Authors:Kwansa; Francis A. et al. Abstract: From the day a business is conceived, it is constantly faced with numerous strategic challenges that have impact on its survival, success, and/or failure. Many independent businesses fail within the first three years. For the ones that survive and prosper, they may remain as independents, private and or family businesses, while some transform into corporations and even become publicly traded entities. We use FAT Brands as a case study to examine the evolution of a company from a single restaurant concept and expanding by diversifying into a multi-concept and publicly traded corporation. Internal and external factors such as the impact of leadership, private versus public ownership, domestic versus internal markets have all had an impact on the growth and evolution of the company. PubDate: Thu, 05 May 2022 09:00:50 PDT
Authors:Mitsis; Pandelis Abstract: The aim of the current study is to investigate which attributes or characteristics have significant effects on the hotel room prices in Cyprus. The author follows a hedonic price analysis approach and employs a data set consisting of 92 hotels, collected from a private tourist agent. The empirical findings indicate that hotel star rating, spa facilities, playgrounds, table tennis activities and proximity to a bus station have all significant effects on the hotel room prices, in both the summer and the winter seasons. Contrary, air-conditioning, direct-dial telephone and the presence of tennis court and indoor pool amenities affect the room rates only in the summer, while existence of a radio in the room has a significant effect on its pricing only in the winter. What is particularly noteworthy, given the empirical findings of existing studies, is that in Cyprus there seems to be an adverse effect from certain attributes (e.g., proximity to a public transportation hub) to the room rates, at both summer and winter. PubDate: Thu, 05 May 2022 09:00:49 PDT
Authors:Yost; Elizabeth A. Abstract: Risk factors leading to fraud is an important issue for restaurant operators. This paper identifies and evaluates the financial and non-financial characteristics of different restaurant segments through the lens of the fraud triangle. Using probit modeling and time series data from 2004 to 2014, it investigates different factors that significantly impact the increased risk of fraud in four types of restaurant segments—quick service, fast casual, casual dining, and fine dining. As such the findings of this study provide a better understanding of internal and external risk factors leading to increased fraud in the restaurant industry. PubDate: Thu, 05 May 2022 09:00:48 PDT
Authors:Wu; Di et al. Abstract: Human Resource (HR) allocation for independent hotels is critical, especially during and after the pandemic because labor costs account for a large portion of operating expenses in lodging businesses. An effective HR allocation can therefore be critical for minimizing costs and, at the same time, for improving profitability and making financial management more efficient. This study focuses on fuzzy goal programming models covering both linear and quadratic cases to study HR allocation issues for independent hotels as linear programming models are often limited to handle multiple objective HR allocation problems. The applications illustrated in this research can be fully utilized in real-world situations using a spreadsheet software tool such as Excel and can also be integrated into the lodging program curriculum. The implications may also provide insights into how to better deal with financial management risk faced by the lodging and hospitality industry during the pandemic. PubDate: Thu, 05 May 2022 09:00:47 PDT
Authors:Jiang; Lan et al. Abstract: The purpose of this research is to understand the effect of franchising and dividend payments in the restaurant industry. To be specific, this study tried to assess whether franchising and dividend payments improve financial performance in restaurant firms, and whether restaurant firms that both engage in franchising and pay dividends can achieve superior returns to those firms that only do one or the other. Data was collected using Compustat from 2011–2020, a total of 94 restaurants with 600 firm year observations were included in the sample. The results of this study suggested that franchising and dividend payments each enables restaurant firms to achieve superior financial performance, and they reinforce each other to provide superior performance in U.S. restaurant firms. PubDate: Thu, 05 May 2022 09:00:47 PDT
Authors:Schmidgall; Raymond S. Abstract: This study uses survey research to determine the 2020 annual earnings of hospitality financial man- agement educators. Forty-four percent of iAHFME members affiliated with educational institutions responded. Survey results show that for 2020, annual base salaries of iAHFME members ranged from $63,000 to $200,000. The lowest-paid member was an assistant professor and the highest-paid mem- ber, a full professor. Many respondents supplemented their base salaries by teaching during summer school or consulting or both. The total annual earnings of iAHFME members ranged from $76,000 to $245,000. Survey results also show that hospitality financial management educators appear to be more highly compensated than the average college professor and their counterparts in the lodging industry. PubDate: Tue, 09 Nov 2021 09:34:50 PST
