See

discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/278036318

New trends in restaurant industry: serving

locally produced and organic food

Conference Paper January 2015

CITATIONS READS

0 1,368

1 author:

Snjeana Gagi
Univerzitet za poslovne studije
54 PUBLICATIONS 9 CITATIONS

SEE PROFILE

All in-text references underlined in blue are linked to publications on ResearchGate, Available from: Snjeana Gagi
letting you access and read them immediately. Retrieved on: 12 November 2016
 NEW TRENDS IN RESTAURANT INDUSTRY: SERVING
LOCALLY PRODUCED AND ORGANIC FOOD

dr Snjeana Gagi, Irma Erdeji MSc, Daniel Miki, dr Marko D. Petrovi

1,3
College of Professional Studies in Management and Business Communication, Miropolita
Stratimirovica 110, 21 205, Sremski Karlovci, Serbia, gagicsnjeza@yahoo.com
2
University of Novi Sad, Faculty of Sciences, Department of Geography, Tourism and Hotel
Management, Novi Sad, Serbia, irmaing@gmail.com
4
Serbian Academy of Sciences and Arts (SASA), Geographical Institute ''van Cviji'', Belgrade, Serbia,
m.petrovic@gi.sanu.ac.rs

Abstract: Healthy eating is becoming increasingly important in consumers minds. As people realize that health
problems are associated with modern lifestyles, interests in healthy eating are escalating. Some of the trends emerged
in the last decade is the growing interest in organic food as well as in local food consumption. These trends have had
an impact on the foodservice operation. Being known for serving local produced and organic food can be an
important point of differentiation in the market place, giving a competitive advantage to the restaurant. This paper
will identified perceived benefits and barriers to local food purchasing by retail food services as well as
restaurateurs views on the concept of organic dining, and their motivations for entering the organic food service
sector. The paper aim is to define the concepts of locally produced and organic food, to identify which food attributes
are critical in improving guests satisfaction and heightening revisit intention as well perceived benefits and barriers
to locally produced and organic food purchasing.
Key words: restaurant, locally produced food, organic food, trends

INTRODUCTION

In the highly competitive restaurant industry, satisfying customers should be the critical objective of businesses that
wish to build repeat purchase (Sulek, Hensley, 2004). Because food is a fundamental component of the restaurant
experience, there can be no doubt that the food has, and will continue to have, a major impact on consumer
satisfaction and return patronage. A crucial challenge facing restaurant industries today is to provide quality food that
is not only compelling for the customers but also can be superior to business competitors. Food quality is one of the
best means to maximize success in the restaurant business (Namkung, Jang, 2007).
According to Johns and Tyas (1996) healthy food could have a significant effect on customer perceived evaluation of
the restaurant experience. Kivela et al. (1999) noted the importance of healthy foods in restaurants and suggested
nutritious food as one of the core properties in dining satisfaction and return patronage. The more notable thing is
that restaurant customers are increasingly interested in healthy menu items (Sulek, Hensley, 2004).
Despite the importance of food consumption in the context of the hospitality, relatively little attention has been given
to examining local and organic food consumption in this research area (Kim et al., 2009).
Restaurants are finding ways to capitalize on these trends. Previous research has identified perceived benefits and
barriers to local food purchasing by retail food services in various sectors of the industry. Results are consistent
across all types of food services, including restaurants. Perceived benefits of good public relations, support to the
local economy, possibility of purchasing smaller quantities, fresher and safer food, high customer satisfaction, and
knowledge of product sources and production methods were identified (Casselman, 2010). Barriers identified in
these studies related to payment procedure conflicts, reliable suppliers, year-round product availability, lack of
knowledge about local sources, inconvenient ordering, limited availability and amounts, variable cost, service,
inadequate distribution systems, and additional time to process foods in the operation (Strohbehn et al., 2012).
In addition to locally produced food, organic food consumption is one of several new trends in eating read as active
opposition to industrialized food provision.
Both in the world as well in Serbia, has increased interest in organic food production as a consequence of several
factors. The most important of these are: a large area of uncultivated land suitable for organic production (Canavari
et al., 2007), little ecological system pollution (Lehmann, 2000) linking agriculture and tourism (Kuen, 2002),
improving the overall tourist offer (Meler and Cerovi, 2003), increased consumer health concerns (Lehmann, 2000;
Padel and Midmore, 2005) as well as the growing importance of renewable energy in the global environment (Wier
and Calverley, 2002). These reasons are only starting points for quality organic agriculture development.
Today, organic consumption is associated not only with health concerns, but also with social, economic and
environmental sustainability. Agricultural and food industry experts agree that the peak of the organic food trend has
not yet been reached, and there is still plenty of growth potential in the world organic market (Ebrahimi, 2007).
This paper will identified perceived benefits and barriers to local food purchasing by retail food services as well as
restaurateurs views on the concept of organic dining, and their motivations for entering the organic food service
sector.
The paper aim is to define the concepts of local and organic food, to identify which food attributes are critical in
improving guests satisfaction and heightening revisit intention as well perceived benefits and barriers to locally
produced and organic food purchasing.

