Open AccessRestaurant Franchising In The Western U.S.
Author(s) -
Burhan F. Yavas,
Demos Vardiabasis
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v3i3.6523
Subject(s) - gross domestic product , per capita , urbanization , capital (architecture) , economics , product (mathematics) , regression analysis , demographic economics , business , agricultural economics , economic growth , geography , demography , statistics , population , geometry , mathematics , archaeology , sociology
This paper studies the effect of both economic and demographic factors on restaurant franchising (RF) in the Western United States. The study utilizes regression analysis of pooled cross-section (6 states) and time series (10 years) data. It is found that among the economic factors, the market size, measured by per capita gross domestic product, is the most significant. Also found important is the cost of raising capital, which is measured by the real rate of interest. On the demographic side, the level of urbanization is found to be positively related to restaurant franchising.