Photo: By cozymax on Flickr
Consumers are eating out less often than they did before the recession hit, and because times are tough, they’re largely ignoring innovation. The new ideas the industry is coming up with aren’t “game-changing.”
From the report:
- Innovation is being done only “at the margins,” which is only natural because of current down market
- There is “little real innovation” being done in operations
- Chipotle and Five Guys are doing amazingly well, but their success is based off of providing customers with choice — a concept already widely used
- The vast majority of stores are merely “being prudent, sticking to what they know works, keeping an eye on costs, and taking their time about adopting new ideas”
It’s a vicious circle. Many of these big brands are publicly owned, and subject to constant scrutiny by investors and analysts. They’re forced to conserve their funds, and can’t spend the time and money to come up with new ideas.
It appears that innovations like Taco Bell’s Doritos taco shell are aberrations.
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