“Drag it through the garden,” is a phrase heard in Chicago where customers line up at diners, lunch counters and food trucks. As you might guess, it’s part of an order for hot dog vendors to top off the steaming product with plenty of produce: onions, tomatoes, chili peppers, relish and more.
Do you cater to the foodservice customer in your retail produce department? Consider that while the common belief is that foodservice customers shop only from wholesalers, this group is also a growing segment in retail produce purchasing.
Foodservice encompasses quite a range. Besides fine-dining, casual, fast-casual and fast-food formats, foodservice also includes the oft-overlooked heavy-hitters such as healthcare, military, schools, commissaries, correctional facilities, hotels, casinos, in-home chefs and caterers. As one retail executive once said, “If an establishment (even the corner gas station) sells something that ends up in a customer’s stomach, consider them a competitor.”
It only makes sense to not just understand and identify your competitor but regard them a potential customer as well. Fresh produce plays a role.
In fact, at the recent PMA Foodservice Conference and Expo in Monterey, Calif., one speaker noted that for the first time, food consumed outside the home surpassed retail consumption in 2017, 51% to 49%. While the margin is slim, it could be a signpost of a growing trend, as time-pressed consumers choose to rely upon foodservice.
Most larger foodservice operations draw from wholesalers and broadliners. However, many smaller operators look to retailers to fill their needs. Here’s a few thoughts to consider in marketing to this segment.
Trends
Long before common produce items such as jicama, crimini mushrooms or cilantro surfaced in retail, restaurants forged the path including these and other specialty produce in their menu offerings. Foodservice often sets such trends, especially mirroring ethnic and cultural influences. Current trends point to increasing varieties within commodity groups, such as renewed interest in variety potatoes – reds, yellow-types, purple and fingerlings.
Foodservice customers also seek out exciting and varied flavors to enhance the eating out experience. They are looking for specialty herbs and microgreens, for the sweet and crunch like slivers of fennel for salads, or for the wow factor such as found in slices of dragon fruit or golden kiwi as a garnish or to include in a dish.
Therefore, if you want to attract the caterer or the chefs shopping your store, strive to stock as much variety and specialty produce as possible. Keep it replenished and fresh.
Know your foodservice packs. It isn’t practical to try to match everything a foodservice broadliner offers, such as the dozen or so romaine choices (regular, liner packs, hearts, leaf fillets and the score of specified processor offerings).
However, many foodservice operators purchase 5x6 pink tomatoes to run through a slicer for sandwiches. Bulk carton count russets, “taco shred” lettuce and spring mix lettuce are just a few examples. If you stock it, they will buy it.
Offer cases discounts
You already have some foodservice type packs right under your nose. They’re called cases. Consider offering a retail case discount to attract the foodservice shopper with an overwrapped or otherwise representative case near your displays, with a posted case price.
Also, stock some common foodservice produce offerings. The 5x6 tomatoes might attract attention if offered in a two- or single-layer case pack. Or you may try selling whole bags of bulk carrots. A No. 2 bell pepper (a.k.a. “chopper” bells) are the twisted, uglier version of the retail offering, and while cosmetically imperfect, are a beautiful (and cost-effective) option for foodservice.
Sell to the in-house foodservice customer
You already have some in-house, foodservice customers. Your deli, seafood or specialty foods department manager no doubt uses many of the produce items mentioned so far, and in some instances buys much of what they use from outside vendors. Discuss their fresh produce needs with them so you can be their source as much as possible. With the house discount these produce cases likely won’t ring up as strong as your normal retail sales. However, all sales count, so why not sell internally wherever possible?
A visit to a foodservice produce warehouse or terminal market could spark some ideas. You’d be amazed at just how many grades, packs, and varieties are sold for the foodservice side of the business. While foodservice is indeed geared to a much different type of customer than retail, opportunities abound to sell the chef, food truck operator or caterer that is no doubt perusing your produce department each week.
It’s a question of doing what you’ve done all along in produce – meeting what your customer is after.
Armand Lobato works for the Idaho Potato Commission. His 40 years’ experience in the produce business span a range of foodservice and retail positions. E-mail him at [email protected].