A Study on the Relevance of Location Based Services for UK Restaurants

This dissertation examines the relevance of location-based services (LBS) in the UK restaurant industry. The study investigates the use of LBS as a strategy to enhance customer engagement and improve a restaurant's market position. Through qualitative research involving interviews with 25 UK restaurant owners, the study identifies the trends of LBS, factors that affect LBS adoption, and the relationship between location and restaurant success. The findings reveal a positive correlation between LBS and increased sales and market goodwill. The dissertation includes a literature review covering the trends of LBS, factors influencing location-based restaurants, and the relationship between location and success. The research methodology details the research type, philosophy, approach, data collection methods, sampling, and data analysis techniques. The study concludes with recommendations for restaurant owners on implementing effective location-based strategies to attract customers and improve business outcomes.

Dissertation

Abstract
Restaurant industry uses range of tools and techniques in order to compete within
competitive era. Similarly, the present study also helps to create awareness of location based
services within restaurants. It is strategy which is used by firms in order to provide exact location
of their premises to the customers. The purpose of the study is to identify the relevance of
location based strategies upon the UK restaurant industry. Through qualitative research method,
scholar collect the relevant information about the chosen aim and along with this, both primary
and secondary data collection methods has been used in order to generate valid outcomes. For
primary, 25 restaurant owners have been selected from UK who helps to answer the research
questions. Also, data analysis section reflected that there is a positive relationship between
location-based service and success of a restaurant such that it helps to enhance the company's
sales and improve the goodwill within market as well.

Acknowledgement
I would like to thank University who offered me an opportunity to conduct a study on this topic
and provide effective guidance to complete the study on time.
I would also thank my teachers who are always ready to support me and with their direction, I
am able to develop an understanding pertaining to chosen topic.
Next, I show my gratitude towards my parents who always support me economically and non-
economically towards a project.
Last but not the least, I thank my friends who always support and motivate me to complete the
project in effective manner.

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1. Background......................................................................................................................1
1.2 Aim and objectives...........................................................................................................1
1.3 Rationale...........................................................................................................................2
1.4 Scope................................................................................................................................2
1.5 Structure of a dissertation.................................................................................................2
CHAPTER 2: LITERATURE REVIEW.........................................................................................4
2.1 Introduction......................................................................................................................4
2.2 Trend of location based services......................................................................................4
2.3 Factors that affect location based restaurants...................................................................6
2.4 Identifying the relationship between location and success of a restaurant.......................8
2.5 Conclusion......................................................................................................................10
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................11
3.1 Introduction....................................................................................................................11
3.2 Research Type................................................................................................................11
3.3 Research Philosophy......................................................................................................11
3.4 Research Approach.........................................................................................................12
3.5 Data collection................................................................................................................12
3.6 Sampling.........................................................................................................................13
3.7 Data analysis...................................................................................................................14
3.8 Ethical consideration......................................................................................................14
3.9 Research limitation.........................................................................................................15
3.10 Reliability and validity.................................................................................................15
3.11 Research Strategy.........................................................................................................16
3.12 Development of questionnaire......................................................................................16
3.13 Conclusion....................................................................................................................16
CHAPTER 4: DATA ANALYSIS AND FINDINGS...................................................................18
CHAPTER 5: DISCUSSION.........................................................................................................30
CHAPTER 6: CONCLUSION AND RECOMMENDATIONS...................................................33

6.1 Conclusion......................................................................................................................33
6.1.1 Conclusion drawn from Literature review..................................................................33
6.1.2 Conclusion drawn from Data analysis section............................................................33
6.2 Recommendations..........................................................................................................34
REFERENCES..............................................................................................................................36
Appendix........................................................................................................................................40
Questionnaire........................................................................................................................40

