Identification of Site Selection Factors in the U.S. Franchise Restaurant Industry: An Exploratory Study

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Date

2002-01-10

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Virginia Tech

Abstract

The purpose of this study was to identify and rank the importance of the site selection factors that influence the U.S. franchise restaurant industry as well as rank the confidence level of the experts. To identify the site selection factors, this study sought assistance and support from restaurant professionals. The Delphi technique was used to elicit the opinions of a panel of experts regarding the site selection factors.

The panel was composed of restaurant professionals of restaurant companies which had already developed franchised units in the U.S. Panel members suggested a total of 56 factors under six different headings: general location, position of site, demographics, traffic information, competition, and cost consideration. They reached a consensus on the site selection factors on most of the issues. The result of study showed that the factors identified under position of site and competition are major aspects that influence the site selection of the restaurant companies.

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Keywords

Franchise, Restaurant, Location, Site Selection

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