The Chinese restaurant segment in Delaware: operating characteristics
Date
2011
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Publisher
University of Delaware
Abstract
With a rich tradition of entrepreneurship, hard work, and family values, many young Chinese immigrated to the United States in the second wave of immigrants, which started after 1965, to pursue educational opportunities and the "American Dream." They opened their own businesses while applying their cultural traditions of working hard and sacrificing for the next generation. This tradition heavily influenced the growth of small family business in United States. Family businesses have characteristics that differentiate them from non-family firms. Family businesses are value-driven, pursue other than merely financial goals, and can rely on networks and long-term relationships fostering trust (Chen & Bowen, 2001). Asian small business owners rely on using family, relatives, or other immigrants in their ethnic group as cheap labor forces. They developed a network of loyal customers not only within their own ethnic group but also within their local community. However, relatively little research attention has been paid to this segment, especially in the area of Chinese restaurateurs. Asian small business owners are most likely to open their own businesses within their own ethnic community because the most well-developed community, such as a Chinatown, tends to produce much more profits. Also, working in ethnic enclaves shields owners and workers from racial hostility and discrimination that they would normally face in the mainstream labor market. The Delaware Restaurant Association (DRA) has grown significantly since its founding in the 1990s. Today it has a total of more than 200 members. Founded as an advocacy organization, DRA continues to work for its members, offering representation on political issues facing restaurateurs and providing extensive educational opportunities to assist both independent restaurateurs and small business owners. According to the DRA (2010), there were 200 members of the association by the end of 2010. Among those restaurants, more than 180 were American resturants; meanwhile, only 2 out of 200 were Asian/Chinese restaurants. As a result, the vast majority of DRA members are American restaurant owners; only a few Chinese restaurant owners have been interested in joining. This study aims to find out the key barriers that cause ethic restaurateurs’ reluctance to become members of the DRA. Using Chinese restaurants as the subjects of this study, the research will determine effective strategies that can be used to increase the membership of Chinese restaurateurs in the DRA. This study provides practical recommendations that can be used to make the DRA more adaptive not only to Chinese restaurateurs but also to all other ethnic restaurateurs in Delaware.