Efficiency and quality: an empirical analysis of Italian fine dining restaurants

In this paper, we conducted an efficiency analysis of fine dining restaurants as a strategic group operating at the intersection of food services and tourism. We collected and used data from 46 Michelin-starred restaurants located in Italy, using the Stochastic Frontier Analysis approach. Specifically, we focused on the balance sheet information of each restaurant in our sample over the period 2010–2019. The findings of our study revealed a positive correlation between efficiency and quality in fine dining restaurants. This suggests that restaurants that perform more efficiently tend to deliver higher-quality experiences. We also observed that the performance of fine dining restaurants is significantly influenced by the number of staff members they have only in some specifications. Overall, this study provides valuable insights into the dynamics of the fine dining restaurant industry, highlighting the importance of efficiency in delivering quality experiences to customers and tourists.