SUCCESS FACTORS FOR INDEPENDENT RESTAURANTS IN SOUTHERN NEW MEXICO

• Sponsoring Institution: National Institute of Food and Agriculture
• Project Status: TERMINATED
• Funding Source: HATCH
• Reporting Frequency: Annual
• Accession No.: 0208069
• Project No.: NM-110650
• Project Start Date: Oct 1, 2006
• Project End Date: Sep 30, 2011

Project Director
Mandabach, KE, H..

Recipient Organization
NEW MEXICO STATE UNIVERSITY
1620 STANDLEY DR ACADEMIC RESH A RM 110
LAS CRUCES,NM 88003-1239

Performing Department
Hotel, Restaurant & Tourism Management

Non Technical Summary
A Restaurants fail for a variety of reasons and little research has investigated the facts here in New Mexico. B The New Mexico Restaurant business is changing with large companies taking a bigger percentage of the publics dining dollars. C A This project examines effective techniques for managing restaurants in New Mexico. B The purpose of this study is to develop strategies to desseminate to independent restaurant operators that will assist them in keeping their operations viable.

Animal Health Component

(N/A)

Research Effort Categories

Basic

(N/A)

Applied

(N/A)

Developmental

(N/A)

Classification

Knowledge Area (KA)	Subject of Investigation (SOI)	Field of Science (FOS)	Percent
602	6299	3100	100%

Knowledge Area
602 - Business Management, Finance, and Taxation;

Subject Of Investigation
6299 - Marketing, general/other;

Field Of Science
3100 - Management;

Keywords

restaurant

foodservice

Goals / Objectives
This study is designed to provide the reader with a better understanding of factors that contribute to success of food service businesses in southern New Mexico, USA. New Mexico is a southwestern state in the United States of America. Also known as the Land of Enchantment, New Mexico ranks 5th in total area; however, it has a population of only 1,819,046, making it one of the most sparsely populated states in the country. The per capita income in 2003 was $25,995, 48th in the nation. The semiarid state has annual rainfall of around 7 inches per year. The landscape ranges from wide, rose-colored deserts, to broken mesas to high, snow-capped peaks. Cacti, yuccas, creosote bush, sagebrush, and desert grasses cover the broad, semiarid plains that cover the southern portion of the state. New Mexican food is a regional cuisine that features many dishes are similar to Mexican or Tex-Mex cuisine with the most important difference being the type of hot pepper or chile used. Chile comes in several different varieties and is referred to as either green chile or red chile depending on the stage of ripeness in which it was picked. Green chile (picked before it has had time to fully ripen) is the defining ingredient of New Mexican food because of its flavor. Green chile has grown increasingly more common outside of New Mexico and it still remains an ingredient in everything from a wide range of dishes such as posole (pork hominy chile stew), menudo (tripe chile stew), green chile stew with beef or pork, chile rellenos (chiles stuffed with cheese breaded, fried and smothered with sauce), enchiladas, burritos and even cheeseburgers. Restaurant industry sales are forecast to advance 4.4% in 2004 and equals 4% of the U.S. gross domestic product.Local data indicates the Southern New Mexico restaurant industry is growing and will continue to grow and there is a lack of information available on the reasons for success or failure of the restaurants in Southern New Mexico. It is hoped this study will be the basis for a research thread that will provide a more complete understanding of factors contributing to restaurant success and failures beyond simple financial issues. There is a lack or real research on the subject and thus a lack of understanding of the restaurant industry in Southern New Mexico. This is especially critical due to changing demographics that appears to be increasing demand for a variety of sophistication and style in cuisine and atmosphere in Southern New Mexican restaurants. The industry appears to be in a major transition period leading to challenges for both new and established operators. This project is designed to explore causes of success and failure of restaurants in Southern New Mexico, develop an accurate database for the industry utilizing both primary and secondary data and to use this research to lead the researcher to further research topics as indicated. The study focus on operational factors for success and also examine a broad range of internal, external, personal, leadership, familial issues that may or may not be factors contributing to the success or failure of the restaurants.

