Success Factors in Independent Ethnic Restaurants

Abstract

The number and popularity of ethnic restaurants have grown dramatically. Researchers have identified factors contributing to overall restaurant success; however, it is uncertain whether these factors affect independent ethnic restaurants in the same way. The authors interviewed 20 owners of successful independent ethnic restaurants in southeast Texas to determine which factors ranked as the most important. Ethnic restaurateurs agreed with previous research that "competent management" was the most important contributor to success. They also ranked prior business and/or culinary experience as important; however, they did not rank formal hospitality education as an important success factor. Rather, cost controls, market-driven pricing, and loyal patrons were deemed to be more important.

Factors Contributing to the Success of Ethnic Restaurant Businesses in Canada

“…Agarwal and Dahm shared similar finding in which the high density of restaurant in an area will cause higher failure rate [10]. In addition, the age of the restaurant has an inverse relationship with the failure rate.…”

“…Moreover, a significant portion of the country's GDP comes from small businesses [2]. The contributions of small ethnic restaurant business owners are also significant to small businesses and the economy [10] [15]. Thus, the success of small ethnic restaurant businesses is vital for the prosperity of Canadian society.…”

“…Ethnic restaurant owners offer different foods and experience from traditional restaurants of host countries [10]. Moreover, ethnic restaurant owners serve the growing immigrant population.…”

“…Sometimes, the consumers perceive Chinese, Italian and Mexican as mainstream foods because of wide availability and familiarity. Customers of ethnic restaurants are well-educated urban professional with above average income [10].…”

“…Agarwal and Dahm showed many ethnic restaurants are independent. Independent restaurants are more likely to fail than franchise or chain of restaurants [10]. Franchise restaurant owners usually have more resource, good organization structures, well-known brand, better training and competitive location.…”