Checkpoint Week Four

Checkpoint due Day Three

Chain and Independent Restaurants

Compare and contrast in 200 to 300 words the advantages and disadvantages of chain restaurants and independent restaurants with regard to at least three of the following:

Site selection

Access to capital- (Advantage) Chains franchises have a deeper pocket, which means they can invest into their physical plant.

Purchasing economies

Information systems and controls

New-product development

Human resources

• Site selection

Chain Restaurants

Advantages: You can build in high traffic areas.

Disadvantages: Your competition will have the same strategy as you and build close to you and can possibly take your customers.

Independent Restaurants

Advantages: You can build in high traffic areas.

-------------------------------------------------

Disadvantages: You can build in high traffic areas. Your competition will have the same strategy as you and build close to you and can possibly take your customers.

• New-product development

Chain Restaurants

Advantages: Chain restaurants are generally cleaner and go by a stricter health code. The management is held accountable in most cases therefore no cutting corners. Chains have the luxury of being able to staff research and development departments that champion the development of new menu items. The ability to add new products to the menu mix is an important quality; new products can create positive press, increases in sales and profits, and increased market share.

Disadvantages: No disadvantages found, except that the new product don’t sell as they thought it would.

Independent Restaurants

Advantages- Proprietors who don’t have to get permission from corporate for any change, can react to, and profit from local preferences.

-------------------------------------------------

Disadvantages: They do not have the money to advertise and market new product like a chain restaurant would. They rely more on word of mouth.

• Human...