Multifunctionality and Tradition: Enhancing Competitiveness in Agri-Food Business Models

This article explores the innovative transformation of agri-food business models through multifunctionality, tradition-led innovation, and attention to evolving tourist expectations. Despite growing academic attention, the literature still lacks structured frameworks for understanding the effective integration of multifunctional activities, particularly those rooted in tradition and authenticity. This paper presents a qualitative case study of the Italian agritourism enterprise "Anna dei Sapori," demonstrating how this small-scale business has successfully leveraged local traditions, cultural heritage, and experiential services to meet the demands of tourists seeking slow and authentic experiences. The analysis of five-year financial performance shows a positive compound annual growth rate of 6.6% across all segments, with accommodation services experiencing remarkable growth (+36.9% CAGR) while strategically reducing food services—a diversification that enabled resilience despite a 25% regional tourism decline. The case illustrates that the strategic diversification into hospitality, direct sales of traditional and handmade products, and immersive cultural activities significantly enhance economic resilience and can promote regional attractiveness. Findings highlight the importance of multifunctionality and tradition-led innovation as key strategies for revitalizing rural economies and enhancing competitive advantage in the contemporary agri-food sector.