Organising and managing food services
Before giving our five reasons why we recommend a decentralised or centralised system in a food service area, we should explain what these terms mean. These systems refer to how products, systems and business processes are organised and managed.
In decentralised systems, which include franchises and licensed services, decision-making and operations are largely delegated to each unit or a regional hub.
Whereas centralised systems, have decisions and operations controlled from a central location, such as a company headquarters.
Now, on to the five reasons why we recommend a decentralised or centralised system in a food service area.
Five reasons why you would recommend a decentralised or centralised system in a food service area.
Both systems have their benefits and disadvantages:
Reasons to choose a decentralised system
Firstly, decentralised systems are more flexible in terms of both product selection and pricing strategy. By operating as independent units, or as part of a small local network, businesses can respond quickly to local trends or preferences. They can adapt their offer according to their customer base by adding new menu items, promotions or pricing schemes.
Secondly, decentralised systems can help businesses to serve customers with specific dietary needs and preferences. A big advantage in towns and cities where large populations from distinct cultures with dietary needs may be overlooked in a centralised system.
Thirdly, decentralised systems tend to service their customers through local hubs. This results in a reduction in transport costs and CO² emissions. Cost savings can be passed on to customers, while a smaller carbon footprint is better for the planet.
Fourthly, reducing dependence on centralised systems reduces the risk of business disruption. For example, if problems arise with a local food service supplier, a switch to a competitor can be made more easily.
Finally, decentralised systems offer more opportunities for entrepreneurial food service owners. By combining their business flair with local market knowledge, such entrepreneurs can thrive in their niche.
Reasons to choose a centralised system
Firstly, centralised systems are ideally suited to standardisation. With one quality control process through which all products must pass, the food service provider receives consistent, high-quality products and services.
Secondly, centralised systems benefit from economies of scale. Better terms can be secured during negotiations and you can benefit from bulk ordering. This often translates to a lower price for the food service provider.
Thirdly, centralised systems will quickly set up and update training plans and operational protocols. Training time can be reduced and operational efficiency maximised.
Fourthly, through centralised branding guidelines and marketing undoubtedly the food service provider will be able to achieve a higher level of brand recognition and sentiment with minimal outlay.
Finally, the huge amounts of data collected by centralised systems is essential for analysing trends, which in turn enables the developing of product offers and enhancing business performance.
Summary: Five reasons why you would recommend a decentralised or centralised system in a food service area
Decentralised systems offer:
- Flexibility over products and pricing.
- Better service for customers with specific cultural needs and preferences.
- Lower transport costs and environmental impact.
- Business risk mitigation.
- Opportunity for entrepreneurs to thrive.
Centralised systems offer:
- Consistent quality.
- Reduced overall costs.
- Streamlined training.
- Strong branding and marketing support.
- Aggregated data access.
Are you leading a food service catering project?
Nebrak is an expert in food service design. We can support you throughout your project. From fleshing out initial concepts to carrying out all design, installation and finishing work, we provide the perfect turnkey, no-hassle solution.
Take a look at our food service catering page for more information.