Preview

The Product Innovation Process

Better Essays
Open Document
Open Document
8990 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Product Innovation Process
The current issue and full text archive of this journal is available at www.emeraldinsight.com/0959-6119.htm

Quick-service The product innovation process of restaurant chains quick-service restaurant chains Michael C. Ottenbacher
Heilbronn University, Heilbronn, Germany, and

523
Received 20 May 2008 Revised 24 July 2008, 23 September 2008 Accepted 24 September 2008

Robert J. Harrington
University of Arkansas, Fayetteville, Arkansas, USA
Abstract
Purpose – This paper aims to outline the innovation process activities described by quick-service restaurant (QSR) managers and to compare it with an earlier QSR process model and with those used in other food service settings. Design/methodology/approach – Six semi-structured interviews with QSR chain executives in the USA were conducted to better understand the underlying factors and dimensions that describe successful innovation process practices. Findings – For new QSR menu innovations, the development teams follow a structured approach to reduce the likelihood of failure due to issues such as poor consumer demand or implementation. QSR screen new food innovations approximately five times during the development process. Furthermore, today’s QSR innovation process integrates more sophisticated market research technology and a post-audit is carried out after the new food concept has been launched. In comparison with studies of Michelin-starred chefs QSR development teams use an approach that is much more explicitly structured as a whole due to the larger scale roll-out as well as greater cross-functional and regional differences to consider in the QSR setting. Research limitations/implications – The study was conducted in only one country and on a small sample. Based on an analysis of the findings, the innovation development process of QSR can be broken down into 13 main steps. Compared with earlier hospitality innovation studies, the process in this setting includes multiple screenings for high-risk



References: Booz, Allen & Hamilton (1982), New Product Management for the 1980s, Booz, Allen & Hamilton, New York, NY. Burns, T. and Stalker, G.M. (1961), The Management of Innovation, Tavistock Publications Limited, London. Christensen, C. (2007), “Innovation: a happy meal for McDonald’s”, Forbes, available at: www. forbes.com/claytonchristensen/2007/08/31/christensen-innovation-mcdonalds-pf-guru_ in_cc_0904christensen_inl.html (accessed January 28, 2008). Cooper, R.G. (2001), Winning at New Products: Accelerating the Process from Idea to Launch, 3rd ed., Perseus Books, New York, NY. Costa, A. and Sarkar, S. (2008), “Do too many chefs really spoil the broth? Collaborative product innovation in the foodservice industry”, 15th International Product Development Management Conference Proceedings, Hamburg, pp. 3-19. Feltenstein, T. (1986), “New-product development in food service: a structured approach”, Cornell Hotel & Restaurant Administration Quarterly, Vol. 27 No. 3, pp. 62-71. Ghauri, P.N., Gonhang, K. and Kristianslund, J. (1995), Research Methods in Business Studies: A Practical Guide, Prentice-Hall, London. Gubman, E. and Russel, S. (2006), “Think big, start small, scale fast: growing customer innovation at McDonald’s”, Human Resources Planning, Vol. 29 No. 3, pp. 21-2. Harrington, R.J. (2004), “Part I: the culinary innovation process, a barrier to imitation”, Journal of Foodservice Business Research, No. 3, pp. 35-57. Johne, A. and Storey, C. (1998), “New service development: a review of literature and annotated bibliography”, European Journal of Marketing, Vol. 32 Nos 3/4, pp. 184-251. Jones, P. (1996), “Managing hospitality innovation”, Cornell Hotel and Restaurant Administration Quarterly, Vol. 37 No. 5, pp. 86-95. Katz, P. (2008), “Fast-food innovation”, Food Product Design, available at: www. Foodproductdesign.com/articles/781conceptsplus.html (accessed January 28, 2008). Moskowitz, H. (2001), “Creating new product concepts for foodservice – the role of conjoint measurement to identify promising product features”, Food Service Technology, Vol. 1, pp. 35-52. 540 National Restaurant Association (2007), Restaurant Industry to Continue to be Major Driver in Nation’s Economy through Sales, Employment Growth in 2008, available at: www. restaurant.org/pressroom/pressrelaease.cfm?ID ¼ 1535 (accessed February 3, 2008). Ninemeier, J.D. and Perdue, J. (2005), Hospitality Operations: Careers in the World’s Greatest Industry, Pearson Education, Upper Saddle River, NJ. Ottenbacher, M. and Gnoth, J. (2005), “How to develop successful hospitality innovation”, Cornell Hotel and Restaurant Administration Quarterly, Vol. 46 No. 2, pp. 205-22. Ottenbacher, M. and Harrington, R.J. (2007), “The innovation development process of Michelin-starred chefs”, International Journal of Contemporary Hospitality Management, Vol. 19 No. 6, pp. 444-60. Robinson, C., Abbott, J. and Shoemaker, S. (2005), “Recreating cheers: an analysis of relationship marketing as an effective marketing technique for quick-service restaurants”, International Journal of Contemporary Hospitality Management, Vol. 17 Nos 6/7, pp. 590-9. Rosenau, M.D., Griffin, A., Castellion, G.A. and Anschuetz, N.F. (1996), The PDMA Handbook of New Product Development, John Wiley & Sons, New York, NY. Rudolph, M.J. (1995), “The food product development process”, British Food Journal, Vol. 97 No. 3, pp. 3-11. Schumpeter, J. (1934), The Theory of Economic Development, University Press, Cambridge, MA. Svejenova, S., Mazza, C. and Planellas, M. (2007), “Cooking up change in haute cuisine: ` Ferran Adria as an institutional entrepreneur”, Journal of Organizational Behavior, Vol. 28, pp. 539-61. Urban, G.L. and Hauser, J.R. (1993), Design and Marketing of New Products, 2nd ed., Prentice-Hall, Upper Saddle River, NJ. Werner, W.B., Feinstein, A.H. and Hardigree, C.E. (2007), “The risk to the American fast-food industry of obesity litigation”, Cornell Hotel and Restaurant Administration Quarterly, Vol. 48 No. 2, pp. 201-14. Corresponding author Michael Ottenbacher can be contacted at: mottenbacher@hotmail.com Quick-service restaurant chains 541 To purchase reprints of this article please e-mail: reprints@emeraldinsight.com Or visit our web site for further details: www.emeraldinsight.com/reprints

