Journal of the Korean Society of Food Culture (한국식생활문화학회지)

Korean Society of Food Culture (한국식생활문화학회)
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The Impact of Brand Diversification on Firm Performance: A Study Restaurant Firms

외식기업의 브랜드 다각화가 수익성에 미치는 영향에 관한 연구

  • Min, Ha-Na (Department of Culinary and Food service Management, Graduate School, Kyung Hee University) ;
  • Kim, In-Jung (Department of Culinary and Food service Management, Graduate School, Kyung Hee University) ;
  • Choi, Kyu-Wan (Department of Hospitality Management, College of Hotel and Tourism, Kyung Hee University)
  • 민하나 (경희대학교 대학원 조리외식경영학과) ;
  • 김인정 (경희대학교 대학원 조리외식경영학과) ;
  • 최규완 (경희대학교 호텔관광대학 Hospitality 경영학부)
  • Received : 2014.05.15
  • Accepted : 2014.12.15
  • Published : 2014.12.31
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Abstract

Brands play a critical role as a core asset and the primary driver for corporate growth because of their power of identity and influence on customers' perceptions in restaurant industry. However, in spite of diverse and dynamically changing recent brand portfolio strategies of restaurants, a study on the effect of brand diversification on financial performance has been rarely conducted in the restaurant industry context. Considering competing viewpoints regarding diversification's influence on financial performance, the purpose of this study is, therefore, to examine the effect of brand diversification on firm performance of restaurants. The results indicated that brand diversification is positive effect to profitability. Brand diversification seems to be attractive and might be a reasonable growth strategy to expand market power by satisfying diverse consumer needs. Therefore, restaurant managers should be consider in implementing brand diversification strategy especially in dynamically changing trend of brand diversification in the current restaurant industry.

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