Managing menu innovation in a saturated market: An empirical evidence from the Chain restaurants in Malaysia

Abstract

This paper presents the empirical results of a recently concluded research study about managing menu innovation in a consumer market that has reached to its saturation level. Such market condition resulting in increased competition and, therefore, a need for increased innovation is essential. In this study, an investigation was carried in substantiating the effect of market saturation toward the relationship between innovation orientations and new menu innovation process. The region of Klang Valley was chosen as the study setting for its dynamic and matured consumer foodservice market. In this investigation, the theoretical conceptualization and the empirical validation of the proposed menu innovation process as a second-order hierarchical model along with the moderating variable of market saturation as first-order constructs were first advanced using both Statistical Package for Social Science (SPSS version 19) and partial least squares. Empirically, the measurement and structural models of this study confirmed adequate estimations based on partial least squares path modeling parameters. In line with the strength of partial least squares to explain complex relationships, the use of path modeling has made it possible to advance the theoretical contribution to this study. The results show that the moderating effect of market saturation on the link between the exogenous and endogenous variables found to have a medium effect size (f 2 ¼ 0.289) and significant at < 0.05). The findings point to managerial challenges in shaping competition as evidence of radical innovations is still being pursued, although slightly weaken. This study, apart from its contribution to the model development of menu innovation process, has meaningful implications for restaurateurs to stay afloat in such a market condition.

Generation Z domestic food tourists’ experienced restaurant innovativeness toward destination cognitive food image and revisit intention

“…The restaurant menu presents its food attributes to customers, such as calories, nutrition and price (Burton et al, 2009). Corresponding to rapid changes in Gen Z customers' preferences, expectations and lifestyles, innovative menus help restaurants respond to gastronomic trends and create greater demand (Bencsik et al, 2019;Gagi c, 2016;Mifli et al, 2017). Following the cue utilization theory (Olson, 1972), perceived menu innovativeness reflects the trackable enduring capability and efforts of food providers to meet Gen Z customers' expectations (Kunz et al, 2011).…”

Factors Influencing the Customer Dining Experience and Retention at Marrybrown in Malaysia

“…Menu innovation also influences customers' dining experiences and their retention since menu layouts may result in positive dining experiences and feedback (Ozdemir & Caliskan, 2014). Therefore, a menu should be taken seriously in the menu designing process to make it unique and attractive for customers (Mifli, Hashim & Zainal, 2017). Besides, an understandable menu with colorful pictures is essential and recommended to clarify that the products and services provided achieve customer's targets and expectations during their visits.…”

“…Besides, an understandable menu with colorful pictures is essential and recommended to clarify that the products and services provided achieve customer's targets and expectations during their visits. Therefore, creating a creative design and continuously updating the current information of the menu are examples of menu innovation processes (Mifli et al, 2017).…”

The impact of social capital and knowledge sharing intention on restaurants’ new product development

“…While this systematic process is used to develop generic or food-related products (Harrington, 2004), its application in a hospitality setting is limited (Harrington and Ottenbacher, 2013). Studies on restaurants’ NPD have typically examined the process in quick service restaurants (Cumberland and Githens, 2014; Ottenbacher and Harrington, 2009b), chain restaurants (Mifli et al , 2017) and contexts involving Michelin starred chefs (Ottenbacher and Harrington, 2007; Ottenbacher and Harrington, 2009a) and haute cuisine (Albors-Garrigos et al , 2013; Albors-Garrigós et al , 2018; Stierand et al , 2014). In a restaurant context, the process can be top-down (Ottenbacher and Harrington, 2007), vary between large and small restaurants, follow a different approach because of resource constraint (Ottenbacher and Harrington, 2009a) and be neither formal nor well-structured (Ottenbacher and Harrington, 2009b).…”