• Journal of Distribution Science
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• v.17 no.11
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• pp.73-79
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• 2019

Purpose: The purpose of this study was evaluated to compare the predictive power of distress prediction models by using discriminant analysis method and logit analysis method for food service franchise industry in Korea. Research design, data and methodology: Forty-six food service franchise industry with high sales volume in the 2017 were selected as the sample food service franchise industry for analysis. The fourteen financial ratios for analysis were calculated from the data in the 2017 statement of financial position and income statement of forty-six food service franchise industry in Korea. The fourteen financial ratios were used as sample data and analyzed by t-test. As a result seven statistically significant independent variables were chosen. The analysis method of the distress prediction model was performed by logit analysis and multiple discriminant analysis. Results: The difference between the average value of fourteen financial ratios of forty-six food service franchise industry was tested through t-test in order to extract variables that are classified as top-leveled and failure food service franchise industry among the financial ratios. As a result of the univariate test appears that the variables which differentiate the top-leveled food service franchise industry to failure food service industry are income to stockholders' equity, operating income to sales, current ratio, net income to assets, cash flows from operating activities, growth rate of operating income, and total assets turnover. The statistical significances of the seven financial ratio independent variables were also confirmed by logit analysis and discriminant analysis. Conclusions: The analysis results of the prediction accuracy of each distress prediction model in this study showed that the forecast accuracy of the prediction model by the discriminant analysis method was 84.8% and 89.1% by the logit analysis method, indicating that the logit analysis method has higher distress predictability than the discriminant analysis method. Comparing the previous distress prediction capability, which ranges from 75% to 85% by discriminant analysis and logit analysis, this study's prediction capacity, which is 84.8% in the discriminant analysis, and 89.1% in logit analysis, is found to belong to the range of previous study's prediction capacity range and is considered high number.

• The Korean Journal of Franchise Management
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• v.10 no.3
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• pp.13-23
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• 2019

Purpose - The recent franchise industry is rapidly developing. Some franchisees have a low barriers to entry and competition among companies is intensifying. In this dynamic competitive environment, companies need to focus on customer preferences, quality, and technical interfaces to gain competitive advantage. As a result, companies are required to measure the performance of service values in order to provide differentiated services from competitors. In the franchise industry, customer experience marketing of service values will enable companies to create new businesses. Franchise firms should explore a variety of services to increase service value and reduce failures. Research design, data, methodology - The questionnaire of this study was based on the previous research. Surveys were conducted on panels of online surveys. Surveys were conducted on the panel who had visited the restaurant franchise within the past month. The survey was conducted for about 7 days from February 13, 2019 to February 19, 2019. Total 300 samples, 293 were used in the analysis except for seven unfair questionnaires. Results - The findings of this study are as follows: Emotional, monetary, and reputation values have positive effects on cognitive and affective attitudes. Quality value and behavioral value did not effect cognitive attitude and affective attitude significantly. In addition, affective attitude has positive effect on loyalty, but cognitive attitude did not significant effect on loyalty. Conclusions - First, food-service franchise company should develop a service that enables customers to use the store conveniently. We need to develop a comfortable environment for our customers and provide intangible services. Second, food-service franchise company should provide a reasonable price service. Food-service franchise company needs to sell a high quality menu at a reasonable price to generate profits. Third, food-service franchise companies need to strategically respond to their reputation. In other words, food-service franchise company needs to constantly monitor the reputation of its customers and respond appropriately to market conditions. Fourth, food-service franchise company needs to develop a service method capable of emotional interaction with customers. Food-service franchise firms need to develop ongoing service methods and educate their staff.

• Culinary science and hospitality research
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• v.23 no.4
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• pp.175-184
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• 2017

In franchisee industry, it is essential for franchisors to share knowhow and also specialized knowledge in order to realize favorable relationship and performance between franchisors and franchisees. Particularly, in mature food service industry, companies' specialized knowledge and knowhow are the core competence to obtain competitive advantage. Therefore, to create performance, it is absolutely necessary to share information and knowledge among all the franchisees. The purpose of this study is to verify relationship between franchisors' information sharing perceived by food service franchise owners, relationship quality, and relationship performance. A survey was done to food service franchisees, and total 297 samples were used to analyze the structural equation model. According to the analysis results, food service franchise companies' information sharing is significantly correlated with quality of relationship with franchise owners in a positive way. Also, franchisors' knowledge sharing has significant influence on performance of relationship with franchisees in a positive way. The components of relationship quality, trust and immersion, all influence relationship performance. Based on the results, this author suggests several implications about food service franchise management and information sharing.

