{"id":19221,"date":"2016-11-18T16:42:46","date_gmt":"2016-11-18T21:42:46","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/clover-food-labs-using-technology-to-bring-the-real-food-movement-to-cambridge-ma\/"},"modified":"2016-11-18T17:03:32","modified_gmt":"2016-11-18T22:03:32","slug":"clover-food-labs-using-technology-to-bring-the-real-food-movement-to-cambridge-ma","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/clover-food-labs-using-technology-to-bring-the-real-food-movement-to-cambridge-ma\/","title":{"rendered":"Clover Food Labs: Using Technology to Bring The \u201cReal Food\u201d Movement to Cambridge, MA."},"content":{"rendered":"<blockquote><p><em>\u201cWe rely a lot on technology&#8230; It&#8217;s no exaggeration that I literally could not make the food we&#8217;re making ten years ago&#8230; (It drives) our ability to move as quickly as we do and source the way we do.\u201d \u2013 Ayr Muir, Founder and CEO of Clover Food Lab<a href=\"#_ftn1\" name=\"_ftnref1\"><strong>[1]<\/strong><\/a><\/em><\/p>\n<p>&nbsp;<\/p><\/blockquote>\n<p>Customer demand for healthier, fast options has skyrocketed in the past two decades. So, why have many restaurant chains hesitated to move toward healthier menu options? Research has shown that executives most frequently cited the following obstacles: Spoilage and short shelf life of fruit and vegetables, inconsistent supply, and additional storage requirements. <a href=\"#_ftn2\" name=\"_ftnref2\">[2]<\/a><\/p>\n<p><figure id=\"attachment_19075\" aria-describedby=\"caption-attachment-19075\" style=\"width: 297px\" class=\"wp-caption alignright\"><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Screen-Shot-2016-11-18-at-4.13.15-PM.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-19075\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Screen-Shot-2016-11-18-at-4.13.15-PM-300x201.png\" alt=\"Clover's Chickpea Fritter Sandwich\" width=\"297\" height=\"199\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Screen-Shot-2016-11-18-at-4.13.15-PM-300x201.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Screen-Shot-2016-11-18-at-4.13.15-PM.png 498w\" sizes=\"auto, (max-width: 297px) 100vw, 297px\" \/><\/a><figcaption id=\"caption-attachment-19075\" class=\"wp-caption-text\">Clover&#8217;s Chickpea Fritter Sandwich\u00a0<span style=\"color: #0000ff\"><strong>[19]<\/strong><\/span><\/figcaption><\/figure><a href=\"#_ftn2\" name=\"_ftnref2\"><\/a><\/p>\n<p>These are particularly challenging barriers to overcome in the low-margin business of fast food. Yet, Clover Food Lab has harnessed digital innovation to create an operating model that overcomes these barriers to deliver <strong>locally-sourced, vegetarian fast food<\/strong>. Clover\u2019s commitment to customers centers around fresh food, a seasonal menu that changes daily, local sourcing, and an efficient experience. <a href=\"#_ftn3\" name=\"_ftnref3\">[3]<\/a> In fact, the company uses no processed, prepared, or frozen products, with the exception of ketchup and mayonnaise.<a href=\"#_ftn4\" name=\"_ftnref4\">[4]<\/a> This is radically different than other players in the fast casual markets, even Chipotle and Panera.<a href=\"#_ftn5\" name=\"_ftnref5\">[5]<\/a><\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p><strong>Building a Digitally-Connected Operating Model:<\/strong><\/p>\n<p>Founded in 2008 by HBS graduate, Ayr Muir, Clover now encompasses 11 restaurants and food trucks and 300 employees.<a href=\"#_ftn6\" name=\"_ftnref6\">[6]<\/a> What has enabled Clover to thrive in the local fast food space is its use of technology:<\/p>\n<ul>\n<li><strong>Real-time Menu: <\/strong>Every Clover brick-and-mortar uses high-definition flat-screen monitors to display real-time versions of its menus, which are connected to managers\u2019 iPad devices, via a cloud-based operating system. This enables changes to the menu at any given time.