Cajun Chicken, a growing franchise chain based in Lafayette, Louisiana, has expanded to 185 locations in the United States. Because they realize that domestic growth is limited, the owners are contemplating expansion to selected foreign countries. Thus far, research has shown that the rights to use many of the firm’s recipes can be sold to other restaurants, cafeterias, and food stores. Cajun can also sell prepackaged food products, complete with spices, to other markets. At this point, whether to start by opening company-owned outlets or selling franchises is still a toss up. In any case, the long-term picture looks good.
-Even if Cajun opens company-owned restaurants in a foreign country,it may have to buy local food products to supplement the menu;in fact,it may have to buy chicken from local producers for the standard menu.In doing so,the company would be engaged in _____.
A)outsourcing
B)licensing
C)subcontracting
D)importing

Question

Quizplus · Accepted Answer

Outsourcing is the process of contracting with a third-party provider to perform a specific business function or service. In this case, Cajun Chicken is considering outsourcing the production of its chicken to local producers.

Cajun Chicken, a Growing Franchise Chain Based in Lafayette, Louisiana