restaurant:

Growth Through Innovation

As a whole, the restaurant industry heavily relies on innovative offerings. A lack of relevant, new menu items can spell disaster to restaurants striving to attract new fans and remain appealing to their core customers.

Recent economic conditions, however, have caused restaurants to focus on developing value offerings rather than innovating new menu items. This is often done simply by cutting costs on existing offerings. In tough financial times, it's easier for the industry to reduce innovation spending and instead focus on the short-term bottom line.

Abandoning innovation in a down economy, however, can be shortsighted. History has shown that corporations that maintain an innovation push during tough times can be very successful, gaining share while competitors reduce innovation expenditures. Also, value and innovation are not mutually exclusive – in fact, there can and should be continuous innovation at a variety of menu-offering levels, including at the value, healthy and/or premium levels.

Providing healthier options, especially for kids, is in fact one of the leading trends for the quick-service segment. Offering healthier options while developing flavorful foods is one of the challenges operators face. This applies not only to entree items but also to desserts, as consumers still crave a tasty treat at the end of the meal.

Value options are still a requirement for restaurants. This transcends almost all categories and will remain a prominent part of the menu mix, especially in the quick-service and casual dining categories.

In terms of operational innovation, operators are being challenged to isolate improvements without detracting from the dining experience. This can only be successfully achieved by having a deep understanding of the service delivery elements that customers expect and ensuring these areas remain intact.