Title: Labour management for a restaurant using data envelopment analysis

Authors: Seong-Jong Joo; Peter J. Billington; Philipp A. Stoeberl

Addresses: Hasan School of Business, Colorado State University-Pueblo, 2200 Bonforte Blvd., Pueblo, CO 81001-4901, USA. ' Hasan School of Business, Colorado State University-Pueblo, 2200 Bonforte Blvd., Pueblo, CO 81001-4901, USA. ' John Cook School of Business, Saint Louis University, 3674 Lindell Blvd., St. Louis, MO 63108, USA

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.

DOI: 10.1504/IJSOM.2012.044796

International Journal of Services and Operations Management, 2012 Vol.11 No.1, pp.1 - 12

Published online: 16 Aug 2014 *

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