Background
Consumer preferences and habits are changing in the U.S. due to sustained variations in consumption habits. According to (Berry, 2010) spending habits have changed towards an increase in demand for the value of products. Due to the economic recession, Americans are more aware of the need for value for money. For this reason, current trends in the market show an incline towards local sources of food, produce, sustainability and nutrition. Therefore the market has seen an increase in the demand for quality and nutrition in the context of food. For this reason, a move towards locally produced farm produce would be a wise move by Tim.
Literature
Reports from National Restaurant Association show that consumer trends in 2010 leaned towards local food and drink, authentic and short ingredient list, ethical production of food, and nutrition, Martinez, et al., (2010). This was after a survey was carried out on 1800 chefs. Therefore the trends within the restaurant business are the sourcing of ingredients from local farms and markets. Hence by following the trends of other chefs, Tim would do well to turn to local farms for produce.
However, despite the market trends, Tim should consider the behavior of his consumers. The food market is drastically changing due to changes in consumer preferences and purchasing habits. We are at a time when Americans are more aware of their spending habits. To stretch resources to meet everyday demands, they are going out to restaurants less. With declines in the number of those dining out, restaurants are left more empty tables. This is according to the report by Berry (2010).
To keep consumers coming to restaurants, chefs and restaurant owners have had to adapt to the needs of their market. Americans now prefer to buy quality food on the goods that have private labels. This food is cheap and greatly helps in savings. Despite the recession, Americans would rather pay a premium for local food to get quality. In addition, quality restaurant food is on-demand as more Americans have time to fully prepare a meal from scrap, and less time to go out for a meal. Current trends show that redeeming coupons is up by 25%, with 15% for private label sales Martinez, et al., (2010). Consumers are now demanding more for uniqueness, with ethnic cuisines and new drinks being favorites. Food sources are also considered by today’s consumers, they measure the quality of food in terms of the miles from source to the table.
Pros and Cons
A pro is that by turning to local food sources, Tim will be attracting that part of the population that is conforming to recent market trends as a result of the recession. Another part of the population will be attracted due to the availability of local foods and the support the restaurant is giving local farmers. This is because more Americans would want to know the origin of the food; therefore local foods will also reduce the “food miles” factor and guarantee freshness and better taste Kramer, (2010). This is also a boost to the local economy as they support the local farmer instead of large-scale farmers. The collaboration will be fostered between the chef and farmer, as they will plan meals that have a basis on year-round availability of produce. The economic and environmental costs are reduced through less transportation, less processing, and the packaging of food. The con is that this move will increase the workload for the restaurant as they source food sources. Some ingredients may be difficult to obtain due to seasonality and geographical capability for their production. The competition will be high, as menus will consist of similar ingredients. Consumers may not enjoy the seasonality of food as they were used to getting it all year round.
References
Berry, B. (2010). Agri-Food 2010 hot trends Report United States. Agri-Food Trade Service. Web.
Kramer, J. (2010). The Pros and Cons of Supporting Local Farmers in your Region. Web.
Martinez, S. et al., (2010). Local Food Systems: Concepts, impacts, and Issues, ERR 97, U.S. dept of Agriculture, Economic Research service.