Calculating restaurant failure rates using longitudinal census data

Healy, J. J.; Iomaire, Máirtín Mac Con

doi:10.1080/15428052.2018.1459999

Cited by 13 publications

(12 citation statements)

References 38 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Despite the challenges described above, experts remain somewhat divided over the perceived failure rate of restaurants. For instance, the frequently quoted figure of a 90% restaurant failure rate has been contested by Healy and Iomaire (2017), who noted that 15% of new restaurants fail within their first year of operation, while 37.62% fail within their third year and 53.06% at their fifth. Nel et al (2018) estimated the failure rate to be 30% within three years, and Luo and Stark (2015) indicated a rate of 60% within the first decade of operation, which are figures consistent with the service industry average.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Another common reason for restaurant failures during peacetime is ineffective marketing and the inability to capture customers in an increasingly competitive market. Still, other reasons include a restaurant acquiring a negative reputation because of unattractive menus, overpricing, weak market positioning and strained customer relations (Healy and Mac Con Iomaire, 2019).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Restaurant failure in post-conflict Beirut: the macroenvironmental context and mismanagement

Yacoub

Nakhle²,

Yahiaoui

2021

EMJB

View full text Add to dashboard Cite

PurposeGiven the complexity of a post-conflict environment, the restaurant sector needs to be analyzed not just from the economic perspective. This paper aims to identify the diverse macroenvironmental and managerial factors underlying restaurant failures in Lebanon. The authors hope that this effort may help increasing restaurant success rates in other post-conflict settings.Design/methodology/approachThe aim of this paper is to explain how macroenvironmental pressures influence the restaurant business and which managerial factors are most critical in a post-conflict context. The authors adopted a qualitative method by conducting face-to-face, semi-structured interviews.FindingsThe findings show that restaurant failures in a competitive and uncertain post-conflict environment were caused mainly by a snowball of internal organizational factors related to bad management, poor human resource management policies, inefficiency and fraud. Internal organizational factors can all be associated with human mistakes and bad decisions, including excessive initial investment, expensive decoration, inability to manage monthly expenses, bad communication and market research.Originality/valueThis study contributes to the literature regarding restaurant failures in post-conflict regions and presents results that are expected to help managers in family- and non-family-owned businesses to enhance their decision-making process.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Restaurant failure in post-conflict Beirut: the macroenvironmental context and mismanagement

Yacoub

Nakhle²,

Yahiaoui

2021

EMJB

View full text Add to dashboard Cite

show abstract

“…Second, acquiring firms can buy restaurants from many franchisees and re-sell them to other franchisees or companies (i.e., Applebee’s, Panera Bread, and Buffalo Wild Wings), which increases M&A activities in the restaurant industry (Maze, 2018). Furthermore, lethargic same-store-sales growth due to intense competition and high restaurant failure (15% after 1 year, 37.62% after 3 years, and 53.06% after 5 years in business) is also increasing M&A endeavors (J. J. Healy & Mac Con Iomaire, 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

“…In other words, why do some firms perform better than others after M&As and under what circumstances? These questions are particularly relevant to the restaurant industry, considering more than half (53.06%) of new restaurants fail within 5 years: if 1,000 restaurants enter the market every year, more than 531 restaurants (i.e., 150 in year 1, 127 in year 2, 100 in year 3, 84 in year 4, and 70 in year 5) would fail every year after 5 years and be potential M&A targets (J. J. Healy & Mac Con Iomaire, 2019).…”

Section: Introductionmentioning

confidence: 99%

Which Type of M&A Makes an Acquiring Restaurant Firm a Star? Profit-Driven Versus Growth-Driven M&A

Mun

Koh

Jang

2021

Cornell Hospitality Quarterly

View full text Add to dashboard Cite

This study identifies whether profit-driven or growth-driven mergers and acquisitions (M&As) are more beneficial to a restaurant firm aiming to achieve profitable growth after an M&A. The results indicate that despite the challenges that must be overcome to achieve profitable growth through M&As, profit-driven acquiring firms are more likely to have better post-M&A operational performance than growth-driven acquiring firms. Therefore, this study suggests that when restaurant firms seek to grow their business through M&As, they should pursue this goal after achieving higher operational profitability, along with better cost controls, supply management, and marketing strategies, rather than optimistically adhering to growth strategies before accumulating any internal, market-based competitive strengths.

show abstract

“…Mac Con Iomaire (2018a) concedes that Ireland has a greater historical connection in the public imagination with drink rather than food, yet he argues for food to be recognized as part of Ireland's intangible cultural heritage. There is growing international recognition of the quality of food produced in Ireland and increased priority given to the promotion of food and food related activities within government agencies (Allen & Mac Con Iomaire, 2017;Healy & Mac Con Iomaire, 2019). Since 2009, Fáilte Ireland, the National Tourism Development Agency, has begun to develop policies and strategies for food tourism in Ireland (Mulcahy, 2019a).…”

Section: Introductionmentioning

confidence: 99%

Insight from Insiders: A Phenomenological Study for Exploring Food Tourism Policy in Ireland 2009-2019

Quigley

Connolly

Mahon

et al. 2019

Advances in Hospitality and Tourism Research (AHTR)

View full text Add to dashboard Cite

This paper focuses on how the phenomenon of food tourism developed in Ireland between 2009 and 2019. Employing a phenomenological epistemology, a qualitative methodology was adopted to explore key stakeholder's lived experience of the Irish government's approach to food tourism, identifying the primary drivers and key moments during the ten-year period. Extant literature was reviewed and critically evaluated. Using purposive sampling, and employing an emic posture, ten semi-structured interviews were conducted with senior governmental and tourism industry figures until saturation occurred. The findings highlight the influence that key policy makers, the formation of networks, clusters, and the role social entrepreneurs had on developing food tourism in Ireland. The influence of the economic downturn in 2008 was a force for change and creativity

show abstract

Calculating restaurant failure rates using longitudinal census data

Cited by 13 publications

References 38 publications

Restaurant failure in post-conflict Beirut: the macroenvironmental context and mismanagement

Restaurant failure in post-conflict Beirut: the macroenvironmental context and mismanagement

Which Type of M&A Makes an Acquiring Restaurant Firm a Star? Profit-Driven Versus Growth-Driven M&A

Insight from Insiders: A Phenomenological Study for Exploring Food Tourism Policy in Ireland 2009-2019

Contact Info

Product

Resources

About