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

Reynolds, Dennis; Taylor, Jim

doi:10.1016/j.ijhm.2010.11.001

Cited by 19 publications

(14 citation statements)

References 25 publications

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“…Namely, a thorough review of the studies presented in Table 1 reveals that the vast majority of authors did not provide any necessary evidence of statistical correlation (Coelli, 1995;Wei, 2001) between inputs and outputs before performing DEA. The only exceptions were the studies of Reynolds and Biel (2007), Reynolds and Taylor (2011), Roh and Choi (2010), and Taylor et al (2009).…”

Section: Resultsmentioning

confidence: 99%

Efficiency Analysis of Restaurants in a Small Economy after the Implementation of Fiscal Cash Registers: The Case of Slovenia

Kukanja

Planinc

2018

Organizacija

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Background and purpose: The aim is to analyse the efficiency of small and medium-sized (SMEs) restaurant enterprises in Slovenia after the government’s implementation of fiscal cash registers in January 2016. Strict financial supervision and the introduction of fiscal cash registers resulted in increased officially registered sales revenues, higher taxes, and more available and reliable financial data. No previous study has analysed restaurants’ efficiency in the country, as, due to fiscal malpractice, accounting data have not provided a reliable source for accurate efficiency evaluation.Design/Methodology/Approach: Efficiency was assessed using Data Envelopment Analysis (DEA), based on secondary-financial data provided by the national tax authorities. Data were gathered from 142 independently run restaurant SMEs in 2017.Results: The average efficiency score of Slovene restaurant SMEs is 85%, which indicates that, on average, restaurants have to increase their efficiency level by 15% in order to improve their efficiency according to the most efficient (best-performing) units under comparison. Our research results indicate a relatively successful and comparable level of efficiency performance in comparison to those found in previous international studies. The results also reveal that the patterns of conducting business operations in terms of efficient management are relatively similar across the restaurant sector. Surprisingly, in terms of determining the influence of different groups of operational variables on restaurants’ efficiency performance, the research results indicate that only operational financial variables (costs of goods sold, labour costs, and depreciation) influence efficiency performance, while managers’ demographic characteristics (gender, age, education, years of experience) and restaurants’ physical characteristics (size, number of competitors, location) have no statistically significant influence on restaurants’ efficiency in achieving net sales revenues.Conclusion: Secondary-financial data represent a valuable source of information for restaurant companies’ efficiency analysis. The use of selected variables enables an internationally comparable benchmarking process and facilitates the improvement of restaurants’ efficiency performance. It is suggested that future research include longitudinal data and focus on the systematic analysis of other variables (e.g., managers’ psychographic characteristics) that might influence restaurants’ efficiency performance.

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Section: Resultsmentioning

confidence: 99%

Efficiency Analysis of Restaurants in a Small Economy after the Implementation of Fiscal Cash Registers: The Case of Slovenia

Kukanja

Planinc

2018

Organizacija

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“…It comprised over 25 items and was grouped into two major areas: general information about respondent (manager) and restaurant facility. General informa-tion items (primary data) derived from previous studies (Fang & Hsu, 2014;Kukanja & Planinc, 2013;Reynolds & Taylor, 2011) and were used for classification purposes in the ca analysis (see Table 2). In the next step, financial variables (secondary data) for restaurants efficiency assessment (dea) were identified.…”

Section: Research Methodology Instrument Development and Variable Idementioning

confidence: 99%

“…Regarding inputs, financial measures that have proven to be significant include labour costs, cost of goods sold, controllable fixed expenses, and uncontrollable expenses. Physical inputs that have proven to be important include service capacity (square footage or number of seats) and environmental characteristics (e.g., competitive conditions) (Reynolds & Taylor, 2011). According to Lynn (2001), the validity and usefulness of such a generalised approach to variable selection is somewhat problematic, as, due to lack of available and reliable information, researchers often base their studies on several assumptions.…”

Section: Research Methodology Instrument Development and Variable Idementioning

confidence: 99%

Classification and Efficiency Analysis of Slovenian Restaurant SMEs

Planinc¹,

Kukanja²,

Planinc³

2018

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Focusing on the characteristics of restaurant smes, the purpose of this paper is to use (1) a cluster analysis (ca), and (2) data envelopment analysis (dea) approach to classify restaurant smes into different groups based on their physical and managerial characteristics and attempts to determine whether differences exist in the efficiency performance of different groups. The study has conducted a two-step ca and dea analysis to identify the effects of restaurant characteristics on efficiency performance. This method takes into consideration the presence of heterogeneous subsets in efficiency assessment. Restaurants were preselected based on their operational characteristics. smes whose only source of income was their restaurant business were included in the study. Surveys were performed with restaurant managers, and the firms' financial reports were analysed. Two diverse groups were identified: smaller restaurants with younger and less experienced managers, and bigger restaurants with older and more experienced managers. The various physical (number of seats, years of business activity) and managerial (age, and professional experience) characteristics appeared to significantly affect restaurant types differently. Established restaurants with more seats, older and more experienced managers proved to be more efficient. This is the very first study to analyse Slovenian restaurant businesses efficiency with a combined ca-dea approach. Primary data was collected by surveying restaurant managers while secondary financial data was provided by national tax authorities after the implementation of fiscal cash registers.

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Section: Research Methodology Instrument Development and Variable Idementioning

confidence: 99%

Untitled

2018

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

Cited by 19 publications

References 25 publications

Efficiency Analysis of Restaurants in a Small Economy after the Implementation of Fiscal Cash Registers: The Case of Slovenia

Efficiency Analysis of Restaurants in a Small Economy after the Implementation of Fiscal Cash Registers: The Case of Slovenia

Classification and Efficiency Analysis of Slovenian Restaurant SMEs

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