You May Also Find These Documents Helpful

  • Better Essays

    Benefits and Drivers Paper

    • 1239 Words
    • 5 Pages

    Kudler Fine Foods is a food company that specializes in selling fresh grocery products with simple ingredients used to make gourmet meals. Nearly everything a customer could want would be found within Kudler Fine Foods. Currently Kudler Fine Foods operates from three locations each offering the same service. The company is a privately held, but seeks to offer stock publicly to increase capital. The increase in revenue will allow Kudler Fine Foods to pursue avenues of innovation that can increase profit margins and spark new growth. In this paper Team A will be exploring the internal and external driving factors that influence the innovation at Kudler Fine Foods as well as an overview of how these practices benefit the company. This information is important in ensuring that Kudler Fine Foods will be able to meet their organizational objectives. Kudler Fine Foods’ will continue to make it the company’s main priority to provide customer satisfaction with the selection of fresh products.…

    • 1239 Words
    • 5 Pages
    Better Essays
  • Best Essays

    Industry Analysis Chipotle

    • 1962 Words
    • 8 Pages

    The fast food, or quick service restaurant industry (QSR), represents approximately 200,000 restaurants and $155 billion in sales in the U.S. alone, they are one of the largest segments of the food industry (Hoovers, 2011). This segment of the restaurant industry is “highly competitive and fragmented… number, size and strength of competitors vary by region, market and even restaurant. All of these restaurants compete based on a number of factors, including taste, quality, speed of service, price and value, name recognition, restaurant location, customer service and the ambience and condition of each restaurant” (Chipotle, 2010).…

