Hospitality Thinking - how business model innovation can change the game in the hospitality industry.

Dear all,

everyone loves to enjoy an exceptional food & beverage experience in a well operated restaurant, nice retail shop (for food & beverages) or to stay in a good managed hotel.

I would like to discuss/ research with you on the hospitality industry - and how business model innovation will have to power to influence the hospitality industry in a positive and customer-oriented way:
  • Restaurants (from owner-operated to chains)
  • Hotels (from owner-operated to chains)
  • Retail (for/ with food & beverages)
  • Service Provider (to the hospitality industry)
  • Other (where hospitality is a key success factor)
Looking forward to hearing from your thoughts, ideas, inspirations, patterns and examples.

Best regards from Munich,

Erik

Tags: business, hospitality, ideas, innovation, model, patterns, thinking

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Replies to This Discussion

Permalink Reply by Alex Osterwalder on September 9, 2010 at 10:40pm
Dear Erik, an exciting example of business model innovation in the hotel industry is CitizenM, which originated in Amsterdam. Patrick van der Pijl (who is also on the Hub) is working on visualizing it.
Permalink Reply by Erik A. Leonavicius on September 14, 2010 at 9:32am
Dear Alex,

thank you very much for this interesting concept. For all who do not know the concept - here is a small video:


Kind regards,

Erik
Permalink Reply by Patrick van der Pijl on September 30, 2010 at 6:40am
Hi Erik, as soon as we have materials to share, we will do so. We also incorporate business models of the classic Hotel chains. Cheers Patrick
Permalink Reply by Stephen Newbury on September 22, 2010 at 10:46am
Dear Eric,

That’s very interesting topic.
There is no doubt that hotels generally operate in an extremely competitive environment, making the need for differentiation a priority if commoditization is to be avoided. In this crowded marketplace there are some companies who are developing genuinely unique services in the face of changing customer demands. Some companies are more successful than others in creating new customer value propositions through business model innovation.
IIG is recently working on Business Model Report : Hotel Industry, this report examines hotels around the world used by consumers for business and leisure. By examining specific aspects of hotel innovation and by comparing the business model timelines of successful companies, this report aims to draw conclusions and parallels that can help to shape the future of hotel innovation in organizations that are falling behind.

Please let me know if you would like to know more about our work, you can also subscribe to our Business Model Review Newsletter ( http://www.iigglobal.com/subscribe.html ) each two weeks we show few cases of innovative business models and this week we will show some examples from Hotels sector.

Best Regards
Permalink Reply by Hugh Johnston CA CMC on September 23, 2010 at 6:52pm
Erik

There have been many business model innovations in restaurants. Some great examples include

- drive thru's which in some cases ended up as the main channel of business driven by consumer preference
- fast casual which provided something better in a convenient location again driven by preference, and
- think global act local, which has allowed a very limited group of chains to take their brands accross borders

So where are the next massive innovations coming from. They are likely happening right now and may not be where people think of. This I would like to hear more on!
Permalink Reply by Erik A. Leonavicius on September 29, 2010 at 9:55am
Dear Hugh,

thank you very much for your input.

Lets summarize/ discuss the innovation patterns:

Drive Thru Restaurant = process innovation
Fast Casual = architectural innovation?
Think Global Act Local = pattern of innovation?

One of my favourite business model innovation on restaurants/ foodservice operations is
INAMO Restaurant in London - the first interactive restaurant:

Permalink Reply by Hugh Johnston CA CMC on September 29, 2010 at 4:37pm
Erik

Inamo has a brilliant innovation!!

Lets summarize again then the innovation patterns all which are consumer driven / meet a very large unmet need:

- Drive Thru Restaurant - process innovation
- Fast Casual - disruptive innovation (stripping out full service features guests do not value at certain occasions)
Think Global Act Local - adaptive innovation (adapting a business model to local market needs and income levels)
Interactive Service - process innovation

Lets go back to Inamo then. What a brilliant innovation. Who else is making huge strides?
Permalink Reply by Andrew Weller on September 25, 2010 at 9:03am
Do you mean that "from owner-operated to chains" is a business model innovation of significance?
To me, truly distinctive business model innovation can be seen in something like this:

Magill Estate Restaurant

Leading Wine Brand. Cellar Door - bolt on exclusive food experience, exclusive access to rare wines/someliers...

and perhaps that business model pattern was adopted by:
Spoon by Aramis.

Cheers,
Andrew from Adelaide.
Permalink Reply by Hugh Johnston CA CMC on September 28, 2010 at 3:09pm
Great innovations there! Love the examples. Niched well and higher end.
Permalink Reply by Erik A. Leonavicius on September 29, 2010 at 10:21am
Dear Andrew,

thank you very much for your message and your good examples.

With "from owner-operated to chains" I mean that business model innovation can happen and is important in all sizes of operations in the hospitality industry.

A good example of business model innovation in chain foodservice operations is the future store of McDonald's.
The prototype of a new McDonald's operations is running/ tested at Munich/ Kirchheim:

- McDonald's (Classic McDonald's Products)
- McCafé (Coffee-Shop)
- McDonald's Easy Order (Selfservice-Terminals)
- McDonad's Salads (Custom-made fruits, salads & wraps)
- McDonlad's Gym Club (kids fun, play & training area)

Everything is made fresh to order.

Here are some pictures:

Outside:


Interior:


Main Order-Counter:


New Menue-board:


Easy-Order:


New Pickup Area & Waiting Area:

Ronald McDonald's Gym Club:

Permalink Reply by Hugh Johnston CA CMC on September 30, 2010 at 3:55pm
Erik

These are brilliant. McDonalds is currently updating its locations in Canada based on what I believe to be the models developed and tested in Europe. The interiors in particular are highly innovative and speak very much to their way of Acting Local.

One big message in this brand I think is that you can be very innovative in your business model while building on your core value proposition no matter how big you are and no matter how much you have invested in your legacy and heritage.

We will continue to see this company innovating, finding ways to re-invent the value model like they are doing in coffee today.

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