Journal of Hospitality Financial Management: Volume 18, Issue 1
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Does China need more Expensive Burgers?
(2010-01-01) Sheel, Atul
Effects of Capital Intensity on Firm Performance: U.S. Restaurant Industry
(2010-01-01) Lee, Seoki
Among several industry characteristics, capital intensity plays an important explanatory role for the restaurant industry. A restaurant needs physical buildings, equipment, fixtures, and furniture all ready at the launch of a business; these require considerable capital expenditures. Considering capital intensity as a significant restaurant industry characteristic, educators and practitioners who focus on this industry are strongly encouraged to investigate implications and effects of capital intensity in food service operations. The purpose of this study is to examine the effect of capital intensity on a firm’s value performance in the U.S. restaurant industry. The investigation period spans from 2000 to 2008. Findings suggest that capital intensity has a negative effect on U.S. restaurant firms’ value performance.
Methodological Limitations and Proposal to Improve Lodging Feasibility Studies
(2010-01-01) Singh, A. J.; Schmidgall, Raymond S.
The purpose of the research was to identify methodological constraints and present a proposal to improve lodging feasibility studies based on summary results of previously conducted surveys of lenders and hotel consultants. The research used qualitative methodology based on an extensive synthesis of the industry literature combined with telephone interviews with leading hotel consultants. The key findings of the research were the identification and discussion of nine methodological limitations of Feasibility Studies. The practical implications of the study is that we have proposed specific processes to overcome some of the methodological limitations of Feasibility Studies, and recommendations to establish minimum benchmarks for the preparation of these studies. This research is a continuation of the issue raised in 1982 by Paul Beal and David A. Troy, in their seminal paper titled: “Hotel Feasibility Analysis”, which made some recommendations to improve feasibility studies. Since that time, there have been no major improvements in their preparation.
Enhanced Corporate Governance for Restaurant Companies: The Role of Well Performing Audit Committees
(2010-08-04) Damitio, James; Kintzele, Philip; Kwiatkowski, Vernon; Kintzele, Marilyn
Corporate governance is a popular topic these days among public companies. The board of directors of McDonald’s Corporation in their statement of corporate governance states that “good governance is a journey, not a destination.” An important piece of baggage for this journey is a solid corporate audit committee policy, which fosters a well performing audit committee. In the 2009 corporate governance guidelines of Ruby Tuesday, the audit committee is one of three important committees listed to assist the board in fulfilling its responsibilities. In Burger King’s Fiscal 2009 Corporate Responsibility Report, they indicate that their auditing and compliance initiatives are integral in assuring that their extensive code of business ethics is maintained. This article examines the evolution, composition and duties of audit committees over the past thirty years. In addition it compares the basic audit committee policies and procedures of the Standard and Poor’s 100 Index (S&P 100) companies with those of the top fifty one restaurant companies from Value Line, Inc.
The Road to IFRS Convergence in the U.S. : What it May Mean for the Hospitality Industry
(2010-10-15) Karadag, Ersem
U.S. decided to implement IFRS for publicly traded companies. The road map calls for the SEC to decide whether and how to proceed to the mandatory use of IFRS in 2011. As full acceptance of IFRS in the nears, developing a plan around IFRS implementation is becoming increasingly important for hospitality companies. The research institute of HFTP has published a white paper discussing the impact of the convergence of the IFRS on the hospitality industry. The transition from US GAAP to IFRS will certainly cause some challenges for publicly lodging companies. The question is whether individual lodging properties which mainly use USALI as a guide for financial transactions will be affected from this transition.