The Growth Dynamics of the Restaurant Industry from Single Store to Chain Store in Taiwan: A Systems Thinking Perspective

This study conducts a long-term, multi-dimensional field case study on seven restaurant chain businesses in Taiwan from a systems thinking perspective. By employing a qualitative modeling research method, the study explores the business decision-making challenges that restaurant chain businesses encounter during various stages of their development. The constructed model addresses the academic research gap in understanding the growth dynamics process across different stages, from a single store to a chain of stores. Practically, this study offers a valuable structural system model to tackle the growth dynamics issues faced by different restaurant chain businesses. Additionally, it provides useful causal feedback loops and leverage points for practical application and strategic thinking. This research investigates the issues faced by restaurant chain operators at different stages, shifting the focus from observing and managing the detail complexity of static events to addressing the system complexity of dynamic loop transitions. It offers deeper insights into the changes in causal feedback loops within internal systemic structures during the growth process, thereby filling the academic research gap concerning the growth dynamics of restaurant chain businesses. The system dynamics methodology employed in this research offers a comprehensive and holistic explanation of the issues, closely corresponding to societal realities through a systems view research perspective. This approach comprehensively embodies systemic practice and action research, thereby enhancing both the practical relevance and theoretical contributions of the study. The findings provide insightful implications for restaurant chain operators, offering strategic guidance to balance resource allocation and usage dynamically across various growth stages.