    • 1962 Words
    • 8 Pages
    Best Essays
  • Powerful Essays

    The food industry in Canada, with its highly competitive market continues to evolve and change each day, affected by its financial surroundings, mechanical progression and accordingly, the shifting nature of consumer behavior (Office of Consumer Affairs, 2013). Canadian restaurant sector can be divided into three groups, the fast food or quick service, the mid- scale casual dining, and the fine dining. Ostensibly dominating the second group of casual dining is the Boston Pizza International Inc. (also known as BP). This research project is based on the Boston Pizza perceived as a Platinum Member of Canada 's 50 Best Managed Companies. This is to appreciate how the company has placed itself in the market and the factors at play, which have contributed not only to scale the pinnacle of success but also ward off the strategies of competitors and new entrants alike. Data collected is through the information available on the company’s website and other relevant websites, journals and articles and hence the implied limitation. It begins with the evaluation of the impact of various functions of the Boston Pizza such human resources, finance, operations, and marketing. Review of the organizations design and departmentalization with respect to the geographic location, products, services, and marketing…

    • 6343 Words
    • 17 Pages
    Powerful Essays
  • Good Essays

    The responses by the American people to the Great Depression varied over the 1930s. From the years 1929-1933 when President Hoover was in power, there was a deep sentiment of cynicism within the country. Hoover failed to properly attend to the needs of the populace and was subsequently replaced by President Roosevelt in 1933. Roosevelt’s charismatic and optimistic demeanour helped set a new national tone of hope, persistence and courage. The American people were known to have taken on this positive spirit throughout the 1930s despite the adversities they faced.…

    • 199 Words
    • 1 Page
    Good Essays
  • Better Essays

    The nature of the products and services provided in the restaurant industry are based on customer satisfaction with the food and services that each location provides. Providing a selection of delicious and well-presented food made with quality ingredients that are simple and good tasting is exactly what the customer wants. Most customers go to restaurants to meet with others socially in a friendly environment. Making sure the restaurant is clean, attractive, and the décor is consistent with the food and restaurant’s image and making sure the waiting staff knows that it is ok to allow customers to linger adds to the customer’s satisfaction in a restaurant. The restaurant industry is highly competitive in terms of price, service, location, and food quality and is often affected by changes in consumer trends, economic conditions, demographics, and the concerns about the nutritional content of the food.…

    • 3263 Words
    • 14 Pages
    Better Essays
  • Powerful Essays

    Panera Bread Assessment

    • 4525 Words
    • 19 Pages

    The restaurant industry in the U.S. is robust with sales revenue expected to reach $632 billion in 2012, with 970,000 dining establishments. Participants differentiate themselves in the areas of pricing, food quality, food offerings, and ability to adapt to changing consumer needs, use of technology, atmosphere, and service in order to stay competitive. Panera Bread (“Panera”), a bakery-café, has been effective in differentiating itself in…

    • 4525 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    Olive Garden

    • 1576 Words
    • 7 Pages

    During week two, Learning Team B will take a thorough look at the Olive Garden Italian Restaurant chain. Team B has decided that a new appetizer item should be added to the restaurant menu. The appetizer item being considered is cheese filled breadsticks served with Marinara sauce. The team will begin this marketing plan by giving an overview of the Olive Garden Restaurant, along with a detailed description of the new menu item being considered. They will also explain why marketing plays an important role in the restaurants success. A SWOTT analysis will be given to introduce all the strengths, weaknesses, opportunities, threats, and trends that should be considered prior to introducing this new appetizer to their menu. Finally, a marketing research approach will be decided upon and used to develop the marketing strategy and tactics for this new appetizer item.…

    • 1576 Words
    • 7 Pages
    Powerful Essays
  • Best Essays

    To purchase reprints of this article please e-mail: reprints@emeraldinsight.com Or visit our web site for further details: www.emeraldinsight.com/reprints…

