QSR R&D has way to go to be called 'innovative'

QSR R&D has way to go to be called 'innovative'
Tags: Food & Beverage
June 10, 2010

What is "food innovation?" The term needs defining as food companies have renamed R&D centers and support centers as "Food Innovation Centers" in recent years. And the term "innovation" now appears frequently in business titles on business cards.

Names are important because they communicate messages for customers and employees. Naming also represents a marketing tool. So when food companies incorporate "innovation" in their branding, they are trying to communicate to their customers that they provide innovative new products.

But do U.S. food companies fit the title of innovative? I argue that the "golden age" of food innovation extended from the 1960s through the early 1980s has passed us by. Food innovation can be measured in tangible terms, by counting the number of food product and food processing patents issued by the U.S. patent office. It can also be measured in tangible and subjective terms through identification of successful new products based on sales generation and longevity on menu boards. Some QSR restaurant food innovation success stories include Wendy's Frosty shake, Dairy Queen's Blizzard, chicken nuggets and popcorn chicken.

Prior to the 1960s, innovation in the food industry was defined by food processing innovations like Birdseye's freezing process and food dehydration processes that extended the shelf-life of food products and enabled widespread distribution to consumers as our society expanded into large metropolitan areas. This "process innovation" led food companies to build and develop research and development departments filled with highly trained food scientists. Companies encouraged and rewarded employees through promotions for scientific achievement.

But that all changed in the 1980s as food companies pared back on R&D departments, lost patience with long innovative development timelines and demanded the immediate "big hit" or "silver bullet." Product line extensions became the low risk marketing promotions that have extended to the 2010s. Brands began to blur together as customers began to see Taco Bell and KFC products sold in the same building across the same counter. And companies began to hire creative chefs to develop great tasting recipes to gain a market advantage as they fought for the same customer.

So are food companies innovative today? I am not convinced! The food industry needs to re-create an "innovative mindset" as a cultural change within today's R&D environments before it earns the designation of "innovative." And that cultural change needs to start in the private equity board rooms that manage many restaurant chains.

What changes are required within a restaurant organization to create or drive food innovation? I recently sat down with Dipak Jain, PhD, who was the previous dean of Kellogg School of Management at Northwestern University in Chicago. Jain teaches two classes at Kellogg, "Creating a Culture of Innovation," and "New Leadership for an Innovative Edge." Our discussion focused on how we can bring innovation to the food and beverage industry, because I believe most executives in the food and beverage industry are dissatisfied with new product innovation in their companies.

For this reason I decided to start the "Food Innovation Institute" (www.foodinnovationinstitute.org)* where creative, innovative thinking can be applied to new product development. The first in a series of classes will focus on "New Sandwich Innovation" June 24-25.

But what are some of the 'Principles of New Product innovation?' Those principles include:

Creating a 'culture of new product' innovation within the executive, marketing and R&D teams of a company. A new culture may include risk taking, out-of-box thinking, rejection of new idea criticism, etc.
Creating a leadership structure within an organization for new product innovation
Challenging traditional methods of thinking and innovating new products
Creating a culture of culinary leadership within an innovative corporate environment
Reward innovators with salary and title promotions
Learning from other service industries
Why innovation doesn't always correlate to more R&D spending

In the coming months, I will continue to blog on new food and beverage product innovation. Our Food Innovation Institute will also look at other industries for product examples, and new cultural thinking patterns that drive new innovation. A good place to start for modeling is Apple!

*Website for www.foodinnovationinstitute.org is currently under development

Darrel Suderman, Ph.D., is president of Food Technical Consulting and has 20 years experience in QSR restaurant new product innovation, quality assurance, manufacturing systems and supply chain management. He will be providing commentary to QSRweb on QSR R&D trends in the coming weeks. You can learn more about him at www.foodbevbiz.com.