Impact of Brand Diversification on Firm Performance: A Study of Restaurant Firms

Kyuwan Choi, Kyung Ho Kang, Seoki Lee and Kyuseok Lee
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Kyuwan Choi: College of Hotel and Tourism Management, Kyung Hee University, 1 Hoegi-dong, Dongdaemun-gu, Seoul 130-701, South Korea
Kyuseok Lee: College of Management, Georgia Institute of Technology, 800 West Peachtree St NW, Atlanta, GA 30308, USA

Tourism Economics, 2011, vol. 17, issue 4, 885-903

Abstract: In spite of varying brand portfolio strategies employed by restaurant firms in response to the constant growth of the restaurant industry, research on the effect of brand diversification on the performance of restaurant firms has been rare. This study examines the impact of the degree of brand diversification among sampled publicly traded US restaurants. The results show a consistent, significant and negative effect from the degree of brand diversification on the performance of the sampled restaurant firms. The authors' investigation suggests that restaurant managers, when implementing a brand diversification strategy, should consider the firm's scale, sales efficiency, general and administrative expenses, franchising strategy and positioning of brands.

Keywords: brand diversification; firm performance; restaurant industry (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:17:y:2011:i:4:p:885-903

DOI: 10.5367/te.2011.0059

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