Labour management for a restaurant using data envelopment analysis

Seong-Jong Joo, Peter J. Billington and Philipp A. Stoeberl

International Journal of Services and Operations Management, 2012, vol. 11, issue 1, 1-12

Abstract: One of the major expense categories for restaurant businesses is wages due to intensive labour requirements. We select a family gourmet restaurant located in the Northwest in the USA and analyse the comparative efficiency of labour using data envelopment analysis (DEA). We measure labour efficiency using pertinent variables and present efficiency changes over time. Based on findings, we propose managerial insights that are helpful for fine tuning labour management from time to time during operating hours. The major contributions of this study are the use of real data and providing a framework for comparative labour efficiency measurement at a restaurant using DEA models.

Keywords: labour efficiency; labour management; restaurant operations; Malmquist DEA; data envelopment analysis; expense categories; wages; labour requirements; family restaurants; gourmet restaurants; Seattle; Washington State; USA; United States; comparative efficiency; efficiency changes; operating hours; services management; operations management. (search for similar items in EconPapers)
Date: 2012
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