In Chicago, Green Summit appears to be running nine different restaurants, with names such as Butcher Block, Milk Money, and Leafage. In reality, all the food for these restaurants is cooked in one central kitchen, and none of the restaurants have physical locations. The brands exist only as Web sites and on the delivery containers. An article on chicagotribune.com quoted the firm’s CEO as saying, “I don’t really think anybody cares. They just want really high-quality food.”

a. If nobody cares whether a restaurant exists as a physical place, why does Green Summit have a Web site for each restaurant and packaging printed with each restaurant’s name and logo? Aren’t Green Summit’s costs higher than if it just had a single name and one Web site?

b. Does Green Summit’s strategy increase or decrease productive efficiency in the restaurant business? Does the strategy increase or decrease allocative efficiency? Does it increase or decrease the well-being of its customers? Briefly explain.