Authors:Kwansa; Francis A. et al. Abstract: The Employment-Based Fifth Preference program (EB-5) is one of five categories of employment- based visas that provide permanent residency to foreign nationals in the United States. In return, foreign nationals interested in the program are required to make investments of $1 million in busi- nesses and create a minimum of ten jobs in the United States. Since its creation in 1990, the EB-5 pro- gram has had a significant economic impact in the United States through infusion of external capital into the economy and through the creation of thousands of jobs. The hospitality industry has been one of the popular industries that have attracted a lot of EB-5 capital since 1990. Part of the attraction of the hospitality industry to investors is the labor-intensiveness of the industry, so EB-5 investors are able to meet the job creation requirement of the program easily. There have been recent changes to the program, however lack of congressional authorization of the program in 2021 is holding the changes and the fate of the EB-5 program in limbo. Notwithstanding the current challenges facing the program, the hotel and restaurant industries have benefited greatly from the financing provided by EB-5 investors. PubDate: Tue, 09 Nov 2021 09:34:48 PST
Authors:Bąk-Filipek; Ewa et al. Abstract: The aim of the study was to show tourist movement in Poland and its importance in the tourism and national economy. The analysis of the results confirms a several-year trend of further increases in the number of arrivals for both foreigners and foreign tourists. In parallel to the positive trend in terms of the number of trips, unfortunately a decreasing trend is observed in the level of average spending of tourists and one-day visitors. Therefore, total revenue from inbound foreign tourism in 2019 (calculated in PLN) increased by 2.9% compared to its level from the previous year. Tourism, including foreign tourism arrivals, affects economic development, mainly due to the multiplier effect. The huge problem for the Polish tourism sector was the COVID-19 pandemic in 2020. The aim of the article is to illustrate the impact of the pandemic on the tourism sector in Poland, especially domestic travels, and to provide information on which types of tourism were more resistant to the COVID-19 pandemic situation. PubDate: Tue, 09 Nov 2021 09:34:45 PST
Authors:Shafiee Roodposhti; Maysam et al. Abstract: This research seeks to utilize a technique (Tanaka technique) in which, while focusing on quality improvement, costs will be managed and tourism organization and companies can benefit from var- ious incomes. The statistical population of this study was hotels in Isfahan and using the opinions of experts of this industry, five cost-effective quality indicators were achieved. This technique has eight steps and for data gathering, questionnaires and interviews were used. This study identifies the amount of deviation of the actual cost from the target cost for each of the indicators. The results showed that ancillary facilities, structural architecture, service, manpower and hotel amenities, respectively, are in the priority of attention. PubDate: Tue, 09 Nov 2021 09:34:42 PST
Authors:Zuniga-Jara; Sergio et al. Abstract: This paper provides a simplified approach toward estimating the cost of capital for a small company of the tourism sector. This is accomplished by dividing the hurdle rate into the return of the specific industry in a specific country, and a specific risk premium dependent on the size and age of the company/projects. We illustrate our proposal with investment estimations in lodging accommodations along the northern coast of Chile where tourism represents an important source of income and jobs. The estimations were validated through a survey carried out among entrepreneurs of the sector. The results suggest that our method is realistic and practical, and could be adapted to economic sectors other than tourism and to other countries. PubDate: Tue, 09 Nov 2021 09:34:40 PST
Authors:Lin; Michael S. et al. Abstract: In the United States, individuals spend more than half of their food expenditures on food away from home (FAFH), and this trend is growing. This study aims to examine the factors that impact FAFH from a macroeconomic perspective. Macroeconomic and FAFH spending data from January 1997 to February 2020 were obtained from the various databases. The results reveal that the unemployment rate, Consumer Price Index (CPI), stock index, and oil price had a significant negative influence on both nominal and constant FAFH spending percentage, and oil price had a significant positive influence on constant FAFH spending percentage. This study contributes to the literature by concentrating on FAFH consumption, given that the extant literature focuses on household overall spending patterns. It also provides policymakers a better understanding of FAFH activities that are related to small business viability and community development. PubDate: Tue, 27 Apr 2021 12:17:44 PDT
Authors:Okumus; Bendegul Abstract: This study examines global and local food policies in United States, Europe, and Asia and discusses possible challenges and gaps for public and food actors, particularly from an economic perspective. In this paper, food policies and regulations are assessed by reviewing global reports, documents, and scholarly journals. The paper emphasizes the possible risks and disjunctions between theory and application of economic food policies in the foodservice industry. Food regulations, inspection challenges, food insecurities, and food safety issues are summarized. Regardless of the level of strict food policies and facilities, unsatisfactory results still exist in developed and developing countries and have increased during COVID-19. PubDate: Tue, 27 Apr 2021 12:17:40 PDT
