Economics subject is logistics Ever wonder how some sit-down restaurants are able to offer a huge variety of menu items, and how they are able to serve everything on that

Economics
subject is logistics
Ever wonder how some sit-down restaurants are able to offer a huge variety of menu items, and how they
are able to serve everything on that menu quickly? Could they have humongous kitchens and a battery of
chefs scurrying around? Or maybe a few amazing chefs whose hands are almost quicker than the eye?
Maybe, and maybe not.
In fact, that great-tasting restaurant entree or dessert you are served might have been prepared in a
distant kitchen, where it was partially cooked, then flash-frozen or vacuum-packed, and shipped to your
restaurant, awaiting your order. Then the entree was finished cooking, perhaps in a microwave oven, and
soon it was served to you-fresh made, so to speak.
Surprised?
Don’t be. Many restaurants, from chains like Fuddruckers and Perkins, to top-quality restaurants, are going
the outsourcing route. And companies such as Sara Lee, Land O’ Lakes, and Stockpot Soup Company of
Redwood, Washington, are only too happy to oblige them. Advertisements in restaurant trade magazines
abound, with taglines such as "Hours versus ours" and "Just heat and serve."
Not exactly like mother used to make, but then mother never had to contend with labor costs that run
about 30 percent of revenue, or worry about keeping up with the competition.
Questions
1. Explain the meaning of the phrase "Hours versus ours."
2. advantages are there when restaurants outsource?
3. are some important disadvantages or limitations of outsourcing for restaurants?
4. Do you consider restaurant outsourcing to be dishonest? Unethical? Explain.
5. Does restaurant outsourcing increase capacity? Explain.

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