DECEMBER 202419MANUFACTURING TECHNOLOGY INSIGHTSPlanned ideation sessions with vendors in our kitchen help us understand their capabilities. Occasionally, we organize ideation sessions, some of which are quick, while others can span for several months. We recently conducted detailed ideation for our breakfast category, involving nine different suppliers and chefs collaborating to develop various concepts. These ideas are then presented to the leadership.BASED ON YOUR EXPERIENCE, WHAT SIGNIFICANT CHALLENGES ARE CURRENTLY IMPACTING THE FOOD INDUSTRY?Understanding consumer desires is a significant challenge. We utilize various consumer touch points, including concept testing, where consumers rank menu ideas. We also use focus groups and CLT, which are tested in the field to closely engage with consumers. The main hurdle is ensuring our product aligns with consumer preferences.Another challenge is the low innovation success rate, in which out of 100 ideas, only a few reach the restaurant due to rising costs, especially after the impact of COVID. Prices for resources like propane and food and packaging have increased, significantly affecting margins. Although it has evolved slightly in the last few months, some categories have remained expensive. Labor and operational complexity is a common challenge faced by most food chain companies. Our extensive 24/7 menu is consumer-friendly but operationally demanding for our restaurants.ARE THERE ANY EMERGING TRENDS OR DEVELOPMENTS IN THE MARKET THAT COULD ADDRESS THESE ISSUES?We track emerging trends from various sources, including third-party research and monitoring competitors online. Trends often originate in fine dining and transition to casual dining and fast food. For instance, Mexican flavors like birria are gaining popularity across food spaces. We're also exploring the introduction of boba tea drink, which is new to fast food but not the food industry. Enhancing our breakfast offerings is a continuous focus.CAN YOU SHARE INSIGHTS ON A RECENT PROJECT INITIATIVE WHERE YOU APPLIED THE LATEST INDUSTRY TRENDS? During my first tenure at Jack in the Box, the Buttery Jack project was initiated. It replaced the underperforming Sirloin burger and became a significant revenue generator. We began with 150 ideas, narrowed them down to 10 thematic concepts, and further reduced them to five through focus groups. The Buttery Jack concept emerged with real butter and seasonings on the patty, a rare and successful addition to fast food, making it an exceptional project.WHAT ADVICE WOULD YOU OFFER TO YOUR PEERS AND EMERGING PROFESSIONALS IN THIS FIELD?My advice is to prioritize data. While obtaining data can be costly, it's a crucial investment. Allocate a portion of your budget for this purpose and proceed cautiously, capturing multiple consumer touchpoints before launching any product.In my experience, rigorously testing products using various consumer touch points significantly increases the chances of success. This approach demands planning, discipline, and resources, leading to a higher success rate. This article is based on an interview between Manufacturing Technology Insights and Rodolfo Estrada.Understanding consumer desires is a significant challenge. We utilize various consumer touch points, including concept testing, where consumers rank menu ideas
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