Influencing factors of catering and food service industry based on principal component analysis

Abstract

Scientific analysis of influencing factors is of great importance for the healthy development of catering and food service industry. This study attempts to present a set of critical indicators for evaluating the contribution of influencing factors to catering and food service industry in the particular context of Harbin City, Northeast China. Ten indicators that correlate closely with catering and food service industry were identified and performed by the principal component analysis method using panel data collected from 2000 to 2011. The result showed that three principal components were extracted out of ten indicators, which can be synthesized respectively as comprehensive strength of catering and food service industry, development of social and economy and residents' consumption willingness to catering services. Additionally, among ten indicators, five relatively important indicators were prioritized as Revenue from principal business of above designated size, Profits of principal business, Cost of principal business, Total investment in fixed assets in hotel and catering services and Retail sales of hotel and catering services. © Maxwell Scientific Organization, 2014.