LOCAL FOOD CONSUMPTION IN RESTAURANTS

Sharma et al. (2012) dened local food as food grown or processed locally and purchased by restaurants from the
local market or primarily through local producers.
Many national and local organizations, such as the Green Restaurant Association (GRA), define local food as being
within a 100-mile radius around an operation, whereas regional food is expanded to a 300-mile radius (Green
Restaurant Association, 2012). According to the U.S.D.A.s Economic Research Service (ERS), the 2008 Food,
Conservation, and Energy Act states that for a food to be considered local or regional it must not travel more than
400 miles from its origin, or can originate from the state in which it was grown (Martinez, 2010).
According to COI/FSA (2007), the main reasons for buying local food are: supporting local businesses and the local
community; food quality issues, including where the food comes from and its freshness; and environmental factors
such as reducing food miles and pollution.
Purchasing local food supports small and mid-size farmers who in turn provide many benefits to their communities,
including farming in ways that protect biodiversity and natural habitats, local air and water quality, and preserve
scenic landscapes and open space (Alfnes and Sharma, 2010).
The demand for fresh, local food has been growing rapidly in recent years, spurred by celebrity chefs, farmers
markets, Buy Fresh, Buy Local campaigns, and other initiatives. One of the most visible of all sustainable practices
found throughout foodservice operations is the use of locally-sourced products. Consumer interest in local food has
grown considerably over the last five years, mirrored by state-supported or sponsored buy local or state grown
campaigns (Darby et al., 2008).
On the National Restaurant Associations list of top 10 restaurant trends, locally grown food has been at the very
top for multiple years. Restaurants recent increased use of local foods also has been noted (Alfnes and Sharma,
2010). The demand-side benets to restaurants of using local foods are clearer. For instance, studies have argued
that restaurants use local foods to differentiate their products (Grunert, 2005) and because doing so give them a
motive to charge higher prices (Alfnes and Sharma, 2010). Alonso and ONeill (2010) found that convenience was
rated high, price was a modest factor, signage to promote was important, and wait staff were important as opinion
leaders
Research has shown that individuals purchase locally grown foods for perceived tangible benets such as
freshness and taste, as well as for more intangible motivations such as sustainability and community support
(Anderatta et al., 2011). Food consumed closer to the time it is harvested may also retain more vital minerals and
nutrients than food that is transported for days before it reaches the consumer. Because it is harvested at the peak of
flavor and freshness, local food generally requires less processing and added fats, salt and sugar. In Dombroskys
work on the acceptance of local wines in restaurant settings noted the inuence of wait staff in house promotions
(Dombrosky, 2012).
Hjalager and Richards (2002) stated that tasting local food is an essential part of the tourism experience since it can
serve as both a cultural activity and entertainment. Local food and beverages on holiday also play an important role
in introducing tourists new flavours and different traditions at destinations (Sparks et al., 2003). In the field of
hospitality and tourism, previous studies have examined various issues, such as local food as tourist attractions in
terms of economic benefits and local development (Tellstrom et al., 2005); an examination of success factors for
culinary tourism in the marketing of tourism destinations (Okumus et al., 2007); attraction of and impediments to
local food experiences (Cohen and Avieli, 2004); conceptualizing the relationship between food consumption and the
tourist experience (Quan and Wang, 2004); and effects of gastronomy on the tourist experience at a destination
(Kivela and Crotts, 2006).
Customers are increasingly willing to pay more for the quality and flavor of fresh, local foods. As one chef
explained, When I get my tomatoes from the farmer, they were picked the day before delivery. They keep much
longer and taste better than tomatoes that were picked weeks before they get to my restaurant. Customers notice
(NRA, 2014).

