SUSTAINABLE BUSINESS MODEL INNOVATION: THE CASE OF CUMALIKIZ RESTAURANT

389 This chapter is published as an Open Access chapter distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and production in any medium, provided the author of the original work and original publication source are properly credited. Use of this chapter to train generative artificial intelligence (AI) technologies is expressly prohibited. The author reserves all rights to license its use for generative AI training and machine learning model development. Chapter 15 Sustainable Business Model Innovation: The Case of Cumalıkızık Restaurant Aylin Poroy Arsoy https:// orcid .org/ 0000 - 0002 - 8208 - 4329 Bursa Uludag University, Turkey Nuran Bayram Arlı https:// orcid .org/ 0000 - 0001 - 5492 - 184X Bursa Uludag University, Turkey Elif Yücel https:// orcid .org/ 0000 - 0002 - 2708 - 6778 Bursa Uludag University, Turkey Yasemin Ertan https:// orcid .org/ 0000 - 0002 - 9193 - 3396 Bursa Uludağ University, Turkey ABSTRACT This section presents the sustainable business model innovation developed for the municipal restaurant planned to be opened in Cumalıkızık Village, which is included in the UNESCO World Heritage List. Within the scope of the REMODEL Horizon Europe Project, a multistage process was carried out using Gassmann's Magic Triangle model and the Business Model Canvas framework. Supported by competitor analysis, field observations, and stakeholder interviews, this process structured the value proposition and business model with concrete strategies. The model aims to DOI: 10.4018/979-8-3373-2053-3.ch015 390 integrate the preservation of cultural heritage, support for local development, and digitalisation with sustainability. The study provides both a theoretical and practical roadmap for stakeholders seeking to develop innovative business models in tourism. INTRODUCTION Sustainable development, one of today's most critical discussion topics for all societal groups, is defined as “the ability to meet the needs of the present without sacrificing the ability of future generations to meet their needs” (World Commission on Environment and Development, 1987). Environmental and social problems have reached dimensions that threaten the future of all humanity. This situation has made it inevitable to adopt sustainable tourism practices, especially in regions where tourism is an important economic resource. Protecting environmental and cultural values and ensuring longterm usability is only possible with sustainable development. Sustainable tourism aims to preserve the unique characteristics of a region and ensure their transmission to future generations by integrating economic, environmental, and social considerations (Mutdoğan & Öktem, 2024). In this context, sustainable tourism ensures the optimal use of environmental resources, improves the quality of life for local communities, and provides socioeconomic benefits to all stakeholders (Streimikiene et al., 2021). Thus, sustainable tourism significantly contributes to the Sustainable Development Goals in general. Over time, sustainable tourism practices have diversified with various subtypes such as activity tourism, ecotourism, nature tourism, discovery tourism, adventure tourism, and cultural tourism, each of which has become adaptable to different needs and regional conditions (Garda & Temizel, 2016). In this context, cultural tourism stands out as one of the sustainable tourism types that both protects local cultures and has a significant potential for economic development. Cultural tourism includes exploring historical, artistic, scientific and traditional elements. In other words, this type of tourism includes not only tangible heritage (monuments, museums, etc.) but also intangible heritage elements such as oral history, handicrafts and traditions (Timothy, 2011; Szromek, 2022) and aims to offer visitors authentic experiences in areas based on historical and cultural heritage (Bandeoğlu, 2015). In recent years, the relationship between culture and tourism has become closer due to the increasing interest in culture as an expression of local identity, tourism's growth, and easier access to cultural values and experiences. According to the Market Research Report of Business Research Insights, the global cultural tourism market, valued at US$6.97 billion in 2024, is projected to reach US$7.97 billion in 2025 and US$20.39 billion in 2033 (Business Research Insights, 2025). The increasing popularity of cultural tourism has brought with it the need to bal- 391 ance commercialisation and authenticity. Richards (2018) emphasises that cultural tourism is becoming increasingly intertwined with the creative and cultural economy, making it necessary to develop new strategies to preserve authenticity while commercialising cultural elements. According to Timothy (2011), with increased economic and cultural values, heritage elements become commodified and lose their significance for the local population. The concept of authenticity is replaced by staged authenticity. This situation threatens cultural tourism's sustainability and can lead to conflicts between the local population and tourists (Timothy, 2011). The spread of cultural tourism has also paved the way for increased demand for rural tourism. Rural areas with rich cultural heritage, in addition to their natural beauty, have become attractive destinations for visitors. However, while this situation offers significant social and cultural benefits to local communities, it can also lead to adverse environmental impacts such as overexploitation of natural resources, disruption of ecological balances, and damage to historical and cultural values due to uncontrolled and unplanned tourism activities (Kodaş & Eröz, 2012). Therefore, ensuring the sustainability of tourism in rural areas necessitates effective planning, resource management and innovation in business models. Alongside societies' growing awareness of sustainability, the acceleration of digitalisation is a factor leading to significant changes in tourists' travel and service expectations. When this situation is considered in terms of cultural tourism, tourists have become more demanding for enterprises operating in the tourism sector to operate according to sustainable tourism practices and to have travel experiences facilitated and specialised by digitalisation