Thursday, January 17, 2013

Restaurant and foodservice operators:you can use local to increase profits!


I got a call from Amy Ivy the other day. Amy is Executive Director/Horticulture Educator at cooperative extension in Clinton and Essex counties. She asked me if I would attend a meeting of chefs and farmers in Plattsburgh on February 13, 2013. I tried to locate the time and location of this meeting for this essay, but could not find it. Please contact Laurie Davis at Adirondack Harvest if you are interested in attending. She will be glad to give you the correct information. The purpose of the meeting is to introduce local chefs/operators of food service operations, to local farmers who would like to grow agricultural products and sell them locally. These products include produce, meats, maple, dairy, and eggs. I would like to tell you why you should consider buying these local products. 
 I run a restaurant in Saranac Lake called The Eat 'n Meet Grill and larder. I have used local agriculture in my restaurant and my career as a chef from day one. Since I have been in this business for over 25 years, I have many reasons for this choice. But profits and increased gross revenues have always been the foremost reason for this policy. This is exactly the same reason why many operators feel that they can not use local products. Many of the farmers that I do business with, say to me that operators most often will not do business with them, because they can not match the price of the major food service distributors that they buy from. Many operators also like the convenience of purchasing 100% of their products from one supplier. To me, this is a dangerous practice, because of the increasing risk of product shortages and recalls in the national food supply. How often have we heard about tainted lettuce or ground beef coming down through the supply chain? When this product is served in your operation, your customers lose trust in your choice of suppliers. 
   Can we afford to lose customers in this economy? Not hardly. In fact, I have to gain customers on a regular basis, to keep up with rising fixed costs like property taxes and fuel. I would bet that the operator that quibbles over a dollar or two more for a bag of local potatoes, keeps their ovens and grills burning all day, often with no product being prepared.
 My customers trust me because they know that I seek out relationships with my suppliers and do the homework that they would like to do themselves if they weren't so busy earning a living. They know that I only purchase from suppliers who have the best interest of their customers in mind. I do not purchase from someone just because they are local. There are unscrupulous people in every part of this country, but because of my proximity to the suppliers I use, I can form relationships with the best and most conscionable.
A bad reputation is much harder to overcome in a local environment.  
  And now back to the reason that I use local suppliers to increase gross revenue and profits. You see, the hospitality industry relies more on word of mouth advertising than just about any other. When you purchase products from local sources, you are much more likely to gain customers based on the increased exposure to local ties that those very suppliers have. For example, when I buy potatoes from Steve Tucker in Gabriels, or Ken Campbell in Saranac, I am reaching, via word of mouth the friends, family, and customer base of those suppliers. The people who trust those farmers to produce the food that they eat, are much more likely to trust them when they recommend my restaurant as well. Many local farmers like Michelle at Harmony Hills Farmstead and Rhonda at Asgaard Farm and Dairy maintain a presence at the local farmers market every Saturday in Saranac Lake, and Sunday in Keene Valley. I know that they are reaching my core customer base - folks who care about where their food comes from, much more often than I ever could, from my uptown location. People who don't mind paying a bit more for that peace of mind.
 If you spend 5% of your operating budget on advertising, and then scrimping on the quality of the product that you use, why not take a look at how you can reevaluate how you do business, and spend a little more on building local relationships with your suppliers, and a little less on those advertising costs. I bet that if you look around your operation, you could also economize on other costs as well. The benefit of spending those dollars locally, would probably surprise you. Best of luck to you all in the coming year, and I hope this letter has reminded you of why we got into this business in the first place, to serve our customers the best we can.

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