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Measuring Efficiency of Korean Franchise Restaurant Business: Data Envelopment Analysis

  • Journal of Tourism Sciences
  • Abbr : JTS
  • 2006, 30(1), pp.295-315
  • Publisher : The Tourism Sciences Society Of Korea
  • Research Area : Social Science > Tourism

서영애 1 NA JENG KI 2

1(주)대우인터내셔널 회계팀
2경기대학교

Accredited

ABSTRACT

Through the data envelopment analysis(DEA) method. this paper examines efficiency of a group of chain stores. The efficiency is decomposed into pure technical efficiency and scale efficiency. The input variables selected to evaluate the efficiency are area, number of seat, server hour and server count and the output variables are sales and number of customers. Output-oriented DEA model is applied in the determination of efficiency, since the business period of most franchisee restaurants is not so long enough that they may first maximize the outputs. The results show the low level of efficiency. The main sources of inefficiency is found technical rather than scale.

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