Exploring effect of service innovation on business performance of restaurants in India

Food industry of the world is expected to touch $992 billion in 2014 with a volume of over 586 billion transactions. The restaurant business in India has witnessed exponential growth over the last ten years and this could happen due to increasing disposable income of youth, changing life style, working couples and innovations in restaurant business models. The restaurant and hotel industry have evolved due to a variety of business models meeting the needs of all customer segments, and at the same time, developing standardising services and innovative menus. The objective of this paper is to examine a possible relationship between innovativeness, effectiveness and efficiency of a restaurant. For this study, data was collected from 175 restaurants. To conclude, this paper identifies important relationships between operational effectiveness, business performance and innovations in service delivery. This study also takes an overall perspective of innovation in the product (menu item), process, services and am...