• The Korean Journal of Franchise Management
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• v.14 no.4
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• pp.35-50
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• 2023

Purpose: This study aims to uncover the mechanism of how initial fees are determined in the restaurant franchise business. Since the initial fees can be considered as a price of utilizing business models and operational knowledge of a certain franchise brand, it is critical to understand the fee decision-making process based on the strategic pricing theories. Therefore, this study investigates the influence of operational value on the determination of initial franchise fees grounded on a value-based pricing strategy. The Operational value is specifically categorized into profitability, growth, and stability of the franchise system. Research design, data, and methodology: The data used were collected through franchise disclosure documents and brand equity index provided by Korea Management Association Consulting. Data from 44 franchise restaurants during 2018 to 2021 are included in the sample. The panel dataset was analyzed by using generalized least squares estimation with R-Studio. Results: Profitability and stability positively influence initial franchise fees. However, growth did not influence initial franchise fees. Conclusions: The results of the study demonstrate that the operational value plays a critical role in determining the franchise fees. Specifically, franchisees recognize how much revenue a franchise system generates for them (i.e., profitability) and how stable the entire system is for operating business (i.e., stability) when they make purchasing decisions for franchise. The findings extend the pricing literature by applying pricing theories in the franchise fee context. Also, the study contributes to franchising and restaurant management literature by providing knowledge of how franchise fees are determined.

• Journal of Distribution Science
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• v.9 no.2
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• pp.123-129
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• 2011

The restaurant franchise industry is one that could benefit significantly from the use of intranet technology, from its potential for improving communications between franchisors and franchisees, to providing easier inventory and ordering processes. However, there is a level of trepidation among potential users about whether the technology would improve their work performance. This study sought to examine the relationships between perceived uncertainty and perceived usefulness of intranet technology in the restaurant franchise industry. Through a review of available literature, 10 sub-dimensions of perceived uncertainty (Duncan, 1972) and six sub-dimensions of perceived usefulness (Davis, 1989) were derived. Canonical correlation analysis was used to examine the relationships between these concepts using data collected from 163 franchising restaurant managers in South Korea. Findings from the data analysis demonstrates two negative factors and one positive factor in perceived uncertainty that influence perceived usefulness, thus offering some implications of what to consider when implementing an intranet system in a restaurant franchise.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.11 no.6
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• pp.1991-1996
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• 2010

The Korean restaurant franchise business is continuing to grow along with economic growth. Moreover, there are some Korean restaurant franchise enterprises that have managed to enter overseas markets as well, and which are unfolding a strategy for success by leveraging marketing activities that consider the tastes of the respective localities and their consumers' characteristics. This research conducted a comparative analysis of 'Nolbu'and 'Mister Pizza' both considered successful franchises, to identify the CSF(Critical Success factors) of the Korean restaurant franchise business. The results of the research demonstrate the critical success factors, including: efforts such as effective marketing; effort to return part their profits to the community; structured and scientific restaurant management; an effective logistics and distribution system and differentiation against other brands.

• Journal of the Korean Society of Safety
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• v.39 no.3
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• pp.36-49
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• 2024

Article 79 of the Occupational Safety and Health Act mandates franchise headquarters with over 200 franchises to implement industrial accident prevention measures. Notably, the franchise business information provision system designates restaurants and wholesale/retail as the primary categories for information disclosure, with convenience stores classified as secondary. This study aims to identify law-regulated franchise headquarters and franchises and analyze industrial accidents within these sectors. Furthermore, it seeks to investigate adverse risk factors for individual processes across major industries. Pertinent franchise headquarters and franchises were discerned using the Fair Trade Commission's business information system. Data regarding the status of industrial accidents, as published by the Ministry of Employment and Labor, was leveraged in the analysis of industrial accidents. Additionally, a survey was conducted to derive detrimental factors for each process in major industries. The inquiry revealed a total of 7 wholesale and retail franchise headquarters subject to the law, along with 126 within the restaurant industry. Overall, there were 50,488 franchises in the wholesale and retail sector, and 71,283 in the restaurant business. Risk factors and improvement measures for industrial processes were determined for five industries: convenience stores, Korean food restaurants, coffee places, pizza eateries, and chicken vendors. Locating the currently developed safety and health program establishment guide proves to be challenging. Moreover, utilizing it can be difficult due to the industry-specific content, further complicated by the prevalence of franchise stores featuring numerous small businesses. Therefore, this study highlights the imperative need to develop guidelines that incorporate preventive measures tailored to each industry.

