Greetings from The Culinary Edge team and welcome to our first eNewsletter. In an effort to stay in touch with our industry contacts and provide a bit of helpful information, we are pleased to launch this first quarterly update. While one purpose of this is to keep our friends updated on our news, we will also discuss a single trend or issue affecting us and our clients to help keep us all ahead of the curve. Please feel free to respond with your comments and questions to newsletter@theculinaryedge.com.
This Month's Topic: Local, Sustainable and Organic
The Culinary Edge's founder Aaron Noveshen recently lead a panel titled Local, Sustainable and Organic: America's Culinary Leaders are Changing the Way We Eat at The National Restaurant Association Show on May 20, 2007. Featuring top chefs and industry leaders, the panel explored the various challenges that restaurants face in addressing sustainable issues and provided audience members with practical information and direction for addressing these movements in their operations.
Click here to obtain an audio recording of the session or contact heidi@theculinaryedge.com
Session Highlights:
- The discussion of what 'sustainability' means was particularly useful to many of the attendees. This broad term described farming and husbandry practices that are easier on the earth, but the panelists all felt that the sustainability of small farms, fisheries and fishermen were an equally important element to the movement.
- Panelists applauded Wal-Mart, Wolfgang Puck and any company willing to take a stance and try to live up to socially responsible sourcing policies. Even if the programs vary from the overly ambitious to the conservatively narrow it was viewed that every step taken will encourage positive action and make future steps easier for other companies.
Shifts in the Industry on the Local, Sustainable and Organic Front
The tide of public and scientific opinion has shifted. We, in the restaurant industry, are no longer in a position to ask if we should respond to these environmental movements, but how.
The facts have become less refutable. Scientists and political leaders have moved from a skeptical investigation of the situation to a nearly unanimous call to action:
- According to a study conducted by an international team of ecologists for Science Journal, the world's seafood population is predicted to become completely depleted by 2048 should the current rate of decline continue as it is today. Blue fin tuna, Atlantic cod, Alaskan king crab and Pacific salmon populations are currently only 10% of their historic highs
- Food and ingredients typically travel 1500-2500 miles from field to fork under the conventional transportation system
- 500 chemicals are routinely used in conventional farming
Shoppers are speaking with their wallets as they become further aware of the issues:
- Organic sales in the United States have increased an average of 15% over the last 5 years, totaling 16 Billion US dollars in 2006
- 83% of "Generation Y" diners claim that they trust a company more if it is socially or environmentally responsible, according to a survey by Cone Inc. and AMP Insights
- Burgerville, the 39-unit, family-owned quick-service company based in the Pacific Northwest has experienced an 11-12 percent increase in same store sales this year. CEO Tom Mears attributes the significant increase to customer loyalty, which he believes is a result of their commitment to protecting the local environment and taking care of the communities in which they operate.
Leaders in the industry are proving that a proactive response can be both socially responsible and profitable:
- McDonalds leads the way with one of the most sustainably managed and forward thinking seafood-sourcing programs in the country
- Both Wolfgang Puck and Burger King received extensive press for their announcements of new environmental plans. Even though Burger Kingís free-range egg program will only fulfill 2 % of their total usage, they are still receiving favorable response for taking a lead in addressing consumer concerns.
The Culinary Edge's Advice for Companies Looking to Make a Bigger Statement and Shift in Their Model:
Making an impact both environmentally and to the bottom line can be made with the introduction of one single organic product
- Look at Chipotle and the health halo they received for starting with only one organic item on the menu, naturally raised pork. They have also recently introduced new sources of chicken, beef, avocados, beans and lettuce.
- Prices are coming down each year, particularly on bulk items such as lettuces and grains
Directly approach a farmer or distributor who has interest in broad distribution and engage in a serious conversation about what will make this work for all parties
- Key component is finding right partner
- Create a win-win scenario for all parties involved
- Exact form can vary from situation to situation
Join a producer, restaurant or distributor coop
- Rick Bayless's restaurant group established the Frontera Farmer Foundation in 2003, providing grants to sustainable farms that serve the Chicago area. The foundation has helped introduce numerous small local farms to Chicago restaurants and chefs.
Work through a coordinator/marketer
- Red Tomato, a non-profit organization founded in 1996 in Canton MA markets family farm-grown produce to supermarkets and restaurants on the East Coast. Their marketing, education, logistical and distribution support helps to connect small family farms to markets in their area
- Such organizations can assist with logistics/positioning, but rely on contracting with trucking companies or growers for consolidating
- Flexibility is inherent because it does not limit the producer to working with one channel
Get help from the big distributor players
- Sysco and Sodexho have allocated more resources to addressing these new demands from their customers it in recent years