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Impact of Brand Diversification on Firm Performance: A Study of Restaurant Firms

Author

Listed:
  • Kyuwan Choi

    (College of Hotel and Tourism Management, Kyung Hee University, 1 Hoegi-dong, Dongdaemun-gu, Seoul 130-701, South Korea)

  • Kyung Ho Kang
  • Seoki Lee
  • Kyuseok Lee

    (College of Management, Georgia Institute of Technology, 800 West Peachtree St NW, Atlanta, GA 30308, USA)

Abstract

In spite of varying brand portfolio strategies employed by restaurant firms in response to the constant growth of the restaurant industry, research on the effect of brand diversification on the performance of restaurant firms has been rare. This study examines the impact of the degree of brand diversification among sampled publicly traded US restaurants. The results show a consistent, significant and negative effect from the degree of brand diversification on the performance of the sampled restaurant firms. The authors' investigation suggests that restaurant managers, when implementing a brand diversification strategy, should consider the firm's scale, sales efficiency, general and administrative expenses, franchising strategy and positioning of brands.

Suggested Citation

  • Kyuwan Choi & Kyung Ho Kang & Seoki Lee & Kyuseok Lee, 2011. "Impact of Brand Diversification on Firm Performance: A Study of Restaurant Firms," Tourism Economics, , vol. 17(4), pages 885-903, August.
    • Handle: RePEc:sae:toueco:v:17:y:2011:i:4:p:885-903
    DOI: 10.5367/te.2011.0059
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    References listed on IDEAS

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    Cited by:

    1. Chen Zheng & Henry Tsai, 2019. "The moderating effect of board size on the relationship between diversification and tourism firm performance," Tourism Economics, , vol. 25(7), pages 1084-1104, November.
    2. Ali Uyar & Mehmet Ali Koseoglu & Cemil Kuzey & Abdullah S Karaman, 2023. "Does firm strategy influence corporate social responsibility and firm performance? Evidence from the tourism industry," Tourism Economics, , vol. 29(5), pages 1272-1301, August.
    3. Yang, Yang & Cao, Yang & Yang, Li-Ting (Grace), 2017. "Product diversification and property performance in the urban lodging market: The relationship and its moderators," Tourism Management, Elsevier, vol. 59(C), pages 363-375.
    4. Celso Lopes & João Leitão & Juan Rengifo-Gallego, 2022. "Place-Branded Foods with Responsible and Sustainable Management: A La Carte Serving in Regional Restaurants," Sustainability, MDPI, vol. 14(11), pages 1-28, May.
    5. Lee, Craig & Hallak, Rob & Sardeshmukh, Shruti R., 2016. "Innovation, entrepreneurship, and restaurant performance: A higher-order structural model," Tourism Management, Elsevier, vol. 53(C), pages 215-228.
    6. Kyung Ho Kang & Seoki Lee, 2015. "Effects of Diversification Strategies on US Restaurant Firms' Performance," Tourism Economics, , vol. 21(4), pages 807-831, August.
    7. Thang Quyet Nguyen & Nguyen Thanh Long & Thanh-Lam Nguyen, 2019. "Impacts of corporate social responsibility on the competitiveness of tourist enterprises: An empirical case of Ben Tre, Vietnam," Tourism Economics, , vol. 25(4), pages 539-568, June.

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