Title: To review the relevance of location based service for restaurant business: A study on
UK
CHAPTER 1: INTRODUCTION
1.1. Background
Location based services complies with different application that depend upon the user's
location in order to provide effective service which is further relevant to customers. So, in
restaurant industry there are many technologies used by the owners to provide better customer
services which includes online booking, mobile marketing etc (Yoon, Kim and Connolly,
2018). In the same way, current study will shed a light upon relevance of location based services
for restaurants that assist to grab attention of many customers towards it. It is a new trend that
provides actual information to the customers and this in turn help to enhance the financial
performance of companies as well. Thus, it can be stated that offering service based upon
location will help to keep engage customers and also differentiate itself from the competitors.
The study is based upon a country i.e. UK where majority of the people prefers to visit
different restaurants because of having busy schedule (Arribas-Bel and Bakens, 2019). Also, the
present study examines different factors that affect location based restaurants and further it helps
to identify the relationship between location and success of a restaurant within UK.
1.2 Aim and objectives
Aim: “To investigate the relevance of location based services for restaurant business: A study on
UK
Objectives:
 To identify the trends of location based services
 To critically assess the factors that affect location based restaurants
 To determine the relationship between location and success of a restaurant.
 To recommend location based strategies used by restaurant owners that helps to attract
customers.
Research questions
 What are the trends of location based services?
 What are the factors that affect the location based services?
 What is the relationship between location and success of a restaurant?
 What are the strategies that can be used by restaurants owners to attract customers?
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1.3 Rationale
The rationale for conducting the research on this topic is such that it assists to examine
the significance of location based services within restaurant industry. Further this in turn
considered as a research issue because recently, customers preferences are continuously changes
such that they prefer those restaurants that provide effective customer service and pleasant
environment (Happle, Fonseca and Schlueter, 2020). Now a days, location is also considered
another important key aspect that assist to grab attention of many customers. Hence, it is
recognized as an issue because in UK, restaurant's owner’s uses range of effective strategies to
attract customers towards it, in which location based services are common. Thus, with the help
of thematic analysis, research could shed a light upon the chosen topic and examine the ways
through which restaurant owners promote their products and services.
In addition to this, there are thousands of restaurants in UK and it is also analyzed that it
will be increased with next five years (Huang and et.al., 2018). So, with the help of current
study, owners will understand the importance of using location-based services within restaurant
so that it turns to enhance its productivity as well. That is why, study on the topic will be
beneficial, as it assist to investigate the relevance of location-based services within UK
restaurants.
1.4 Scope
The present research is based on the topic location based service for a restaurant business
in UK. The present report is of utility to the entire restaurant in UK as the present report will
outline the trends which are currently present in the location based service. This will assist the
restaurant in undertaking the trends in the application of business and will attract more of
consumers. Further this study is of scope because of the reason that this will outline the various
factors which affect the location based restaurant and relation among location and success of
restaurant. This will assist all restaurants in considering the factors which will affect the working
of business. In addition to this, the present report is also important to the researchers who are
also conducting the research on the same topic. This study can be used as a base by the other
researchers as well.
1.5 Structure of a dissertation
Chapter 1- Introduction
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This chapter will include an overview of the topic location based services for a restaurant
in UK. For the providing of overview, a background of the research will be provided in which
aim and objective will be formulated relating to the research. This will provide a direction in
which whole study need to be undertaken. Along with this rationale behind selection of topic
and future scope of the research will be included in this chapter.
Chapter 2- Literature review
This is a chapter which involves the study of different types of studies relating to the
research topic. This will involve the study of different articles, books, journals and other
published sources. Along with this, the present chapter will outline the views of different authors
both in positive and negative aspect and this will assist in developing knowledge relating to the
concept of location based service.
Chapter 3- Research methodology
The present chapter will involve the list of different types of methods which will be used
in order to complete the research on the provided topic. Under this chapter the researcher will
outline the different methods which they will be using in order to complete the study. This will
include discussion relating to type of research, philosophy, approach, data analysis and other
different types of methods of research.
Chapter 4- Data analysis and finding
