Innovation is what sets companies apart, and
without it there would be no groundbreaking products in business or great ideas
that launch a company to the top. However, different industries have to find
different ways to innovate their products and company. For the restaurant
industry, innovation, as described by Jim Carroll, is all about both big
innovation and fast innovation (Carroll 2009). Big innovation is the launch of
new products and services, and fast innovation is the ability of the
company to respond to rapidly changing market trends, such as consumer and economic
trends, and changing products. (Carroll 2009). For the restaurant industry, the
most important of these innovative ideas is fast innovation. Since changes in
food preferences and recessions are a constant part of the market, a company’s
success relies on its capability to bring in new ideas to counter these changes
in the market. Recently though, there have been more exact ways for innovation,
which Mr, Carroll talks about in his keynote address at the YUM! Brands 2009
global leadership meeting which still exists right now.
The
first big way of innovation that Mr. Carroll talks about is expansion into the
global market. According to Jim Carroll, chain restaurants made up 1% of total
food services in China and 2% for Europe compared to 50% in the USA (Carroll
2009). If companies develop ways to penetrate these markets, they would see
huge success and growth in size and sales. This is seen by Starbucks, which has
been steadily expanding around the globe in areas such as china, which has
brought them a great increase in their revenue (Gertner 2012). Another way
innovation is important to the restaurant industry is being able to adjust to
the change in consumer choice (Carroll 2009). Consumers are the most vital part
of any industry, and if their preferences change then the industry has to find
ways to adjust to these changes. For the restaurant industry, consumers want
more healthy food options and it is up to the restaurants to create new
products and menus to fit these new wants. Starbucks is one of the companies
that have found success through innovation in relation to changing customer
preferences. “Over the past two years, Starbucks has collected a trove of
consumer research to develop what executives there call a ‘sensory map’ map”
(Gertner 2012). Using innovative techniques to go to the customer and see what they
want, Starbucks has been able to capitalize on the changing preferences of its
consumers. Yet, another chance for innovation in this industry is being
able to adjust to social desires of the consumers (Carroll 2009). This is also how Starbucks has been able to have its recent success. CEO, Mr. Schultz,
has increased Starbucks’ public reputation through community events such as
Starbucks’ Jobs for U.S.A. program, which gives out wristbands for fund raising
and raising job creation incentives (Gertner 2012). Starbucks is just one
company that has been able to thrive in this new age of innovation for the
restaurant industry, and as new innovative opportunities arise, many companies
will look for ways to capitalize.
Carroll, Jim. (2009) Recent Keynote: innovating for growth in the restaurant industry. Retrieved
from: http://www.jimcarroll.com/2009/02/recent-keynote-innovating-for-growth-in-the-restaurant-industry/#.UKkFMSqF_hI
Gertner, Jon. (2012). The World’s 50 Most Innovative Companies. Retrieved
from: http://www.fastcompany.com/most-innovative-companies/2012/starbucks
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