-dimensions of perceived uncertainty (Duncan, 1972) and six sub-dimensions of perceived usefulness (Davis, 1989) were derived. Canonical correlation analysis was used to examine the relationships between these concepts using data collected from 163 franchising restaurant managers in South Korea. Findings from the data analysis demonstrates two negative factors and one positive factor in perceived uncertainty that influence perceived usefulness, thus offering some implications of what to consider when implementing an intranet system in a restaurant franchise.

• The Journal of Asian Finance, Economics and Business
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• v.2 no.1
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• pp.29-36
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• 2015

The paper examines the antecedents of acceptance of social networking sites in retail franchise and restaurant businesses. The success of retail franchise and restaurant business operators via social networking sites depends not only on organizational benefits but also on their behavioral intentions of using it. Three hundred and twenty four samples collected from South Korean retail franchise and restaurant employees are analyzed using factor analysis, structural equation model techniques and one-way analysis of variance. The results of the study identify the three constructs of organizational benefits, perceived tangible assets and perceived intangible assets as for important antecedents to accept social networking sites for their business use. Moreover, higher position employees tend to have more favorable perception of tangible assets and acceptance of social networking sites for their business use.

• The Korean Journal of Franchise Management
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• v.13 no.4
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• pp.39-48
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• 2022

Purpose: COVID-19 has negatively influenced the financial performance of restaurant firms. Previous literature suggests that the franchising strategy effectively helps restaurant firms recover from difficult business conditions through various methods for expanding business size and enhancing business efficiency. According to risk-sharing theory, restaurant franchisors may minimize operational risks by sharing the risks with their franchisees. For instance, restaurant franchisors could generate more stable cash flow using franchise fees from their franchisees. However, research on the effect of franchise's risk reduction factor on business performance during pandemic is scarce. Thus, this study aims to examine the positive moderating effect of franchising between COVID-19 and restaurants' financial performance. Research design, data, and methodology: Panel data including financial information and franchising status of restaurant firms were collected for analysis. In order to control for unobserved firm-specific factors, generalized least squared estimation in fixed effects model was conducted. Huber-White robust standard errors were used to deal with heteroscedasticity issues. Results: It was found that COVID-19 pandemic has a negative effect on the restaurants' financial performance such as ROA (return on assets), ROE (return on equity), and PM (profit margins), which confirms the findings from existing literature. More importantly, results show that the degree of franchising has a positive moderating effect on the relationship between COVID-19 and financial performance of restaurant firms. This suggests that more active engagement in franchising may decrease negative impacts of COVID-19 on the restaurants' financial performance. Conclusions: The study supports existing literature related to risk-sharing theory, by confirming that pandemics, such as COVID-19, negatively affect financial performance of the restaurants. Furthermore, it was found that franchising strategy can help lessen negative impacts of pandemics on the firm performance. These findings can contribute to the franchise and restaurant management literature by suggesting the role of franchising in reducing business risks, thereby positively affecting financial performance. Moreover, this study offers business managers of franchisors and franchisees insights for utilizing franchising in restaurant risk management. Policymakers may also gain information on aiding restaurant firms during global crisis, such as COVID-19.

• The Korean Journal of Franchise Management
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• v.14 no.4
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• pp.35-50
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• 2023

Purpose: This study aims to uncover the mechanism of how initial fees are determined in the restaurant franchise business. Since the initial fees can be considered as a price of utilizing business models and operational knowledge of a certain franchise brand, it is critical to understand the fee decision-making process based on the strategic pricing theories. Therefore, this study investigates the influence of operational value on the determination of initial franchise fees grounded on a value-based pricing strategy. The Operational value is specifically categorized into profitability, growth, and stability of the franchise system. Research design, data, and methodology: The data used were collected through franchise disclosure documents and brand equity index provided by Korea Management Association Consulting. Data from 44 franchise restaurants during 2018 to 2021 are included in the sample. The panel dataset was analyzed by using generalized least squares estimation with R-Studio. Results: Profitability and stability positively influence initial franchise fees. However, growth did not influence initial franchise fees. Conclusions: The results of the study demonstrate that the operational value plays a critical role in determining the franchise fees. Specifically, franchisees recognize how much revenue a franchise system generates for them (i.e., profitability) and how stable the entire system is for operating business (i.e., stability) when they make purchasing decisions for franchise. The findings extend the pricing literature by applying pricing theories in the franchise fee context. Also, the study contributes to franchising and restaurant management literature by providing knowledge of how franchise fees are determined.

