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Jo: The Effects of the Economic Characteristics of Single-person Households on the Food Service Industry
Research Article

Korean Journal of Community Nutrition 2016; 21(4): 321-331.

Published online: 31 August 2016

DOI: https://doi.org/10.5720/kjcn.2016.21.4.321

The Effects of the Economic Characteristics of Single-person Households on the Food Service Industry

Pil Kyoo Jo

Department of Economics, Hanbat National University, Daejeon, Korea.

Corresponding author: Pil Kyoo Jo. Depatment of Economics, Hanbat National University, 125 Dongseo-daero, Yuseong-gu, Daejeon 34158, Korea. Tel: (042) 821-1767, Fax: (042) 821-1767, jopk@hanbat.ac.kr

Received 1 August 2016       Revised 25 August 2016       Accepted 25 August 2016

Copyright © 2016 The Korean Society of Community Nutrition

(open-access):

This is an Open-Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/3.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Objectives

The purpose of this study was to examine the economic characteristics of single-person households and explain the effects of them on the food service industry.

Methods

For this paper, I analysed the data related with single-person households and the food service industry in two surveys, Household Income and Expenditure Survey and Wholesale and Retail Trade Survey published by Statistics Korea from 2006 to 2015, with an empirical test performed utilizing these data. The indicators of the age of householders, disposable income per capita, and the rate of household of worker were compared between single and multi-person households. Furthermore, sales and the number of establishments in the food service industry were used as industry-variables, and disposable income, eating-out expenses and the rate of single-person households as the household-variables were used in a panel analysis.

Results

The results showed that household incomes were lower, age of householder was higher, and the percentage of household of worker was lower in single-person households in contrast to multi-person households. According to the empirical analysis, eating-out expenses of single-person households, in comparison to multi-person households, has significantly positive effects on the growth of the food service industry. This means that the recent trend of increasing numbers of single-person households may help the growth of the food service industry.

Conclusions

The growth in the rate of single-person households has been one of the most striking demographic shifts in recent decades. Their economic characteristics and the effects were analyzed to give the managers in the food service industry and the policy-makers useful information in dealing with this new trend. Moreover, in considering the fact that single-person households eat out more frequently than multi-person households, the food service business should develop the managerial strategies focused on acclimatizing to single-person households.

Keywords: single-person households, economic characteristics, food service industry

Figures and Tables

Fig. 1

Disposable income per capita and the rate of household of worker (single vs. multi-person)

kjcn-21-321-g001
Fig. 2

Average age of householder and disposable income of single households (workers vs. non-workers)

kjcn-21-321-g002
Fig. 3

Average propensity to consume and the rate of meal expenses in disposable income (%)

kjcn-21-321-g003
Fig. 4

Number of establishments and workers and operating profit in the food service industry

kjcn-21-321-g004
Fig. 5

Growth rate of GDP and the food service industry (%)

kjcn-21-321-g005
Fig. 6

Sales to GDP ratio and operating profit to sales ratio in the food service industry (%)

kjcn-21-321-g006
Table 1

Variables in models

kjcn-21-321-i001
Table 2

Numbers of households, average age of head of household and rate of single households

kjcn-21-321-i002
Table 3

Basic statistics of explanatory variables

kjcn-21-321-i003

1) Logarithm

Table 4

Results of empirical study

kjcn-21-321-i004

Each model has dummy variables in 4 digits classification of industry

1) Coefficient (Standard error)

*: p < 0.05, **: p < 0.01

Acknowledgments

This work was supported by the National Research Foundation of Korea (NRF) grant (NRF-2015S1A5B6037369).

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ORCID iDs

Pil Kyoo Jo
https://orcid.org/http://orcid.org/0000-0001-5623-0866

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