1. Why might local restaurants not be in the position to respond to large franchises or chains? What can local restaurants do to avoid being ruined by chain restaurants?

PART A

(1) Low Capital base

(2) lack of proper infrastructures

(3) lack of the needed expertise and professionals

(4) lack of Competitive products.

PART B

(1) Increased Capital base

(2) invest in infrastructures needed to improve the quality of service.

(3) improved expertise and recruit professionals

(4) Local restaurants should invest in building strong and competitive brands

Explanation:Franchise is a business term used to describe the approved and licensed use of another business brand name,logo or identity to sell or do business by another business Organisation.

The following Factors are the reasons why local restaurants can not respond adequately to the challenges posed by Large franchise and chains;

(1) Local restaurants don't have the required Capital base

(2) Local restaurants don't have the needed infrastructure required to meet the Quanlity and volume of output by franchises

(3) Local restaurants lack the needed professionals and expertise.

(4) Local restaurants don't have strong and Competitive products.

Local restaurants can do the following to avoid being ruined by chain restaurants;

(1) Local restaurants should increase their Capital base.

(2) Local restaurants should invest in the needed infrastructures.

(3) Local restaurants should recruit experts with the expertise needed to improve their services.

(4) Local restaurants should invest in building strong and competitive brands.

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