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Restaurant Concentration In Louisiana

Author

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  • Schupp, Alvin R.
  • Dennis, Winston

Abstract

Growth of the franchise restaurant industry and merger activity among restaurants raise questions concerning concentration in the Louisiana restaurant industry. Firm employment data from the Louisiana Department of Labor for selected urban and rural parishes for 1975-86 and the concentration ratio, herfindahl index and the entropy measure were used for these concentration estimates. Concentration was, in general, low in urban parishes and higher in rural parishes. Concentration decreased from 1975 to 1986 in five of the seven urban parishes and increased or was unchanged in five of the eight rural parishes. Ceteris paribus, this would imply higher profits in rural as opposed to urban parishes. The correlation between the concentration ratio and a customer density measure was positive indicating competition for business was lower in the more concentrated markets.

Suggested Citation

  • Schupp, Alvin R. & Dennis, Winston, 1990. "Restaurant Concentration In Louisiana," Journal of Food Distribution Research, Food Distribution Research Society, vol. 21(1), pages 1-8, February.
    • Handle: RePEc:ags:jlofdr:26981
    DOI: 10.22004/ag.econ.26981
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    Keywords

    Agribusiness;

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