Bankruptcy Situation Model in Small Business: The Case of Restaurant Firms

The purpose of this paper is to describe and discuss the current bankruptcy prediction models. This is done in the context of pros and cons of proposed models to determine the appropriate factors of failure phenomenon in cases involving restaurants that have filed for bankruptcy under Chapter 11. A sample of 11 restaurant companies that filed for bankruptcy between 1993 and 2003 were identified from the Form 8-K reported to the Securities and Exchange Commission (SEC). By applying financial ratios retrieved from the annual reports which contain, income statements, balance sheets, statements of cash flows, and statements of stockholders’ equity (or deficit) to the Atlman’s mode, Springate model, and Fulmer’s model. The study found that Atlman’s model for the non-manufacturing industry provided the most accurate bankruptcy predictions.

Shopping for Computer Restaurant Management Systems

A myriad of computer management systems are available for the restaurant business. The author discusses all aspects of evaluating, purchasing, and using such systems for a restaurant operation.

Relationship between Changes in Cash Flow and Investments in Publicy Traded Restaurant Firms in the United States

This research investigated the relationship between investments in fixed assets and free cash flows of U.S. restaurant firms while controlling for future investment opportunities and financial constraints. It also investigated investment and cash-flow sensitivity in the context of economic conditions. Results suggested that investments in small firms (with higher financial constraints) had relatively weaker sensitivity to cash flows than investments in large firms (with higher sensitivity). Controlling for economic conditions did not significantly change results. While the debate over sensitivity of investments to cash flows remains unresolved, it has not been explored widely in industry contexts, especially in services such as the restaurant industry. In addition to its contribution to this literature, this paper provides implications for cash-flow management in publicly traded restaurant companies.

Agency Costs, Bankruptcy Costs and the Use of Debt in Multinational Restaurant Firms

The purpose of this paper is to understand whether multinational restaurant firms (MNRF’s) have higher agency and expected bankruptcy costs. Given this expectation, this may have an impact on the amount of debt incurred by MNRF’s. Overall, the findings are consistent with the existing literatue in terms of the positive relationship between MNRF’s and agency and bankruptcy cost. However, it was found that MNRF’s also have more total debt. This is surprising given the higher agency and bankruptcy costs. The importance of this research is that there may be considerations other than agency and bacnkruptcy costs affecting the capital structure decisions of MNRF’s.

Global Pricing Strategy for a Quick-Service Restaurant Chain

The purpose of this paper is to compare prices for a popular quick-service restaurant chain (i.e. McDonalds’) across countries throughout the world using the “Big Mac Index” published by “The Economist.” The index was originally developed to measure the valuation of international currencies against the U.S. dollar. The analysis in this study examines the relationship between the price of a Big Mac and other variables such as the cost of beef, price elasticity, and income. Finally, these relationships are reviewed to draw inferences concerning the use of demand, costs, and competition in setting prices.

Training Methods Utlilized by Independent Restaurant Managers

Formal, systematic training has always been cited as a major need for the future success of hospitality operations. However, one other aspect of the job might be the development of a train-the-trainer curriculum for hospitality management students. The author studies the relationship between training preparation and training methods utilized by restaurant managers and explores this need.

Would a Restaurant Menu Item by Any Other Name Taste as Sweet?

The purpose of this paper is to examine the use of words on a restaurant menu, and to evaluate the impact that they have on the selection of menu items. The research comprised two distinct parts. First, four focus groups were held examining responses to five menus, each with the same menu items but using different wording. The results from the focus group analysis were used to develop a survey which was more widely distributed. From the focus group it was revealed that the occasion and participants in the dining experience influence the wording for menu item selection. Respondents discussed the mystique of the menu and confirmed a desire for menu items that would not normally be prepared at home. It was also of interest the "mouthwatering" effect that the words haw on potential customers and what a strong persuader these words were. The survey reinforced the focus group research in many ways, also stressing the positive effect of descriptive words such as "Tender'; "Golden" and "Natural" to the choice of menu items. The research has identified the importance of the choice and use of words in the design of a menu that operations management need to be aware of

Gauging Employee Theft and Other Unacceptable Behaviors in Food Service Operations

Unacceptable employee behavior ultimately results in higher prices for consumers. Members of the Indiana Hospitality and Restaurant Association were surveyed about the practices being used to safeguard their assets and control employee deviance in food service. They were also asked to estimate the losses that result from employee theft. This information was used to investigate whether certain policies and procedures were more effective than others in limiting their losses.

Wellness and Obesity: Implications for Health Care Costs Among Restaurant Managers

Overeating, inadequate exercise, work-related stress, and long working hours are accepted issues among restaurant managers. The underlying question was whether such life styles affect employers' health care cost and restaurant managers' health and ability to cope with imposed business requirements. The author discusses strategies to help employers reduce health care costs, increase employee productivity, and improve job satisfaction.

Service Quality and Black Customer Satisfaction - A Perspective on the United States Restaurant Industry

This paper examines the issue of racial discrimination of Black United States (U.S.) restaurant patrons from a service quality and customer satisfaction perspective. In spite of the progress the industry has made in recent years to alleviate this problem, many contemporary examples clearly demonstrate that racial discrimination is still of great concern. The articles stresses the importance of an ethical approach in human resource management-intensive and offers suggestions for reducing discriminatory practices in U.S. restaurant service delivery.

Relationships: Food Safety and Organizational Behavior

A growing body of literature explores the relationship between organizational behavior and food safety in restaurants, but most findings are based on two participant observation studies which, while rick with insights, limit the generalizability of the results. This study attempts to overcome this limitation by surveying a sample of student-cooks enrolled in three South Florida culinary schools. Results indicate that restaurant managers must realize that the practice of food safety involves more than microbiology and HACCF!

Food Service Management: A Case Study in Adaptation

The rapid growth of the food service industry has redefined the role of the manager today. According to the executive director of the National Restaurant Association, future trends and pressures will accelerate these changes and necessitate a new look at these managers.

Senior Savvy: Mature Diner's Restaurant Service Expectations

This article is a reflection of a study conducted with active mature consumers who enjoy dining out, traveling, and patronizing the service industry in general. The goal was to discover their restaurant service expectations in order to provide restaurateurs, hoteliers, educators, and students of hospitality management programs information about this important customer segment so that future plans for improving service would include considerations of their service needs.

Restaurant Marquees: A Help or Hindrance'?

The marquee is one of the most common and cost-effective forms of advertising, but it can be a restaurant's worst enemy. Here are some surprising facts about its use and misuse.

The Impact of the Restaurant Critic

Restaurant critiques have an effect on the sales volume of restaurants following the publication of the critique in the target markets’ media. The author discusses data from restaurant operations in the greater Cleveland, Ohio, metropolitan area which have had their operations publicly critiqued, and also addresses the credibility of critics.