Reengineering in the Food-Service Industry

Abstract

The reengineering of work processes has generally led to the reduction of the number of headquarters employees at many food-service chains. A study of 43 of the top-200 chains found that some of those downsized staffs were about the right size for the work load imposed on them, but a substantial number are experiencing the strain of trying to handle too many functions with too few people. Regardless of the load, most chains surveyed have no plans to restore the staff positions that were cut in corporate downsizing. Part of the reengineering strategy is to contract with outside agencies for work that was formerly handled in house, particularly for temporary or one-time projects or clerical work. In 1996, these 43 companies expect to outsource an average of nearly ten projects each. However, many other projects that would formerly have been handled by headquarters staff will be put off or dropped completely. In the near future, companies may have to consider adding more staff.