practices. Therefore, to maintain their competitive power and sustain their existence, tourism enterprises today have to transform into structures that contribute to the environment and society in which they operate while producing economic benefits. In this context, implementing business model innovations that holistically address sustainability, digitalisation and changing visitor expectations has become a fundamental requirement for tourism businesses to gain a competitive advantage in the sector and ensure their longterm existence. According to Amit and Zott (2020), a business model is a system of activities involving a company and its stakeholders. In this system, business models are structured by addressing important issues such as which activities need to be carried out, who the main stakeholders of the business model are, and how value will be created. The focus is not only on products and services. Instead, the entire activity chain and stakeholders are considered when creating the business model. With business model innovations in the tourism sector, strategies that affect businesses' financial performance, competitiveness and sustainable growth potential are developed by going beyond the purpose of enriching customer experience or differentiating destinations. 392 In this chapter of the book, the sustainable business model innovation process developed for a new restaurant planned to be opened by Bursa Metropolitan Municipality in Cumalıkızık Village, a UNESCO World Heritage Site, is discussed in detail. This chapter aims to present in detail the business model innovation approach by combining theoretical foundations with an applied case study to provide the reader with a comprehensive perspective. The section aims to serve as a theoretical and practical guide for designing innovative business models in the context of cultural heritage preservation and gastronomic tourism. This study also aims to provide a practical example of how business model innovation can be structured in the tourism sector, while also showing how contemporary themes such as digitalisation, sustainability, and visitor experience can be integrated in a local context. In this context, a multistakeholder, participatory business model development process was carried out using strategic tools such as trend, disruption, challenge and business model innovation cards, SWOT analysis, Value Proposition Canvas and Business Model Canvas. The chapter provides theoretical and practical guidance to stakeholders who want to contribute to local development, protect cultural heritage, and develop innovative approaches for tourism enterprises. INNOVATION AND TOURISM The concept of innovation can be defined as the process of adding to existing ideas or developing new ideas and putting these ideas into practice in order to create value in the existing structures of enterprises (Arsoy & Kılınçarslan, 2024). Innovation is a result and a multilayered process consisting of stages such as research, information gathering, decisionmaking, development, and implementation (Urabe, 1988). The innovation process is shaped by blending technology and creativity within the scope of research and development activities. During this journey, innovative tactics enable enterprises to adapt to fluctuating market conditions and everevolving customer needs. In this way, businesses can maintain/increase their competitive strength (Helfat & Peteraf, 2002; Fagerberg & Mowery, 2006) and maintain their profitability in the long term (Roberts & Amit, 2003). Although innovation is often identified only with technological innovations, it actually has a much wider range and is classified in different ways, taking into account the degree of innovation, the level of change and the triggering factors. Innovation is categorised into four groups according to their impact areas (TÜBİTAK, 2023): • Product innovation is supplying significant changes in the characteristics or usage areas of existing goods and services, or generating a new product. 393 • Process innovation seeks to boost efficiency by making substantial changes in production or service delivery. • Marketing innovation encompasses marketing methods involving innovation in product design, packaging, positioning, promotion or pricing. • Organisational innovation involves businesses adopting new methods in their business practices, internal organisational structure or external relationships. When innovation activities are analysed at a sectoral level, innovation in manufacturing and technologyintensive sectors is more focused on product development, while in service sectors it is shaped by organisational structuring, process design and marketing strategies. In this context, the tourism sector stands out with its organisational and marketing innovations. Although tourism businesses operate with more limited innovation investments compared to manufacturing and technologyintensive sectors, the added value created by their innovations through customer satisfaction, service quality and experience management is quite high (MolinaCastillo et al., 2023). It is observed that innovative practices have a direct impact on customer loyalty and financial performance, especially in hospitality businesses positioned in the high segment (Grissemann et al., 2013). In addition to improving financial performance and customer loyalty, innovative practices offer multifaceted contributions such as reaching different customer segments, strengthening brand perception and supporting regional employment (Tugores & Valle, 2016). Moreover, research in developing countries shows that innovationoriented tourism enterprises are more resilient to crises despite limited resources, emphasising that innovation is not only a growth strategy but also offers flexibility and adaptability (Hu et al., 2020). On the other hand, in line with the increasing importance of sustainability, innovative practices integrated with environmental goals have also gained strategic value. Environmentally oriented initiatives such as renewable energy use, ecoinnovation and digital leadership provide both ethical and economic advantages to businesses. In this respect, innovation stands out as a strategic tool that integrates environmental responsibility and competitiveness (Santarsiero et al., 2024; Cardoso et al., 2024). Another key element shaping innovation processes today is