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.     

An examination of cost management behavior in small restaurant firms

The purpose of this study is to test cost management behavior of small restaurant firms and identify whether managers of these small restaurants behave differently depending on their management and ownership structure. The sample was comprised of 87 small restaurant firms identified from the 1998 Survey of Small Business Finances (SSBF). Cost of doing business, size of staff, and five performance measures were used as dependent variables. Independent variables included management and ownership type. Study findings identified significant differences in the profit margin depending on management type and ownership percentage of the primary owner. We also find that the cost of doing business (total expenses) varies depending upon single-family majority/minority ownership and the ownership percentage of the primary owner. The results support the notion that small restaurant firms are operated differently depending on their management and ownership structure.     

Slim by design: Menu strategies for promoting high-margin,healthy foods

In a world of rising obesity, restaurants have become a regulatory target. One profitable but overlooked solution may be for restaurants to focus on menu engineering strategies that could increase sales of relatively healthier, high margin appetizers and entrées and help diners become slim by design. Recent lab and field research in consumer psychology and behavioral economics offer promising solutions that responsible restaurants can use to profitably guide their customers to healthier decisions by using the three-step menu engineering process of (1) shifting attention, (2) enhancing taste expectations, and (3) increasing perception of value. A review of these studies provides key implications that can both increase the healthfulness of what customers order along with the profits of the restaurant.     

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.     

Differences in Tourism Marketing Strategies Between Wineries Based on Size or Location

While the number of United States wineries has doubled and wine production tripled, only three states represent the majority of wineries and wine production. Yet, small wineries must contend with similar production issues that larger wineries face: cultivation of grapes, fermentation of juice, and finally bottling of the product.By comparison small wineries face an even tougher challenge—attracting consumers' attention to their products, much of which must be sold directly to consumers at the winery. These cellar door sales account for substantial dollar and case volume and are particularly lucrative.This study examined the relationship in off‐site and on‐site marketing strategies based upon winery size and location. The results indicated differences in tourism marketing strategies particularly with wine education at rural wineries and food/wine pairing techniques at larger wineries.     

Putting the Dollar Signs on Quality: The Cost of Experienced Problems in the Hotel Industry

This work presents a calculation for the cost of problems experienced in the hotel industry. The calculation is then applied both to the cost of problems experienced and the cost of problems not reported. The calculation presents data at the brand level to illustrate the calculation. By using this formula, hotels, brands, and companies can both identify and monitor the dollar cost of problems experienced to help in their cost/benefit analysis of service improvement efforts.     

Nutritional information disclosure on the menu: Focusing on the roles of menu context,nutritional knowledge and motivation

As menu labeling legislation that requires nutritional information on restaurant menus becomes increasingly prevalent, it is controversial whether the provision of nutritional information promotes consumers to select healthy items. This study aims to examine the extent to which the nutritional information presented on menus influences consumer food evaluation and choice in restaurant patronage. We also investigate the effect of menu context and individual characteristics, such as nutritional knowledge and motivation to process, on consumers’ information processing. A computer-based experiment was conducted to collect data. The results show significant effects of the presence of nutritional information and the menu context, which is the healthiness of other alternatives on the menu, on consumer food decision. Consumer motivation to process the provided nutritional information significantly moderates the effect of nutritional information disclosure. These results present valuable implications for restaurateurs and policy makers interested in the effect of menu labeling.     

Enhancing ethnic food acceptance and reducing perceived risk: The effects of personality traits,cultural familiarity,and menu framing

This study examined whether innate food-related personality traits (food neophobia), as well as food external factors such as cultural familiarity and menu framing, influence U.S. customers’ reluctance to try ethnic foods. In order to achieve this aim, this study first investigated whether familiarity with cultural contents (e.g., music or movies) helps reduce the perceived risk of ethnic foods and, further, whether it increases acceptance of novel foods. Second, food related behaviors, willingness to try ethnic foods and perceived risk, were examined under various menu conditions with different visual and verbal information frames using a sample of U.S. consumers with varying levels of food neophobia. The results empirically suggest that increasing familiarity with Korean culture through exposure to Korean lifestyles, music, movies, and soap operas could alleviate food neophobia as a barrier to accepting novel ethnic foods. Moreover, the results of the scenario experiments indicate that the menu design format can serve as a tool not only to increase customers’ willingness to accept ethnic foods, but also to reduce the perceived risks of trying ethnic foods.     