ORGANIC FOOD CONSUMPTION IN RESTAURANTS

Organic food consumption is increasingly popular in the USA and parts of Europe. The Global Strategic Business
Report (Global Industry Analysts, 2006) notes that the USA, Germany, Great Britain, Denmark, Italy, and Austria
are world leaders in the trend of eating organically and have developed well-structured markets catering to organic
food consumption.
The term organic can be broadly described as food grown without the assistance of man-made chemicals.
Organic food is certified for meeting specific standards, including being produced without most conventional
pesticides, synthetic fertilizers, antibiotics and growth hormones. The market for organics grows every year. People
purchasing some organic products, and demand for organic meat, fish and poultry growing the fastest, according to
the Organic Trade Association. Fifty-eight percent of consumers who responded to 2011 Thomson Reuters-NPR
Health Poll, preferred organic food to conventional, and 63% of respondents under age 35 chose organic when
possible.
The study of organic food purchasing behaviour is difficult because organic food products are available in the market
together with conventional ones and the purchase decision depends on many factors that can vary sharply across
individuals.
Although there is a small proportion of dedicated organic food buyers, most sales come from the majority of buyers
who switch between conventional and organic food purchases (Pearson, Henryks, Jones, 2011).
The motivation to purchase organic food is driven by health concern, environmental concern, sensory properties,
food safety and ethical concerns (Lockie et al., 2004). Health concern is found to be the primary motive to buy
organic food (Zanoli et al., 2004). According to Chen (2009), health consciousness is the main determinant on
enhancing the positive attitude toward organic foods.

Figure 1. Empirical model of consumer behaviour for organic food products (Gracia and de Magistris, 2013)

In a University of Auckland study, 390 medical students answered questions about their health worries and food-
related behaviour. Results suggest that health worries are significantly associated with organic food consumption
(Devcich et al., 2007), and many people believe organic food will protect them from disease.
Taste attracts people to eat organically, because the taste of organic food is considered by some to be superior to that
of conventional food. Taste is the main motive to buy organic in Italy and Sweden (Zanoli et al., 2004).
Price premiums and limited availability are the significant deterrents to buying organic food. The price premium
(typically 50%75% more than conventional food) is a major barrier for many consumers. Brown and Sperow
estimate the cost of a diet using all organic ingredients would increase food expenditure by nearly 50% for a family
of four in the USA, and both McCoy (2002) and Pearson (2001) considered the price premium as the most important
factor limiting demand for organic food.
Acording to Poulston and Yiu (2011) Customers psychological reactions to organic menus has a significant impact
on market penetration. They claim that that very few customers appeared to know enough about organic food to be
able to discuss the personal or societal benefits of eating and farming organically. They thought that customers dined
organically not for personal or societal reasons, but more to gain the respect of their peers. Pseudo-green customers,
whose physiological needs, safety needsand social needs have already been satisfied, are likely to eat organically for
social recognition and respect. Customers were well educated with high disposable incomes, but according to the
participants, did not necessarily understand what organic food is, or even believe in the benefits of organic eating.
They appeared to be attracted by the green image of organics that gave them a sense of self-value and self-respect.
Like the up-scale restaurateur, they were possibly motivated more by fashion than by organic food per se, and are
likely to exit the market if they find an interesting replacement for organic food.
The American Chef Survey (Stensson, 2006) revealed that organic produce was one of the top three preferred menu
trends. The survey found that 52% of up-scale restaurants with organic menus expected increased sales in future,
42% of casual dining restaurants expected organic food choices to increase, and 27% of family restaurants saw
strong sales potential in organic menus.
According to Perlik (2005) of Restaurants and Institutions in the USA, 69% of fine dining restaurants use organic
products on their menus, compared to 33% of casual restaurants. Perlik found that the main reason (29%) for
restaurateurs to purchase organic products was for their superior quality, with customer demand the next most
common reason (27%). About half the study's participating restaurateurs said they did not currently serve organic
menus, with higher prices given as the most common reason (34%), and organic items not fitting their menu as the
next most common (21%). Perlik (2005) noted that although many restaurateurs serving organic items do not
necessarily indicate them on menus, others viewed an organic menu as a point of pride and an opportunity to educate
consumers. Participants noted that limitation of supply often forced organic items out of menus (Poulston, Yiu,
2011).

