Turnaround strategy: A study of restaurant firms

This paper uses a case study approach to analyze the turnaround actions of two restaurant firms and compares them to the model of Robbins and Pearce [1992. Strategic Management Journal 9, 287–309]. The objective of this study is to scrutinize why these firms were unsuccessful in turning around and identify gaps between the firms’ actions and the empirical model of turnaround proposed by Robbins and Pearce. Two key turnaround measures, i.e., retrenchment and recovery are explored in detail and discussed in the context of the firms. The need for studying turnaround strategies is warranted as the number of hospitality firms that perish because of unsuccessful turnaround strategies is on the increase. Since turnaround strategies have not been pursued vigorously as a stream of research within the hospitality industry context, this approach would provide a framework for hospitality researchers to initiate similar future research efforts, which in turn would help the industry cope with turnaround.