This chapter will outline the evaluation of the collected data with help of the different
types of the methods of analysis. This will include the use of either thematic analysis of the
SPSS in order to analyse the collected data.
Chapter 5- Discussion
This chapter will involve the discussion relating to the analysis of finding with help of
linking the collected data with the views of different authors. This will authenticate the
information and will provide more clear and reliable analysis of data.
Chapter 6- Conclusion and recommendation
This chapter concludes the finding and discussion in brief manner and will highlight the
fact that whether aim of study is met or not. This will also include some recommendation which
will assist in future development of the research as well relating to the topic.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
Literature review (LR) is the survey of scholarly sources on a topic which follows a
discussion of a paper's thesis statement or a study's goal. With the help of this section, scholar is
able to identify the relationship of work in the context of its contribution towards a topic.
Similarly, the present section of a dissertation also assist to identify the trend of location-based
services within restaurants by using relevant articles, books and journals which were published
after 2015. Further, it will also examine the factors that affect location-based restaurant by
considering different author's point of view. Lastly, the section will examine the relationship
between location and success of a restaurant by using relevant sources.
2.2 Trend of location based services
As per the view of Yu, Luo and Zhu (2018) location based services are completely relied
upon advance technology which is actually used to track location of any restaurants. It refers to
those technologies that persistently identify the restaurant's physical and geographical location.
Therefore, it is mostly used in mobile devices that provide information which an individual is
actually looking for. With the help of this, customers enable their choices and preferred the best
restaurants based upon ranking system. Thus, it provides a list of places within a certain
proximity to the mobile device users. In addition to this, there are many technologies that
support customer in order to identify restaurant's actual location so that they enjoyed the services
which a firm offers. Dong, Ratti and Zheng (2019) contrasted that there are many applications
that helps to find the services on location based. This in turn assists to gain competitive
advantage in the market which further gains attention of many customers towards it. Thus, it is
reflected that it plays an important role in the restaurants because it offers new idea to marketers
that assist to favor a particular product and service.
Lian and et.al., (2017) shared their views in a study that restaurant industry uses different
techniques in order to grab attention of many customers towards it which includes mobile and
online marketing etc. In mobile marketing, technology uses geographic data about a mobile
phone user's locations to send them a message which is relevant to their own interest, intent and
location. Therefore, it is a push notification that helps to communicate with customers which
assist to boost company's loyalty. It has been critically evaluated by Wei and et.al., (2018) that
such services are considered an important source for building social networks, connection and
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partnerships. Also, it helps to generate the brand awareness so that most of the customers will
aware about the same. Further, location based service also aid to track the performance of a
restaurant and identify the position within a competition. In the world, North America has the
largest market in location based services and that is why, UK also wants to establish different
restaurants based upon this. Research also indicates that by 2030 adoption of smartphones and
other wireless devices is increased and this in turn causes a driving factor in location based
service.
Also, in this competitive era, different restaurants are developing different tools in order
to acquire top position and enhanced customer loyalty as well. Zhang and et.al., (2018)
supported that different marketing techniques are used which means company in which location
based services are mostly used that helps business to let the customers know about new offerings
and exact locations. This is popular in entire country and it also includes mobile commerce when
taking the form of coupons or advertising directed to customers which is based upon their
current locations. This in turn causes positive impact upon customer satisfaction that leads to
increase the brand image as well.
Example:
A mobile device is equipped with a digital map either Google map or GPS. The user
interface is display with lots of menus and sub-menu which can be accessed by users by scroll
down/top. With the help of this menu, user selects the preferred restaurant as per their nearby
location. Further, by pressing the Location based service (LBS) button, user get complete detail
of restaurants along with their contact number, free and unreserved tables, office hours etc. Once
complete information with regard to restaurant is collected then they are requested to rank a
restaurant on the basis of their satisfaction level (Yoon, Kim and Connolly, 2018). So, the
knowledge of user preference may encourage owner of restaurants to send an advertisement to
their customers and this would further advertise accordingly. Through this manner, restaurants
identify their weakness and examine customers need, then implement strategies accordingly.
Moreover, Wei and et.al., (2018) investigated that RFID is another technique which is
used by the restaurants in order to track the location of a customer. The RFID scanner has a