digitalisation. The widespread use of digital technologies has fundamentally transformed both consumer behaviour and service delivery processes in the tourism sector. With the impact of digitalisation, tourists have become more informed, independent, experienced and selective; they can now manage processes such as booking, price research and travel planning themselves online (Buhalis & Law, 2008). Additionally, tourists can now customise and adapt travel packages to their own needs thanks to the development of databased systems and mobile applications (Ammirato et al., 2022). In addition to altering tourists' behaviour, digitalisation has had a significant impact on service 394 providers' strategic and operational endeavours. Service providers such as hotels and restaurants can now reach consumers directly through digital platforms, leading to a decline in the role of traditional travel agencies. As a result of these developments, pricebased competition has increased, while service providers have found the opportunity to carry out basic processes such as reservations, checkin, and marketing more quickly, efficiently, and at lower costs through digital systems. Additionally, the data sets obtained through digitalisation enable more comprehensive analysis of market trends, consumer expectations, and behaviours, and ensure that these analyses are more widely used in strategic decisionmaking processes. Digitalisation has brought about a transformation in the business models of companies operating in the tourism sector. In this context, instant and continuous access to information via mobile devices, travel experiences shared on social media platforms, decision support and recommendation systems that offer suggestions based on tourists' preferences, the Internet of Things, and augmented reality and virtual reality technologies are shaping individuals' consumption preferences. These applications, which shape today's consumption preferences, enrich the consumer experience, create shared value, and promote sustainable practices (Buhalis et al., 2019). In addition, digital technologies such as augmented reality have the potential to redefine the presentation of cultural heritage (Cranmer & Jung, 2014). Innovation's multifaceted contributions to the tourism sector, ranging from increasing customer satisfaction to improving service quality, digital transformation and contributing to environmental sustainability goals, have led businesses to question their products and services and how they do business. In the face of changing consumer expectations, digitalised service offerings and sustainability pressures, traditional business models are inadequate, making it imperative for tourism businesses to transition to innovative and flexible structures. The positioning of tourists not merely as consumers but also as coproducers of experiences and value propositions, coupled with an open innovation mindset and dynamic interactions among stakeholders, has enabled the design of flexible, contextaware, and realtime services through digital infrastructure and big data, thereby driving the reshaping of business models (Gretzel et al., 2015). In this context, business model innovation comes to the forefront not only as a means of generating innovative solutions, but also as one of the main means of gaining longterm competitive advantage, developing resilience against crises and enabling sectoral differentiation. 395 BUSINESS MODEL INNOVATION The business model, which expresses the basic logic of an enterprise to create value (Linder & Cantrell, 2000), is the whole of the structure and processes that show how an enterprise creates and delivers value and how it obtains this value (Taşkın et al., 2024). Business model innovation is a basic concept frequently encountered and widely accepted in management studies. This concept refers to a new way of doing business in which businesses aim to achieve sustainable prosperity in a dynamic and changing environment by restructuring the logic underlying the processes of value creation, value delivery and value capture. Business model innovation encompasses structural changes, not only at the level of a product or service, but also at the level of the firm's entire operating system (Schneider & Spieth, 2013). In this process, the aim is to develop new ways of creating value for stakeholders and to focus on renewing the basic business logic of the firm (CasadesusMasanell & Zhu, 2013). Today, businesses need to restructure their business models in the face of increasing competition and changing market conditions; in this context, they carry out various innovations, improvements and transformations in their organisational structures (Mitchell & Coles, 2003). Understanding the organisational elements involved in this transformation process both facilitates the planning of the transition from one business model to another and plays a critical role in increasing the resilience and success chances of the business (Geissdoerfer et al., 2018). Business Model Canvas is a strategic tool developed by Osterwalder and Pigneur (2010) to structure business model innovation more systematically. The Business Model Canvas framework, which is used to define and visualise the business model components of businesses, includes nine components: customer segments, value proposition, channels, customer relationships, revenue streams, key resources, key activities, key partnerships and cost structure. Another approach that offers a different perspective on business model innovation is the Magic Triangle Model developed by Gassmann and Frankenberger (2014). According to the Magic Triangle Model, the business model has four basic dimensions. 