Question

Based on the article and information you know or find, how might the structure need to change to make this strategy work? What type of decision making (centralized or decentralized) would be most effective in the implementation of the strategy? Why?  Does the company have a strong or weak internal culture and how might this impact implementation of the strategy?

Overwhelmed by the Virus, the Golden Age of Restaurants Is Over

As restaurants scramble to offer methods of delivery during the Covid-19 crisis, some are beginning to consider what the industry will look like post-crisis.

As restaurants learn some new skill sets to try to adapt to the current legal and practical issues of food service during the COVID-19 pandemic, some are beginning to consider that some of these changes may provide opportunities in the future rather than just a band-aid until the crisis is gone.

While survival is the key for these entities right now, industry shocks, such as the virus, can lead to the realization of new opportunities and the development of new competencies to make the company stronger and more resilient post-crisis. In addition, they are learning that some of their hedging against these risks using insurance policies has gotten into the fine print issues where insurance companies are claiming that this type of business loss is not covered.

The high-end restaurants seem to be the hardest hit in that they sell a dining experience versus just good food. This limits their ability to garner a strong takeout, or delivery clientele.

Answer 1

Change in the structure of Restaurant Industry should be as follows:

a. Home delivery model should be adopted:

Due to these crisis most of the restaurants should follow home delivery model. As, now customer will opt for the restaurants which can provide good quality and tasty food at their door step.

b. High-end fine dining structure should change into food chains:

The fine dine system of the restaurants versus just good food will not work much. As due to social distancing and fear of getting coronavirus people will avoid going to crowded places to dine or any kind of amusements.

c. Middle level or low cost restaurants:

Set back in economy and low spending power of people at large will turn the customers opt for middle level or low cost restaurants which are easily affordable.

Decentralized decision making should be adopted for implementation of the strategies:

Meaning of decentralized decision making:

Decentralization Decision making structure includes distribution of powers by the top management to the lower or middle management. It is the delegation of authority, at all levels of management.

Reason to adopt decentralized decision making is as follows:

Now, the restaurants will opt to have small delivery centers at different places to provide good quality food at the door step of the customers, due to the above mentioned factors. So, to operate conveniently and easily the top management or the owner of the restaurant will have to distribute its powers further to the middle or lower management, so that they take decisions while operating their respective delivery centers.

If the company has a strong internal structure:

If the company has a strong internal structure it will be easier for the team members to adapt any changes in the working style or operating structure of the restaurant. If a restaurant follows decentralized decision making structure, all the employees can work in synchronization with each other due to strong internal culture, keeping in mind their powers, duties and limitations to perform their tasks.

If the company has a weak internal structure:

If the company has a weak internal structure it will be tough for the team members to adapt any change in the working style or operating structure of the restaurant. If a restaurant follows decentralized decision making structure, the employees will not be able to work with each other in a synchronized manner, which will further lead to loss to the restaurants.