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Restaurant wars

Author

Listed:
  • Dakshina De Silva
  • Caroline Elliott
  • Robert Simmons

Abstract

This paper investigates spatial competition and the price-quality relationship in the UK gourmet restaurant sector using a comprehensive panel data set compiled from the UK Good Food Guide. A positive relationship between meal prices and restaurant quality as assessed by the Guide is identified. Moreover, restaurants appear to raise prices when the number of restaurants in close proximity that offer similar cuisine increases. Yet restaurants are found to reduce prices in line with standard competitive market responses when there are a greater number of similar restaurants placed further apart.

Suggested Citation

  • Dakshina De Silva & Caroline Elliott & Robert Simmons, 2013. "Restaurant wars," Working Papers 44312700, Lancaster University Management School, Economics Department.
    • Handle: RePEc:lan:wpaper:44312700
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    File URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/Restaurant_Wars.pdf
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    References listed on IDEAS

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