Performance of Major Franchised Takeout-Tea Brands in Taiwan

With the growing takeout-tea market in Taiwan, consumers have more diverse selections of products, and takeout-tea shops in return have launched a variety of products and promotions to meet the demand. However, in recent years, the takeout-tea market in Taiwan has saturated, the analysis of operating efficiency for all brands have become the important topic of business management. Therefore, this study selected main 12 franchised takeout-tea brands in Taiwan for the scale efficiency analysis. Moreover, this study deploys the data envelopment analysis (DEA) method for the efficiency analysis. Results of this study show that, for the franchised takeout-tea brands, pursuing either the high quality or simply low-cost can get the good scale efficiencies; in contrary, the unclear brand image or middle-class brand positioning may lead to relatively low scale efficiencies. Furthermore, the analytic structure of this paper can apply to practical studies on other chain franchised business.