Culinary science and hospitality research (한국조리학회지)

Culinary Society of Korean Academy (한국조리학회)
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A Study on the Profitability of Coffee Franchise Firms using ROIC Tree, ROA & ROE

ROIC(영업투하자본율) Tree와 ROA, ROE를 활용한 커피프랜차이즈 기업의 수익성에 관한 연구

  • Kim, Tae-Ho (School of Hospitality & Tourism Management, Kyungsung University) ;
  • Kim, Hak-Seon (School of Hospitality & Tourism Management, Kyungsung University)
  • 김태호 (경성대학교 호텔관광외식경영학과) ;
  • 김학선 (경성대학교 호텔관광외식경영학과)
  • Received : 2017.12.22
  • Accepted : 2018.01.25
  • Published : 2018.01.31
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Abstract

The purpose of this study was to grasp the profitability of coffee franchise companies using ROIC tree, ROA and ROE. As a result, ROA was using assets efficiently, and some companies are in desperate need to improve their management based on past brand recognition, and a new paradigm management strategy is urgently required. In particular, the franchise company's current cost burden is greater than comparable firms. In ROE, the capital was operating efficiently. Since ROIC is very difficult to classify business related and operating related amounts accurately based on financial statement information, there is a limit to accurate ROIC calculation. Therefore, ROIC is estimated to be 7.6~38.29% as of 2016 based on ROIC calculation. In the case of continuous growth companies, investments are made to improve steady sales, but some companies seem to be unable to escape from past paradigm. In order to continue the growth of the company beyond the accounting profit in the future, the ROIC Tree can be used to measure the subdivided management performance and propose efficiency plan.

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References

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