Customer-driven menu analysis (CDMA): Capturing customer voice in menu management

This study develops a new, holistic, customer-driven menu analysis (CDMA) model that incorporates a version of restaurant profitability analysis based on experience accounting and value-based cost management. The CDMA model comprises four stages: the customer’s voice; cost allocation; menu analysis; and profitability analysis. A constructive research approach was used to develop, elaborate and test the new CDMA model in the context of a large restaurant in Auckland, New Zealand. The model can be used by restaurateurs to view their cost structure in a fully customer-driven and nuanced way to improve operational and financial decision-making for enhanced restaurant performance.     

An Investigation of the Level of Managers' Satisfaction with Their Sales Forecasting Process in the Restaurant Industry

ABSTRACT

This study is an investigation into the sales forecasting process of restaurant companies. Using a qualitative and quantitative approach, the researchers examined the level of managers' satisfaction with their sales forecasting process. The participants rated percentage of guest counts, sales dollars, and ease of use as important criteria to the level of managers' satisfaction with their sales forecasting process. It was also determined that a positive relationship existed between the sales forecasting benchmarking model and the level of managers' satisfaction with their sales forecasting process. The level of managers' satisfaction was also impacted by whether or not the sales forecast was actually evaluated. The study concluded with additional noteworthy findings on the managers' level of satisfaction with their process.     

Exploring the underlying factors of customer value in restaurants: A machine learning approach

This study explores the underlying factors of customer value in a restaurant setting by applying machine learning-based natural language processing techniques to the analysis of a vast amount of online customer reviews. The study identifies 14 factors that reflect a holistic view of previous research on customer value. The findings suggest that the comprehensive approach incorporating cognitive and affective aspects into the experiential perspective of value gain deeper insights into the nature of customer value. Moreover, the study uniquely finds new factors that prior research has rarely investigated. This study proposes a methodological framework that enables researchers to test the quantitative measure of customer perceptions derived from unstructured online reviews. Practitioners will be able to use the findings to understand customers better and enhance service operations.     

Forecasting in Short-Term Planning and Management for a Casino Buffet Restaurant

SUMMARY

Demand fluctuation accounts for an important consideration in a restaurant's daily operational decisions. Good short-term planning and management require accurate forecasts of daily demand. The objective of this study is three-fold: (1) to apply, evaluate, and compare different methods of forecasting customer counts for an on-premises buffet restaurant of a local casino in Las Vegas, (2) to describe and propose a combined forecasting approach for this casino buffet restaurant, and (3) to explore the concept of revenue and capacity management for this buffet restaurant. Eight forecasting models were tested and evaluated by two common error measures. The results suggest that a double moving average model was the most accurate model with the smallest MAPE and RMSPE. Extensive discussions on forecasting and planning/management in buffet operations are provided along with recommended future research.     

“How was your meal?” Examining customer experience using Google maps reviews

The purpose of this research is to examine the effects of restaurant attributes and the underlying factors impacting overall customer experience within a range of different restaurant types. To understand their experiences, this study analyses online reviews of restaurants which have become important sources of customer experience data. This current research utilises a combination of quantitative analyses to examine 935,386 Google Maps reviews of 5010 restaurants in London, Birmingham, and Manchester. The authors used the VADER sentiment analysis algorithm to measure the sentiment of four key restaurant attributes: food, service, atmosphere, and value. Logistic regression was conducted to test the relationships between these attributes and a 5-star rating. Furthermore, logistic regression was used to compare the changes of odds at different star rating levels. To understand the factors that drive positive and negative reviews, the top 30 food items of 8 types of restaurants were analysed.     

A model for wine list and wine inventory yield management

Fine dining restaurants with extensive wine lists often have high-value wine inventories and low inventory turnover ratios that reduce the owner's return on investment. The restaurant management literature does not provide fine dining restaurant managers with the tools that enable them to evaluate and make changes to wine list selections, pricing and inventory levels in order to improve the returns from the investment in wine inventory. This paper contributes to the literature by drawing concepts from yield management, retail science and menu engineering to develop a yield statistic and analytical model for managing wine list and wine inventory productivity. WINSPID (wine sales per inventory dollar) is the product of wine mark-up and inventory turnover ratio. Graphs of wine sales and inventory data, mark-up and inventory turnover ratio enable the restaurant manager to analyse, improve and monitor the wine list, wine inventory and wine supplier performance.     

The Impact of Discounting Room Rates on In-House Restaurant Sales

This study investigates whether discounting hotel room rates during low seasons of demand influences in-house hotel restaurant sales in a positive way. A linear regression function was utilized to assess the relationship between discounting room rates and the hotel's in-house restaurant sales. The model summary provided results indicating that the discounting of room rates during the low season did not significantly influence in-house restaurant sales. The value of this study lies in the empirical results that may provide guidance to the revenue management practices of hotel managers.     

