Using data from three different North American casino markets, models designed to explain the variance in slot machine business volume (coin-in) produced a significant and positive effect for a variable representing casino-operated restaurant business volume (covers). Simultaneous multiple regression analysis was used to test the audited, secondary data for significance at the .05 alpha level. A 200-day period was examined for each casino property. The results of this study contradicted an earlier, counterintuitive finding by Lucas and Brewer that provided the basis for this work. The related literature is scarce, largely anecdotal, and split regarding the nature of the relationship between restaurants’ and casinos’ volumes. This exploratory study adds valuable empirical results to this limited but growing literature base while highlighting important strategic and managerial implications.
Purpose -The objective of this research is to apply the cost of quality (COQ) concepts in a hotel restaurant environment using the PAF (prevention, appraisal, and failure costs) model. Then use the percentage of sales approach to evaluate the significance of the COQ measures in the PAF model. Design/methodology/approach -This research involved reviewing available literature on the COQ framework. Then through the process of interviews and secondary data collection, an analysis of the COQ measures in the PAF model was accomplished. Findings -While researchers suggested that the COQ should be 2 to 4 percent of sales, the actual findings were 12 to 16 percent over a two-year period. These findings help the restaurant quality management team to reevaluate the quality of food and services, and provide justification for more investment in prevention activities. Practical implications -The practical implication from this study was that an investment in prevention activities in the PAF model for the restaurant did lead to reduction in failure costs (internal and external) and appraisal costs. Originality/value -This study demonstrates that the COQ measures used in the PAF model can improve the quality of food and services provided to the restaurant customers, and therefore, result in improvement in overall profitability.
This article presents cost effective guidelines to assist hotels of all sizes with the usage of electronic data interchange (EDI) in the Internet e-business era. The evolution of web-based EDI makes it easier for hotels of all sizes to support their business processes with traditional EDI technology, but without the extensive capital outlay in computer hardware and software. This is an attempt to encourage investment in basic EDI technologies before implementing more sophisticated applications. The focus is to allow hotels of all sizes to improve their competitive advantage with successive EDI technological advances.
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