Authors:Sharma; Amit Abstract: Cost-benefit analysis (CBA) is an established approach to help make informed decisions. The practical technique has been used extensively in several areas of study, and there is a robust literature on numerous aspects of CBA. While the functional characteristics have been well expounded, the incorporation of CBA into varied disciplinary contexts remains scanty. Foodservice systems can be viewed as an extension of the broader food system. Within food system economics literature, a critical gap remains in the study of behavioral decision-making through the lens of microeconomic approaches. CBA provides a theoretical approach to conduct such inquiries. Two rules in the CBA, opportunity cost and sunk cost, relevant to behavioral decisions, remain understudied, not just in context of the food system (and therefore the extended foodservice system) but also in the general literature in CBA. In this paper, we provide an overview of those two CBA rules. We do so in context of the key concepts and ideas that define the economics of the foodservice system. Opportunity cost and sunk cost research presented here offers perspectives from business focus, supply chain, and consumer aspects. In articulating an agenda for future research, we highlight the value of employing interdisciplinary and multidisciplinary approaches for such inquiries. Novel methodologies can also ensure we capture the true nature of decision behavior within these CBA rules. The most apparent of these is the measurability of costs and benefits. In this paper, we describe going beyond measurable costs and benefits, and tapping into the opportunities to broaden the framework of systematically understanding decision-processes. While we focus the discussion on the foodservice and food system, the discussion is as relevant to the broader hospitality research endeavor. PubDate: Tue, 27 Apr 2021 12:17:35 PDT
Authors:Lee; Seoki et al. Abstract: The current study explores the impact of COVID-19 on the U.S. restaurant industry in terms of its stock performance, and further incorporates a global perspective into this examination by testing both the main and moderating effects of non-U.S. COVID-19 and also the moderating effect of the internationalization strategy of the U.S. restaurant industry. Findings of this study confirm that U.S. COVID-19 had a negative influence on U.S. restaurant firms' stock returns while non-U.S. COVID-19 had a positive impact. Further, the non-U.S. COVID-19 had a positive moderating effect on the relationship between U.S. COVID-19 and restaurant firms' stock returns. Unexpectedly, the study finds that U.S. restaurant firms' internationlization strategy does not moderate the negative impact of U.S. COVID-19 on restaurants' stock performance. Practical implications and suggestions for future research are also discussed. PubDate: Tue, 27 Apr 2021 12:17:31 PDT
Authors:Schmidgall; Raymond S. Abstract: This study uses survey research to determine the 2019 annual earnings of hospitality financial management educators. Forty percent of iAHFME members affiliated with educational institutions responded. Survey results show that for 2019, annual base salaries of iAHFME members ranged from $72,000 to $200,000. The lowest-paid member was an assistant professor and the highest-paid member, a full professor. Many respondents supplemented their base salaries by teaching during summer school or consulting or both. The total annual earnings of iAHFME members ranged from $82,000 to $250,000. Survey results also show that hospitality financial management educators appear to be more highly compensated than the average college professor and their counterparts in the lodging industry. PubDate: Wed, 04 Nov 2020 10:13:26 PST
Authors:DeFranco; Agnes L. et al. Abstract: Cash is the lifeblood of any business. Even if a business has cash but is not properly managed, the operation will suffer. One hundred and sixty clubs and hotels shared their accounts receivable and accounts payable practices. In addition, for the users and usage of the statement of cash flows and cash budgets, how often such statements are prepared are documented as points of comparison. It is found that both clubs and hotels view the cash budget more favorably than the statement of cash flows, and hotels are more vigilant, employing more practices to collect their accounts receivable. Managing the cash conversion cycle and monitoring the depreciation/revenue ratios are two highlights suggested. PubDate: Wed, 04 Nov 2020 10:13:20 PST
Authors:Repetti; Toni et al. Abstract: With profit margins averagins 5-7% and labor costs of 30-55% of revenue, restaurant managers need to carefully monitor expenses to maintain these already low profit margins. This study evaluates food and beverage departments within Nevada casinos from 2000 to 2018 to see if managers exhibited expense preference behavior prior to the Great Recession. Three models were tested: number of employees, salaries and wages, and total payroll. Results show that in all three models, there is a significant decrease postrecession versus prerecession, with a decrease of 12.8% in employees, 4.5% in salaries and wages, and 9.1% in total payroll. Only the employee model shows a significant decrease during the recession with a decrease of 9.2%. The postrecession was also comparaed to the Great Recession, and total payroll saw a 5.1% decrease. PubDate: Wed, 04 Nov 2020 10:13:15 PST
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