Monthly Archives: November 2014

disruptive innovation and food

Today at lunch my father announced that some industries are doomed due to disruptive innovations but some are safe. I of course reacted emotionally at first telling him he was talking complete rubbish, but then after pausing to draw breath, I like to think I rationally pointed out why no sector is safe from disruptive innovations.

Ziferblat CafeWhen talking about innovation I like to talk about Butchers and Restaurants.

The basic value proposition for a butcher is quite simple and has been the same for a thousand years. Nobody wants to slaughter a cow, and its pretty hard to store a whole cow to eat at your lesiure. Much easier to get some one else to do the dirty work, then take a tiny share. There is not much innovation going on in the sector and the heuristics for running a successful butcher shop are fairly simple – put it on the high street, front load your cabinets with delicious offerings, look hygenic.

However old and mature the standard business model is, don’t think you’re safe from disruption.  Consider restaurants.

The value  proposition of a restaurant is also pretty simple – pay a third party to give you food that you can’t or wont prepare for yourself.   But when you talk about innovation in restaurants, things start to get weird when you pick at the surface.   At most restaurants you pay for the food you order, with each dish a separate price.

Sometimes the food is in the kitchen for you to order, and sometimes its brought to your table for you to select (love yum cha!). Sometimes you pay a set price and get a set menu. Things can get much more innovative though. In South America, kilo restaurants are not uncommon. Restaurants that advertise a price per kg. You then load up your plate with whatever you like from the bain-marie, weigh it then bay the kg price.  And now there is a new innovation I find quite fascinating – as it approaches the monetisation problem from a completely different angle and throws out the original value proposition effortlessly.  A pay per minute cafe has just opened in London. Basically everything is free, you just pay for how long you stay at a rate of 3p per minute.. The catch is that for many things you may like, you may have to cook yourself. Eg there are eggs and bread in the pantry and frypans and toasters available.

The key here is that disruptive innovation can come to any sector, simply by having a good look at the value proposition that underlies all the other activity.

The butchers value proposition is just started to get looked at – which is why we are seeing franchises of poultry specialists, direct to the public wholesalers and champagne served with tastings!  Plenty more innovation to come I think.