Project Methods
The research study will utilize both primary and secondary data focusing on restaurants in Dona Ana County in Southern New Mexico. The study will have four phases. The first is exploratory in nature. Utilizing health department records to build a sample of Southern New Mexico Restaurants, a survey based on a model of restaurant viability will seek respondent opinions on causes for restaurant success or closure that are sometimes neglected in business research. A separate study in the first phase will also compare responses from academic experts on a similar survey. These studies will be completed in the two years of the study and after analysis of data; results will be published in academic journals, industry publications and on the INTERNET. A second phase of the study will track Southern New Mexico restaurant openings and closing by type, size and affiliation utilizing health dept. application and fee data. This should produce accurate baseline data on restaurant longevity as well as provide the basis for a sample for a survey examining reasons for closing of restaurants in Southern New Mexico. The development of baseline data will continue throughout the length of the project. Data will be analyzed and results published in academic journals, industry publications and on the INTERNET. The third phase of the study is to survey operators of for their opinions on reasons for closure. This study will be qualitative in nature using grounded theory methodology and data will be categorized and classified, published in trade and academic journals, as it is produced. The fourth and final phase will occur as data analysis takes place. A common attribute will be selected each year and a survey will be performed to provide additional information. The results of the surveys will be published in trade, academic journals and posted on the INTERNET. It is hoped that the study is to have implications in the industry for current and potential restaurant operators as well as in the hospitality, restaurant and tourism academic disciplines. The research product will be distributed through presentations at industry and academic conferences, academic and industry publications and via the INTERNET

Progress 10/01/06 to 09/30/11

Outputs
OUTPUTS: This study achieved an objective of completing a study Restaurant Viability: Operators Rating of Contributing Success Factors. We also published the study in an article in a refereed journal. This study also developed into additional research in several areas. One of the results of the study was a study was that signature menu items and wines contribute to the success of the restaurant. So we investigated the impact of New Mexico wine and wine festivals in New Mexico. We completed a paper that soon will go to press and presented the results at two conferences. Another was to partner with the NMDA and develop ideas for menu ideas usually New Mexico Green Chile. I presented a creative demonstration at a chef conference, published the same on the WEB and fielded a forum for local restaurants that encouraged the developem4net of signature items. The final research stream was investigating the sustainability efforts of Southern New Mexico Restaurants. We completed a preliminary study that we are preparing to disseminate that examined casual dining chain manager perception of sustainability efforts impact on their operation. This will be an ongoing part of the project. Finally we are getting ready to begin a new study of independent restaurants operating methods that will provide benchmarks in key operational areas for the operators. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
It appears that the independent restaurants continue to be one of the most prolific small ventures in southern New Mexico. It is hoped that the ideas for success from this study are contributing to the industry success.

Publications

• Mandabach, K. H., Siddiqui, M, G. F. Blanch, VanLeeuwen, D. 2011. Restaurant Viability: Operations Rating of Success Factors in New Mexico Restaurants. Journal of Culinary Science and Technology. 9(1), 71-84.
• Mandabach, K.H. 2011. The Culinary World. Hospitality and Tourism, 14th edition, Brymer, Robert Editor, Kendall Hunt, Dubuque.

Progress 01/01/10 to 12/31/10

Outputs
OUTPUTS: I continue to investigate the reasons restaurants fail and why they are successful. I am now working with 4 master's students who are each developing research activities for this project and I have continued to focus on outreach to practitioners. One research thread qualitatively surveyed restaurateur's motivation for entrepreneurship and key benchmarks for success, a second examines food and wine festivals and their impact on restaurants and wineries, a third focuses on the green restaurant initiatives and their possible impact on operators, and final investigation examines strategies for expanding and transitioning a business. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Project has generated interest from academic colleagues, local business people and national groups. Study results presented in England, Greece, China, Croatia, Taiwan, and Arizona. Specifically the possibility of similarities between New Mexican restaurants and their counterparts in transitional countries is being examined. Outreach is impacting expansion and transition (how to pass on a family business) success in New Mexico and the establishment of benchmarks has already received attention from local and state restaurant operators and financial institutions. I presented on the topic at the American Culinary Federation conferences and published a chapter in introductory text.

Publications

• Mandabach, K. H. 2010. The Culinary World, Introduction to Hospitality, Brymer, R. and C. Hashimoto. Editors.

Progress 01/01/09 to 12/31/09

Outputs
OUTPUTS: My research on success factors for independent restaurants in Southern New Mexico lead to new research projects... I continue to follow the research streams. As a result I started a continuation study of my analysis comparing the difference between university restaurant education and industry needs. I continue to present the material from my project in a variety of academic and industry conferences including the Nightclub and Bar Show in Las Vegas in March, the National Restaurant association meeting in Chicago in May and at the Council of Hotel, Restaurant and Tourism Management Conference in San Francisco. This lead to a publication of "The effectiveness of culinary curricula: An exploratory study" in the International Journal of Hospitality Management with Keith Muller, Dawn VanLeeuwen and Robert Harrington Vol. 21 No. 2, 2009. I continue to chair the American Culinary Federation curriculum committee. Our group formalized standards for key educational competencies for culinary education programs. The results of the process are currently being readied for submission to The Journal of Culinary Science and Technology. In addition a summary of my recent study on Success Factors in Independent Restaurants I currently in review with the same Journal. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Some exciting prospects have come out of my research and I continued my work as resource for independent restaurants in Southern New Mexico, responded to 33 calls for help and 104 emails seeking assistance from restaurant owners, bar and nightclub owners and country club managers.

