Sample Essay on:
Outsourcing in the Restaurant Industry

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Essay / Research Paper Abstract

A 5 page paper discussing identifying potential activities for outsourcing and some of the positive and negative aspects of involving outside entities in the daily operation of the restaurant. Outsourcing carried a negative stigma in prior days but now is seen to be a primary component of competitive advantage, carrying potential for significant revenue increases. The paper also discusses providing outsourcing services and cites Marriott’s success in its contract services, which account for 40 percent of its total revenues. Bibliography lists 5 sources.

Page Count:

5 pages (~225 words per page)

File: CC6_KS-out.doc

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Unformatted sample text from the term paper:

desperation, and was looked on in many ways as being less than desirable. The idea of turning over control to essential internal operations to any outside entity often was seen as being foolish. It opened the organization to risks associated with giving outsiders access to company information. The original intent of outsourcing was to cut costs or to avoid incurring additional costs as the company grew. Human resource functions were outsourced early on; information processing tasks followed. Some companies made excess capacity available to others for the purpose of outsourcing some of their more routine tasks, but most eventually came to see outsourcing as a tool to build competitive advantage. For many, outsourcing has a far different face today. "Forget about cutting costs. Todays outsourcing deals are built around a far more strategic goal: Making money instead of saving it" (King, 1998; p. 1). Restaurants have long been regarded as self-contained entities that rely on suppliers but generally depend on no other businesses either for supplying or purchasing outsourced duties. Not only do restaurants generally do all their own work, they also only rarely perform any work for other restaurants. In todays highly competitive atmosphere however, outsourcing has even come to the restaurant industry. One company, Boulder Concepts, supplies consulting services to the restaurant industry and positions itself to respond to "an increased demand by independent restauranteurs for outsourcing their strategic needs to one-stop-shopping consultants ... Emphasizing the maximization of operations and procedures, public relations and marketing, and graphic and interior design to achieve optimal performance and competitive advantages in the restaurant marketplace" (Anonymous, 1998; p. PG). Others ...

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