Strategies adopted by franchised restaurants for achieving competitive advantage in Nairobi Central Business DistrictKenyaDistrict in Kenya

  • Annie Wambui Gitau Department of Hospitality Management, Karatina University, Kenya
  • Judy Kibe Department of Travel and Tour Operations Management, Moi University,Kenya
  • Stephen Macharia Department of Human Resource Management, Karatina University

Abstract

With the increased competition in today’s business world, it becomes difficult for organizations to access the opportunities around it. This thus brings about the need for organization to exercise strategies. More companies have entered the Kenyan market and brought about competition which has forced some franchises to close. The researchers’ aim was to explore to explore the Environmental factors affecting consumption of hospitality products and services in franchised restaurants in Nairobi Central Business Kenya. The objectives of the study wereto explore the extent to which reliability on hospitality products and services affects consumption, the extent to which responsiveness on hospitality products and services affects consumption, the extent to which tangibility on branding affect consumption, the extent to which assurance on service quality was used to achieve competitive advantage in Franchised Restaurants in Nairobi CBD Kenya.  The research adopted the SERVIQUAL model. This model borrows heavily from the Porters model though it has a bias in hospitality industry. The gap being investigated was why some franchises were performing better and opening more outlets while others were not performing and closing outlets. The study focused on the food and beverage production and service techniques adopted to gain competitive advantage. The research was carried out in the Nairobi CBD in franchised restaurants. The study adopted the descriptive research design. A census study was done on the 15 restaurants and their 15 managers in the CBD while systematic random sampling was done to select 10% of 3250 customers who visited the restaurants on the busy days and special offer days. The data was collected fromevery 10thcustomer so as to get a 325 sample as they came into the restaurant by use of questionnaires and interviews. Descriptive and inferential statistics were used to analyse the data, with the help of linear regression model. The analysed data was presented in tables, graphs and pie charts with the assistance of the of SPSS version 21. Findings and discussions guided the summary, conclusion and recommendations which facilitated decision making in the hospitality industry.

Keywords: Strategies: Food and Beverage; Products and Services;  Competitive advantage.

Published
2018-09-06