Comparison Essay Sample: Chain Restaurant vs. Family-Owned Restaurant

Published: 2022-09-06
Comparison Essay Sample: Chain Restaurant vs. Family-Owned Restaurant
Type of paper:  Essay
Categories:  Business Food Hospitality
Pages: 4
Wordcount: 950 words
8 min read

Restaurants are business entities that can be managed by an individual or be run as chains. Each restaurant has a specified customer base. Chain restaurant and family-owned restaurants have a wide range of differences that can be illuminated in relation to employee priority. The differences between family owned and chain restaurant can be administrative, size of the restaurant and the employee's competency. The chain and family-owned restaurants exhibit a wide range of differences which emanate from the management, customer satisfaction, product brand, and market share. Additionally, consistency and professionalism are part of the differences experienced between the two. This paper takes a comprehensive contrast between the chain and family-owned restaurants concerning the preferences of employees such as working conditions.

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Management for restaurants may vary according to the type of restaurant. Chain restaurants may have systems, recipes, guidelines of cost and thorough details of the operation procedures which make it easier for employees to implement their duties as stipulated (Khan 331). Family owned restaurants are characterized by simple management with management roles mainly pinpointed on one individual responsible for overseeing the operations of the unit. Family owned restaurants may lack sufficient funds to cater to the needs of the employees and include motivational packages in their remuneration packs. Lack of sufficient funds is among the key bottlenecks of family-owned restaurants. Chain restaurants have a pool of resources which allows for smooth running and operation (Khan 243).

While opening a restaurant, chains restaurant will be a viable idea if an individual lacks the management skills to allow for running own restaurant. The stipulated procedures, recipes, costs and systems available can promote the success of the business rather than opening a family owned restaurant on a trial and error basis.

Consistency is one common difference between chains and family owned restaurants. Chains can afford high machinery and automation of activities in the restaurant. The use of machinery facilitates uniformity in the operations carried out by the chains. On the other hand, family-owned restaurants struggle to maintain consistency in the taste of food. Inconsistency in the family-owned restaurants is linked to the change of staffs and lack of equipment to maintain standard quality preparation procedure and quality of food. Chains have standardized equipment that facilitates similar taste of food and service delivery across all the outlets. In this case, a customer does not necessarily need to stick to one joint to have his favorite meal rather than getting it from any nearest chain outlet. Employees adhere to standard operating procedures which are uniform in the chain outlets and therefore offering the same quality of services to customers. Family owned restaurants struggle to maintain consistency due to the changes in staff routines and human error in adjusting ingredients during food preparation. Human error occurs due to a lack of standardized equipment for enhancing consistent food quality.

For instance, soup across different chains will have a similar taste. This is because of the use of calibrated equipment that is used in the determination of the right quantity of ingredients. Similarly, a similar procedure of preparation is adopted across the chains making its products consistent. On the contrary, family-owned restaurants may show variations in their soup due to change of staffs, procedure and human error. In this light, maintaining a constant taste of the soup is difficult.

Market share is an important factor in any business. Similarly, the operation of restaurants requires favorable competition to command a large market share. Chain restaurants have a competitive advantage over family-owned restaurants as far as the customer base is concerned. Chains cover large and different geographical locations. Consequently, they have access to a larger market share due to decentralization.

On the contrary, family-owned restaurants may cover a small market share which implies low market coverage. Large market segment improves the financial position of a business, and therefore, chains have large sources of funds as compared to family-owned restaurants. Employees are motivated by the success of their activities and their contribution to maintaining a firm customer relationship. Texas Roadhouse operates in different locations with each location having established customers. This widens the market coverage of the Texas Roadhouse chain.

Branding plays a role in the establishment of a competitive advantage over other firms (Muller 7). Restaurants also play by the same tune to establish customer loyalty. McDonald's is an established brand established in various countries. This allows customers operating in different geographical locations to access their food from the same brand. For instance, McDonald's has its outlet in the UK and Dubai which allows customers from the UK access the same meals in Dubai. Chains can establish their brand name easily owing to its pool of resources. Establishing a brand from a family owned business may take a lot of time, therefore, limiting the ability to develop a stable brand. Additionally, resources for elevating the brand name across different market segments may be a limiting factor.

Employees seek to work in a well-established environment with set regulations and guidelines of operation. The guidelines enhance consistency and provide a background for operation. Additionally, an elaborate management system enhances employee participation in attaining the goals of the firm. On the other hand, the brand name may serve as an attraction point for the new employees. Many people prefer working for an established firm with a reputable brand. Branding may be linked to effective management with strategic policies (Muller7). Chains portray good management policies which enhance consistency and employee satisfaction. In that light, chains prove to be the better option to work in as opposed to family-owned restaurants.

Works cited

Khan, Mahmood A. Restaurant franchising: Concepts, regulations and practices. Apple Academic Press, 2014.

Muller, Christopher. "When is a Group a Chain, and a Chain a Brand?." (2018).

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