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Vol. 1, Issue 4   Summer 2008    
  NEWS & VIEWS              
 

 

 

 

Chat with our President:

Mass customization: what's in it for you?

winter


We're gearing up for the next FIA Symposium, August 12 in Chicago, focused on mass customization. Stan Davis is credited with coming up with the term in his bestseller Future Perfect in 1987. The way he describes it: "when the same large number of customers can be reached as in mass markets of the industrial economy and simultaneously treated individually as in the customized markets of pre-industrial economies."

A mouthful to be sure, but basically it's the idea of harnessing all the efficiency benefits of economies of scale in the production process - while delivering a customized or semi-customized product to the customer. It's not a new idea - and Davis is the first to admit that the concept existed long before 1987, but he was one of the first to study and quantify the process.

A perfect example is Adidas athletic shoes. With its "MyAdidas" program, Adidas has created a mechanism for customers to combine colors, fabrics, trim and styles exactly to their liking. Adidas has also developed a sophisticated electronic monitoring system for athletes. It precisely measures dozens of parameters about gait, foot contact and other mechanics of the athletic activity - then uses the data to build a custom shoe. Naturally, Adidas continues to use the industrial infrastructure it's built since the 1920s to manufacture the shoes. Mass production - customized delivery.

Another more common example is Build-a-Bear Workshop, the teddy bear store found in your local shopping mall. All the components are mass produced: the shell, stuffing, eyes, noses and all the accessories. The children direct assembly of these components at the retail site creating a unique bear just to their taste.

There's awesome potential for revenue generation in mass customization. It's another way foodservice purveyors can innovate, be unique and provide real value for their clientele.

The Chicago symposium is entitled "Connecting The Resource: Authenticity, Mass Customization & Revenue." Let's break it down.

How does authenticity relate to mass customization? Joe Pine, author of Authenticity: What Customers Really Want says the standards of authenticity are defined as a business, product or service "being true to itself, and being what it says it is to others." It's where it begins, really. It's the spirit of your brand position - the uniqueness of your enterprise or the fact that your customers perceive it as unique.

Authenticity is brought into the realm of mass customization when it is applied to a commitment to flexibility - being willing to deliver a different, unique and custom experience for each customer's particular wants and needs.

It's like ordering off the menu. If you see a restaurant menu including veal parm, arugula salad and cherry peppers - there 's no reason you can't order a piece of sautéed veal with no cheese and arugula and cherry peppers on top. Rearranging the ingredients the restaurant is already working with is well within your right as the customer.

To use a plumber's example, say the customer wants a white commode with a bronze trip-lever. But the standard trip-lever is chrome. What are the options? The manufacturer could have the customer buy a bronze trip-lever, disassemble the toilet, install the new trip lever and throw the old one away. That's both wasteful and not exactly stellar customer service. Or they could weave customization into their assembly process and deliver the commode with the bronze trip-lever in place. The manufacturer saved a trip lever assembly and the customer went home happy.

What about revenue? Mass customization may sound expensive but the potential benefits are huge. Customers put enormous value on choice. Delivering custom options is a wonderful way to deliver value - and grow revenue.

Of course there is a practicality factor - knowing the limits of the process while harnessing the power of customization to create positive customer experiences. Adidas won't build you a shoe made of paper, even if that's what you really had your heart set on. If you ask for veal topped with lobster sauce, goat cheese and chocolate, the chef has the right to say no, to keep you from having a negative experience. You won't get an unglazed terra-cotta toilet that will crack and leak.

But using customization within the framework and limits of quality, authenticity and existing mass production infrastructure can be a strong revenue generator.

You might already be doing this at some level. Or maybe it's a new idea for you. Either way, I encourage you to attend the symposium. As with previous FIA events, the goal is to broaden your knowledge, learn from the experts and hopefully elicit an "a-hah!" moment.

Davis says new ideas come from three potential sources: reading, discussing or thinking. I'd add a fourth, "sensing," using all your senses to absorb knowledge and data leading to better or newer ways of thinking. We've seen it happen at FIA events and I know the Chicago symposium will be another awesome opportunity for learning and discovery.

See you there.

JohnE

John Egnor, FIA President
President
JEM Associates, Inc

FIA is the one place I've found that actually brings all segments of our industry, all the parties involved, into one room at one time for open discussion. The outcome is refreshing: shared ideas, a much more complete discussion and investigation, far better understanding and hence more effective outcomes. This is exciting territory to explore. Rather than taking anything away from any other organization I belong to, FIA adds value to all.

- Rudy Miick, Miick & Associates

 

A word from FIA's Executive Director
Marsha Diamond

summer

FIA is really making a mark. Things are happening and there is a lot going on.

NRA was a wonderful opportunity for FIA in Chicago in May. We received countless well wishes and inquiries about what we're up to and what we're planning. I am confident in saying that there's a real buzz happening!

