Innovative practices, where performance flourishes! Enhancing restaurant performance through location and innovative restaurant practices

Abstract

PurposeThis study examines the influence of restaurant location and innovative restaurant practices on the performance of restaurant. The study further explores the moderating role of innovative restaurant practices in the relationship between restaurant location and performance.Design/methodology/approachThe study employs a cross-sectional survey design. Data were gathered via structured questionnaires from 281 restaurant managers in Tanzania. Confirmatory factor analysis (CFA) was employed to assess the validity of the measurement model, while hypotheses were tested with the PROCESS macro.FindingsThe results indicate that both restaurant location and innovative practices significantly influence restaurant performance. Moreover, the implementation of innovative practices not only directly enhances performance but also strengthens the positive effect of a location on performance. This highlights the critical role of innovation in optimizing the benefits of a strategic location.Practical implicationsRestaurant owners should carefully choose locations for their business to enhance performance. They should also prioritize innovation through unique menu items, technology and creative marketing strategies to enhance performance. Additionally, owners and managers should focus on integrating innovation with location strategy, as innovative practices strengthen the effect of location on overall restaurant performance.Originality/valueThis research contributes to the limited empirical evidence on the influence of location and innovative practices on restaurant performance. Additionally, the study adds to the existing literature by examining the moderating effect of innovative restaurant practices on the relationship between restaurant location and performance, an aspect not previously explored in prior research.