Abstract ▼ AI-Helper

The aim of this study was to predict the development process of the Korean food service industry by forecasting the per capita GDP. Forecasting the GDP, involved two primary approaches. One was related to looking at the Korean food service industry's situation by per capita GDP and comparing it to t...

The aim of this study was to predict the development process of the Korean food service industry by forecasting the per capita GDP. Forecasting the GDP, involved two primary approaches. One was related to looking at the Korean food service industry's situation by per capita GDP and comparing it to that of the US and Japan. The other was to predict food service industry projections in Korea by quantitative forecasting models. Holt's simple exponential smoothing method and new types of the series models(Damped trend exponential smoothing method), were employed to predict the per capita GDP. The accuracy of the models was measured by MAPE. The empirical results of the forecasting models indicate that the three time series models performed fairly well. Of these Damped trend Damped trend exponential smoothing performed best with the lowest MAPE(9.9%). The results show that the time for reaching a per capita GDP level of $20,000 was 2008 with the Damped trend model and 2009 with the Holt model. Moreover, we found that a per capita GDP level of $30,000 will be achieved in 2012 from the Damped trend model and in 2013 from the Holt model. Within this study, the implications for the Korean food service industry are further discussed. It was predicted there will be a stabilization period in 2008 or 2009 in Korea with achievement of a per capita GDP of $20,000. At this time, major food service industry companies will need to invest in equipment toy external growth and there will be industry trends toward ethnic food and theme restaurants. Also, if a per capita GDP of $30,000 is achieved by 2012 or 2013, the Korean food industry will need to be highly responsive. Therefore, food industry companies should forecast and study customer values and prepare for changes.

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