Abstract

The strategy for brand alliance is a new type of franchise to iron out the problems like the hotel restaurant's structural contradiction and decreasing profits caused by keen competition with external restaurants. This study is purposed to present the decisive factors for the brand alliance throughexamining the correlations between the brand restaurant designation standards and the expected effects from local low- and mid-priced hotel's brand alliance. The questionnaires were distributed to instructors and professors who have experience in teaching the food and beverage sections at college's hotel and tourism departments and 100 specialists at managerial level of a hotel's food and beverage parts.This survey was conducted for 20 days from December 2 to 22, 2004 and analyzed by independent t-test and canonical correlation analysis. The findings of this survey are as follows.Firstly, the service of the expected effect factors of the brand alliance was recognized relatively high by the specialists in hotel industry, while the sales effect factor of restaurant designation standards was recognized higher by the academic experts.The specialists of the hotel industry recognized the factors of menu and corporate culture higher than the academic experts. Secondly, the entire factors of the brand restaurant designation standards showed a correlation with the whole factors of the restaurant designation standards.In particular, the 'menu' factor presented the most influential to the expected effects of brand alliance.The factors of 'risk reduction' and 'synergy effect' exerted the strongest effect on the restaurant designation standards, which indicated the mutual correlation between the expected effect of brand alliance and the restaurant designation standards. Based on this study, the correlation between the expected effect of brand alliance and brand restaurant designation standards may play a primary role to choose a partner for the brand alliance, a decisive factor for the success.The execution of the brand alliance or the method to designate the alliance partner may vary from the hotel's desirable effects when the brand alliance is determined.In other words, the partner designation standards should be corresponding to the expected effects from the brand alliance between hotel and brand restaurant, and the academic and industrial experts' perceived differences in the expected effects of brand alliance and restaurant designation standards should be clarified to display the direction of decision-making and find the potential risks.