  • We had an after-the-show gathering at the Omni, where nearly 200 guests came to network and learn about FIA.
  • We had a booth at the NRA Partnership Pavilion on the show floor, with FIA members manning the booth Saturday to Tuesday - connecting with members, industry leaders and others in the foodservice community, helping to get the buzz out.
  • Founders and board members were there to visit and connect to the attendees and answer questions about FIA's mission.
  • We presented a SolveOne Team program on recruitment and retention with a panel of three FIA members, moderated by Joseph Carbonara, FE&S Editor in Chief.
  • FIA was represented at a number of key events including the 7th Annual Restaurant Executives Breakfast, MFHA, Elliott Leadership and the Johnson & Wales joint reception, the FES awards, the Restaurants and Institutions Ivy Awards and the IFMA Gold & Silver Plate Celebration.

It was wonderful to see so many of you there and to have the opportunity to generate interest among many different representatives of the industry, including more food and equipment manufacturers finding out about FIA for the first time.

In other news, I continue to meet with other organizations to develop relationships for reciprocal programs and new privileges for FIA members. We are talking to four organizations at this writing - I'll have more to report soon.

We have also embarked on a collaborative program with colleges throughout the U.S. as part of the overall SolveOne Team effort to encourage career growth into the industry. We are developing relationships with a variety of academic institutions. Among them are Fairleigh Dickinson in New Jersey, Villanova University in Pennsylvania, Ohio State University in Ohio and University of Houston in Texas.

The internship, recruiting and image action teams will be assisting this effort in a variety of ways - educating the educators about FIA, FIA members as part of career panels, encouraging students to become members as well as internship and recruiting possibilities. Kudos to the teams for all their efforts.

All three action teams are hard at work on developing solutions to the issue of cultivating the next generation of foodservice leadership and management. Each action team has taken on a critical component of this issue and is making great strides in their initiative. Read more.

The recruiting team has moved forward and is developing a PowerPoint that depicts the variety of career opportunities in foodservice/hospitality today and in the future. The presentation will be used for schools, media and other venues. Team members will soon be engaging schools in their recruiting efforts.

The internship team is focused on traditional and non-traditional internships, and has developed the criteria for internships and creating new apprenticeship programs. Internships will be posted on the website soon. To learn more, see Mark Brenner's newsletter article on this topic.

The image team is looking at positioning foodservice to those outside of the industry. We know we have a passionate and creative world to work in, but not everyone on the outside is aware of it. Among the team's tasks is creating a graphic representation that will truly reflect the positive aspects of this outstanding professional community. They are finalizing the design and are working on ways to market it to the public and the media. We will feature the design in future FIA marketing and communications.

The EducateOne team is tackling the educational calendar for 2009, developing topics for next year's symposiums, webinars and other programs.

MembershipOne is involved in some exciting initiatives to engage and retain membership including the August media summit.

The LeadershipOne Vision Team is working on the overall organization and structure of FIA to ensure future growth and a mechanism for governance and leadership. The team is setting up the board structure, nominating committee process and operating policies. They recently completed the FIA Bylaws, available online to FIA members only.

An update on HireHeroes: HireHeroes is a non-profit dedicated to helping returning veterans develop solid career paths. We are working with their team more closely for new sources of management talent and will be sharing success stories on this initiative soon. Read more.

All the teams have been busy and their efforts will come to fruition very shortly. Our teams are made up of dynamic people with great ideas!

In the pursuit of our mission of professional education, FIA is developing a free monthly live interactive Webinar program that will make it easy and convenient for members to expand their professional and personal knowledge. Kickoff is planned for early September. Check the website in August for details.

This newsletter is jam-packed with useful information, including insight from respected insiders and FIA leaders, an Action Team update, Spotlite Features with two founding director member companies, Halton and Gaylord Industries Domestic Foodservice , details on the next Symposium and much more.

It's an exciting time to FIA and I am thrilled that you have elected to be a part of it. Stay connected!

MarshaD

"What started out looking like another great networking opportunity has blossomed into a chance to really do some good for, and give back to the industry that sustains us.  FIA is succeeding where others have failed in creating a true sense of community to all of foodservice."
 
Joe Ferri,  Pecinka Ferri Associates

 

 

 
 



We joined FIA to enhance and educate ourselves within the Hospitality Network. We are always looking for opportunities to network, collaborate and learn more. FIA helps us discover more about different market segments, other hospitality organizations and industry trends. It is a great opportunity for education, to build upon existing knowledge and share experiences through networking - with events, webinars, the e-newsletter and the FIA website.

 - Evelyn Pemberton and Randy Sparrow,
Bloomington Hospital


In This Issue:

Mass Customization: what's in it you?
By John Egnor
FIA President


A word from FIA's Executive Director
Marsha Diamond

By Marsha Diamond
Executive Director FIA

Articles:

Get real and get busy: next FIA symposium to tackle authenticity and mass customization


Connecting The Resources: Authenticity, Mass Customization & Revenue

August 12th, 2008
Rush University Medical Center
Searle Conference Center,
Chicago

We're taking the Windy City by storm, with another FIA Symposium you won't want to miss - discovering how authenticity and customization can help foodservice pros build revenue.