396 Figure 1. The magic triangle and the four dimensions of business model As shown in Figure 1, the “Who?” dimension at the centre of the model defines the target customer group of the business. This is the main starting point of the business model because the entire value creation process is built on the needs and expectations of this customer group. The “What?” dimension in the upper corner of the triangle refers to the value proposition offered to the target customer. This proposition describes the benefit that the business provides to the customer, i.e. which problem it solves, or which need it fulfils. The “How?” dimension in the right corner of the triangle describes how this value proposition is produced, i.e., the business's processes, resources, competences and partnerships. Here, value chain management comes to the fore. The “Why?” dimension in the left corner reveals the financial sustainability of the business model. This dimension covers the revenue model, pricing strategies, and business cost structure. In other words, it allows for the analysis of how the business generates revenue and how it makes it profitable. By emphasising the interaction between these four key elements, the Magic Triangle Model also serves as a strategic analysis tool in terms of showing how any change in one dimension can affect other areas. Gassmann, Frankenberger and Csik (2013) argue that the most successful business model innovations are realised through radical changes in at least one of these three components. Today, the concept of sustainability is becoming increasingly important. In this context, business models' environmental and social impacts are being questioned more and more. These developments have paved the way for the emergence of the concept of ‘sustainable business model innovation’, which adds a new dimension to the under- 397 standing of business model innovation. Sustainable business model innovation is the business model innovation carried out by prioritising issues such as less harm or more benefit to the environment and social benefits to society in the process of creating value for the stakeholders (Ferlito & Faraci, 2022). Sustainability is of critical importance to humanity. Consumer awareness of this issue is steadily increasing. In parallel, demands are also being reshaped. Therefore, it has become imperative for businesses to develop and implement sustainable business models in order to survive and grow. The importance of digitalisation in our lives is also rapidly increasing. In the process of developing a sustainable business model, it is necessary to utilise the data obtained through digital developments. Furthermore, it is critical to consider the positive effects of these developments on business activities. This book chapter has two objectives. Firstly, to present theoretical information on sustainable business model innovation. Secondly, to provide a practical context for the subject by examining the stages of model design through a case study. To this end, the following section discusses the innovative business model developed for a restaurant planned to open in the village of Cumalıkızık. The model's development process is also explained in detail. SUSTAINABLE BUSINESS MODEL: CUMALIKIZIK RESTAURANT CASE Cumalıkızık Village, located in the east of Bursa, Turkiye's fifth largest industrial city, is a residential area rich in historical and cultural heritage. Since 2014, the village has been recognised as a UNESCO World Heritage Site under the title “Bursa and Cumalıkızık: The Birth of the Ottoman Empire” and has gained important national and international recognition with this title. Cumalıkızık, which carries the original civil architecture examples of the Ottoman period, stonepaved narrow streets and traditional lifestyle to the present day, has become one of the remarkable destinations of cultural tourism with its historical texture, cultural richness and natural beauties. These unique qualities of the village have transformed it into a living openair museum where cultural values are exhibited and experienced, beyond being just a residential area. In this context, Cumalıkızık's natural, cultural and historical heritage makes it an attractive object for culturebased tourism activities. As a matter of fact, it has attracted the attention of both local and foreign tourists over the years; tourism activities have contributed significantly to the village economy. In the village where various service providers operate to meet the needs of visitors, local people also take an active role in the provision of these services, thus ensuring that tourism revenues contribute directly to local development. The proximity of the village to Bursa city centre and the relatively convenient transportation facilities increase the 404 comments is that the same aspects are evaluated positively or negatively depending on different customer expectations and experiences. Figure 5. Negative comments for all categories of R1 Based on all this data, the current situation of competitor businesses can be summarised as shown in Figure 6: 405 Figure 6. Cumalıkızık restaurantscompetitor analysis This bubble chart displays the average ratings of restaurants in Cumalıkızık alongside their positive and negative reviews. R1, despite receiving the most positive food reviews, has a midlevel average rating and is shown in dark red, indicating a high number of negative feedback. This suggests that R1 is popular but has inconsistent performance. In contrast, R7 and R8 have both high average ratings (approximately 4.7–4.8) and a large number of positive reviews. Their lighter colour indicates fewer negative reviews. Therefore, R7 and R8 stand out as more stable and robust restaurants in terms of customer experience. R2, on the other hand, has lower scores and limited positive reviews, indicating a need for improvement, particularly in service and food quality. Restaurants such as R3, R4, and R6 perform at a moderate level; although they maintain a certain quality, they attract less attention. Overall, R7 and R8 are the strongest candidates, offering both high quality and customer satisfaction. In contrast, R1 should focus on reducing negative experiences to maintain its popularity. In light of the analyses made, the things that can be done in order to maximise customer satisfaction for the new business to be established in Cumalıkızık village and to make a difference by adapting to the natural and cultural texture of the region are determined as follows. 