Analysis of the financial practices of high and low performing firms over periods of peaks and troughs of the restaurant industry cycle

Choi, Junho

doi:10.1016/j.ijhm.2009.05.005

Cited by 8 publications

(6 citation statements)

References 18 publications

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“…O'Neill and Carlbäck (2011) found that branded hotels have less volatility of net operating income (NOI) through different phases of the economic cycle. Choi analyzed restaurant financial practices during different periods of the economic cycle (Choi, 2007(Choi, , 2010. Ismail et al (2002) studied RevPAR volatility in the hotel industry and concluded that luxury properties are more volatile, suggesting a stronger link of this segment with the economic cycle, and supporting the trade-down theory (i.e., luxury properties may be the first affected by national economic recessions).…”

Section: Economic Trends In Real Estatementioning

confidence: 99%

Predicting Lodging Demand Trends in the U.S. Hotel Industry

O’Neill

Ouyang

2020

Cornell Hospitality Quarterly

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Future economic trends in the U.S. hotel industry are often discussed and debated at hotel investment conferences and elsewhere, typically without discussion of the underlying economic indicators that lodging prognosticators should track to predict lodging demand growth and decline. This research endeavors to rank the predictive ability of various economic variables and determine which may be the strongest predictors of lodging demand trends. In addition, we seek to identify a relatively small group of economic variables, that is, a consideration set that may best serve lodging prognosticators with determining the future direction of lodging demand. In our analyses, we evaluate both economic indicators and quarterly change in those indicators. Furthermore, we analyze autoregressive and moving average features of lodging demand in recent years. We present models that prognosticators may use to project lodging demand trends. Although there are a variety of variables that serve to predict lodging demand trends, gross domestic private investment (GDPI) is noted as a particularly effective predictor of lodging demand trends, and it has been effective over all the recent time periods we studied. This information should be beneficial to lodging practitioners/analysts as well as academics.

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Section: Economic Trends In Real Estatementioning

confidence: 99%

Predicting Lodging Demand Trends in the U.S. Hotel Industry

O’Neill

Ouyang

2020

Cornell Hospitality Quarterly

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“…Second, financial researchers have investigated how a firm adjusts its firm characteristics according to market environment to improve financial performance (e.g., Choi, 2010;Kim and Gu, 2003). In addition, market orientation researchers have shown that benchmarking can help a firm's resource deployment and capability development appropriate for its market environment (Slater and Narver, 1995).…”

Section: Research Frameworkmentioning

confidence: 99%

Benchmarking firm capabilities for sustained financial performance in the U.S. restaurant industry

Hua¹,

Lee²

2014

International Journal of Hospitality Management

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“…Although there have been some studies that dealt with the impacts of economic indicators and recession in the hospitality industry (J. S. Chen, 2000;M. Chen, Kim, & Kim, 2005;Choi, Olsen, Kwansa, & Tse, 1999;Choi, 2003;Choi, 2010) researchers claim that understanding and analyzing the past, current, and future status of an economy would provide strategic choices to a hospitality firm (Burton & Naylor, 1980;Enz, 2009). Furthermore, researchers (Choi, 2003;Enz, 2009;Madanoglu & Karadag, 2009;Woods, 1994) contend that hospitality firms need to develop their competitive strategic planning on the basis of understanding future economic situations because changes in certain economic variables, such as interest rate and inflation, could affect a firm's strategic plans significantly (Choi, 2003;Enz, 2009;Woods, 1994).…”

Section: Literature Reviewmentioning

confidence: 99%

“…In addition, Choi (2010) investigated to see if there is a significant difference between high performing restaurant firms' financial practices and those of low performing restaurant firms in conjunction with the restaurant industry cycle. The results of the study showed that some financial practices such as working capital and long-term debt management among high performing restaurants are contingent on the restaurant industry's business cycle.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Despite a growing interest in the role of major economic indicators in the restaurant industry, from both academics and restaurant industry practitioners, few studies have been conducted to examine the impacts of an economic recession as well as key economic indicators in the restaurant industry (Basham, 2007;Choi, 2010;Palmer, 2003). In addition, the literature has provided little empirically underpinned assistance which could help restaurant industry operators better understand these essential topics.…”

Section: Introductionmentioning

confidence: 99%

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Exploring the Impacts of Key Economic Indicators and Economic Recessions in the Restaurant Industry

Lee

2012

Journal of Hospitality Marketing & Management

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The purpose of this study is to investigate the major economic variables associated with sales at full-service restaurants. The study also examines if there is any cyclical movement in the full-service restaurant segment in conjunction with economic recession periods. A Pearson correlation analysis and a 5-year moving average method were used to identify the relationships between full-service restaurant sales and key economic indicators, as well as the existence of a business cycle in the full-service restaurant industry for the past 4 decades, respectively. The results of this study revealed that gross domestic product is positively correlated with the sales of full-service restaurants. The 5-year moving average of sales generated at full-service restaurants indicates that the sales at full-service restaurants show a pattern of a business cycle almost every 10 years.

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Analysis of the financial practices of high and low performing firms over periods of peaks and troughs of the restaurant industry cycle

Cited by 8 publications

References 18 publications

Predicting Lodging Demand Trends in the U.S. Hotel Industry

Predicting Lodging Demand Trends in the U.S. Hotel Industry

Benchmarking firm capabilities for sustained financial performance in the U.S. restaurant industry

Exploring the Impacts of Key Economic Indicators and Economic Recessions in the Restaurant Industry

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