Innovation and Entrepreneurship in Hospitality Industry

This report discusses the implementation of innovative ideas in the hospitality industry, with a focus on KFC's edible coffee cups. It includes a list of 10 innovative ideas, environmental analysis, trend analysis, and various innovation management tools such as mind maps, brainstorming, and 6-hat Imagineering.

Running head: INNOVATION AND ENTREPRENEURSHIP
Innovation and Entrepreneurship
Name of the Student
Name of the University
Author note

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Table of Content
Introduction................................................................................................................................2
10 innovative ideas in Hospitality Innovation...........................................................................2
KFC Edible Coffee Cups...........................................................................................................3
Environmental Analysis.............................................................................................................4
Macro Environmental analysis...............................................................................................4
Micro Environmental Analysis..............................................................................................5
Trend Analysis...........................................................................................................................5
Idea box......................................................................................................................................6
Brainstorming.............................................................................................................................6
Mind Maps.................................................................................................................................6
6-hat Imagineering.....................................................................................................................6
Conclusion..................................................................................................................................7
Reference:..................................................................................................................................8

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Introduction
In any business industry innovation is the most effective strategy to attract more
consumer, increase market share and generate enhanced amount of revenue in very short
period (Crumpton, 2012). This report presents the concepts and implementation of innovation
ideas in Hospitality industry. At first 10 innovative ideas will be listed from which one idea
will be chosen. In the next part, the report will describe that how the selected innovative ideas
is the most viable one for the company as well as for the hospitality industry. To do so
various business and innovation management tools such as macro and micro environment
analysis, Mind map, brain storming, trend analysis, 6 hat Imagineering will be used.
10 innovative ideas in Hospitality Innovation
 Recipe printing on coffee mixture and type of coffee
 Coffee chain sleeve cups printed with hourly news bulleting and top hour headlines
 User generated online drinks in the market
 Personalized coffee blends delivered to homes upon request
 All in one cheese making kits
 Monthly coffee and music mix for pairing package
 Edible plates in restaurants
 Recipe coffee mix
 Edible coffee cups
 Restaurant to home coffee making for top dollar services

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KFC Edible Coffee Cups
The KFC Edible Coffee Cups have been chosen as the most appropriate innovative
ideas for hospitality industry that can help to generate increasing profit margin and an
enhanced rate of market share.
Figure 1: Images of Edible Coffee Cups
Source: (Alexander, 2018)
The specialty of edible coffee cups is consumers can eat the coffee cup after
consuming the coffee. In most of the cases the edible coffee cups are made in bakery system
for develop a crispy and crunchy experience while eating. Not only it offers a new experience
for the consumers, it is also reduce the material waste from the food and beverage industry
(Onetti et al., 2012).
KFC has already introduce the edible coffee cups in some of their restaurants and
reported about a significant amount of waste reduction. This edible cup system has been
already utilised in ice cream companies and its positive impact on environment and consumer
experience have been proven better than other innovative ideas (Anderson, Potočnik & Zhou,
2014). Similar to the coffee industry, food industry can also use the innovative

4INNOVATION AND ENTREPRENEURSHIP
implementation of edible food container for the benefit of their industry as well as
environment.
Environmental Analysis
Macro Environmental analysis
PEST Analysis
Political-Due to the globalization on KFC coffee business, the company should expect
different political outcomes in different countries. In some counties the edible coffee cup
idea will be gladly expected, where in some of the will not be. Apart from that,
international trading relationship and changing regulations will also affect the business
(Polanco Sorto, 2013).
Economic- The most of the countries, where the GDP and per capita income is constantly
increasing, the basic demand for coffee will be significantly high. However, countries
with low income rate can show a low demand in edible coffee cups.
Socio-cultural: KFC has expanded in a diverse way throughout the globe that allows
them to take part in many different socio-cultural environment and perspective. The
socio-cultural perspective regulates the majority of the population trends that will define
the demand of edible coffee cup in a particular nation (Hong & Marinova, 2018).
Technology: The technology adaptation in food and beverage industry is increasing the
pace. The edible coffee cups will provide extra benefit in terms of advance packaging
system as a part of intervention of more advanced technology.