Understanding the relationship between food experiential quality and customer dining satisfaction: A perspective on negative bias

This research explores how food experiential quality of consumers affects their overall dining satisfaction. Drawing on negative bias theory, we propose a nonlinear relationship between food experiential quality and customer dining satisfaction. Moreover, we investigate how restaurant price moderates the nonlinear relationship between food experiential quality and customer dining satisfaction. Results of the threshold model using 10,950 online reviews of 219 restaurants on Dianping.com provide support for the proposed hypotheses. The results suggest that a curvilinear relationship is found between food experiential quality dining satisfaction, and the turning points of nonlinear returns decreases for restaurants that belong to high-priced groups. Theoretically, our findings contribute to the existing literature by considering the nonlinear effect of food experiential quality on customer dining satisfaction in the hospitality area through the lens of negative bias, as well as considering the boundary condition. Practically, our findings suggest that restaurant managements can improve customer dining satisfaction through focusing on the food experiential quality of their customers and enhancing their response to customers who have low-level food experiential quality. In addition, if the restaurant price is high, restaurant managers should provide high-level of food experiential quality.     

Creativity and innovation in the restaurant sector: Supply-side processes and barriers to implementation

Evidence supports creativity and innovation as important drivers of firm performance. However, research in the restaurant sector has focused heavily on ‘culinary’ innovations, with little emphasis on creativity and innovations in marketing, management, processes, and services. This study adopts a broader perspective, exploring sources for creative ideas, the different types of innovations, and barriers to their implementation. The paper reports the findings of a systematic review of restaurant innovation literature and empirical data from interviews with restaurant owners in Australia. Results of the study revealed that restaurant entrepreneurs generate new ideas by 1) imitating the practices of leading competitors and 2) analysing customer feedback. Marketing innovations were the most commonly developed type of innovation, whereas management system innovations were the least developed. Finally, creativity in idea generation and implementation of innovation is restricted by two main challenges: staff resistance to change and customer non-acceptance of new innovations.     

电子口碑对餐厅在线浏览量影响研究

Web 2.0技术和用户创造内容的发展改变了人们搜索和分享信息的方式,电子口碑作为传统口碑在互联网时代的发展产物,日渐成为消费者收集信息和进行决策的主要渠道。特别是近年来第三方点评网站数量不断增加,汇集了海量的信息,形成电子口碑效应,但是目前对这种效应的评价和测量研究不足。因此,文章借助第三方点评网站,研究消费者点评和编辑点评对餐厅网页浏览量的影响以及点评网上呈现餐厅的哪些口碑因素是吸引消费者浏览餐厅网页最重要的因素。研究发现,这两种形式的电子口碑对增加餐厅网页浏览量都具有显著的作用,编辑点评的重要性开始凸显,但消费者点评的作用更强。其中,点评数量是影响消费者浏览餐厅网页的最重要因素,其次是价格因素和消费者在餐厅网页上发布的图片。在餐厅体验的3个基本因素中,食物味道是影响餐厅网页浏览量最重要的因素。研究结果对第三方点评网站和旅游企业都具有重要的现实意义。     

Multiunit restaurant productivity assessment using three-phase data envelopment analysis

This paper focuses on uncontrollable variables’ effects on multiunit restaurant productivity using data envelopment analysis (DEA). We argue the importance of first considering managerially uncontrollable (nondiscretionary) variables as inputs in the actual DEA model, with managerially controllable variables considered post hoc for their relationship to the efficiency scores. We illustrate the merits of this approach using data from a chain of 62 full-service restaurants. From a large number of candidate inputs, we arrive at a short list of uncontrollable inputs: hourly server wage, restaurant seats, and a coding variable representing whether the restaurant is a stand-alone facility. Output variables in our model were daily sales and tip percentage. We find that just under 12% of the restaurants operate efficiently and that the average efficiency for the chain is 82%.     

Why do you use Yelp? Analysis of factors influencing customers’ website adoption and dining behavior

The number of review websites has increased within the past years since more people rely on online reviews to help their decision-making process. Previous studies have either focused on the attributes of the content posted on review websites (i.e., reviews) or customers’ behavior concerning their selection of review website on which to post reviews. This study, however, extends the Technology Acceptance Model (TAM) to investigate the factors that influence individuals’ restaurant review website adoption behaviors to read reviews and make dining decisions. In addition, this study will look at the differences in individuals’ perceptions of various restaurant review websites (i.e., Yelp vs. others). The findings revealed the role of influential factors on individuals’ review website adoption and dining decisions as well as the differences in proposed structural relationships among various restaurant review websites.     

The moderating effect of restaurant type on hedonic versus utilitarian review evaluations

Online reviews from consumers are critically important to the restaurant business. This study identified a heuristic processing of content richness and source credibility and applied both for utilitarian and hedonic evaluations. Furthermore, we analyzed the moderating effect of restaurant type (casual, luxury fine dining restaurant). A total of 2629 online reviews were used, with 1323 reviews for three casual restaurants and 1306 reviews for three luxury restaurants. To collect the data, web harvesting and web content mining were conducted to extract useful information by employing an R program. which automatically extract online data. The results reveal that the effect of content richness and source credibility on utilitarian evaluations are greater for a casual restaurant than for a luxury restaurant, whereas only the number of content-rich images had a higher effect on hedonic evaluations of a casual restaurant. The implications of the findings can contribute to the development of marketing strategies.     

