Wednesday, October 6, 2010

Vertical Integration/ Outsourcing

IHOP does not really have a need to do either of these strategies. With the close relationship that they have with suppliers, it would not make sense to integrate backward. As far as outsourcing goes, I am not sure how they could outsource anything in the restaurant biz. It would be interesting to imagine what that would be like though.

2 comments:

  1. There may be some vertical integration going with the rooty tooty fresh n' fruity pancakes. I would think they outsource a lot of their food ingredients and services. Ex:the fruit to frozen food companys. Milk from dairy producers. Trash pick up services. Linen service companies.

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  2. trying to remember, but i don't thinl IHOP or Applebee's use tablecloths or cloth napkins, so not sure what linens they would have. when i worked at a Cracker Barrel many years ago, i remember that the wait staff always had "sidework" to complete every night before going home. A lot of clean up, and rolling silverware - making those neat little rolls of knife, fork, spoon into a napkin. so, i think restaurants like that do a lot in-house rather than out-source. the supplied food items of course are external

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