Using the Plural Form in the Management of Restaurant Chains

Abstract

The paper profited greatly from the careful reading and helpful comments given by Nitin Nohria, Herminia Ibarra, Steve Barley, and the three ASO reviewers. The author is grateful to Robert Eccles, Paul Lawrence, Peter Marsden, and Pat Kaufmann for their early help in framing the issues, to the companies that served as research sites, and to the Division of Research at Harvard Business School for its financial support. This article uses data from a field study of five large U.S. restaurant chains to model how chains use a plural form-simultaneous use of company and franchise units-to maintain uniformity and achieve systemwide adaptation to changing markets. From interview and observational data, I identify organizational structure, control systems, career paths, and strategy-making processes as four means through which the combination of company and franchise units helps chains achieve their objectives. The paper shows how the control and innovation processes provided by this plural form ameliorate some of the weaknesses and leverage some of the strengths of the company and franchise arrangements, enhancing the performance of the chain overall.'