Research Questions Investigated
Research Question 1: Are restaurant failure rates
affected by the nature of the location (measured by
U.S. Postal ZIP codes)?
Research Question 2: Is there is a relationship between
neighborhood demographic factors (i.e., age, income,
family size, homeownership) and restaurant failures?
Research Question 3: Is there a relationship between
restaurant failures and the nature of professions in the
population?
Research Question 4: Are restaurant failure rates affected
by macroeconomic factors such as unemployment?
Research Question 5: Are restaurant failure rates
affected by the size of the restaurant (measured by the
number of seats)?
Research Question 6: Are restaurant failures related to
the complexity of restaurant operations (full service
vs. quick service)?
Research Question 7: Are restaurant failures affected
by the nature of ownership (chain affiliated vs.
independent)?
Research Question 8: Is there a threshold point for
number of restaurant failures occurring at a specific
location before that location is no longer considered
suitable for a restaurant tenant?
We apply a deductive logic approach in which meaningful
and testable research hypotheses can be derived from
analyzing obtained secondary data (Goldfarb 2003; Railton
1986). Based on the results obtained from the secondary
data analysis, we developed testable relationships between
restaurant failure rates and selected demographic variables.