Name: Muhammad Adnan Maroof

Reg No.: 20201-28242

Week 5 - Assignment No. 3

How has Vertical Integration helped “Reno Provisions” succeed in the
restaurant business? 

The success of Reno Provision in restaurant business is credited to the principles of vertically
integrated supply chain
 After several years of failures, restaurant owner Mark Estee came across with the idea of
“Vertical Integration”, he adapted and implement the simple principles of vertical integration to
food, beverage and service, while creating a first-of-its-kind culinary experience in downtown
Reno. It stands as a model of a community working together. Reno Provisions produces raw
materials which they sell to their restaurants. Estee created a location which becomes hub for
all the restaurants he had, he worked on backward integration which is interacting local food
establishment, butchery, bread, and pasta production all under one roof downstairs the
building thus enhancing the success of business by providing following benefits to the reno
provisions:
 ·         Specialized crew for similar kind of activities across restaurant chain. e.g. pastry crew and
centralized production of pastries for all restaurants.
·         Excellent coordination between producing and receiving restaurants for overlapping
needs like bread, meat, pasta, sausage, and desert.
·         More leverage for make-to-order supply chain, the food/raw materials are produced as
soon the orders the orders are received from costumers/restaurants.
·         Improved efficiency in the supply chain by cutting down delivery and transportation
delays.
·         Strong control over complete supply chain helps Reno ensure the quality of their food,
beverages & services.
·         Consistency in taste/quality of their food and beverages as the raw material is produced
under one roof for their restaurant chain.
·         Control on supplies helps in effective forecasting and planning for running day to day
business across restaurants.
Such benefits give Reno provisions the competitive edge over other restaurants in town, Estee
has maintained standard of simple, fresh & seasonal, classic and innovative foods in his
restaurants which gained him huge customer base and made him successful in restaurant
business.