• The Korean Journal of Food And Nutrition
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• v.7 no.1
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• pp.36-44
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• 1994

In this paper, we surveyed the actual utilization condition of chain stores of franchise systems and the customers' consciousness on chain shops and non-chain restaurants. The survey was conducted on 459 people either living or working in Pusan area and aged more than 4th grade in elementary school without sex distinction. The data analyses were made by way of frequency, percentage, Spearman rank correlation and Chi-square using dBastat 1.0 package of PC. The results of the survey are as follows. The survey indicates that respondents have the most experience of visiting chicken, hamburger, and pizza chain shops. Although the survey on the degree of preference between chain shops and non-chain restaurants indicates that men prefer non-chain restaurants and women prefer chain shops, the results are not so significant to conclude that there is a preference regardless of sex (N. S.): By ages, students and young group prefer chain shops and the aged group prefer non-chain restaurants (p< 0.05). The survey indicates that chain shops are proffered because of sanitary, quality, taste of foods and are not proffered because of simple menu and expensiveness. The survey indicates that non-chain restaurants are preferred because of distinctive taste of each restaurant and comfotableness, and are not proffered because of unsanitary and unkindness.

• The Korean Journal of Franchise Management
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• v.14 no.3
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• pp.1-16
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• 2023

Purpose: In the post-COVID-19, many consumers still feel uncomfortable with crowding in closed spaces. This study investigates how non-crowding affects consumer satisfaction and restaurant visit intention. Research design, data, and methodology: The data were collected from 350 people aged 20 and above. A total of 347 respondents, excluding 3 unfaithful respondents, were analyzed using Smart PLS 4.0 program. Result: Both spatial and human crowding have significant effects on satisfaction. On the other hand, neither spatial nor human crowding directly affected dine-out intention significantly. In addition, spatial crowding was found to have a direct and significant effect on in-store dining intention, but human crowding did not have a direct and significant effect on in-store dining intention. It was found that satisfaction had a significant effect on both dine-out intention and in-store dining intension. Conclusions: This study has expanded the range of consumer behavioral intentions by applying a non-crowded environment (S) to the SOR theory. Also, Consumer behavioral intention was expanded by dividing visit intention into a dine-out and in-store dining intention. Therefore, we propose measures to minimize human crowding by introducing a system such as adjustment of store operating hours, reservation system, store opening time alarm system, and reduction of cooking time.

• The Korean Journal of Franchise Management
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• v.5 no.1
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• pp.65-84
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• 2014

The purpose of this study is to review the theories and cases of performance sharing in the franchise industry to present a method for more effective franchise performance-sharing. To that end, this study reviewed the theory on resource dependence and the theory on inequality to describe the performance-sharing between the franchisor and the franchisee and their relationship. It also looked at the cases of a week-in cooler system at 'Beer Market', the allocation of fees for alcoholic beverage sales to franchisees, the scholarship program of 'Onigiri and Ikyudon' and 'Bonsamo' which is a franchisees' committee for Bonjuk to introduce examples of performance-sharing. Through a theoretical review and case review, this study presents five types of methods for performance-sharing. First, 'the sharing of core competence by the franchise company; second, 'the establishment of a royalty culture'; third, 'scientific analysis of markets and establishment of a revenue forecast system'; fourth, 'reinforced financial support from the franchisor'; and lastly, 'the positive application of franchisees' committees'. Such methods are expected to provide a groundwork for mutual benefit and co-prosperity between franchisor and franchisee.

