Improving resource utilization in multi-unit networked organizations: The case of a Spanish restaurant chain

In this paper, a three-step data envelopment analysis model is used to reallocate resources in an organizational network. First, the model identifies the excess resources of inefficient units; then reallocates these resources to and sets revised output-oriented production goals for efficient units. Finally, the model recalculates improvement targets for the inefficient units based on the revised remaining resources. The procedure is applied to the analysis of 54 restaurant locations belonging to a Spanish fast-food chain. The results show that originally efficient restaurants can improve their output by an average of 4.20% after a reallocation of inputs, and that this reallocation is beneficial for the entire restaurant chain.