CONCLUSION

The demand-side benets to restaurants of using locally produced and organic foods are clearer. Previous studies
has shown that individuals choose locally grown foods for perceived tangible benets such as freshness,
taste as well as for more intangible motivations such as sustainability and community support. The
motivation to purchase organic food is driven by health concern, environmental concern, sensory properties, food
safety and ethical concerns. Health concern is found to be the primary motive to buy organic food.
Studies have argued that restaurants use locally grown and organic foods to differentiate their products and because
doing so give them a motive to charge higher prices. Healthy food as well locally produced food could have a
significant effect on customer perceived evaluation of the restaurant experience. The Chef Survey revealed that
organic produce was one of the top three preferred menu trends. According to numerous predictions demand for
organic and locally grown food are going to rise. The fact is that it wont be popular among wider population because
of high prices, however it is certain that one part of the population will be able to afford it. Thats why restaurant
managers should pay attention to these trends and act according to market demands.

"Acknowledgment: The paper is supported by Ministry of Education, Science and Technological Development,
Republic of Serbia (Grant III 47007)."

LITERATURE

1. Alfnes, F., Sharma, A. (2010). Locally produced food in restaurants: Are the customers willing to pay a
premium and why?. International Journal of Revenue Management, 4(3), 238-258.
2. Alonso, A., O'Neill, M. (2010). Small hospitality enterprises and local produce: a case study. British Food
Journal, 112(11), 1175-1189.
3. Anderatta, S., Nash, B., Martin, G. (2011). Carterret catch: raising awareness of local seafood
through community and business partnership. Human Organization 70, 279289
4. Canavari, M., Centonze, R., Nigro, G. (2007). Organic food marketing and distribution in the European
Union (No. 7002). Alma Mater Studiorum University of Bologna, Department of Agricultural Economics
and Engineering.
5. Casselman, A., (Unpublished masters thesis) 2010. Local Foods Movement in the Iowa Catering Industry.
Iowa State University.
6. Chen, M. F. (2009). Attitude toward organic foods among Taiwanese as related to health consciousness,
environmental attitudes, and the mediating effects of a healthy lifestyle. British Food Journal, 111(2), 165-
178.
7. Cohen, E., Avieli, N. (2004). Food in tourism: Attraction and impediment. Annals of tourism Research,
31(4), 755-778.
8. Darby, K., Batte, M. T., Ernst, S., & Roe, B. (2008). Decomposing local: A conjoint analysis of locally
produced foods. American Journal of Agricultural Economics, 90(2), 476-486.
9. Devcich, D. A., Pedersen, I. K., Petrie, K. J. (2007). You eat what you are: Modern health worries and the
acceptance of natural and synthetic additives in functional foods. Appetite, 48(3), 333-337.
10. Dombrosky, J. (2012). Getting Local Wines on Restaurant Menus: Attitudes, Barriers and Opportunities
(Unpublished doctoral dissertation) Iowa State University.
11. Ebrahimi, M. (2007). Global appetite for organic drives organic market. Retrieved 3 November 2009,
from http://persianoad.wordpress.com/2007/11/30/global-appetite-for-organic-drives-organic-market/.
12. Gracia, A., de Magistris, T. (2013). Organic food product purchase behaviour: a pilot study for urban
consumers in the South of Italy. Spanish Journal of Agricultural Research, 5(4), 439-451.
13. Green Restaurant Association 2012 (GRA). Certification Standards: Sustainable Food, Green Restaurant
Association.
14. Grunert, K. (2005). Food quality and safety: consumer perception and demand. European Review
of Agricultural Economics 32, 369391.
15. Johns, N., Tyas, P. (1996). Investigating of the perceived components of the meal experience, using
perceptual gap methodology. Progress in Tourism and Hospitality Research, 2(1), 15-26.
16. Kim, Y. G., Eves, A., Scarles, C. (2009). Building a model of local food consumption on trips and
holidays: A grounded theory approach. International Journal of Hospitality Management, 28(3), 423-431.
