IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i22p9552-d446212.html
   My bibliography  Save this article

From the Total-Factor Framework to Food Cost Performance Disaggregation—Developing an Innovative Model to Enhance Menu Performance

Author

Listed:
  • Chin-Yi Fang

    (The Graduate Institute of Sport, Leisure, and Hospitality Management, National Taiwan Normal University, Taipei City 106, Taiwan)

Abstract

The menu serves as a form of advertisement and has also been recognized as an important marketing communication tool between restaurant and consumer. Extant literature have assessed the menu item performance by using the multi-factor efficiency index. However, there is a paucity of literature focusing on the efficiency disaggregation in order to improve the performance of individual food, labor, and other resources. The aim of this study was to determine the input targets for each menu item by comparing the efficiency frontier established by all menu items in two types of restaurant chains. In order to achieve this goal, the study sought to establish the food and labor cost performance assessment model utilizing the total-factor framework combined with a slack-based measure (SBM) of efficiency in data envelopment analysis (DEA) (SBM-DEA). Resource-saving target ratios (RSTR) for panel data with 35 menu items in these two different cultural type of restaurant chains including Chinese-style and Japanese-style restaurants for twelve months were assessed in a total-factor framework. The four-quadrant analysis based on efficiency and unit profit offered different strategies to the restaurateur being studied. The empirical findings indicated that the average total-factor food cost efficiency (TFFCE) was better than the total-factor labor cost efficiency (TFLCE) in these two types of restaurants. The TFFCE (80%) and TFLCE (61%) of the Chinese-style restaurant were better than those (TFFCE (76%) and TFLCE (50%)) of the Japanese-style restaurant in the observant periods. Even though the Chinese-style restaurant had a better resource efficiency, the restaurateur was still able to improve at least 20% in terms of food cost efficiency and 39% of labor cost efficiency, respectively. Managerial discussion and future study are also discussed.

