Does Franchising Alleviate Restaurants’ Vulnerability to Economic Conditions?

Abstract

Although the implications of adopting a franchising strategy in the restaurant industry have been examined in previous literature, the role of franchising has mostly been viewed as a means of growth, without much attention paid to its role in reducing risk via alleviating earnings volatility. In this study, we examine whether, and to what extent, franchising in restaurant firms can reduce earnings volatility occurring due to fluctuating economic conditions. Our longitudinal analysis of publicly traded restaurant firms from 1994 to 2012 shows that, during changes in economic conditions, firms adopting a high degree of franchising face lower earnings volatility than firms that adopt a restricted degree of franchising. Our article contributes to the literature on restaurant franchising as a risk-management strategy while providing avenues for future research.

Customer-Based Brand Equity of a Tourism Destination: An Empirical Study of the Liberec Region

“…The concept of CBBETD has been tested for many destinations by various researchers. For example, Boo, Busser, and Baloglu (2009), Ford and Purwanegara (2013) and Far (2014) measured the customer based brand equity for tourist destinations for Las Vegas and Atlantic, Indonesia, and Kish Islands respectively and all argued in favour of treating destinations as brands for unique differentiation (Pike & Bianchi, 2016; Mar, Carmen & Arturo, 2015).…”

Can Customer Based Brand Equity Help Destinations to Stay in Race? An Empirical Study of Kashmir Valley

“…Pike et al (2016) also argued in favor of creating destinations as strong brands and argued a close connection between customer based brand equity and destination brands. To establish a strong destination brand it is very necessary that complete information about destinations should be floated through various available sources and participation of various stakeholders should be confirmed (Amin, Yousaf & Gupta, 2016).…”

“…Despite various challenges for investigating destination brands, it has found wide application through various available literatures (Pike & Bianchi, 2016;Pike et al, 2010, Morgan, Pritchard, & Pride, 2002. It is very important for destination planners to implement useful strategies for branding destinations strategies, so as to stand differently in recall of potential and loyal tourists as a viable choice of destination (Atadil, Turk & Altintas, 2015).…”

“…It is very important for destination planners to implement useful strategies for branding destinations strategies, so as to stand differently in recall of potential and loyal tourists as a viable choice of destination (Atadil, Turk & Altintas, 2015). Pike and Bianchi (2016) also argued in favor of destination branding for creating destinations with high customer based brand equity (Mar, Carmen & Arturo, 2015) causing high destination awareness and positive tourist associations (Pike & Bianchi, 2016). The concept has been tested for many destinations by various researchers.…”

“…The concept has been tested for many destinations by various researchers. For example, Boo, Busser, and Baloglu (2009), Ford and Purwanegara (2013) and Far (2014) measured the customer based brand equity for tourist destinations (CBBETD hereafter) for Las Vegas and Atlantic, Indonesia, and Kish Islands respectively and all argued in favour of treating destinations as brands for unique differentiation (Pike & Bianchi, 2016;Mar, Carmen & Arturo 2015).…”