Mimicking menu choices: Menu choice failure and blame attribution of Korean customer

Although behavioral mimicry occurs when customers make decisions, researchers have paid little attention to how behavioral mimicry might affect food choices and subsequent behavioral intentions, especially in social networking. Therefore, this study examined how menu choice failure after using menu referrals from online social networks affect blame attribution and subsequent behavioral intention. This study considered how uncertainty about menu, task importance and tie-strength with an online social network referral affects blame attribution and behavioral intention (customer satisfaction and revisit intention). 2 (Uncertainty; high versus low) × 2 (Task importance; high versus low) × 2 (Tie-strength; strong versus weak) between-subjects experimental design was utilized. This research provided evidence that people are less likely to blame a social media friend for the failure of menu choice when the consumers have low uncertainty about the menu, when the menu choice is less important to them, and when they have strong ties.     

Price premiums for organic menus at restaurants: What is an acceptable level?

This study identifies acceptable premium price levels that customers would be willing to pay for organic menu items at restaurants in the United States. Previous literature indicates that health-related and socio-demographic characteristics significantly influence consumers’ intentions to purchase organic food. To advance our understanding of how different consumers respond to changes in organic food prices, this study examines the moderating effects of the level of health consciousness (high versus low), gender (male versus female), and age (young versus old) on the relationship between premium price levels and purchasing intentions. In addition, this study further investigates acceptable premium price levels for different consumer segments at two types of restaurants (casual dining versus fine dining). The results of this study provide guidelines for menu design and strategies for restaurateurs to devise effective price premiums for organic menu options.     

Comparing online reviews of hyper-local restaurants using deductive content analysis

This study explored consumer-generated online reviews of six hyper-local restaurants in UK and US. A deductive content analysis was carried out involving intrinsic and extrinsic cues of locally grown food. Overall quality, taste, price, region of origin, and menu information were found to be important variables of hyper-local restaurants’ online reviews. Although there were substantially more reviews about price in the UK-based hyper-local restaurants, consumers were found to be more critical of price in the US restaurants. In the UK hyper-local restaurants, a need to provide great selections and variety in the menu offerings was noticed, whereas the US counterparts showcased a need for more creativity in addition to offering a great selection of food and drinks. Region of origin (local) is more important and positive to consumers in the UK restaurants. Contrary to popular beliefs, health benefit and to some extent freshness were not found to be important variables.     

Understanding customers’ healthy food choices at casual dining restaurants: Using the Value–Attitude–Behavior model

This study examined how individual health values influence interest in healthy foods, positive outcome expectations, hedonic expectations, and behavior intentions. A total of 1188 valid questionnaires were collected from customers who had consumed healthy menu items at casual dining restaurants. The results indicated that health value was the key element that inspired customer interest in healthy eating and aroused hedonic and positive outcome expectations, which in turn enhanced intentions to purchase healthy food items. Restaurant managers are advised to establish creative marketing strategies to motivate customer interest in healthy menu items and emphasize benefits of their healthy food items. Future studies can extend the scope of research by examining differences in geographical areas or demographic profiles.     

Mass customization in food services

This study examines the effect of mass customization (MC) on perceived value in food services and tests whether perceived value is higher in food services with a customized menu than a fixed menu. The study also examines moderating effects of social influence and consumption motivation. In Study 1, a 2 (customization: low vs. high) × 2 (social influence: dining alone vs. together) between subject experiment was conducted sequentially with two types of food consumption motivation (utilitarian vs. hedonic consumption situation). The result shows a significant moderating effect of consumption motivation on the relationship between MC and perceived value. Study 2 shows that perceived value and satisfaction mediate the relationship between social influence and repurchase intentions. In addition, the result shows that consumers eating alone have higher levels of functional value perceptions, satisfaction, and repurchase intentions than those eating together.     

Dimensionality of ethnic food fine dining experience: An application of semantic network analysis

This study attempts to find the underlying dimensionality in online reviews of fine-dining ethnic food restaurant experiences in Hong Kong. This research adopted semantic network analysis with Clauset–Newman–Moore clustering. Consequently, diverse and specific dimensionality was explored in this research, including ambiance, service, food, drinks, desserts, view, location, occasions, reputation and price. The content of the reviews on five types of ethnic restaurants was different in some dimensions. Marketers of fine-dining ethnic restaurants can select a particular focus when they promote their restaurants, develop menu plan and train staff members. This study implies that the quality dimensions of traditional restaurants may not accurately represent the factual dimensions, thereby resulting in implications for developing a new index of restaurant quality.     

