Abstract
In terms of positioning the entry of local food service chains into agriculture as one means of procuring and using food products, this study compares local chains to larger chains and examines them from two perspectives: (1) The number ofitems produced at their own farms and food preparation locations, and (2) The method of entry into agriculture. No differ ences were found between local chains and large chains in terms of the production function of their own farms and food preparation locations. With regard to the method of entering agriculture, local chains tend not to have strong relationships with agricultural producers prior to entry, which results in a lack of cooperation with farmers before entry and engenders entry at the head office level. Large chains, however, had stronger ties with producers, with whom they sign farming contracts even before entering agriculture. In cooperation with producers upon entering agriculture, they gain access to regions not related to the head office location.