<a href=\"#_ftn7\" name=\"_ftnref7\">[7]<\/a> The menu is then connected to Clover\u2019s inventory management system. Once an ingredient runs out, the products dependent on that ingredient are automatically removed from the menu <em>and <\/em>the ordering interface.<a href=\"#_ftn8\" name=\"_ftnref8\">[8]<\/a> This allows Clover to seamlessly adapt to the challenge of inconsistent supply.\n<p><figure id=\"attachment_19013\" aria-describedby=\"caption-attachment-19013\" style=\"width: 300px\" class=\"wp-caption alignright\"><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Screen-Shot-2016-11-16-at-3.31.35-PM.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-19013\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Screen-Shot-2016-11-16-at-3.31.35-PM-300x243.png\" alt=\"Clover's mobile POS system (circa 2015)\" width=\"300\" height=\"243\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Screen-Shot-2016-11-16-at-3.31.35-PM-300x243.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Screen-Shot-2016-11-16-at-3.31.35-PM-768x623.png 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Screen-Shot-2016-11-16-at-3.31.35-PM-600x486.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Screen-Shot-2016-11-16-at-3.31.35-PM.png 962w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-19013\" class=\"wp-caption-text\">Clover&#8217;s mobile POS system (circa 2015)<\/figcaption><\/figure><\/li>\n<\/ul>\n<ul>\n<li><strong>Customization of Mobile Ordering System: <\/strong>Historically, running a fast food operation required investing $60,000+ in inflexible point-of-sale (POS) register systems. Because of Clover\u2019s need for a system that could adapt with its frequently changing menu, Muir with a local developer on a mobile app that could accommodate daily menu changes. This customized POS system works on both iPhones and Androids, enabling flexibility across employees. Because the ability to serve customers is not limited by fixed infrastructure (e.g., cash registers), Clover can flex its ordering staff in accordance with customer demand fluctuations, delivering on its promise of efficient service.<\/li>\n<\/ul>\n<ul>\n<li><strong>Delivering Food Fast: <\/strong>Clover employees are \u201cobsessed with speed and constantly time themselves\u201d, with an average service time of around 3.5 minutes.<a href=\"#_ftn9\" name=\"_ftnref9\">[9]<\/a> The company heavily relies on connected devices to achieve this quick speed: Once a customer orders, the order gets sent to the kitchen via Wufoo \u2013 a form-building app.<a href=\"#_ftn10\" name=\"_ftnref10\">[10]<\/a> From there, food preparers reviews orders via an iPad. Because Clover can track the throughput time of each menu item, it is able to provide a real-time update to customers. Additionally, managers can track the cycle times of steps in the process, identifying bottlenecks and adapting operations.<a href=\"#_ftn11\" name=\"_ftnref11\">[11]<\/a>\n<figure id=\"attachment_19417\" aria-describedby=\"caption-attachment-19417\" style=\"width: 300px\" class=\"wp-caption alignright\"><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/file.jpeg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-19417 size-medium\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/file-300x225.jpeg\" alt=\"file\" width=\"300\" height=\"225\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/file-300x225.jpeg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/file-768x576.jpeg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/file-1024x768.jpeg 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/file-600x450.jpeg 600w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-19417\" class=\"wp-caption-text\">Display Screens at Clover &#8211; 性视界 Square (11\/2016)<\/figcaption><\/figure>\n<p><a href=\"#_ftn11\" name=\"_ftnref11\"><\/a><\/li>\n<\/ul>\n<ul>\n<li><strong>Tight Feedback Loops: <\/strong>Clover crowdsources product feedback and new recipe ideas via its blog, active management of its social media handles, and monthly customer surveys.