Stress and food choices: Examining gender differences and the time horizon framing effect

The number of people facing daily stress is on the rise in the United States. Further, there is increasing evidence of stress induced obesity and other food-related health risks. This study tested the effects of self-reported stress on choosing indulgent and healthy food options in the context of menu promotions at restaurants. The study proposed that time horizon message framing (expansive vs. limited) on restaurant menus influences the effectiveness of advertising messages aimed at preventing unhealthy food choices and promoting healthy choices. Further, this study examined gender differences in stress induced eating. The current findings shed new light on time horizon message framing, which encourages stressed consumers to make healthy choices. The results showed that food choices can be altered using time horizon messages. That is, stressed individuals tend to choose healthier options when the message is framed in terms of expansive time and more indulgent food than when the message is focused on a limited time frame. Restaurant managers are advised to establish creative marketing strategies to spur interest in healthy menu items and emphasize the benefits of healthy food items.     

Serving indigenous dishes in hotels: An inquiry into the conative response of menu decision makers

Indigenous cuisines – in many developing economies – play a central role in the celebrations, cultural practices and festivals of the local people, but their presence on hotel food service menu is often insignificant. Yet, little is known about the determinants of menu decision making with regards to the inclusion of indigenous dishes on the hotel menu. Using a survey of menu decision makers from 184 small and medium sized hotels, this study explores the factors affecting menu decision-makers’ attitudes and intention to place more variety of indigenous dishes on the hotel menu. Findings shed intriguing insights into the role of antecedents like normative beliefs, perceived benefits to business, perceived difficulties in production and service of indigenous dishes as well as customer patronage. Among other implications for theory and practice, the findings foray into the debate on the relevance of attitude in driving behavioural intention in workplace situations.     

Customer Satisfaction with Korean Restaurants in Australia and Their Role as Ambassadors for Tourism Marketing

This is the first study to explore the connection between Australian residents’ satisfaction with Korean cuisine, the various characteristics of the restaurant experience, and Australians’ intention to visit Korea. Data was collected from customers of 16 Korean restaurants in the state of Queensland, Australia. While four factors (facility, menu, service, and food) were derived as selection attributes, menu factors had the most positive effect on customer satisfaction. The study found a positive correlation between satisfaction with local Korean food and the propensity of diners to think about visiting Korea. The results of this study can be used to enhance competitiveness and tourist marketing for Korea. The results reported here may have a broader application to provide effective managerial and marketing information to many other ethnic restaurants in Australia and beyond.     

Validating a DEA-based menu analysis model using structural equation modeling

While a restaurant's menu is known as the cornerstone of the operation, research aimed at optimizing it has not radically evolved. This is problematic in that traditional menu management and analysis models share the common and irremediable shortcoming of variable interdependency, in which the central intersection between vectors in a matrix is dictated by the means for the associated variables. In other words, changes to a single menu item alter the means of the related variables and artificially alter the position of other menu items. Moreover, the limited number of inputs, which typically ignore labor and labor costs, casts suspicion on any conclusions that are drawn. More recent models, such as those that integrate non-parametric statistics including data envelopment analysis (DEA), promise greater utility but have gone largely untested. This paper extends the more holistic model made possible by applying DEA and then tests the resulting archetype using structural equation modeling (SEM). The results suggest that DEA models are valid and that even more complex models are possible. For managers, the findings illustrate the inadequacy of earlier, simplistic models and call for a broader understanding of menu optimization approaches.     

The use of lodging ratios in tourism

This paper presents an analysis of the lodging industry in Victoria, Canada, using standard accounting procedures. It provides detailed information on the supply side of the tourist industry. Meaningful categories were derived by categorizing the sample of hotels and motels into four groups according to their ratios of food and beverage sales to room sales rather the conventional aggregations used by the lodging industry. Cost-volume-profit (C-V-P) analysis was used to compare the break-even charts of the four groups. Information on risk was also obtained by an extension of the analysis using probabilistic C-V-P measures. It is concluded that information at this level of aggregation is important to decision-makers involved in overall tourism planning as well as to management of individual facilities.