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Restaurant wars: spatial competition in UK restaurants

Research output: Working paper


Publication date2013
PublisherLancaster University, Department of Economics
<mark>Original language</mark>English

Publication series

NameEconomics Working Paper Series


This paper investigates spatial competition and the price-quality relationship in the UK gourmet restaurant sector using a comprehensive panel data set compiled from the UK Good Food Guide. A positive relationship between meal prices and restaurant quality as assessed by the Guide is identified. Moreover, restaurants appear to raise prices when the number of restaurants in close proximity that offer similar cuisine increases. Yet restaurants are found to reduce prices in line with standard competitive market responses when there are a greater number of similar restaurants placed further apart.

Bibliographic note