static location and by pinging off the other networks, location of scanner can be logged. Thus,
after activation record is accessed due to its location and as a result, it can be used to identify the
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location of device through scanner. This in turn assists customers to examine the location of any
restaurant easily.
2.3 Factors that affect location based restaurants
In this competitive era, most of the business uses range of techniques in order to stay
ahead in the competition. Similarly, for location based restaurant, there are many factors that
affect the business performance. In the opinion of Palos-Sanchez and et.al., (2018) space size is
considered a top factor because customers prefer those restaurants who provide all the facilities
which includes, parking, ambiance, proper dining area, waiting area etc. The location based
restaurants should be big enough to accommodate all the kitchen equipment that provide proper
seating area to their customers. Therefore, a cramped up space of accommodation also drives
customers away because of small and narrow dining space. That is why, restaurants should
ensure that they provide enough and catchy ambiance that grab attention of many customers.
Lian and et.al., (2017) presented their negative views pertaining to this factor is such that if
restaurant's owner do not make its premises accessible for customers then it directly causes
opposite impact upon its brand image. It is so because most of the restaurants or fast food
businesses are successful due to their location selection. Therefore, having accessibility along
with visibility assist business to improve their performance.
Jalilvand and et.al., (2017) also examined in their studies that surrounding competitor
analysis is another factor that affect the location based restaurants. For instance, if a restaurant is
situated where other restaurants is already established, then it will not boost up the market share
along with the profitability. For that, more efforts shall be put in the marketing strategy in order
to draw attention of many customers towards it. It is so because of having high competition and
to stay ahead, it is essential to offer unique things to their customers that assist them to attract
(Important factors for identifying the Apt Location for your restaurants, 2020). Therefore, it is
essential for location based restaurants to keep an eye to competitor so that effective strategies
will be implemented accordingly. Hühn and et.al., (2017) contradict that if an individual do not
perform proper market research then it cannot figure out the need of customers and this in turn
somehow affect the overall business performance. Along with this, owners can identify the
reasons of unsuccessful or successfulness of past restaurants. For that, demographic survey can
be conducted that helps to identify the potential customer base as well as their preferences which
will further implemented within a premise.
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According to Das and et.al., (2021) marketing strategies are also considered another
factor through which the location of a restaurant is affected. In this era of competition, most of
the business uses range of marketing tools in order to grab attention of many customers.
Therefore, this factor influences the purchasing decision of customers directly. Most of the
visitor track the location of a restaurant online by using GPS, navigation etc. With the help of
such strategy, restaurants promote their business effectually that cause positive impact upon its
profitability. On the other side, Sudhagar and Rajendran, (2017) criticized that location in the
term of safety as well as security of a customer can be a point of concern that might affect the
brand image of a firm in opposite manner. Such that locations which have a high crime rate is
not preferred by customers due to negative publicity of a brand. It is so because customers do
not prefer those restaurants who do not offered secured atmosphere and this in turn affect the
performance in negative manner. For example, Manchester in UK is highly affected by terrorist
attack and that is why, there is no restaurant in the boundary side because owners know
customers do not prefer such type of environment so it is waste to invest in such areas.
Visibility is considered one of the major factors that affect the overall business and
preference of customers. Tripathi and Dave (2017) investigated in their study that owner must
provide proper visibility to their customers so that they easily access the same. For that, mobile
marketing plays an important role because it provides exact location to the customers and also
connect with customers through a message. As a result, it helps to boost their loyalty and
customer engagement as well. Thus, through proper visibility company will not lose their
customer because it uses the best ways in order to attract people within location based
restaurants. However, Hsiao (2017) critically evaluated that sometimes using high visibility for
the company can also cause direct impact upon brand. As, social media and different search
engines are programmed to enhance the brand value, but in the same time it also influences the
brand due to bad publicity or reviews. Therefore, restaurants should implement strategies and
conduct proper competitor analysis in order to improve the brand image. In addition to this, most
of the restaurants are focused upon digital marketing so that they grab attention of many
customers towards it. Thus, a visible and well-placed location is the best way that a restaurant
advertises its existence to their customers.
Guo, Wen and Liu (2019) emphasized that by stating that building amenities is another
factor that must be considered by restaurants because customers always prefer those locations
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