406 Table 3. Strategic suggestions for Cumalıkızık village Category Key Suggestions / Actions Food & Beverage Quality • Local, organic products • Regional/traditional recipes • Semiopen kitchen design • Direct purchasing from producers Service Quality & Customer Relations • Staff training programs • Technologybased ordering systems • Birthday and special occasion services Price/Performance Balance • Transparent pricing • Customer loyalty incentives • Menu options for various budgets Atmosphere & Design • Garden and natural design elements • Photo spots / aesthetic corners • Seasonal decor and arrangements Hygiene & Cleanliness • Frequent inspections • Hygiene certification • Table cleaning systems Technology & Digitalisation • QR code ordering • Pointbased reward system • Digital feedback channels Marketing & Communication • Social media campaigns • Encouraging customer tagging on social media • Grand opening campaigns Social Responsibility & Local Connections • Purchasing from local producers • Community events • Use of recyclable packaging In order for the new enterprise to be established in Cumalıkızık village to achieve sustainable success, it is of great importance to increase sales continuously. Suggestions that will contribute to the achievement of these objectives are listed below (See Table 4). Table 4. Strategic suggestions for the new restaurant Category Key Suggestions / Actions Packages and Promotions • Packages for two people with free drinks • Group discounts for four people • Loyalty benefits such as free breakfast after multiple visits Digital Presence and Marketing • Social media campaigns, contests, 'Like & Share' events • Online ordering options for both local and nonlocal customers Events and Special Days • Special menus for Mother's Day, Valentine's Day, and New Year's Day • Inhouse areas for small celebrations, birthdays, and corporate events • Workshops such as jammaking or breadbaking to attract customers continued on following page 407 Category Key Suggestions / Actions Collaborations and CrossMarketing • Partnerships with hotels, boutique shops, and tour operators • Group breakfasts for school trips and tour groups • Inhouse corner for selling local products to enhance the visitor experience Menu and Pricing Innovation • Seasonal changing menus to offer new experiences • 'Trial Days' with free or lowcost new product tastings Visuals and Atmosphere • Emphasis on visual presentation for social media sharing • Aesthetic areas for taking and sharing photos • Garden arrangements for a natureintegrated dining experience The findings of the competitor restaurant analysis reveal that customer satisfaction in villagethemed restaurants is shaped not only by the quality of the products offered, but also by the atmosphere of the place, service understanding and first impressions. In this context, the questions of how the experience offered by village restaurants interacts with the natural and cultural environment and what kind of journey visitors experience from the moment they step into this environment gain importance. The next section will cover the BMI Lab team's experiences regarding the initial point of contact and village and restaurant services. The next section will examine how village and restaurant services are experienced. Furthermore, customers' impressions at the initial point of contact will also be analysed. Experiencing the Restaurants’ Services The second stage of the innovative business model development process is the ‘experiencing the restaurant's services’ stage. In this stage, the BMI Lab team visited Cumalıkızık Village numerous times to design the experiences the new restaurant would offer customers and to ensure excellence at every stage of the service. During these visits, some restaurants operating in the village were randomly selected, onsite observations were made, and direct user experiences were obtained. As a result of the observations, it has been determined that the service processes of the existing restaurants and food and beverage points operating in the region are mostly carried out using traditional methods. Since basic operations such as order taking, service delivery and payment are carried out manually, operational slowdowns were observed, especially during peak visitor periods. In addition, there was a significant lack of standardisation in service delivery, and staff attitudes and communication style with customers varied significantly from establishment to establishment. Table 4. Continued 408 Some typical contact points observed during the visits and concrete situations encountered are summarised in Table 5: Table 5. Contact points for restaurants Contact Point Observation Evaluation Welcome No friendly greeting; sometimes invited to order with a call Inadequate - negatively affects the first impression Menu and Order The menu is mostly verbal, and the price information is unclear Lack of transparency undermines trust Service and Presentation Long waiting time, hot products arrive late Operational disruptions are noteworthy Environment The use of plastic products is high. Signboards and advertising boards spoil the natural appearance. Visual quality is low, contradicting authentic expectations. Hygiene The level of table cleanliness varies, but is insufficient. Some of the toilets are very dirty. There is an unhygienic appearance from the moment you enter. Farewell and Goodbye There is usually no contact other than “let's get an account” The culture of saying goodbye to the customer has not developed During their visits, the BMI Lab team also had the opportunity to have short conversations with the visitors. The main themes highlighted by customers in these conversations were inadequate hygiene standards, lack of staff attention and hospitality, and pricepresentationmaterial mismatch. Following the Experiencing the Restaurants' Services phase, the next phase of the BMI Lab Methodology, the Situation Analysis phase, has been initiated. Situation Analysis The third stage of the BMI Lab methodology is the situation analysis stage. The qualitative data required for the SWOT analysis, Value Proposition Canvas and Business Model Canvas to be developed for the restaurant to be opened by Bursa Metropolitan Municipality in Cumalıkızık Village were collected. In order to collect these data, facetoface interviews were conducted with stakeholders (2 municipality employees, four local people, three tourists and three suppliers) and the interviews were recorded. The data obtained from the interviews were analysed using the content analysis method, and the suggestions and expectations of the stakeholders were revealed. These needs and expectations, which will form the basis for the creation of the value proposition canvas, are summarised below. 