17. Kivela, J., Crotts, J. C. (2006). Tourism and gastronomy: Gastronomy's influence on how tourists
experience a destination. Journal of Hospitality & Tourism Research, 30(3), 354-377.
18. Kivela, J., Inbakaran, R., Reece, J. (1999). Consumer research in the restaurant environment, Part 1: A
conceptual model of dining satisfaction and return patronage. International Journal of Contemporary
Hospitality Management, 11(5), 205-222.
19. Kuen, E. (2002). Meusobna ovisnost ekoloke poljoprivrede i turizma, Turizam: meunarodni
znanstveno-struni asopis, god. 50, br. 1, str. 79-84.
20. Lehmann, B., (2000.) Rural Development at a Regional Level. The Contribution of Organic Farming, u:
Proceedings of the 13th International IFOAM Scienti c Conference, Convention Center Basel, Aug., 28-
31.
21. Lockie, S., Lyons, K., Lawrence, G. and Grice, J. (2004). Choosing organics: a path analysis of actors
underlying the selection of organic food among Australian consumers, Appetite, vol 43 No. 2, pp. 135-46.
22. Martinez, S. (2010). Local food systems; concepts, impacts, and issues. Diane Publishing.
23. McCoy. S. (2002). Organic agriculture: introduction, Farmnote, p. 21.
24. Meler, M. I Cerovi, Z. (2003). Food marketing in the function of tourism product development, British
Food Journal, vol. 105, br. 3, str. 175-192.
25. Namkung, Y., Jang, S. (2007). Does food quality really matter in restaurants? Its impact on customer
satisfaction and behavioral intentions. Journal of Hospitality & Tourism Research, 31(3), 387-409.
26. Okumus, B., Okumus, F., McKercher, B. (2007). Incorporating local and international cuisines in the
marketing of tourism destinations: The cases of Hong Kong and Turkey. Tourism Management, 28(1), 253-
261.
27. Padel, S. i Foster, C. (2005.) Exploring the gap between attitudes and behaviour, Understanding why
consumers buy or do not buy organic food, British Food Journal, Vol. 107, Br. 8, str. 606-625.
28. Pearson, D. (2001). How to increase organic food sales: results from research based on market
segmentation and product attributes. Australian Agribusiness Review, 9 (8). Retrieved 10 February 2010,
fromhttp://www.agrifood.info/review/2001/Pearson.html.
29. Pearson, D., Henryks, J., Jones, H. (2011). Organic food: What we know (and do not know) about
consumers. Renewable Agriculture and Food Systems,26(02), 171-177.
30. Perlik, A. (2005). Organics chemistry. Restaurants & Institutions. Retrieved 15 February,
from http://www.rimag.com/index.asp?layout=articlePrint&articleID=CA6519636&article_prefix=CA&art
icle_id=6519636.
31. Poulston, J., Yiu, A. Y. K. (2011). Profit or principles: Why do restaurants serve organic food?.
International Journal of Hospitality Management, 30(1), 184-191.
32. Quan, S., Wang, N. (2004). Towards a structural model of the tourist experience: An illustration from food
experiences in tourism. Tourism management, 25(3), 297-305.
33. Sharma, A., Strohbehn, C.H., Radhakrishna, R.B., Ortiz, A (2012). Economic viability of selling locally
grown produce to local restaurants. The Journal of Agriculture, Food Systems, and Community
Development December 2012, 181198.
34. Sparks, B., Bowen, J., Klag, S. (2003). Restaurants and the tourist market.International Journal of
Contemporary Hospitality Management, 15(1), 6-13.
35. Strohbehn, C.H., Smith, M., Domoto, P., Wilson, L. (2012). Final Report: Impactsof GAPs and Post-
Harvest Handling Practices Certificate Training on Pro-ducers On-Farm Food Safety Behaviors and
Perceptions of CustomerAssurance. Leopold Center for Sustainable Agriculture, Ames, IA.
36. Sulek, J. M., Hensley, R. L. (2004). The relative importance of food, atmosphere, and fairness of wait.
Cornell Hotel and Restaurant Administration Quarterly, 45(3), 235-247.
37. Tellstrom, R., Gustafsson, I. B., Mossberg, L. (2005). Local food cultures in the Swedish rural
economy. Sociologia Ruralis, 45(4), 346-359.
38. Wier, M., Calverley, C. (2002.). Market potential for organic foods in Europe, British Food Journal, vol.
104, br. 1, str. 45-62.
39. Zanoli, R., Bhr, M., Borschen, M., Laberenz, H., Naspetti, S. and Thelen, E. (2004). The European
consumer and Organic Food. Organic Marketing Initiatives and Rural Development, Vol. IV, 175, School
of Management & Business, The University of Wales, Aberystwyth.