Cornell Center For Hospitality Research: Understanding Human Resource Practices and Outcomes in Franchise Businesses
Franchise businesses are an essential and growing part of the U.S. economy, accounting for nearly 800,000 establishments, 9 million jobs, and $800 billion in output annually. The importance of franchising is particularly evident in hospitality. Hotel and restaurant companies often use franchising to expand faster than would be possible through company ownership alone.
Franchise businesses are an essential and growing part of the U.S. economy, accounting for nearly 800,000 establishments, 9 million jobs, and $800 billion in output annually. The importance of franchising is particularly evident in hospitality. Hotel and restaurant companies often use franchising to expand faster than would be possible through company ownership alone.
Today, food and hospitality account for 65% of employment in franchise businesses. However, we know very little about human resource management in franchises. This is noteworthy because a large body of empirical research has shown that investments in human resource (HR) practices such as employee selection, training, compensation, internal promotions, and employee discretion improve organizational performance including outcomes such as employee turnover, sales, and customer satisfaction.
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