• Culinary science and hospitality research
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• v.6 no.3
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• pp.119-147
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• 2000

This Study is performed to research a customer satisfaction to a Franchisee on the food franchise industry. In future, the food industry will be complicated and various. So customer needs also will be complicated. Consequently. a study of customer satisfaction will be researched continuously for corresponding an industrial transfiguration and a customer variety. The result of this study, a Franchisee satisfaction on the food franchise industry is evaluated below the average. This result can be happened by the scale of food franchise industry. However actually it has caused by the lack of Franchisee management mind, the capability of head office, and the lack of competitive power. The mind of service for customer, hygiene and cleanness mind, and the lack of marketing strategies and strategic management can not be satisfied of customer. Also customer value creation can not be made. So the education training and marketing strategies for Franchisee on the food franchise industry have to be requested. And a continuous study for customer satisfaction that correspond with the characteristics of industrial classification be raised.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.12 no.5
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• pp.141-162
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• 2017

The International Monetary Fund (IMF) crisis introduced a system for easy layoffs. With recent economic downturn, employees have been asked to retire early and less new jobs have become available. More small businesses as a result have been started. The purpose of this research is to study weight and ranking on SWOT factors of korea food service franchise industry using the SWOT analysis. The Analytic Hierarchy Process (AHP) and Analytic Network Process (ANP) were used to analyze the SWOT found by the surveys. First, the SWOT analysis shows that the franchise owners and the expert group view the industry positively overall and there are more strengths, opportunities than weaknesses, threats. While there are negatives and threats to the industry overall, many people think that there are more opportunities and positive aspects. Second, the franchise owners rank proven business model and platform (S3) as the strongest strength of food service franchise businesses while the expert group ranks management supports (S2) from headquarters as the strongest strength. Third, the expert group and franchise owner group indicate that the weight on unfair franchise contracts with headquarters(W3) and high penalty from breaking a franchise agreement(W4) are 60% of weaknesses. Fourth, both the expert group and franchise owner group indicate that change in people's lifestyle, value system and consumption pattern(O3) as the most important opportunity. Fifth, both groups indicate that changes in consumption pattern(T1) due to ever changing food service industry as the biggest threat. It is ranked higher than the entry of korea food service franchises.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.19 no.10
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• pp.444-455
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• 2018

This empirical study examined the relationships among emotional labor, social support, and organizational commitment of franchise food service industry employees, and analyzed the mediating effects of social support from the fellow and director on the relationship between emotional labor and organizational commitment. A total of 268 employees in the franchise food service industry, such as fast food, chicken, and coffee in Seoul, were analyzed by frequency analysis, reliability analysis, correlation analysis, confirmatory factor analysis, and structural equation model analysis using the SPSS Program. The results of verifying the research hypotheses could be summarized as follows. First, the surface emotional labor of franchise food service industry employees had negative effects on the organizational commitment. Deep emotional labor had significant positive effects on the organizational commitment, and fellow and director support had significant positive effects on the organizational commitment. Second, the social support from the fellow and director had partially mediating effects on the relationship between emotional labor and organizational commitment. This suggests that emotional labor and social support play essential roles in enhancing the organizational commitment of franchise food service industry employees.

• Korean Management Science Review
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• v.19 no.2
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• pp.59-73
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• 2002

There have been academic debates upon which measure is more desirable in measuring service quality between SERVQUAL and SERVPERF In addition, Korean fast food industry is rapidly growing due to increasing income and globalization. Our study tried to contribute to both academic and practical issues. We compared SERVQUAL and SERVPERF measures to determine which one is superior to measure service quality in Korean fast food franchise. We collected data from two branch restaurants of one American global fast food franchise system. Regression analyses resulted in that SERVPERF outperformed SERVQUAL. Furthermore, we compared the goodness of fit of the two structural equation models of SERVQUAL anO SERVPERF, respectively. The SERVPERF model showed a much better model fit than the SERVQUAL model did. Thus, we suggest that SERVPERF be used to measure service quality in Korean fast food industry.

