Exploring the nexus of tradition, modernity, and innovation in restaurant SMEs

Abstract This study uses an exploratory supply-side approach to understand the nexus of tradition, modernity, and innovation in the restaurant SME sector. It conducted 35 in-depth interviews with restaurant owners in Sardinia, Italy to determine: (1) how they defined what a traditional and modern restaurant was, and (2) what the patterns of innovation in these restaurant categories were. ‘Tradition’ was aligned with local dishes that represented a region’s gastronomy, while ‘modern’ was associated with the innovativeness of the chef. ‘Hybridity’ involved modifying local dishes with contemporary techniques while maintaining tradition. Moreover, the three restaurant types exhibited different innovation patterns and outcomes. The study contributes new knowledge of what represents a traditional, modern, and hybrid restaurant from a supply-side perspective. It also uncovers nuances within innovation patterns among different restaurant categories. The findings can help restaurateurs enhance their brand positioning and manage the innovation process effectively to achieve a competitive advantage.