What Potato Chips Can Teach Entrepreneurs?
What Potato Chips Can Teach Entrepreneurs?Author: Geoff Fickeby: Geoff Ficke America, and the developed world, is saturated with cheap, convenient, pre-packaged snack foods. These tasty treats are available in sweet, salty, chilled, or warmed styles and presentations. None is more popular, and ubiquitous, than the potato chip. The potato chip in America was historically a very local mom and pop business until the 1930’s. The end product, the potato chip crisps; were very difficult to ship, handle and preserve without advanced packaging techniques. Prior to the invention of coated bagging components, chips were made in local kitchens and sold in a few local stores, typically out of barrels. As soon as the barrels were opened, and the shop owner scooped the sold product for the consumer, air entered the barrels and the potato chips became stale.
Consumers of these chips were taught to heat the chips at home before serving to mitigate the lack of freshness. This type of trade was adequate for a local service business model, but it did not allow for economies of scale or national distribution. In addition, each town and region developed a favorite type of chip that enjoyed local popularity only.
The opportunity was ripe for an entrepreneur to consolidate and commercialize the snack business in a major way and revolutionize the category. That entrepreneur was Herman Lay.
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25.02.2010
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