409 Local People’s Views • It is recommended that the restaurant preserve the natural and historical texture of the village, use wooden materials, and prefer a traditional setting. • Local delicacies such as gözleme, tarhana soup, walnut noodles, mafiş dessert, handrolled baklava, and natural tomato paste are requested to be included on the menu. • It is stated that price and quality balance should be ensured, a common price policy should be determined, and sanctions should be applied to those who do not comply with this policy. • It is suggested that playgrounds and walking areas be created, local jams should be introduced, and the public should be educated about tourism. • It was emphasised that the participation of the people in social responsibility projects should be encouraged, and their vision should be expanded through tourism mobility. Tourists’ Views • A village house atmosphere, natural wooden structures, and an authentic village environment are preferred. • Traditional village dishes, pancakes and villagespecific jams are requested. • Hygienic, clean and fast service is among the prioritised expectations. • Staff training and alternative breakfast options are recommended. • Villagestyle presentation with local products, where flavour is at the forefront, is preferred. • The open kitchen and interactive workshops were found interesting. • It is desired that playgrounds be created for families with children. • It is important to protect the natural environment by using recyclable materials. • While providing quality service, an appropriate price policy should be adopted. • Online booking and social media services are useful for urban visitors. Suppliers’ Views • It is expected that local producers will be trained to create a conscious supply chain, and local products such as dairy products will contribute to employment in the village. • Village cooperatives need to be strengthened, and professional processes need to be implemented for fast and safe delivery of products. 410 • It is recommended that original flavours such as tarhana soup with chestnut and mafiş dessert are included in the menu in their natural form. • It is important to use local products such as jam, natural drinks, and bread varieties, as well as environmental practices such as serving water in earthen jugs. • Regular order management and increased production capacity are required during peak periods. • Local products are expected to be fresh, longterm professional agreements are expected, and sustainable production quality is expected. Municipality Employees; Views • It is aimed to increase Bursa's economic share in tourism and to revitalise gastronomy tourism in Cumalıkızık, and to create an exemplary model for local businesses • To increase the time visitors spend in Cumalıkızık, nonbreakfast lunch and dinner will be offered. • Local agricultural production will be supported, and the products of women and farmer cooperatives will be used. • Special recipes will be prepared with products such as raspberries, mulberries, blackberries, peaches, plums and chestnuts. • Local products will be added to the menu with modern interpretations in cooperation with famous chefs. • Workshops will be organised and experiences will be offered to visitors. • Strong communication and English language skills will be important for employees. • Accessibility will be ensured in physical space, materials and digital platforms. • Social media comments will be regularly monitored to provide fast feedback, and special discounts will be offered to users. • Pricing will be kept at a midhigh level, and quality service and experience will be at the forefront. As a result of the interviews, it was observed that there are some common themes in the suggestions and expectations of different stakeholder groups. For example, all stakeholders stated the use of local products, preserving the authentic village experience, providing a suitable environment for families with children and giving importance to hygiene/quality as prominent expectations. However, some differentiating or potentially conflictual points are also noted. For example, while local people demand more accessible pricing and a common pricing policy, municipality 411 representatives adopt a pricing strategy that emphasises the restaurant's appeal to the middleupper segment and quality service. Similarly, while the locals prefer traditional architecture and simple practices such as floor tables, tourists express more modern expectations such as hygiene, fast service and digital reservation. These differences necessitate a balance in the positioning of the restaurant in order to preserve locality and respond to current user experiences. Following the Situation Analysis stage in the sustainable business model development process, the Analysis and Consolidation of All Collected Data stage has commenced. Analysis and Consolidation of All Collected Data In the analysis and consolidation of all collected data phase, the findings of the preassessment, experimentation and situation analysis processes were presented to the managers of Bursa Metropolitan Municipality, and a SWOT analysis was carried out with the guidance and technical direction of the BMI Lab team, as well as the visualisation of the Value Proposition Canvas and Business Model Canvas. In order to carry out these analyses and visualisation studies effectively, the managers were presented with trend, disruption and challenge cards created by the BMI Lab team based on the data collected during the preassessment, experimentation and situation analysis stages. These cards, prepared with a total of nine cards in each category, were used to facilitate the understanding of the external environmental factors to be considered in the strategic positioning of the restaurant and to contribute to the structuring of innovative ideas. SWOT Analysis After sharing the findings of the BMI Lab team's preliminary assessment, experimentation, and situation analysis processes with the Bursa Metropolitan Municipality managers, the managers were asked to conduct a SWOT analysis for the new restaurant to be opened. SWOT analysis can be defined as a strategic technique used to identify the weaknesses and strengths of a business, institution, destination, process, situation or person in a project or a commercial venture, and to identify threats and opportunities in the internal and external environment (Dülgaroğlu, Aydemir & Avcıkurt, 2019). The elements of SWOT analysis put forward