Explore different characteristic of chain and independence restaurant

For ownership, the chain restaurants are mostly belonging to the company or a corporation. The owners of the restaurants are some stockholders and they do not usually get involved to the daily operation. However, the independent restaurants are owned by one or a group of people such as family business. And the owners will usually get involved to the day to day operation.

For linkage, the chain restaurants are different type of restaurants that owned by the same company in the market concept, design, service, food and name. But the independent restaurants do not affiliated with any national brands and names.

For service and operation, the chain restaurants in different locations will have the same menu, food, quality, level of service since the decision of the operation are designed only by the top manager. The dependent restaurants otherwise will have some more creative idea and menu in their restaurants since the decision are made by the owner who will involve in the daily business day to day.

 

For the risk level, the chain restaurants usually has the lower risk level since it is belong to some large scale of corporation. So, the chain restaurants have a larger segment location of different brand of restaurants. So, their total sales revenue is much more stable since even one of their restaurant profit drop another restaurant profit may cover it up. However, the independent restaurant has a higher risk level. Since it scale is small and it may only owner by one person, the economy depression or just some little change may crush that business.

 

For management, chain restaurants have less flexibility since the complexity and level of management, almost many decisions are made by the top manager of the corporation. The front line and employee don’t have the authority to make or change the decision. On other hand, the independence restaurants have much more flexibility and creativity in managing the restaurants. It is because the owner usually involved in the day to day operation so he or she can change and make the decision immediately.                                                                   

 

 

 

Reference:
http://www.nevobusiness.com/independentrestaurants/independent.html
http://www.coloradoeats.com/sites/independentrestaurants/independent.htm