    • 5125 Words
    • 147 Pages
    Best Essays
  • Better Essays

    This paper provides a written analysis of the Innovation at International Foods (IFG) case study. The paper will provide an analysis of the issues that Josh Novak, the new team manager at IFG is facing with the existing staff. Josh has come for Glow-Foods which was a smaller company that has been purchased by IFG. Josh was retained due to the innovative ideas that produced significant growth at Glow-Foods by reaching the younger market. It has now become his job at IFG to do the same. However, as Josh is becoming more acclimated to the way things are done at IFG, he and his team are being bogged down with processes and procedures that are in place. The team does not believe that will be able to do the job they were hired to do. To be innovative, there must be some freedoms given, they need the proper tools and ability to gain knowledge and stay abreast of the new ideas in the market place. The task at hand is for Josh to keep his team on track, make sure they do are not discouraged and mitigate any risk. Josh has to win the support and trust of the existing teams so that they will respect and consider his team’s ideas.…

    • 1189 Words
    • 5 Pages
    Better Essays
  • Better Essays

    HTM 100 assignment 2

    • 1300 Words
    • 4 Pages

    The hospitality and tourism industry has been growing and developing very fast over the years. This assignment will discuss the challenges that are involved in managing restaurant operations that are specific to my state, as well as how the challenges will be addressed. Such challenges the restaurant industry faces are regulatory issues, social concerns, competitive issues and demographic and geographic issues. I am also determine in seeing the impact of setting computerization on the food service and lodging operations within my state, particularly in the areas of reservations, accounting, personnel management, and the recording of sales transactions,. In this we also discuss the factors like the , I’m also going to consider the quality of technology infrastructure in my state and the degree of technology usage by potential customers visiting or using these services within my state. I will be giving my opinion on all of these topics plus I will also analyze the interdependence of food service, lodging, and meeting segments of the hospitality industry and make recommendations for how the synergy between the could be improved, using examples from my state to illustrate my case. I will also explain how I believe these segments can improve their relationships between one another and how they can combine their services in order to be more marketable in my home state, and lastly I will Determine the likely consequences of the introduction of gaming entertainment into my state, or discuss my state already allows gaming, the impact of significant economic expansion of the segment upon other segments of the hospitality industry.…

    • 1300 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Windchill Executive Summary

    • 2339 Words
    • 10 Pages

    This essay is an analysis and recommendation for innovation capabilities of PTC (Parametric Technology Corporation), which is a software company I served for previous 3 years. All the analysis…

    • 2339 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Panera Bread

    • 919 Words
    • 4 Pages

    The threat of new entrants in the restaurant industry is moderate to high. However, not all operators will be afforded the luxury of a big advertising budget to garner sustainable market share. For firms to successful, they will have to offer a wide variety of menus to differentiate them from competitors and establish their own niche. For fast casual restaurants to be successful, they have to be consistently providing quality meals and an ambience that sets them apart from competitors. This case highlighted that “the restaurant business was labor-intensive, extremely competitive, and…

    • 919 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Article on Skills Shortages

    • 9430 Words
    • 38 Pages

    To purchase reprints of this article please e-mail: reprints@emeraldinsight.com Or visit our web site for further details: www.emeraldinsight.com/reprints…

    • 9430 Words
    • 38 Pages
    Powerful Essays
  • Powerful Essays

    Lean Manufacturing

    • 5092 Words
    • 21 Pages

    To purchase reprints of this article please e-mail: reprints@emeraldinsight.com Or visit our web site for further details: www.emeraldinsight.com/reprints…

    • 5092 Words
    • 21 Pages
    Powerful Essays
  • Good Essays

    A recent data shows that 40 % of Hardee’s business has to do with serving a breakfast menu (Petroff). This shows that this company can still be successful in their own unique way without necessarily following the standard rule of focusing on lunch and dinner products. Hardee’s product is considered to be very customer-driven as proven through some of the products that the company has successfully developed. Customers in one particular region might demand Hardee’s famous B-hole menu, while the other customers in other places might demand something else. As a result the creative team came up with a regional product that satisfies the customers within the specific region (Petroff). One important thing to understand here is that the…

    • 727 Words
    • 3 Pages
    Good Essays