Before there were business writers like Jack Welch or Malcolm Gladwell or Tony Robbins, there was Niccolo Machiavelli. The philosophizing author Machiavelli wrote “The Prince” in the early 1500s, and it might be the first business book ever written. Florence, Italy’s brand was fading, so Machiavelli outlined a strategy for leadership to return the once mighty city-state to its former glory. “There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success than to take the lead in the introduction of a new order of things.”
Machiavelli was talking about innovation. 500 years later, it’s just as important. As the business landscape changes and evolves, brands that maintain the status quo are more likely to face negative consequences. To lean on history — the way things have always been done — can leave you vulnerable to economic uncertainty, tightening margins and stiffening competition.
All companies claim to pursue “innovation” as a response to declining brand loyalty, unconventional competitors and brand-agnostic customers. But it’s the brands that systematically embrace innovation that are poised to create tenable, sustainable business offerings that drive success. Let’s turn it over to Machiavelli to walk us through some keys to innovation.
Look beyond product
“Fortune favors the brave.”
There is no denying that customer tastes and preferences evolve over time. So, it is natural to respond with a new product or menu item that meets these ever-changing criteria. However, it’s important not to conflate something new with something innovative. New can be copied. New is temporary. Industry leaders, like Chipotle, create paradigm shifts. Chipotle recently unveiled a robot named Hyphen that will work alongside humans to make burrito bowls. Chipotle identified that burrito bowls were trending in popularity. The easy, obvious reaction would be to create more burrito bowl options. Instead, Chipotle chose to have robots help humans with the most labor-intensive parts of burrito bowl prep. This frees up workers to interact with guests, creating a one-two punch of higher efficiency and better service. It’s a smart deployment of labor-saving technology that grows into a competitive advantage. This is the kind of bigpicture idea that makes innovation a sustainable play for the long term, which is the ultimate goal. Successfully looking beyond a product means creating ideas that are hard for competitors to copy.
Design for consumer behavior
“The ends always justify the means.”
Innovation isn’t just about plucking ideas out of thin air. Hard data can shape astute decisions. By using the science of behavioral economics, companies analyze deficiencies in a brand or, conversely, spotlight its attributes. By building on existing habits and leveraging feedback, brands can craft experiences where value increases over time. Sweetgreen’s fast food concept for salads was a market disruptor 15 years ago. Instead of resting on its laurels, Sweetgreen continues to push on its greatest strengths: authenticity and convenience. Sweetgreen knows health and well-being are important to its customers as more and more people want to know where products are coming from. To re-enforce their customers' values, it aligned with professional athlete brand ambassadors like pro tennis player, Naomi Osaka, and NBA star, Devin Booker, who embody their brand image. Sweetgreen also continues to innovate in matters of convenience. Rapid salads aren't enough to satisfy the needs of all their customers. The introduction of drive-thru lanes at some stores is a calculated answer to customers’ suburban driving habits. Sweetgreen is strategically positioned as a healthy and practical food source; its innovative responses to consumer behavior only serve to strengthen this position.
Develop internal capabilities for change
"Where the willingness is great, the difficulties cannot be great."
It’s easier to talk about pie-in-the-sky ideals than to actually implement them. Actions are stronger than words. Every strata of infrastructure in a company needs to be on board to foster and encourage change within a brand. Yesterday’s restaurant winners are not guaranteed tomorrow’s success. As the largest chain restaurant operator in the world, many would have considered McDonald’s an immovable dinosaur. Surprisingly, McDonald’s recently demonstrated that they have an effective brand culture, ready to rally behind innovation. A new digital loyalty program by McDonald’s rolled out in July 2021. Incredibly, McDonald’s garnered almost 50 million loyalty users across 50 international markets by the end of 2022. McDonald’s was able to benefit financially from this innovation and reward stockholders. By encouraging larger order sizes and greater order frequency from program members, loyalty programs such as this can translate directly into financial results. But loyalty programs, like the best innovations, only work when executives to hourly restaurant workers and everyone in between push in unison.
Trust the process.
If Machiavelli were alive today, he could write a follow-up book about Florence pivoting from banking and trade into tourism. Florence successfully used the existing infrastructure of a medieval city to create an outdoor museum of sorts. Its popularity has incentivized the brand to prioritize preservation, as it is now a UNESCO World Heritage site and a Green Pioneer of Smart Tourism.
You don’t have 500 years to weather a storm in your operation. Innovation can turn the tides of economic uncertainty, tightening margins and stiffening competition. There is not a one-size-fits-all approach to affect innovation in a brand. Hatco is on the leading edge when it comes to integrating foodservice tech and foodservice equipment innovation.
Contact a Hatco rep today and rewrite your operation’s history with improved consumer brand perception and increased profits.
