Clover Food Lab: Sustainability as Competitive Advantage

TO:                Professor D’ Angelo

FROM:        Varaporn Hanjitkasem

DATE:                August 3, 2016

SUBJECT:        Clover Food Lab: Sustainability As Competitive Advantage

1.Summary

Ayr Muir, the CEO and founder of Clover Food Lab (Clover), organized this fast food chain business. The concept of food is fresh, organic, and vegetarian fast food. Clover had started business from one food truck at MIT campus to five food trucks and two restaurants in good location in Boston. First, Muir developed his business idea with positive environment impact.  He also determined the direction to create product by researching. He found that consuming meat effect the global carbon emissions. The solution to reduce meat is to eat meat less. Therefore, Muir started up a vegetarian fast food chain call Clover Food Lab in 2008. He proposed his business plan but it did not work because the concept was not strong enough to compete with international fast food chain market. The number of vegetarian in America was little. Anyways, Muir focused on two things: taste and price. For taste, Rolando Rebledo joined the Clover. Rebledo is the former reputable chef at Thomas Keller’s the French Laundry. Rebledo designed meat free menu. He realized that product testing and customer feedback are the keys for creating successful menu. In 2008, both Muir and Rebledo started one food truck business on the MIT campus. They learned and improved their business. Second is price. The price items at the Clover were the same as another competitive famous quick serve restaurant. The clover offers good quality ingredients at an accessible price. In 2012, Muir increased the price of sandwiches for the first time in 2008. The price was increase from $5 to $6 because of the cost of living. Muir invested his fund in training for building good relationship with customers. The result was good. Customers returned and became loyal supporters. They also brought their friends to the Clover. Moreover, there are many successful strategies that the Clover uses to boost up their business: ingredient, growth, management and training, marketing and customer service. First strategy is ingredient. The Clover chose the best local ingredient. In 2012, five farmers sent the local ingredient to their business. Another growth strategy, Muir hired a great chief financial officer (CEO), John Lee, who has a great financial background. He also hired Megan Pillegi as a human resource director. Moreover, Muir has both excellent marketing and training skills. For marketing, Muir uses three effective communications: order-takers, white boards, and social media for promoting product and information. For training, Muir uses social media such as Youtube to train staffs how to ask customers information and feedback. Also, Muir uses Youtube to explain details of the food. Muir has plans to push his business into a worldwide brand.