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pp.593-598
Brands play a critical role as a core asset and the primary driver for corporate growth because of their power of identity and influence on customers’ perceptions in restaurant industry. However, in spite of diverse and dynamically changing recent brand portfolio strategies of restaurants, a study on the effect of brand diversification on financial performance has been rarely conducted in the restaurant industry context. Considering competing viewpoints regarding diversification’s influence on financial performance, the purpose of this study is, therefore, to examine the effect of brand diversification on firm performance of restaurants. The results indicated that brand diversification is positive effect to profitability. Brand diversification seems to be attractive and might be a reasonable growth strategy to expand market power by satisfying diverse consumer needs. Therefore, restaurant managers should be consider in implementing brand diversification strategy especially in dynamically changing trend of brand diversification in the current restaurant industry.