• The Korean Journal of Franchise Management
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• v.11 no.1
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• pp.7-17
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• 2020

Purpose - As the competition in the foodservice franchise industry and the market becomes fierce and the entry barrier is lowered, the foodservice franchisor and franchisees strive to increase their competitive advantage in the market. Therefore, the franchisor and franchisees use experience management strategies to enhance the positive experiences of customers visiting the stores. In this regard, this study examines the effects of customer-oriented activities (physical-, social-, health-, and service-oriented activities) on utilitarian and hedonic values, and loyalty using stimulus-organism-response (S-O-R) model and value-expectancy theory. Research design, data, methodology - The data were collected from panels of online survey company, who visited a foodservice franchisee within last month. The survey was conducted for about 15 days from March 7, 2019 to March 21, 2019, and about 3,500 e-mails and messages were distributed to ask for the survey. A total 412 responded and completed the questionnaires. Of the 412 completed questionaires, 12 were discarded due to missing and misinformation data and 400 were retained for further data analysis. Results --The results showed that social oriented activities, health oriented activities, and service oriented activities had positive effects on hedonic value, while physical oriented activities did not have a significant effect on hedonic value. Health oriented activities and service oriented activities had positive effects on utilitarian value, while physical oriented activities and social oriented activities had no significant effects on utilitarian value. Hedonic and utilitarian values also have a positive effect on loyalty. Conclusions - First, food service franchises should provide services and menus in consideration of the health of customers. When a customer visits the store, franchisee should provide more health-oriented food or materials and clean and comfortable conditions so as not to threaten the health of the customer. Second, the food service franchise must build a service-oriented system. Foodservice franchisor need to provide continuous service training not only to the franchisees, but also to the employees of the franchisees. Third, franchise should design a store where customers can form social exchanges through providing various information exchange to customers and making the store as a local community center.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.11 no.5
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• pp.77-90
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• 2016

This study is to examine the importance of site selection and service quality in franchise business as food service franchise became one of the fastest-growing service industries today. The chief finding of this study is as follows: First, a survey in locational and service quality factors affecting food service franchise shows that responders are more concerned with hygiene and visibility of the store than proximity and transportation advantages which reflects low statistical significance, thus the distance did not seem to be a big problem for the responders in the context that they mostly visit nearby food franchise. Second, the examination of the influence by the service quality factors and customer satisfaction shows significant positive relation with customer response, speed and accuracy, and accuracy factors which reveals that the responders prefer prompt response and swift judgment toward the customer's needs and expectations, professional knowledge services to the credibility factors in which little correlation with the customer satisfaction were found. Third, the examination of the influence by the service quality factors, locational factors, and re-visit reveals that customer response and specialty showed statistically significant correlation with intention of WOM (Word of Mouth) and revisit, which suggests that swift judgment and response toward the customer's needs and expectations, professional knowledge services is of great importance to both customer satisfaction and revisit. The study on the aspects of locational and service quality factors affecting franchise industry's customer satisfaction was conducted as above, an investigation in both factors' influence on the customer satisfaction was made, and based on the results of the analysis, this research seeks an optimal operation strategy of a franchise business. Food service franchise are relatively very competent to business adminstration and reaction capability to consumption changes due to the already established market, and there are stores springing up everywhere inspired by the founders who are too confident of their success in the franchise business. However, it is necessary for the franchise beginners to figure out a zone oriented, regular customer oriented business strategy than just complying with the head office manual. Owing to an increasing trend of opening medium to large sized stores and investments in the wake of converting to multiple business type Korean food franchise, there is growing need to set up new concept of store development and operational management strategy in order to overcome the excessive competition and limited sales volume of the old-fashioned small sized, small capital franchise stores. Furthermore, as most business category of food service franchise serve very similar menus, from a product differentiation point of view, it is required to map out flexible sales concept including the adoption of competitive and low-price strategy. In conclusion, as is shown in the analytical research, the customers' optimal choice fluctuate over their preferences like customer convenience and circumstances rather than insisting on specific brand, thus it will be necessary for the franchise stores to draw up aggressive strategy and planning in running food service franchise to maximize their profits.

• International Journal of Advanced Culture Technology
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• v.10 no.4
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• pp.261-267
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• 2022

Thanks to China's economic development, the food service industry and franchise industry have combined to serve a huge market, and alterations continue to take place, such as the changing tastes of Chinese people and the changing food culture. Global franchise companies centered in the US are rapidly making inroads into the market, and Chinese local companies are also making efforts to expand their influence. In particular, in this situation where trends are gradually changing due to the COVID-19 pandemic, we look at the trends of franchise headquarters, franchisees, employment, and operating profits for the past 10 years using information published by the National Statistical Office of China. As we examine the information, possibilities push through. In addition, we will look at the cases of domestic companies that have entered China, the conditions and plans for their activities there, and what companies planning to enter China in the future need to prepare for.