Evaluating the performance and scale characteristics of the Australian Restaurant Industry

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Assaf, Albert, Deery, Margaret and Jago, Leo Kenneth (2010) Evaluating the performance and scale characteristics of the Australian Restaurant Industry. Journal of hospitality and tourism research, 35 (4). pp. 419-436. ISSN 1096-3480 (print) 1557-7554 (online)


This article adopts a data envelopment analysis (DEA) bootstrap approach to measure the technical efficiency and scale properties of Australian restaurant operations. Four inputs and two outputs are used in the analysis, covering 105 restaurants. The results show that Australian restaurants incorporated in this study are operating at a low level of efficiency, with an average of around 46.17%. Inferences from the returns to scale are also in line with the efficiency results and indicate that most restaurants need to expand their production outputs in order to reach an optimum level of production. The article highlights and tests the important impact of factors such as restaurant size and management experience on the efficiency results. Other potential factors related to the external environment, as well as policy implications of the study, are also discussed.

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Item type Article
URI https://vuir.vu.edu.au/id/eprint/9837
DOI 10.1177/1096348010380598
Official URL http://jht.sagepub.com/content/35/4/419.full.pdf+h...
Subjects Historical > Faculty/School/Research Centre/Department > Centre for Tourism and Services Research (CTSR)
Historical > FOR Classification > 1506 Tourism
Historical > SEO Classification > 9003 Tourism
Keywords ResPubID20696, ResPubID24885, restaurant industry, Australia, efficiency, data envelopment analysis, DEA, double bootstrap
Citations in Scopus 43 - View on Scopus
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