Tomorrow's customers - today's youth - have embraced customization in a big way. They will demand the same or more as adults. From cars to shoes to music, customization is here to stay. Foodservice leaders who study, understand and adopt customization will be ahead of the curve.

As part of the symposium, FIA has developed an industry survey on the topic that has been distributed via email to the foodservice community. Please return it so we can better gauge your opinion and seek real world solutions to the challenges affecting the foodservice community. These issues and solutions will be addressed in the symposium program.
Read More

Breaking away from the flock: success in a commoditized market

How can you overcome the natural market progression towards
"commoditization", when products and services become defined solely on price? At FIA's second Symposium, May 1 in Atlantic City, 93 foodservice pros gathered to take on the issue.
Read More

Founding Director 
Spotlite: Gaylord Industries: Keven Hass

Keven Hass is Vice President of Gaylord Industries Domestic Foodservice, manufacturing a complete line of custom-engineered commercial kitchen exhaust hoods and pollution control equipment.
Read more

Founding Director
Spotlite: Halton Company: Jeff Hilbert

 

Jeff Hilbert is National Sales Manager for Halton Company, USA, an international operation specializing in indoor climate solutions.
Read more

Welcome new FIA members

FIA's membership ranks are growing. An update of the newest foodservice pros to join the family.

FIA's strength is in its membership. Each new foodservice industry expert who joins brings a wealth of experience, knowledge and skills. As the membership grows we build "critical mass" with ever-increasing opportunities to collaborate, network and learn from one another. The expanding membership shows our organization is growing and gaining traction in the industry community.

We're excited to welcome new members and we invite each to get involved in one of the Vision Teams and/or Action Teams to share your point of view and help make FIA even better. It is the individual member who is vital to the life of this organization and the industry.
Meet the new members

Here, there and everywhere: FIA at NRA

NRA was an amazing opportunity to spread the word about FIA.

In addition to being available to meet and greet at the Power of Partnership Pavilion and representing the organization to hundreds of foodservice pros at many NRA events, FIA also presented a SolveOne Session on recruitment and retention, Where's the Talent? The Challenge of Attracting Tomorrow's Leaders To The Foodservice Industry.

Moderator Joseph Carbonara, Editor-in-Chief of FES Magazine, guided a presentation and discussion with panelists Crystal Duncan of Georgia Pacific, Rod Collins of Rod Collins Associates and Alexander Poulous of Jade Range.

The experts shared solutions and collaborative ideas that industry leaders are putting into action to attract the next generation of foodservice leaders and managers. Download the talking points (PDF).

Photos from the NRA reception are available online.

Respected experts navigate advisory board

Four accomplished and experienced foodservice professionals serve on FIA's advisory board: Roseanne Diamond-De La Mata, Melisa Marks, Scott Saklad and Dick Hynes. In this feature, they offer insight and opinions on FIA and the industry.
Read more

Click on over: lots happening at FIA's website


If you haven't visited FIA's website recently, why not visit today? The site is updated regularly with new information, insights, great resources and news that help foodservice professionals take on challenges of the industry on a real-world, practical level.

Reading lists, articles and whitepapers

Recent FIA events news

Members-only resources, including bylaws, meeting minutes and more

It's a terrific resource for professionals throughout the industry and the homepage should be in your bookmarks!

FIA is coming soon to a venue near you

FIA is hitting the road, attending a variety of trade events and running events of our own. In May and June, we took part in the NRA Show , the FE&S Awards and the ASHFSA National Conference.

This summer, we'll be staying busy with road trips, including:

July 9 - 12, NACUFS National Conference  Location: Washington, DC

August 12, FIA Symposium - Connecting The Resources: Authenticity, Mass Customization & Revenue; Location: Chicago, IL, Rush University Medical Center

Visit the calendar online.

Trends the industry
talking about

 


Wikimedia Commons

 

One of the benefits of FIA membership is staying connected to what's happening throughout the industry. We scan the horizon for trends that are likely to grow more important and report the findings back to you. Presented are a few we recommending watching.
Read more 

Opening the door to students with internships

Mark Brenner, action team chair, outlines ways FIA can educate and recruit students through foodservice internship opportunities.
Read more

Rack ‘em up: another prestigious award for FIA President John Egnor

John Egnor, FIA President and President of JEM Associates, Pleasantville, N.J., walked away from the NRA Show with a well-deserved Facility Design Project of the Year Award, presented during the 2008 Dealer of the Year & Industry Awards.

John and his JEM team took the brass ring for the Harrah's Waterfront Buffet at Harrah's Casino Hotel in Atlantic City. See the details of the project.

"Congratulations, John. We are proud and fortunate to have a foodservice pro of your caliber, experience and vision guiding FIA," said Marsha Diamond, FIA Executive Director.

 
         

FIA (Foodservice Institute of America) 833 Mill Road Pleasantville, NJ  08232
609-645-3131   www.fia-us.org  | Copyright © 2008 FIA