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Micro Environmental Analysis
Porters Five Force Analysis:
Competitive Rivalry: McDonalds, Subway, Pizza Hut, Domino’s and other globalised
first food chain will create a high competitive rivalry within the market.
Threat from substitute: There is no significant substitute of edible coffee cups in first
food and beverage industry that makes the threat low (Namba et al., 2013)
Threat from new entrees: Compete in a highly expanded market segment with new
innovation will be very difficult for any new comers. Therefore, the treat from new
entrees is low
Bargaining power of Consumers: The consumer will not have much option to choose
from other competitors. Therefore, the bargaining power of consumers will be low
Bargaining power of Suppliers: The huge number of competitors and their capability to
offer better trading negotiation for the suppliers can increase the bargaining power of the
suppliers to higher level.
Trend Analysis
Nowadays, most of the consumers are sensitive and aware about their environment
and the positive and negative impact of their lifestyle and consumption practice. Therefore,
consumers will be highly attracted towards this biodegradable innovation which will be
highly beneficial for environmental sustainability.

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Idea box
The edible coffee cup is environmental friendly implementation, which will also
provide a new experience to the consumers while maintaining the quality of the service.
Brainstorming
Edible coffee cup is an affective innovative idea that should be introduce in the fast
food and beverage market through KFC restaurants. This innovative idea is also influential
for the growth of the industry itself (Sánchez-Villegas et al., 2012).
Mind Maps
Through the method of mind map the implementation and impact of edible coffee cup
can be measure while finding out the best approach to present this new idea in the market
through extended multidirectional perspectives and outcomes (Galindo & Méndez, 2014).
6-hat Imagineering
 KFC can incorporate the edible coffee cups as their global business tool
 Edible coffee cups can open new opportunities for a new venture to its potential
customers with unique value proposition (Hong et al., 2018)
 Edible coffee cups can face multiple obstacles depending on the socio-cultural
perspective of the consumers.
 The uniqueness of the edible coffee cup will attract many potential customers through
prioritising their sensitivity about environment.

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 This new idea has many opportunities to penetrate the global market by attracting the
consumers who take coffee.
 The six hat thinking can help to analyse the implementation and success factor of
KFC edible coffee cup with the help of simple parallel thinking process to become
more focused, productive and engaged (De Bono, 2017).
Conclusion
From the above discussion it can be concluded that The Edible Coffee Cups have
been chosen by as the most appropriate innovative ideas for hospitality industry. The edible
coffee cup is environmental friendly implementation, which will also provide a new
experience to the consumers while maintaining the quality of the service. Both Macro and
Micro environmental analysis suggest that choosing edible coffee cups as their innovative
business idea will be beneficial for the company and for the industry as well.

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Reference:
Alexander, S. (2018). KFC to offer edible coffee cups. Retrieved from
https://www.telegraph.co.uk/foodanddrink/foodanddrinknews/11434220/KFC-to-
offer-edible-coffee-cups.html
Anderson, N., Potočnik, K., & Zhou, J. (2014). Innovation and creativity in organizations: A
state-of-the-science review, prospective commentary, and guiding
framework. Journal of management, 40(5), 1297-1333.
Crumpton, M. A. (2012). Innovation and entrepreneurship. The Bottom Line, 25(3), 98-101.
De Bono, E. (2017). Six thinking hats. Penguin UK.
Galindo, M. Á., & Méndez, M. T. (2014). Entrepreneurship, economic growth, and
innovation: Are feedback effects at work?. Journal of Business Research, 67(5), 825-
829.
Hong, J., Hou, B., Zhu, K., & Marinova, D. (2018). Exploratory innovation, exploitative
innovation and employee creativity: The moderation of collectivism in Chinese
context. Chinese Management Studies, 12(2), 268-286.
Namba, A., Auchincloss, A., Leonberg, B. L., & Wootan, M. G. (2013). Peer Reviewed:
Exploratory Analysis of Fast-Food Chain Restaurant Menus Before and After
Implementation of Local Calorie-Labeling Policies, 2005–2011. Preventing chronic
disease, 10.

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Onetti, A., Zucchella, A., Jones, M. V., & McDougall-Covin, P. P. (2012).
Internationalization, innovation and entrepreneurship: business models for new
technology-based firms. Journal of Management & Governance, 16(3), 337-368.
Polanco Sorto, A. G. (2013). Behind the counter: migration, labour policy and temporary
work in a global fast food chain(Doctoral dissertation, University of British
Columbia).
Sánchez-Villegas, A., Toledo, E., de Irala, J., Ruiz-Canela, M., Pla-Vidal, J., & Martínez-
González, M. A. (2012). Fast-food and commercial baked goods consumption and the
risk of depression. Public health nutrition, 15(3), 424-432.