• The Korean Journal of Franchise Management
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• v.12 no.1
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• pp.7-19
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• 2021

Purpose: According to the growth of technology in the service industry, the interaction service between customer and employee has recently been transformed into between customer and technology by Self Service Technology (SST) requiring direct interaction with customers. In this context, self service technology such as unmanned ordering system installed at the store is actively introduced at the work place to reduce labor costs by food and retail company and the research for self-service technology which is rapidly replacing existing face-to-face service is needed. As the growth speed of SST is rapid, many researchers have studied the characteristics of SST, in every sector of business worldwide. Among the characteristics, attributes, Self Service Technology Quality (SSTQUAL) to evaluate SST is important because it may cause the customer's behavior. Thus, this research focuses on the effects of SSTQUAL on SST Satisfaction and SST continuance usage intention. This research suggests the guidelines for how Restaurant Company should prepare SST and build their customer satisfaction and continuance usage that increase the sales. Research design, data and methodology: This study tests the structural relationship between SSTQUAL of unmanned ordering system, SST satisfaction and SST continuance usage. SSTQUAL divided into four sub-dimensions and two categories, cognitive service attributes (Convenience, Functionality) and affective service attributes (Enjoyment, Assurance). In order to achieve the purposes of this research, research model and hypotheses were developed based on previous researches. All constructs were measured with multiple items developed and tested in the previous studies. The data were collected from 524 customers experiencing SST and were analyzed through SPSS 25.0 and SmartPLS 3.0 statistical package program. Results: The findings of this research are as follows. First, all SSTQUAL have significant positive impacts on SST satisfaction. Second, SST satisfaction has significant positive impact on SST continuance intention. Third, cognitive service attributes and affective service attributes had wealth of explanation of service attribute more than a single dimension. Conclusions: The implications of this study are as follows. Overall, Restaurant Company should manage SSTQUAL consisting of not only cognitive service attributes (Convenience, Functionality) but also affective service attributes (Enjoyment, Assurance) to satisfy customers basically regardless of the type of restaurant.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.35 no.1
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• pp.161-168
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• 2012

Recently, Social Commerce that provides customer with cheap deals is under the spotlight. The purpose of this study is to propose how to use social commerce on small restaurant business, which encompass almost a half of entire deals. We analyzed each element from the last transaction data of three social commerce company and survey obtained from the restaurant business. As a result, we can find that the purpose of promoting, the location of restaurant, whether is franchise or not, price and menu composition have an effect on sales of coupon. Based on these results, we proposed two step approaches to use the social commerce company. The first step is to decide whether social commerce is used or not and the second step is to define the detail content of deal including the social commerce company. We convinced that our proposed strategy is very helpful to the small restaurant which considers utilization of social commerce company.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.7 no.2
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• pp.177-187
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• 2012

Franchising has long been an effective form of distribution that is used primarily by manufacturers whose product lines are especially suited exclusive or highly selective distribution. By IFA(International Franchise Association), franchising is defined as a continuing relationship in which the franchisor provides a licensed privilege to do business, plus assistance in organizing, training, merchandising, and management in return for a consideration from the franchisee. Thus franchising is a method for the owner(franchisor) of product, service, or method to obtain retail or wholesale distribution through licensed, affiliated dealers(franchisees). With rapid increase of franchising industry globally, franchising industry is very rapidly increasing especially in the sector of outdoor restaurant industry in Korea. But there are many problems to be settled for promoting this industry. For example, the industry is too much lean outdoor restaurant industry. With franchisors' short history and lack of management capacity, shortage of distribution infrastructure, smaller size of franchising system, and low trust between franchisor and franchisee, and so on, the industry has many barriers to overcome for promoting it. Here we are suggesting that taxation benefaction, monetary support for the starting franchisee, establishment of fair trade principle, promoting information system and professional human resource should be needed.