<a href=\"#_ftn12\" name=\"_ftnref12\">[12]<\/a> Clover also uses its custom POS system to track customer behavior \u2013 the system explicitly prompts the order-taker to ask if you\u2019ve tried a product before. If not, he or she will record this information, and the data will be used to analyze the success of new items, based on the frequency of return purchases.<a href=\"#_ftn13\" name=\"_ftnref13\">[13]<\/a> The POS system also allows employees to monitor how sales of new items are performing against projections at each location, as well as sales mix by item, category, day, and time.<a href=\"#_ftn14\" name=\"_ftnref14\">[14]<\/a><strong>\u00a0<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<p>While Clover has utilized technology to deliver an ever-changing menu and an efficient experience to customers, there are several opportunities to further enhance operations:<\/p>\n<ul>\n<li><strong>Safety Sensors: <\/strong>In 2013, Clover closed after being linked to a Salmonella outbreak. In response, Clover underwent a health inspection, which found that Clover was keeping multiple ingredients at temperatures that were above the \u201csafe level\u201d for preventing bacteria growth.<a href=\"#_ftn15\" name=\"_ftnref15\">[15]<\/a> To prevent this from happening in the future, Clover could invest in sensor technology that is able to monitor the condition and temperature of ingredients upon arrival and during storage.<a href=\"#_ftn16\" name=\"_ftnref16\">[16]<\/a> These sensors can be linked to the cloud and coded to alert key stakeholders of any issues that might compromise food safety.<a href=\"#_ftn17\" name=\"_ftnref17\">[17]<\/a><\/li>\n<\/ul>\n<ul>\n<li><strong>Remote Asset Monitoring: <\/strong>To maintain its commitment to affordable prices, Clover will need to maximize use and lifetime of its equipment. By using remote equipment sensors, managers could monitor everything from kitchen ovens to HVAC systems to lighting to quickly flag any abnormalities that might lead to inefficiency. Other restaurant chains that have implemented monitoring of fixed assets have seen an increase in labor productivity and lower costs.<a href=\"#_ftn18\" name=\"_ftnref18\">[18]<\/a><\/li>\n<\/ul>\n<p>800 words.<\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> <em>The Real Food Movement Panel<\/em>. Perf. Ayr Muir.\u00a0<em>The Edge Conference<\/em>. The Ad Club, 12 Jan. 2015. Web. 17 Nov. 2016.<\/p>\n<p><a href=\"#_ftnref2\" name=\"_ftn2\">[2]<\/a> Glanz, Karen et al. &#8220;How Major Restaurant Chains Plan Their Menus: The Role of Profit, Demand, and Health.&#8221;\u00a0<em>Science Direct<\/em>. American Journal of Preventative Medicine, May 2007. Web. Nov. 17.<\/p>\n<p><a href=\"#_ftnref3\" name=\"_ftn3\">[3]<\/a> &#8220;It\u2019s Almost a Freezer.&#8221;\u00a0<em>Clover Food Lab<\/em>. Clover Food Lab, 20 Nov. 2013. Web. 15 Nov. 2016.<\/p>\n<p><a href=\"#_ftnref4\" name=\"_ftn4\">[4]<\/a> &#8220;Food.\u201d <em>Clover Food Lab<\/em>. Clover Food Lab. Web. 15 Nov. 2016.<\/p>\n<p><a href=\"#_ftnref5\" name=\"_ftn5\">[5]<\/a> Ibid.<\/p>\n<p><a href=\"#_ftnref6\" name=\"_ftn6\">[6]<\/a> &#8220;Focus on Founders: Ayr Muir and Clover Food Lab.&#8221;\u00a0<em>McKinsey Alumni Center<\/em>. McKinsey, 7 Oct. 2014. Web. 15 Nov. 2016.<\/p>\n<p><a href=\"#_ftnref7\" name=\"_ftn7\">[7]<\/a> Guerra, Cristela et al. \u201c10 Things We Learned in 24 Hours at Clover HFI.