Booking now or later: Do online peer reviews matter?

Consumers always face a tradeoff between making a purchase decision now and continuing information searching with delayed purchase decision. This study extends extant literature by empirically investigating the effects of online peer reviews on consumers’ timing of booking a restaurant using a merged data set of online peer reviews and consumer reservation records. The results show that the rating valence, rating variation, and review content richness of online peer reviews positively motivate potential consumers to book a restaurant earlier, while the time interval between successive reviews hinders consumers’ booking decision. It is also found that the effects of rating valence on timing of restaurant booking depend on the different levels of rating variation and review content richness. The findings of this study help practitioners better understand consumers’ purchase decision process and improve marketing strategies.     

Can time soften your opinion? The influence of consumer experience valence and review device type on restaurant evaluation

The objective of this study is to investigate how review temporal distance influences the conformity of consumer restaurant review ratings. By employing an innovative dataset pairing consumer reservation records and consumer online reviews, the findings of this study indicate that (1) in general, temporal distance has a positive influence on restaurant evaluation conformity; (2) consumption experience valence moderates the influence of review temporal distance on restaurant evaluation conformity, with a negative dining experience strengthening the positive effects; (3) review device moderates the influence of review temporal distance on review conformity, with reviews posted via mobile devices weakening the positive effect of temporal distance; and (4) compared to reviews posted via PCs, mobile reviewers appear less likely to be influenced by prior reviews. Findings from this study provide practical insights for restaurants’ management of online reviews.     

Consumer reviews and the creation of booking transaction value: Lessons from the hotel industry

In recent years, much has been said about online consumer-generated feedback. Concern typically emerges regarding consumer decision-making as well as the preservation of an organization's image. Additionally, a company's financial performance can be affected by customer online ratings. The present study explores the impact of a hotel's rating and number of reviews on the value generated through online transactions. Through collaboration with consulting company Travel Click, the research team gathered a sample of 178 hotels representing various companies and brands within the United States. Research results demonstrate that TripAdvisor ratings as well as the number of reviews had positive relationship with the average size of each online booking transaction. The paper concludes with theoretical and practical implications.     

The effects of consumer experience and disconfirmation on the timing of online review: Field evidence from the restaurant business

This study investigated the effects of consumer experience and disconfirmation on the timing of online reviews. Based on a unique dataset of restaurant reservations and online reviews, the empirical results indicate that (1) there is a reverse U-shaped relationship between consumer experience and online review posting timing, i.e., consumers who have strongly dissatisfying or satisfying experiences tend to post online reviews earlier than consumers who have moderate experience; (2) the disconfirmation between a customer’s experience and the average rating of prior reviews has a negative effect on his or her online review posting speed; and (3) the effect of disconfirmation on review posting speed is substantial for consumers who have strongly dissatisfying or satisfying experiences, while it is weaker for consumers who have moderate experience.     

Drivers and resources of customer co-creation: A scenario-based case in the restaurant industry

The aim of this study was to build and test a model that explores customer co-creation by integrating drivers and resources that promote customer co-creation. This study used a scenario-based survey that combines respondents’ personal experiences of dining at a full-service restaurant and their responses to the hypothetical scenario of the co-creation experience. The population of the study was restaurant customers in the United States who visited any full-service restaurant within the previous three months before the survey date. Using convenience sampling, respondents were recruited from the Amazon Mechanical Turk. A total of 501 responses were used for data analysis using a two-step approach of structural equation modeling. This study found that customers with a higher level of knowledge, self-efficacy, and motivation are more likely to participate in the co-creation experience. In addition, the results supported the role of the customer as a resource integrator during the co-creation experience.     

Creating a model of customer equity for chain restaurant brand formation

The purpose of this research was to create and test a model of customer equity for chain restaurant brand formation. It has long been acknowledged that managing and enhancing customer equity influences a company's shareholder value, which is a reflection of long-term financial performance. A review of the current literature revealed three key determinants of customer equity: (1) value equity, (2) brand equity, and (3) relationship equity. Six hypotheses were derived and, based on data analysis, all six were supported. Value, brand, and relationship management were all confirmed to be important factors in enhancing customer equity in the chain restaurant industry. Further, brand equity has the strongest impact on the development of customer equity in this particular industry. Relationships among value equity, brand equity, and relationship equity were also identified. Managerial implications are discussed.     

Motivation and satisfaction of Chinese and U.S. tourists in restaurants: A cross-cultural text mining of online reviews

Tourists with dissimilar cultural backgrounds think and behave differently. Precisely capturing and correctly understanding the cultural difference will help tourism managers generate greater customer satisfaction and increased business revenue. To this end, this paper uncovers and compares the motivation and satisfaction of restaurant tourist customers coming from China and U.S. by investigating their online ratings and reviews. From two major online review communities, customer ratings and reviews have been retrieved, quantified, text-mined, compared, and interpreted using statistics, latent Dirichlet allocation, and frequency analysis. Results suggest that Chinese tourists are less inclined to assign lower ratings to restaurants, and are more strongly fascinated by the food offered, whereas U.S. tourists are more apt to be fun-seeking, and are less uncomfortable with crowdedness.