Publications

• Muller, K., D. VanLeeuwen, K. Mandabach, and R.J. Harrington. 2009. The effectiveness of culinary curricula: a case study. International Journal of Contemporary Hospitality Management. 21(2): 167-178.

Progress 01/01/08 to 12/31/08

Outputs
OUTPUTS: I continued my research on success factors for independent restaurants in Southern New Mexico. I continued the survey process and two outcomes became priorities. The first was correlating the university restaurant education and industry needs. We completed a study and presented the results in a variety of venues, at the restaurant association conference in Las Vegas in March, the restaurant association meeting in Chicago in May and at the American Culinary Federation meeting in Las Vegas in August. This lead to a publication of The effectiveness of culinary curricula: An exploratory study in the International Journal of Hospitality Management with Keith Muller, Dawn VanLeeuwen and Robert Harrington. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
I continued my work as resource for independent restaurants in Southern New Mexico, responding to 23 calls for help and 84 emails seeking assistance.

Publications

• Muller, K.F., VanLeeuwen, D.L., Mandabach, K.H, Harrington, R. H. 2008. Effectiveness of Culinary Curricula: A Case Study. International Journal of Hospitality Management. Vol. 27.

Progress 01/01/07 to 12/31/07

Outputs
Researcher completed a case study, a quantitative pilot study, review or applicable research and a pilot benchmark of key productivity indicators for restaurants in Southern New Mexico. Phase two benchmarks are in progress.

Impacts
Project has generated interest from academic colleagues, local business people and national groups. Study results presented in England, Greece, Taiwan, Arizona, Texas and in Southern New Mexico. Outreach is impacting expansion and transition (how to pass on a family business) success in New Mexico and the establishment of benchmarks has already received attention from local and state restaurant operators and financial institutions.

Publications

• Mandabach, K.H., VanLeeuwen, and Rande, W. 2007. Benchmarking Key Performance Indicators in New Mexico Restaurants. EURO CHRIE Conference Proceedings, Leeds, UK. 196-204.
• Mandabach, K. H., Lee, C, Siddiqui, M, Blanch, G.F. and VanLeeuwen, D. M. 2007. Factors Contributing to the Viability of Restaurants in New Mexico,USA. CHRIE CONFERENCE DALLAS PROCEEDINGS.
• Mandabach, K. H. 2007. The Culinary World. IN: Introduction to Hospitality, Brymer, R and Hashimoto, C Editors.

Progress 01/01/06 to 12/31/06

Outputs
I developed and completed the Phase I survey, and disseminated the information. Phase two benchmarks are in progress.

Impacts
Project has generated interest from academic colleagues, local business people and national groups. Study results presented in Greece, Taiwan, Arizona and in S. N.M. Outreach is impacting expansion and transition (how to pass on a family business) success in New Mexico and the establishment of benchmarks has already received attention from local and state restaurant operators and financial institutions.

Publications

• Mandabach, K. H., Siddiqui, M, G.F. VanLeeuwen, D. M. and Lee, C. 2006, Restaurant Viability: Operators Rating of Continuing Success Factors from Restaurants in Southern New Mexico, EURO CHRIE Conference Proceedings, Greece, 182-189.
• Mandabach, K.H., Blanch, G.F. VanLeeuwen, D. M. and Waters, H.L 2006. se, Training and Effect of Technology between Independent and Chain Restaurant Managers, EURO CHRIE Conference Proceedings, Greece, 196-204.
• Mandabach, K. H., Lee, C, Siddiqui, M, Blanch, G.F. and VanLeeuwen, D. M. 2006. Factors Contributing to the Viability of Restaurants in New Mexico, USA, PAC CHRIE PROCEEDINGS, 223-230.
• Mandabach, K.H., Blanch, G.F. VanLeeuwen, D. M. and Waters, H.L. 2006. Differences in the Use, Training, and Effect on Careers of Technology between Chain and Independent Foodservice Managers, Journal of Culinary Science and Technology, Haworth Press, V5:1, 10-24.
• Harrington, R., Mandabach, K. H., VanLeeuwen, D. and Thibodeaux, W. 2005. The Institutionalization of Culinary Education: An Initial Assessment, Journal of Culinary Science and Technology, Haworth Press, 4:4, 44-60. Although listed as 2005 actual pub. Date was 2006
• Mandabach, K. H., Ellsworth, A, VanLeeuwen, D. M., Blanch, G.B. and Waters, H.L. 2005. Restaurant managers' Knowledge of Food Allergies: A comparison by Chain or Independent Affiliation, Type of Service and Size, Journal of Culinary Science and Technology, Haworth Press, V4:2-3, 72-86. Although listed as 2005 actual pub. Date was 2006