by municipal managers are as follows: Strengths • Childfriendly venue • Ready Capital • Nonexistent concept design 412 • Increasing the variety of touristic activities in the region (events, excursions, etc.) • Existence of an existing customer base • Organising cultural events Weaknesses • Limited foreign language proficiency of the local people Opportunities • High advertising power • Local supply model • No capital problems • The backstory of raspberry ice cream Threats • Not tried before • Negative reaction of the local population • Not using the garden in winter • Insufficient capacity against excess demand Visualisation of the Value Proposition Canvas Following the SWOT analysis, the stage of visualising the Value Proposition Canvas was started. At this stage, municipality managers were first asked to identify the target audience by brainstorming. Municipality managers identified the following elements regarding the target audience: • Friend groups (work colleagues, childhood friends, school friendships) • Nuclear families • Large families • Private meetings (e.g. business meetings organised by local and foreign business people) • Project groups • Training groups • Travelling foodies • Families with children who want to have different experiences by travelling to nearby cities on weekends • Business people who come to Bursa for business reasons and want to spend quality time outside of work 413 • Phenomena looking for different places for social media sharing Following the brainstorming about the target audience, the municipality managers were given nine trend cards prepared by the BMI Lab team and asked to choose from these cards by thinking about the trends that will affect the behaviour of the target audience. Trend cards are visual and conceptual tools used in strategic thinking, innovation development, and future planning processes. They systematically identify changes in social, technological, economic, environmental, and political fields and show the potential effects of these changes. The trend cards selected by the municipality managers are shown in Figure 7. Trend cards have identified five current trends that will shape the restaurant's value proposition: unforgettable experiences, sustainability, social responsibility, local stories and uniqueness. Figure 7. Selected trend cards In the next stage, municipality managers were given nine disruption cards created by the BMI Lab team and asked to choose from among them. Disruption cards are cards that represent disruptive situations, uncertainties, contradictions or interruptions that occur or may occur in existing systems, processes, products or services. The disruption cards selected by the municipality managers include long waiting times, a lack of skills and supply chain issues, as shown in Figure 8. 420 Figure 14. SWOT analysis (final version) As can be seen in Figure 14, the final SWOT analysis includes some elements that were not included in the initial analysis. For example, adoption of a zerowaste approach, animalfriendly concept, qualified personnel, the fact that there are very few restaurants serving lunch and dinner in the region, and preference for organic products were added to the strengths of the restaurant. In the first SWOT analysis conducted by the municipality managers, “lack of communication language of local people” was included as a weakness, while in the final SWOT analysis, this factor was replaced with “risk of high cost of quality products and services”. No changes were made in the opportunities and threats. One of the basic building blocks of the business model developed for the restaurant to be established in Cumalıkızık is the Value Proposition Canvas, which will provide a unique and meaningful value to the target customer groups. Following the identification of the business model innovation cards, the municipality managers were given the opportunity to review the Value Proposition Canvas and make any changes they deemed necessary. The final version of the Value Proposition Canvas is shown in Figure 15. 421 Figure 15. Value proposition canvas (final version) A comparison of the first draft of the Value Proposition Canvas with the final version shows that the idea development process has deepened contextually and matured strategically. While the first version outlined basic customer needs and expectations in general terms, the final version defines both customer segments and value drivers in a much more detailed and customised way. In the profit drivers section, the differentiation potential of the restaurant has been significantly enhanced by the inclusion of original ideas, such as a raspberrythemed gastronomy experience, open kitchen, photo area and influencer visits. In the pain relievers section, not only were solutions to operational problems offered, but digital solutions, childfriendly areas, and sustainability practices were added to increase customer satisfaction and loyalty. One of the most striking aspects of the final canvas is the elaboration of customer segments and a more holistic approach to the pain/gain expectations of each segment. In this respect, the Value Proposition Canvas reflects a multidimensional strategy that focuses not only on product and service delivery, but also on cultural heritage, social benefit and experiencebased tourism. Another activity carried out at this stage is the creation of the Business Model Canvas by bringing together all the analysis outputs (SWOT, value proposition, priority and innovation matrices) obtained up to this stage. The Business Model Canvas presents in a holistic framework what kind of value the restaurant will create, to whom and how it will deliver this value, and with which resources it will make it sustainable, as shown in Figure 16. 