• The Korean Journal of Franchise Management
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• v.13 no.2
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• pp.1-15
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• 2022

Purpose: The globalization of the Korean restaurant franchise industry differs from the business performance of enhancing the brand image and customers' intention to revisit depending on the degree of localization marketing. Therefore, it is necessary to consider the extent to which the localization marketing activities of overseas Korean restaurant franchise companies affect the customer's perception. This study aims to investigate the effects of localization marketing (Localized Menu, Localized Price, Localized Service Experience, Localized Promotion, Localized Physical Environment) of Korean restaurant franchise companies on customer revisit intention. Research design, data, and methodology: For this study, 150 questionnaires using local Korean restaurants in Beijing, China, were analyzed using SPSS Ver.21 and AMOS Ver.22. Result: It was confirmed that the localized menu, localized service experience, and localized physical environment all affect the intention to revisit customers. Based on these verification results, if overseas franchises fully recognize localization marketing, which is an important factor for local business success, and establish localization strategies, they can gain an edge in competition with local Korean restaurants or restaurant franchises founded by locals. There may be a higher probability that However, it was found that localization price and localization promotion had no mediating effect of brand image between revisit intention and revisit intention. It was found that it had no effect on the degree of inquiry and had a negative effect. Conclusions: Due to the impact of the COVID-19 pandemic, there have been many changes in the domestic and overseas food service industry over the past two years. Therefore, in future research, it is necessary to study the localization of overseas Korean restaurant franchise companies that are more multidimensionally subdivided. Various measures of customized localization marketing for optimal regional characteristics should be developed and applied to enhance customer revisiting and brand image of Korean restaurant franchise companies entering overseas. In the future, this study will be meaningful data for the establishment of localization marketing (Localized Menu, Localized Price, Localized Service Experience, Localized Promotion, Localized Physical Environment) strategies for Korean restaurant franchise companies that consider overseas expansion or have already entered.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.11 no.6
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• pp.1991-1996
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• 2010

The Korean restaurant franchise business is continuing to grow along with economic growth. Moreover, there are some Korean restaurant franchise enterprises that have managed to enter overseas markets as well, and which are unfolding a strategy for success by leveraging marketing activities that consider the tastes of the respective localities and their consumers' characteristics. This research conducted a comparative analysis of 'Nolbu'and 'Mister Pizza' both considered successful franchises, to identify the CSF(Critical Success factors) of the Korean restaurant franchise business. The results of the research demonstrate the critical success factors, including: efforts such as effective marketing; effort to return part their profits to the community; structured and scientific restaurant management; an effective logistics and distribution system and differentiation against other brands.

• Korean journal of food and cookery science
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• v.23 no.2 s.98
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• pp.270-279
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• 2007

The purposes of this study were to analyze the profitability of audited restaurant franchise firms and to investigate the financial variables affecting profitability. This study decomposed profit variation into the three main factors comprising the Du Pont Identity (operating efficiency, asset use efficiency and financial leverage). The operating efficiency of restaurant franchise firms was on the rise until 2004, but dropped dramatically in 2005. Especially, the profit margin dropped from 13.46% in 2004 to 6.54% in 2005. The asset use efficiency has been decreasing since 2003. The total asset turnover ratio, which can be indicative of over-investment, dropped from 1.55 in 2003 to 1.50 in 2005. The financial leverage remained stable after 2002. There were major differences in debt accumulation among the firms, and the current level of debt was thought to be higher in the restaurant industry than in other industries. Based on the results of a multiple regression analysis, we concluded that the factors affecting ROE were the debt-equity ratio, total asset turnover and the size of the firm. The debt-equity ratio and total asset turnover had a significantly positive effect on ROE, while the firm size had a significantly negative effect on ROE. However, the current ratio and sales growth rate were not significant. The finding that firm size and profitability were negatively related implied that restaurant franchise firms should pursue qualitative growth rather than quantitative growth. There was no major difference in profitability between domestic brands and foreign brands. However, the domestic brand was more efficient in terms of asset usage than the foreign brand.

• Culinary science and hospitality research
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• v.22 no.7
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• pp.222-234
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• 2016

This study measures the impact of restaurant franchise brand equity and brand value on consumer loyalty and customer satisfaction. The purpose of this study was to investigate the relationship between variables based on previous studies. The survey for this present study was conducted from consumers who visited in a franchise restaurant within three months. in Seoul and the metropolitan area. Research revealed that brand equity and value of the franchise restaurant appeared to have a positive impact on customer loyalty, and then consumer loyalty exhibiting a positive impact on consumer satisfaction. In addition, brand equity and value of the franchise restaurant showed a positive impact on customer loyalty.