외식업의 규모 경제성 분석

An Analysis of the Economies of Scale in Eating out Industry

In this study, cost function is estimated to investigate whether the average production cost is reduced and the scale efficiency is obtained if restaurants expand business scale under the current management conditions in Korea. The results of this study show that restaurants are doing business under very weak profit structure. Estimation results suggest that restaurants do not get positive profits in the short run since the selling price and the average cost are almost the same each other.