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Purpose The purpose of this study is to examine the operational efficiency of restaurants in a dynamic context, over the period 2011-2014. The paper also analyzes efficiency with respect to several frontiers and production technologies dependent on restaurant size. Finally, it provides a new perspective by examining financial and non-financial variables that can directly affect the efficiency of restaurant firms. Design/methodology/approach The study applies metafrontier data envelopment analysis (DEA) methodology to investigate differences in production technologies, dynamic Tobit regression models and bootstrap procedure. Findings The results reveal that operational efficiency in the restaurant industry is affected by firm size, showing that large restaurants perform better than medium-sized and small restaurants Moreover, the evidence suggests a link between the efficiency index and financial variables, such as credit ratings, probability of default or bankruptcy, leverage and cash flow, as well as a link with non-financial variables, such as type of auditor. Practical implications The strength of restaurant firms has practical implications for managers and entrepreneurs, linked to the investment possibilities and growth potential of companies in that industry. Originality/value This study provides exploratory insights into operational efficiency as well as restaurant efficiency determinants. Performance and operational efficiency are key factors to restaurant firms’ survival in the economies that have been most severely affected by the financial crisis. Furthermore, this study confirms the relevance of financial and non-financial variables, which are associated with firm efficiency in this industry.

Purpose – This paper aims to investigate the determinants of dynamic efficiency in the Spanish hotel industry. The study also aims to introduce a large number of variables potentially related to efficiency and performance measurement. In particular, it seeks to explore the association between efficiency scores and firm-specific factors (variables related to market conditions, business factors, audit variables, organisational forms and subsidiary variables). Design/methodology/approach – In this study, the data envelopment analysis (DEA) double-frontier approach is used according to firm size in conjunction with non-parametric tests (Mann–Whitney U and Kruskal–Wallis tests), a dynamic Tobit regression model and a bootstrapping procedure. The tests are performed using 1,805 hotels from the years 2002 to 2011. This allows the authors to overcome several of the major limitations of previous papers, namely, the low number of observations, the static or cross-sectional analysis referring to a single period and the use of conventional DEA models, among others. Findings – The results show significant differences in dynamic efficiency among Spanish hotel companies. In addition, the evidence suggests the levels of efficiency are related to the hotel's location, the hotel's size, internationalisation, the first source of the hotel's activity, audit service and management variables. Research limitations/implications – One limitation of the study is related to the input and output variables specified in the DEA model. The selection of inputs and outputs was based on data availability and the previous literature on hotel efficiency, but the results might change if the hotel sample and the selected input and output variables were changed. Another limitation is the availability of data on ownership structure and subsidiary variables for very small businesses. Originality/value – The paper contributes to the tourism literature by offering new insights into hotel performance: dynamic efficiency evaluation and its main determinants. The paper presents strategic market implications for hoteliers, government decision-makers and destination management organisations.

This study analyzes business performance through efficiency score estimation in two sustainable tourism models: cultural tourism and rural tourism. The study uses microeconomic data (microdata) of Spanish firms with different characteristics in terms of size, region, location and financial variables. Using multistage modeling (Data envelopment analysis, DEA, non-parametric frontier and non-parametric tests), the main results show that the average efficiency is higher for rural tourism destinations than for cultural tourism destinations. Similar to other tourism industries, efficiency results by geographical and regional destination confirm that location is a driver of the efficiency levels in rural and cultural tourism destinations. Furthermore, the results do not support the scale economies hypothesis: the average efficiency is higher for very small firms compared to other firm sizes, although the average efficiency for large firms is higher than that for medium-size firms. Regarding dynamic efficiency, the results reveal slight variations among the years examined, but the differences are not statistically significant. Finally, the study sheds light on the link between the efficiency of rural tourism and sustainable practices as the investment in environmental protection developed by regions during the period.