\u201d <em>Boston Globe. <\/em>Boston Globe, 27 April 2015. Web. 15 Nov. 2016.<\/p>\n<p><a href=\"#_ftnref8\" name=\"_ftn8\">[8]<\/a> St.John, Olivier. \u201cHealthy food served in less than 4 minutes.\u201d <em>USA Today. <\/em>USA Today, 2 April 2013. Web. 15 Nov. 2016.<\/p>\n<p><a href=\"#_ftnref9\" name=\"_ftn9\">[9]<\/a> Ibid.<\/p>\n<p><a href=\"#_ftnref10\" name=\"_ftn10\">[10]<\/a> Ibid.<\/p>\n<p><a href=\"#_ftnref11\" name=\"_ftn11\">[11]<\/a> \u201cmPOS Brings Clover A Little Luck.\u201d \u00a0<em>What\u2019s Next Media and Data Analysis, LLC. <\/em>PYMNTS.com, 5 May 2016. Web. 15 Nov. 2016.<\/p>\n<p><a href=\"#_ftnref12\" name=\"_ftn12\">[12]<\/a> William Eggers and Paul Macmillion. \u201cA Billion to One: The crowd gets personal.\u201d <em>Deloitte University Press. <\/em>Deloitte Consulting, 26 January 2015. Web. 15 Nov. 2016.<\/p>\n<p><a href=\"#_ftnref13\" name=\"_ftn13\">[13]<\/a> \u201cIn-Testing Beaker.\u201d <em>Clover Food Lab, <\/em>Clover Food Lab. 28 October 2016. Web. 15 Nov. 2016<\/p>\n<p><a href=\"#_ftnref14\" name=\"_ftn14\">[14]<\/a> \u201cClover Sales Mix.\u201d <em>Clover Food Lab, <\/em>Clover Food Lab. 12 October 2016. Web. 15 Nov. 2016<\/p>\n<p><a href=\"#_ftnref15\" name=\"_ftn15\">[15]<\/a> &#8220;Clover Inspection Report.&#8221; <em>2013: City of Boston<\/em>. Department of Inspection Services, 12 July 2013. Web. 15 Nov. 2016.<\/p>\n<p><a href=\"#_ftnref16\" name=\"_ftn16\">[16]<\/a> \u201cHow the Internet of Things will Impact Food.\u201d <em>Food Safety News. <\/em>Food Safety News, June 2015. Web. 15 Nov. 2016.<\/p>\n<p><a href=\"#_ftnref17\" name=\"_ftn17\">[17]<\/a> Flusberg, Martin. \u201cInternet of Things to Revolutionize Operation of Restaurants and C-Stores.\u201d <em>Powerhouse Dynamics. <\/em>Powerhouse Dynamics, 2015. Web. 18 Nov. 2016.<\/p>\n<p><a href=\"#_ftnref18\" name=\"_ftn18\">[18]<\/a> Ibid.<\/p>\n<p><a href=\"#_ftnref18\" name=\"_ftn18\">[19]<\/a>\u00a0&#8220;Clover Food Lab &#8211; Boston (Cambridge).&#8221;\u00a0<em>Gastronomy Blog.\u00a0<\/em>Gastronomy Blog,\u00a001 October 2010. Web. 18 Nov. 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Customer demand for healthier, more local fast food options has skyrocketed in the past few decades. Yet, major restaurant chains have been hesitant to enter the space, due to obstacles of inconsistent food supply, dependence on local seasonality, and short shelf-life of fruits and vegetables. Enter Clover Food Lab &#8211; a chain of vegetarian fast food trucks and restaurants in Boston &#8211; that has overcome the traditional obstacles to delivering a local, fresh, and fast food experience by integrating technology advancements into its operating model.<\/p>\n","protected":false},"author":2533,"featured_media":19485,"comment_status":"open","ping_status":"closed","template":"","categories":[],"class_list":["post-19221","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/digitization-challenge-2016\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Clover Food Labs: Using Technology to Bring The \u201cReal Food\u201d Movement to Cambridge, MA. - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/clover-food-labs-using-technology-to-bring-the-real-food-movement-to-cambridge-ma\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Clover Food Labs: Using Technology to Bring The \u201cReal Food\u201d Movement to Cambridge, MA. - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"Customer demand for healthier, more local fast food options has skyrocketed in the past few decades. 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Yet, major restaurant chains have been hesitant to enter the space, due to obstacles of inconsistent food supply, dependence on local seasonality, and short shelf-life of fruits and vegetables. 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