Effects of Restaurant Tax and Price Increases: Implications for Managers, Policy Makers, and Lobbyists

摘要: OF THESIS EFFECTS RESTAURANT TAX AND PRICE INCREASES: IMPLICATIONS FOR MANAGERS, POLICY MAKERS, LOBBYISTS Legislation has been proposed in Kentucky that would authorize city legislative bodies to levy a tax on restaurant meals of no more than 3%, regardless the size city. The bill garnered attention from Travel Industry Association, Restaurant and local tourism organizations associations oppose tax. League Cities, an organization represents interests governments, supports purpose this research was examine how change rate affect demand. Effects changes demand were tested using following independent variables: type restaurant, menu offering, frequency, expense, location. Self-administered online surveys distributed adult residents Kentucky, which yielded sample 1,263 individuals. Paired t test applied make comparison between scenario 1 (current) 2 (3%) 3 (JND). Findings showed patterns each class be affected by increases taxes prices.