Innovation in Chinese Restaurant Industry.docx

Innovation in Chinese Restaurant Industry.docx

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InnovationinChineseRestaurantIndustry

InnovationinChineseRestaurantIndustry

TeamMembers:

WANGYingWANGFang

I.Introduction

Foodisthefirstnecessityofman,sorestaurantindustryhasbeenexistingforcenturiesforsatisfyingthisprimewantofpeople.Chineserestaurantindustryisalwaysapopularmoneyinvestmentareadependingonitsfavorabledevelopmentprospects,lowtechnologyinvolvement,comparativelyhighreturnrate,lowriskandshortpaybackperiod.SinceKFCestablishedthefirstchainstoreinBeijingin1987,variouswesternfoodindustrieshaveenteredChinesemarketwhichbringsgreatchallengetoChineserestaurantindustry.Withglobalization,Chineserestaurantindustryhasrapiddevelopmentbyabsorbingexperiencesofforeigncompanies,butstillhaveawidegapwithsomeglobalfoodcorporationsinbusinessscale,foodandservicequality,managementandespeciallyininnovation.Therefore,forkeepingcompetitiveadvantageofChineserestaurantindustryandpromoteChinesefoodtothewholeworld,howtodevelopinnovationinChineserestaurantindustryhasbecomeatopissue.ThispaperbasedonthedifferencebetweenChineseandforeignrestaurantindustryandcasestudiesaboutproductinnovationonBestFoodCompanyandmanagementinnovationonHaidilaoCompany,bringoutpropersuggestionsoninnovationinChineserestaurantindustry.

II.TheGapbetweenChineseandInternationalRestaurantIndustry

Thefightinginrestaurantindustryiscompetitionaboutbusinessscaleandcompetitiveadvantages.Themainbodyinglobalmarketaretheinternationalcorporationswithlargebusinessscaleandfamousbrandimages.Thosecorporationrealizetheirscalemanagementbycollectivization,chainstoreandjoinventure.Allofthemhaveprofessionalstrategicmanagementonmarketing,communicating,production,logisticsandhumanresourceandkeepaunifiedstandardonfoodandservicequalityrequirement,managinganddevelopment.Theyalsofocusalotonvariousinnovation.LikeKFC,apartfromputtingnewtypesortastesoffoodeveryseason,KFCalsoadjusttheproductswithdifferentpeopleanddifferenthabits.Forexample,Chinesepeopleisusedtokeepingriceasthemainfood,soKFCputstraditionallyChinesebreakfastlikeporridgeanddeep-friedtwisteddoughsticksintomarketwhichhaswonmanyfavorablecomments.AndMacDonald'sproducedvegetarianhamburgersinIndianandalsosuccessfullywonlargemarketshare.Comparingtothem,mostChineserestaurantcompaniesarelikehouse-playingwithsmallbusinessscale,noprofessionalmanagerandmanagementsystem,unstablefoodandservicequalityandworriedsanitaryconditions.Besides,mostfoundersofChineserestaurantcompanieshavelimitededucation.Theylacktherequiredmanagementknowledgeandlongmarketview,sotheirrestaurantalwayshavenomarketingstrategyandbrandconcepttokeepcustomers'loyaltyandoftenignoretheimportanceofinnovation.Sometimes,theyaresatisfiedbytheshorttermprofitandeventrytominimizethecostbysacrificingthefoodqualitywhichfinallybringthewholecompanytoanend.

ForchangingthecurrentsituationofChineserestaurantindustry,innovationisagoodwaytobringnewenergytothewholeindustry.InnovationfromtheconcepttoproductandtomanagementisneededindevelopingamodernenterprisesystemandbuildingcompetitiveadvantagesinChineserestaurantindustry.CompanieslikeBestFoodandHaidilaosetgoodexamplesininnovationrespectivelyonproductandmanagementwhichshouldbepromotedtomorerestaurantcompanies.

III.ProductInnovation-baseonthecaseofBestFood

i.IntroductionofBestFoodrestaurantcompany

BestFoodisachinesefastfoodrestaurant.In1996,itwasfoundedinXinjiangprovianceasapioneerofnewtypeoffastfoodrestaurant.ItisafranchsingrestaurantcompanywhichwasanindependentmasterofformulationtechnologyandanindependentregestrationbrandintheNationalTrademarkOffice.Thecompanypossessesuniquecorecompetitivenessandrelysondifferencesinthepositioningofstandardizedtechnology.Theworld’sfirst"sideofthestreamandsideoftheroast"processtomeetthehugedemandforthefastfoodonhealthandscientificmanagementmode.ThecompanyisthefirstoccupationofthemarketopportunitiestoexcellentattitudeofChina’sfirst"healthychicken".Inearly2004,BestFoodbranchedinXi’an.Ithascreatedthedepolymentofrawmaterialsandtrainingcenters,inordertoprovidebetterandmoredetailedlogisticalservicesforthevariousbranchesofthecountry.Attheendof2006,Thecompanyhasmorethan50storesinXinjiang,Shaanxi,Henan,ChongqingandLiaoning.Ithasgrownmorethantenfold.TechnologyinnovationtocreatthehealthyfastfoodandtheproductinnovationwhichcombinethewesternfoodwithspecialtyfoodfromXinjiangproviance.Andalsotheinnovationoftheconceptandimage.Thecompanyalsohastheleadingedgeofthetotalcost.

ii.Productinnovation

-Differentationofconceptandimage

Asforthedifferentationofconcept,first ,thementionof"roastedchicken"，consumersthinkofBestFood.Second,theemphasizeoftheconcept "Xinjiangcharacteristics".

