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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%. r

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This study presents an approach for effective service operations management by integrating market-based objectives and operating decisions of managers. This approach is based on constructs from operations management, econometrics, and marketing and can be used by managers to make better decisions about product/service design and positioning services according to market needs. Empirical data for this study were collected from the pizza delivery industry in a large metropolitan area in the western United States. Pizza delivery profiles were experimentally designed based on seven attributes: promised delivery time, actual delivery time, pizza variety, pizza temperature, money-back guarantee, price, and discount. An econometric procedure known as probabilistic discrete choice analysis was used to identify the customer pizza choice patterns and managers' perceptions of customer choice patterns. The results show how customers trade off among different attributes when choosing a pizza delivery company. Managers can use this information to position their operations according to customer needs.As the field of service operations management moves beyond the "exploratory" research stage, a number of scholars have emphasized that an integration of operations and marketing perspectives are essential for design and management of high-performing services (Chase 1996; advocate an integrated approach to service management and suggest that managers can improve service operations by their awareness and use of marketing constructs and techniques. Similarly, Griffen and Hauser (1993) illustrate the usefulness of integrating the "voice of the customer" into the design of service businesses. Davidow and Uttal (1989) suggest using market segmentation analysis to determine service strategies for different segments of customers. Likewise, Heskett's (1987) "strategic service vision" involves identification of target market segments, development of a service concept to address targeted customers' needs, codification of an operating strategy to support the service concept, and design of a service delivery system to support the operating strategy. Several researchers also have shown the importance of linking customer satisfaction measures to customer preferences, market shares, and the financial performance of service firms (Anderson, Fornell, and Rust

Revenue management has been used in a variety of industries and generally takes the form of managing demand by manipulating length of customer usage and price. Supply mix is rarely considered, although it can have considerable impact on revenue. In this research, we focused on developing an optimal supply mix, specifically on determining the supply mix that would maximize revenue. We used data from a Chevys restaurant, part of a large chain of Mexican restaurants, in conjunction with a simulation model to evaluate and enumerate all possible supply (table) mixes. Compared to the restaurant's existing table mix, the optimal mix is capable of handling a 30% increase in customer volume without increasing waiting times beyond their original levels. While our study was in a restaurant context, the results of this research are applicable to other service businesses.