Suggested Citation

  • Chin-Yi Fang, 2020. "From the Total-Factor Framework to Food Cost Performance Disaggregation—Developing an Innovative Model to Enhance Menu Performance," Sustainability, MDPI, vol. 12(22), pages 1-18, November.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:22:p:9552-:d:446212
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/22/9552/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/22/9552/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mingli Song & Guangshe Jia & Puwei Zhang, 2020. "An Evaluation of Air Transport Sector Operational Efficiency in China based on a Three-Stage DEA Analysis," Sustainability, MDPI, vol. 12(10), pages 1-16, May.
    2. Berill Takacs & Aiduan Borrion, 2020. "The Use of Life Cycle-Based Approaches in the Food Service Sector to Improve Sustainability: A Systematic Review," Sustainability, MDPI, vol. 12(9), pages 1-31, April.
    3. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 1-27, December.
    4. Donthu, Naveen & Hershberger, Edmund K. & Osmonbekov, Talai, 2005. "Benchmarking marketing productivity using data envelopment analysis," Journal of Business Research, Elsevier, vol. 58(11), pages 1474-1482, November.
    5. Chin-Yi Fang & Fu-Sung Hsu, 2012. "Meal Category Analysis: An Application of the Metafrontier Approach," Tourism Economics, , vol. 18(5), pages 1083-1095, October.
    6. Chin-Yi Fred Fang, 2020. "Perspective of Local Government on the Performance Assessment of District Sports and Leisure Centers," Sustainability, MDPI, vol. 12(21), pages 1-21, October.
    7. Shih‐Fang Lo, 2010. "Performance evaluation for sustainable business: a profitability and marketability framework," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 17(6), pages 311-319, November.
    8. Hu, Jin-Li & Wang, Shih-Chuan, 2006. "Total-factor energy efficiency of regions in China," Energy Policy, Elsevier, vol. 34(17), pages 3206-3217, November.
    9. Laoucine Kerbache & Manuel F. Suárez-Barraza & Juan Ramis-Pujol, 2011. "Thoughts on kaizen and its evolution: Three different perspectives and guiding principles," Post-Print hal-00796340, HAL.
    10. Hu, Jin-Li & Kao, Chih-Hung, 2007. "Efficient energy-saving targets for APEC economies," Energy Policy, Elsevier, vol. 35(1), pages 373-382, January.
    11. Honma, Satoshi & Hu, Jin-Li, 2008. "Total-factor energy efficiency of regions in Japan," Energy Policy, Elsevier, vol. 36(2), pages 821-833, February.
    12. Tone, Kaoru, 2001. "A slacks-based measure of efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 130(3), pages 498-509, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chin-Yi Fred Fang, 2020. "Perspective of Local Government on the Performance Assessment of District Sports and Leisure Centers," Sustainability, MDPI, vol. 12(21), pages 1-21, October.
    2. Honma, Satoshi, 2012. "Environmental and economic efficiencies in the Asia-Pacific region," MPRA Paper 43361, University Library of Munich, Germany.
    3. Shuangjie Li & Li Li & Liming Wang, 2020. "2030 Target for Energy Efficiency and Emission Reduction in the EU Paper Industry," Energies, MDPI, vol. 14(1), pages 1-17, December.
    4. Chang, Ming-Chung, 2013. "A comment on the calculation of the total-factor energy efficiency (TFEE) index," Energy Policy, Elsevier, vol. 53(C), pages 500-504.
    5. Li, Lan-Bing & Hu, Jin-Li, 2012. "Ecological total-factor energy efficiency of regions in China," Energy Policy, Elsevier, vol. 46(C), pages 216-224.
    6. Bian, Yiwen & Hu, Miao & Wang, Yousen & Xu, Hao, 2016. "Energy efficiency analysis of the economic system in China during 1986–2012: A parallel slacks-based measure approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 990-998.
    7. Demiral, Elif E. & Sağlam, Ümit, 2021. "Eco-efficiency and Eco-productivity assessments of the states in the United States: A two-stage Non-parametric analysis," Applied Energy, Elsevier, vol. 303(C).
    8. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    9. Hu, Jin-Li & Chang, Ming-Chung & Tsay, Hui-Wen, 2017. "The congestion total-factor energy efficiency of regions in Taiwan," Energy Policy, Elsevier, vol. 110(C), pages 710-718.
    10. Shujing Yue & Yang Yang & Jun Shao & Yuting Zhu, 2016. "International Comparison of Total Factor Ecology Efficiency: Focused on G20 from 1999–2013," Sustainability, MDPI, vol. 8(11), pages 1-13, November.
    11. Bhat, Javed Ahmad & Haider, Salman & Kamaiah, Bandi, 2018. "Interstate energy efficiency of Indian paper industry: A slack-based non-parametric approach," Energy, Elsevier, vol. 161(C), pages 284-298.
    12. Qin, Quande & Li, Xin & Li, Li & Zhen, Wei & Wei, Yi-Ming, 2017. "Air emissions perspective on energy efficiency: An empirical analysis of China’s coastal areas," Applied Energy, Elsevier, vol. 185(P1), pages 604-614.
    13. Honma, Satoshi & Hu, Jin-Li, 2009. "Total-factor energy productivity growth of regions in Japan," Energy Policy, Elsevier, vol. 37(10), pages 3941-3950, October.
    14. Chang, Tzu-Pu & Hu, Jin-Li, 2010. "Total-factor energy productivity growth, technical progress, and efficiency change: An empirical study of China," Applied Energy, Elsevier, vol. 87(10), pages 3262-3270, October.
    15. Weixin Yang & Lingguang Li, 2017. "Energy Efficiency, Ownership Structure, and Sustainable Development: Evidence from China," Sustainability, MDPI, vol. 9(6), pages 1-26, June.
    16. Alizadeh, Reza & Gharizadeh Beiragh, Ramin & Soltanisehat, Leili & Soltanzadeh, Elham & Lund, Peter D., 2020. "Performance evaluation of complex electricity generation systems: A dynamic network-based data envelopment analysis approach," Energy Economics, Elsevier, vol. 91(C).
    17. Apergis, Nicholas & Aye, Goodness C. & Barros, Carlos Pestana & Gupta, Rangan & Wanke, Peter, 2015. "Energy efficiency of selected OECD countries: A slacks based model with undesirable outputs," Energy Economics, Elsevier, vol. 51(C), pages 45-53.
    18. Shuangjie Li & Hongyu Diao & Liming Wang & Chunqi Li, 2021. "Energy Efficiency Measurement: A VO TFEE Approach and Its Application," Sustainability, MDPI, vol. 13(4), pages 1-18, February.
    19. Zhang, Bin & Lu, Danting & He, Yan & Chiu, Yung-ho, 2018. "The efficiencies of resource-saving and environment: A case study based on Chinese cities," Energy, Elsevier, vol. 150(C), pages 493-507.
    20. Chang, Ming-Chung, 2016. "Applying the energy productivity index that considers maximized energy reduction on SADC (Southern Africa Development Community) members," Energy, Elsevier, vol. 95(C), pages 313-323.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:22:p:9552-:d:446212. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.