The restaurant industry has faced another blow with Bertucci’s filing for bankruptcy, citing changing climate along with cheaper and faster alternatives as the main reasons for the failing business. But is that really the case? We recently published on strategic innovation and the changing retail environments as organizations focus more on cost reduction vs innovation; this, unfortunately, is another case to add to the long list of failures. Bertucci’s has self-identified faster and less expensive competition as the primary drivers of revenue loss; however, their only noted attempt at remedying the situation was to add a 15-minute lunch option. Is that really innovation, or is it just adding a band aid to cover up the root issue? Both retail and the restaurant industries have been crying foul and claiming new competition and millennial behaviors as the primary drivers of revenue loss. 3Sixty Inisights believes that it really comes down to true lack of strategic innovation, cost-cutting, and mismanagement at an executive level as the true drivers of revenue loss for both of these industries… With all of this said, it presents a clear advantage for smaller and more nimble startup organizations to break into markets where, for once, giants are failing to serve consumers. However, it has become apparent that it cannot be business as usual, and once a core value proposition is defined, strategic innovation needs a top strategy in order to continuously move the business forward.
https://www.pymnts.com/news/retail/2018/bertuccis-brick-and-mortar-bankruptcy/