Thedifferentationofimage,first,mysteriouscultureofXinjiangandtheimageofbeautyinXinjiang.Second,usingclassicalchineseheroimageaslogo.TheinnovativeideasoflogocomefromaveryfamousheroimageofLoulanculture（AnacientcultureinXinjiang）.Thenewlogounifiesthebrand,cultureandproductofthecompany.

-Spacedesign

Theinnovationthattakesintoaccountlocationandphysicaldesignoftherestarurantsarenowtakingonathemetodeveloptheirbrand.Inthestoredesign,BestFoodmakefulluseofmark,symbol,platproductsofLoulancultureasdesignelements.

-Applynewtechnologies

Thetraditionalfiredfoodscookingisaprocessofoilabsorbing.Thefiredfoodsduetolongperiodoftemperaturetreatment,therewillbeaproteincoking,easytoheterocylicaminesandcarinogens.Thegeneralsmokedgrilledfoodscintaincarcinogeniccompoundssuchasthirty-fourbenzopyrenceandsulfurdioxide.Traditionalelectricoven700degreesCelsiuemakefoodinthelossofwater,resultinginproteincoking.BestFoodgrillestyrantsintheworld’sfirst"sideofthestreamsideofroast"processwhichuseofclesnenergyasahestsourceandtheuseofsteamhasalwayscontrolledtheoventemperatureto215degreesCelsius,andreplenishthefoodwatertoavoidntrientsloss.Thefoodcandischargeexcessgreasetoensurethatfoodstasteflavorfldeliciousandglodencolor.

Aroundthesetofprocess,tnecompanydevelopedadozenpatenedtechnologywithcompletelyindependentintellectualpropertyrithts.Thecompanygainsfiercemarketcompetition.

Thecompanycombinedtheautomatedprocessofwesternworldwithtradieionalroastedchickentechnology.Ithighlyenhancesthejobefficiency.

Inordertoensurethequalityofchicken.BestFoodselectedthenaturalgrowthofgrasschickeninInnerMongoliaandXinjiang.Allaspectsofthematerialsupply,BestFoodgrilledinfullaccordancewithinternationallogisticsstandardmanagement.

-Productdesign（foodinnovation）

Thefoodinnovationthatinvolvescreatingnewtastesornewwaystopresentfoods.Alotofactivityhasbeengoingoninthiscamp.Ontheproductstrature,BestFoodfutherdevelopedthespecialtyfoodofXinjiang.Thecompanyintroducedfruit,corn,wine,cattleandsheepkebabandotherproductstoextensiveproductvarietyandmakeacleardifferntationofwesternfastfood.

IV.ManagementInnovation-basedonthecaseofHaidilao

i.IntroductionofHaidilaoCompany

Haidilaocompanywasfounderin1994whichatthattimewasasmallrestaurantsellingSichuanHotpot（HotpotreferstoseveralEastAsianvarietiesofstew,consistingofasimmeringmetalpotofstockatthecenterofthediningtable.Whilethehotpotiskeptsimmering,ingredientsareplacedintothepotandarecookedatthetable.Typicalhotpotdishesincludethinlyslicedmeat,leafyvegetables,mushrooms,wontons,eggdumplings,andseafood.Vegetables,fishandmeatshouldbefresh.Thecookedfoodisusuallyeatenwithadippingsauce.Inmanyareas,hotpotmealsareofteneateninthewinter.）.After18yearsdevelopment,withitsspecialtaste,heart-to-heartserviceandwonderfulenvironment,thiscompanyhasdevelopedmorethan60chainstoreswhichisspreadingalloverChina,kepttheannualturnoveruptoonebillionyuanandhademployeesbeyondtenthousand.Italsoestablishedmodernlogisticsystemandbuiltspecialfactoriestoproducethefoodmaterialinordertostandardizethestorageandguaranteethefoodquality.In2010,HaidilaowasawardedthetitleofthemostpopularhotpotrestaurantinChinaandplaningtoopenchainstoresinSingaporeandtheUnitedStates.ItsuniquecompanycultureandinnovativemanagementwasevenvisitedandlearntbyYum!

thelargestrestaurantgroupintheworld.

ii.TheSecretIngredientstoSuccess-Innovation

InnovationonService-fromSatisfactiontoSurprise

Inrestaurantindustry,servicequalityalwaysbeconsideredasimportantasthetasteoffood.Goodservicecanbringalotofpleasuretocustomerswhichcanattractthemtocomeatasecondtime.Conversely,badservicecanleadarestauranttodestruction.Whencustomershavebadtreatment,noonewillenjoythefood（nomatterhowdeliciousitis）.ThefounderofHaidilao,ZhangYongwasfullyawareoftheimportanceofservicequality,soheaimedtotryhisbesttosatisfycustomers'needandheactuallydidthat.Now,HaidilaoissopopularinChinathatonemayneedtowaitmorethanonehourforatable.But,amazingly,peoplewhohaveeverbeen