Managerial efficiency in the food and beverage industry in Taiwan

This study evaluates the managerial efficiency of food and beverage companies by employing the output-oriented data envelopment analysis (DEA) approach. Consequently, the input and output variables of ten Taiwanese listed food and beverage companies were collected from 2011 to 2014. Then the Mann-Whitney U test was used to examine the difference in efficiency between restaurant companies and beverage and dessert companies. The major findings are as follows: (1) An inverse relationship exists between the scale and managerial efficiencies of the food and beverage industry. (2) The Mann-Whitney U test shows that the beverage and dessert companies are statistically more efficient. The results not only offer different managerial insights into the food and beverage indus-try’s operating efficiency but also determine which factors have a significant and direct impact on these restaurants’ or beverage and dessert shops’ success or failure, which is the considerable contribution of this study for the service industry.