Why Hub and Spoke Office Model Deserves Another Chance

Why Hub and Spoke Office Model Deserves Another Chance
Business classroom communication

The Hub and Spoke Office Model Hub dates back to the 1980s. Specifically, the term hub and spoke originated in the aviation industry to make it easier to operate. It was quite daunting to have to send half-empty flights to and fro regional airports. This idea came to life where these flights would pass through a central “Hub” that would act as an intermediary between two regional airports, “Spokes.” The Hub is what then becomes a connecting airport or location. An example could be that of the London Heathrow Airport.
The model became a success as it was way more efficient than the traditional point-to-point model, which meant having numerous direct routes. Ever since then, this concept has appealed to many business ventures outside the aviation industry. This includes social media distribution, logistics, and even project management.
As with many other things, COVID-19 pandemic crises have brought the spoke and hub offices into the light as a potential business survival technique. Let’s explore the common grounds this model can bring benefits to businesses regardless of their industry. However, before we begin, let’s first delve deeper and get on terms with these two terms, Hub and Spoke.
The Hub refers to the business headquarters located at the core of the city and easy to access, even though a means of public transport.
On the other hand, Spoke refers to a network of offices distributed on geographical grounds, based on the kind of talent and clients the business is looking for.

Benefits of Hub and Spoke Office Model

Saves You Capital

Since more and more companies have become accustomed to their teams working from home or remotely, they can consider downsizing their headquarters and revamping their whole business model.
This means that they will have more money to allocate and strategically launch Spokes in several regional locations. This way, they can lead their business towards expansion and save costs as no city center office means there won’t be any overhead costs, rent, and other expenses.
With so many businesses closing out the battle with COVID-19 and shutting down, this model can be a beacon of hope.

Gives Business Functional Freedom

Considering that the effects of the pandemic crisis are in full blow, the Hub and Spoke Office Model can give businesses the much-needed freedom and flexibility in terms of operations. And, for a business to survive in a time like this, flexibility is an essential element. This model will come with relatively shorter contractual agreements, fewer Terms, and Conditions in addition to bare minimum risk and no or less hassle. Your business will get to work with a broader network without any long-term leases. Not only this but unlike a point-to-point business model, a business can enjoy up-scaling or downsizing using this model at their discretion regardless of how short notice is.

It Takes Your Business towards Growth

Don’t you think it is stupid to stay in one location when you can make your presence felt in more than one place? This is why the Hub and Spoke Office Model deserves another chance! Opening up offices (Spokes) over a large geographical area will mean that you can tap into more markets and expand your clientele. You can end up with a diverse distribution network and bump into new, potential business partners. While carrying out their duties, your teams working from other areas will engage with the local people and companies, which means more business. Also, you can have more diversity in your workforce in terms of talent and ideas.

Benefit From Increased Productivity

Adopting such a business model will not only directly benefit the business. The transition shall also positively impact your workforce as it would mean less commute. The less they have to commute, the more money they will save on the fuel if they travel privately or on the fare if going through public transport. Moreover, they will also save up on time and mental energy. Such a balance between their personal and professional lives would mean higher productivity, which will add to the business’s output. And, we are sure every business likes profit maximization!


The key to surviving and thriving in these uncertain times is only through innovation. While the pandemic continues to throw challenges at businesses, the Hub and Spoke Office Model is the answer for everyone looking for a viable and more flexible alternative.

Contact Steven Goldstein @ ChicagoBroker.com Powered by Jameson Commercial at 312-840-9002 to discuss your current needs and how we can help you employ proven strategies to help you optimize your office space utilization.

Steve Goldstein  / About Author

Steve Goldstein / About Author

In 1991, Steven founded ChicagoBroker with one goal in mind. Help business owners negotiate the best possible lease or purchase for their commercial space.

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