422 Figure 16. Business model canvas (final version) The Business Model Canvas reflects the value creation, delivery and capture processes of the restaurant to be established in Cumalıkızık from a holistic perspective. The detailed categorisation of customer segments enables flexible service designs to cater to individual, family and corporate groups, while the value proposition component is geared towards meeting both heritagebased gastronomic experiences and contemporary customer expectations such as accessibility, hygiene and personalisation. The diversification of income sourcesespecially the inclusion of ancillary income elements such as workshops, events and local product sales - strengthens the sustainability of the model. Digital infrastructure, qualified staff, and cultural content production come to the fore in the core resources and activities section, while multichannel distribution strategies such as social media, online booking systems, and festival participation contribute to the effective management of customer relations. Multistakeholder collaborations with local communities, cooperatives, universities and social media influencers show that the restaurant prioritises not only economic but also social and cultural value generation. This business model is unique and innovative, going beyond classical restaurant management, integrating gastronomy tourism with local development goals, and including experience, digitalisation, and sustainabilitybased practices. Even so, when considering other sites on the UNESCO World Heritage List, this model is not the first or only one developed in the context of sustainability, digitalisation and cultural tourism. For example, many restaurants in Matera (Italy) have also implemented business model innovations driven by similar motives. The “Le Grotte della Civita” in the Matera destination, which adapts traditional structures to modern accommodation functions, 423 uses local materials at this stage, prioritises local products in supply chains, employs renewable energy sources, and makes efforts to reduce waste production, constitutes a notable example in terms of business models developed for environmental and social sustainability (Cucari et al., 2019). The steps of the customised application of the REMODEL methodology for the Cumalıkızık case study can be summarised as shown in Figure 17. Figure 17. REMODEL methodology application flow This figure visually illustrates the eightstep flow, starting from preassessment and onsite experience gathering to detailed stakeholder analysis, data consolidation with strategic tools, and idea generation using innovation cards. The process continues with presenting ideas to municipal stakeholders, planning implementation details, and finalising the business model. By emphasising a continuous and participatory approach, the schematic highlights how each phase builds upon the previous one to ensure a holistic, contextsensitive, and strategic transformation. Overall, the visual reinforces the importance of integrating local insights and iterative feedback loops when designing innovative and sustainable business models in cultural tourism contexts. 424 Based on the BMI methodology and implementation stages, the results section summarises the theoretical and practical contributions of this section for cultural tourism stakeholders. CONCLUSION In this chapter, a sustainable business model innovation process for the restaurant planned to be established by Bursa Metropolitan Municipality in Cumalıkızık Village is discussed. The process is based on the REMODEL Business Model Innovation (BMI) methodology developed within the REMODEL Horizon Europe Project and based on Gassmann's “Magic Triangle” approach. Through this multistage methodology, not only was a traditional business plan developed, but also a strategic framework that integrates the objectives of local development, cultural heritage conservation and sustainable tourism through business model innovation. In the analyses conducted, firstly, market dynamics, customer expectations and competitor businesses were evaluated; then SWOT analysis, Value Proposition Canvas and Business Model Canvas were structured in the light of qualitative data enriched by experiential observations and stakeholder interviews. The trend, disruption and challenge cards and innovation matrices used throughout the process ensured that both internal and external environmental factors were addressed systematically and increased the capacity of municipality managers to produce innovative solutions. Thanks to the business model innovation cards applied, especially during the idea generation phase, ideas based on digitalisation, experiential service delivery and social responsibility were developed that went beyond the classic restaurant concept. The final business model that was developed encompasses not only product and service delivery but also multilayered elements such as customer experience design, local producer collaborations, cultural events, and digital integration. In this respect, the model restructures the value creation, value delivery, and value capture elements defined in the contemporary business model innovation literature from a holistic point of view. As a result, this innovative business model proposed for the Cumalıkızık municipality restaurant constitutes a valuable example from both academic and practical perspectives. This study is supported by REMODEL project which is funded by the European Union’s Horizon Europe research and innovation programme under grant agreement No 101079203. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union. Neither the European Union nor the granting authority can be held responsible for them. 425 REFERENCES Amit, R., & Zott, C. (2020). Business model innovation strategy: Transformational concepts and tools for entrepreneurial leaders. John Wiley & Sons. Ammirato, S., Felicetti, A. M., Linzalone, R., & Carlucci, D. (2022). Digital business models in cultural tourism. International Journal of Entrepreneurial Behaviour & Research, 28(8), 1940–1961. DOI: 10.1108/IJEBR0120210070 Arsoy, A. P., & Kılınçarslan, T. B. (2024). 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REMODEL BMI Methodology: A participatory and multistakeholder strategic business model innovation methodology developed within the REMODEL Horizon Europe project that structures business model innovation processes in eight stages. Sustainable Business Model Innovation: The process of restructuring a business model to generate economic benefits while also creating social and environmental value. SWOT analysis: A strategic method used to identify the strengths and weaknesses of a project or initiative and to evaluate opportunities and threats in the external environment. Value Proposition Canvas: A business model tool used to develop strategies for how businesses can respond to the expectations and problems of their target audiences, solve their problems, and create value.