Source: NEW MEXICO STATE UNIVERSITY submitted to
SUCCESS FACTORS FOR INDEPENDENT RESTAURANTS IN NEW MEXICO
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
1005937
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Mar 2, 2015
Project End Date
Sep 15, 2019
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
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
The restaurant Industry is the second largest employer in the U.S. and restaurant demand is projected to increase in future years. In an age where more restaurants are coming into business rapidly and also going out of business steadily, there is a need to develop some operational strategies for running a restaurant successfully. This study will examine success factors for independent restaurants using survey methodology, survey industry and students about their education and examine individual restaurants as case studies.
Animal Health Component
40%
Research Effort Categories
Basic
50%
Applied
40%
Developmental
10%
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
50461103100100%
Goals / Objectives
The goal of the project is to provide information to current and potential restaurant operators by examining in depth specific factors and developing benchmarks in the course of the study. The purpose of this project is to investigate factors that contribute to success of food service businesses in New Mexico, USA by developing a variety of studies that focus on specific areas of the dining and beverage industry in New Mexico within independent restaurants and bars. The reasons restaurants are successful is a complex and diverse research topic and it provides an opportunity to develop diverse research threads that all will contribute to an improved understanding of the topic. The dining and beverage industry encompasses a wide variety of segments such as quick service, casual dining, fast casual dining, sports bars, nightclubs, lounges and fine dining that exist within diverse facilities that might be located in free standing restaurants or bars, hotels, bed and breakfasts, inns, motels, malls, clubs, supermarkets, convenience, stores, breweries, wineries, entertainment complexes, travel plazas, parks, schools, office buildings and healthcare facilities.The dining and beverage business is the second largest employer in the USA, trailing only government employment, and thus is one of the USA's largest private sector employers and the following facts provided by the National Restaurant Association (2014) indicate that in the U.S.A. the business produces in 2014: · 683.4 billion: Restaurant industry sales.· 3.6%: Restaurant industry sales increase in nominal terms.· 1.2%: Restaurant industry sales increase in real (inflation-adjusted) terms.· 990,000: Restaurant locations in the United States.· 13.5 million: Restaurant industry employees.· 10%: Restaurant workforce as part of the overall U.S. workforce.· 47%: Restaurant industry share of the food dollar.· Eight in 10: Restaurant owners who started their industry careers in entry-level positions.· Nine in 10: Salaried restaurant employees who started as hourly workers.· Nine in 10: Restaurants with fewer than 50 employees.· Seven in 10: Restaurants that are single-unit operations.In New Mexico, more than 3076 food service outlets exist that produce more than $3 billion in sales (NMRA, 2013). New Mexico restaurant industry employs an estimated 82,400 people that is expected to grow to 93,600 people in 2022. Local data indicates the Southern New Mexico restaurant industry is growing by almost 6% in the last year and will continue to grow at the same or an expanded rate (Economic Data on Tourism, 2013). There is a lack of information available on the reasons for success of 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 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.There is a lack of information available on the reasons for success of 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 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 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 expected to have a variety of implications and the information generated in New Mexico that might be utilized to improve or change the existing business and have the following objectives :1.Help potential investors to learn about common mistakes and enter the restaurant arena with a recipe of success.2. Assist restaurants owners struggling to attain the breakeven or to delay the downfall to come out of the crises by identifying the root causes3. The findings of the research might be useful to restaurateur to develop a competitive business model for a restaurant and understand current trends.4. The findings might be used by educational institutions and teachers to better prepare future operators and employees for the industry.5. Explore modern technology issues, social media and beyond as wells current technology trends to provide information to operators and improve success.6. By exploring ignored/unexplored issues, restaurant owners and operators will have an opportunity to share their experiences and to learn from the mistakes and successes of others in the same industry.7. Identify the discrepancies and issues relating to products and services offered by different players in the industry in New Mexico meeting the needs of the stakeholders.
Project Methods
The first study will use quantitative and qualitative survey methodsasking for respondents input on success factors for independent restaurants and beverage operations. This study will use the survey validated in the 2008 study of restaurants in Southern New Mexico. The research study will utilize both primary and secondary data focusing on restaurants in Dona Ana County in Southern New Mexico. The preliminary study will be completed by January 2016. The complete study will be completed by June of 2017 and be analyzedThis study, using quantitative survey methodology will report responses to ratings of factors for success from current owners and operators of successful restaurants inNew Mexico, USA. The factors will be categorized into the domain and sub-domains 1) External Environment- General and Specific, 2) Internal Environment- Operational and Personal, 3) Family Life Cycle.Students enter hospitaltiy and culinary education institutions with expectations of the experience and what skills/knowledge they will master.They discover how prepared they are for a culinary career after going to work in the industry.Employers expect students to enter the workplace with specific skills and abilities. This study uses survey methodology to examine current and graduated culinary student responses to educational skills attained. Both groups' perceptions are examined to determine what and how institutions might best prepare students for success in the workplace. Findings provide both similarities and differences among respondent groups. Implications for institutions, curricula, industry employers and students are discussed. This study will survey educators, students and industry about their perceptions of culinary programs and their graduates including how they address teaching students about food allergies and will be presented at academic at academic and professional conferences as well as published in refereed journal and industry publications.Using case study methodologyat least one case study per year for the duration of the project on best food and beverage practices examining signature New Mexican dishes in independent restaurants in Southern New Mexico. Other research threadsmay be developed as a result of these case studies.

