Ch.6: Characteristics of Chain & Independent Restaurants

Explore the different characteristics of chain and independent restaurant

         For the ownership, the chain restaurant is usually owned by the corporation. The owners, which are the shareholders, they do not usually involve in the operation of the restaurant. On the other hand, the independent restaurant is usually owned by 1 or more owners, in which they usually involve in the day-to-day operation.

For the linkage, chain restaurant is a group of restaurant owned by the same corporation alike in market, concept, design, service, food, or name. And independent restaurant is not link with any national brand or name.

For the service offered, chain restaurant offers the same menu, food quality, level of service, and similar atmosphere can be found in any one of its restaurants. Instead, independent one offers the owner independence, the owner can create their restaurant's unique style, dishes.


 

For the risk, the chain restaurant has a lower risk because of segment of location. A unsatisfactory revenue from a specific location can be covered by the other location with a high revenue. Also, the brand name of the chain restaurant is well known and provides stable promised services. So the confidence of customers to chain restaurant will be higher. But the chain restaurant has to bear a relatively high risk. As it is difficult to attract and keep the customers.

For the management, chain restaurant have less flexibility compared to independent. As the chain restaurant is globalized, the top management makes decision of the menu or the atmosphere of the restaurant. The lower level management do not have authority to change the menu or settings of the restaurant. Therefore, they are slowly to respond to the customers’ need and need more time to find the customers’ preference. For the independent restaurant, they can know the feedback of customers immediately. Also, the boss can talk to the customers easily. So they can tailor made the dishes which are suitable to different customers’ requirement.

For the financial support, chain restaurant has stronger financial support as it is from a group of restaurant. The owners, who are the stockholders, can support financially. However, the independent restaurant has relatively difficulties to finance for its expansion or operation as it has fewer owners.