Progress 03/02/15 to 09/15/19

Outputs
Target Audience:Project was presented at ICHRIE Academic Conference in New Orleans 2019 and in Palm Springs in 2018 as well as at the West Federation ICHRIE conference in 2018. I also wrote 3 academic book chapters during the period and 2 are published and one "Relationships between tourists' emotional experiences, perceived overall image, satisfaction, and loyalty, " in the ROUTLEDGE HANDBOOK OF TOURISM EXPERIENCE MANAGEMENT AND MARKETING (RHTEMM), Suarbah Dixit, editor (https://www.routledge.com/The-Routledge-Handbook-of-Tourism-Experience-Management-and-Marketing/Dixit/p/book/9780367196783?fbclid=IwAR1gAyZ0j9ehFbt7SseQ7pjj3yTdDKrEz01KocY51kerRfFcYZ8JnlFsy_8 ),will be published this spring. I also served as the facilator for a think tank USF M3 Center Hospitality and Tourism 2030 Think Tank NYC (HT2030 NYC) in November 2018 to discuss current and future issues for restaurants. Changes/Problems:it took much longer to compile the list of events than anticipated and though this cycle is complete, the project will continue. What opportunities for training and professional development has the project provided?Attending conferences and think tanks has allowed me to move into current trends in the industry. This grant lead me to work with the New Mexico Dept of Tourism and the New Mexico Department of Agriculuture. This year met with Governor Grisham and cabinent at the opening of our on campus hotel. How have the results been disseminated to communities of interest?The book chapters and confernce participiaiton disseminated the information. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? All goals were addressed and I interacted with over 2000 chefs, restaurant owners and operators and operators and festival event planners communicating results from all 7 of the goals. One issue relating to labor shortages lead to completed master's thesis on the evaluation of student performance in culinary/foodservice laboratory classes which will soon be published. I continue my research efforts and sharing my knowledge with stakeholders.

Publications

  • Type: Conference Papers and Presentations Status: Published Year Published: 2019 Citation: Dixit, S.K. Editor (2019) The Routledge Handbook of Gastronomic Tourism, Chapter 32 286-296, "Futuristic Perspectives of Gastronomic Tourism," https://www.routledge.com/The-Routledge-Handbook-of-Gastronomic-Tourism-1st-Edition/Dixit/p/book/9781138551558


Progress 03/02/15 to 09/30/15

Outputs
Target Audience:The target audiences are current independent restaurant, vineyard, brewery, bed and breakfast, air B&B, event firm operators and managers, as well as those considering going into this business. Changes/Problems:We continue to attempt to meet the needs of our stakeholders. We will continue to look for funding opportunities that will assist us in providing training and leadership to independent operators. What opportunities for training and professional development has the project provided?There also is continued interest in improving the heart of the house, the kitchen and food production through more effective training. A research project is also in progress in this area. Finally a training plan for food trucks, mini operators and specialty shop restaurants featuring suggestions for developing pro formas and operational plans is in progress. Finally we will partner wtih NMDA to educate operators about opportunities to promote New Mexico Specialty products to market their restaurants and to use at events. How have the results been disseminated to communities of interest?The book chapter on customer loyalty through employee engagement includes case studies as teaching tools. A new chapter on gastronomic events also uses case studies as teaching tool and provide resources for operators. A study of effectiveness of evaluating trainee laboratory training will also be published this year. Another journal article that focuses on providing local planners information on gastronomic business growth is also ready for submission to an academic journal. What do you plan to do during the next reporting period to accomplish the goals?Continue discussion with local stakeholders and survey operators. Publish articles and case studies as teaching tools. Work with providing extension agents with information to distribute to stakeholders. Work with NMDA to promote NM Specialty crops and also share information on best practices in independent restaurant operation.

Impacts
What was accomplished under these goals? Discussions and research of restaurant operators and stakeholders about common mistake, profitability and competive models took place at the SHRTM Board of Advisors meetings this year, at focus groups arranged at local restaurants and lead to several interesting research threads. In 2016, participants biggest issue was how to improve customer loyalty through employee engagement and the project director published an article in a handbook on the topic that includes case studies as teaching tool. . This also lead to discussions of how to use technology and social media and how these approaches are constantly changing. This themd continued In 2018 as stakeholders voiced interest in ways restaurant operators might market independent restaurants and improve profitiability by participating in and creating local and regional Gastronomic Festivals and Events. We created a project to document all events in New Mexico in 2018 with assistance from extension agents throughout the state which will also survey event managers and directors on their opinions on the future of gastronomic events as well as strategies for success. Trends driving gastronomic events are increased interest fueled by growth in disposable income as well as heightened interest in quality food and beverage .The driver and motivation for the tourists experience is the participant involvement in the gastronomic experience at festivals and events where the fun, food/beverage and comfort feed the experience producing emotional and evaluative satisfaction. We also found that in New Mexico Specialty agricultural products also drive the success of festivals and also independent restaurants. We reached out to the New Mexico Department of Agriculture (NMDA) and partnered in a grant application to promote specialty crops and it was funded. The project director is publishing a book chapter and developing suggestions for operators who might be interested in these gatronomic event projects.

Publications

  • Type: Book Chapters Status: Published Year Published: 2017 Citation: Dixit, S. K.Editor, (2017). The Routledge Handbook of Consumer Behavior in Hospitality and Tourism,  Customer Engagement in Building Customer Loyalty, 286-296. Dixit,