What’s in my food? Where did it come from? How was it raised, processed and/or modified? Those seem to be the burning questions on consumers’ minds these days. In the quest for fresh, authentic, better-for-you and better-for-the-planet food and drink items, many consumers hunger for even the most minute details about every morsel they put in their mouth, every sip they swallow. Fresh may be the cost of entry, but transparency is the next requirement.
While some observers (myself included) are beginning to wonder if it’s all going a little too far (Google the “Portlandia” episode on local chicken), food and beverage producers and providers need to ensure they’re providing accurate information about their offerings. Consumers today are reading descriptors, labels and other information, often searching for as much detail as possible.
Some also are questioning claims, going even as far as lawsuits, such as the recent cases that charged Tito’s Handmade Vodka and Maker’s Mark whiskey with misleading consumers by featuring the term “handmade” on labels. The Maker’s Mark suit was dismissed in May and the majority of the arguments in the Tito’s suit have been dismissed, but these actions point to the potential of litigation.
Transparency is the order of the day, and as more consumers demand fresh food and beverage items involving “clean” (i.e., minimally processed) ingredients, foodservice operators are challenged to pull back the curtain on sourcing and production. Depending upon the customer base, not doing so may put an operator at risk for negative perceptions, distrust, diminished brand loyalty and a potential effect on sales. Of course, complying with the impending FDA menu-labeling regulations will push foodservice operators of more than 20 similarly branded locations toward greater transparency, but some are already going well beyond those requirements.
Follow the Leaders
Quick-service and fast-casual restaurant chains are setting the bar for transparency and clean food and beverage items. McDonald’s in March announced it would move to antibiotic-free chicken, following the lead of Chick-fil-A, which went that route in 2014. Cage-free eggs were integrated into the McDonald’s system beginning in 2011; Dunkin’ Donuts announced it would follow suit in March of this year.
A commitment to clean food and transparency is part of fast-casual leader Chipotle’s DNA—the concept’s tagline is “food with integrity.” Sourcing healthy meats and produce from eco-friendly farms have long been part of its sourcing strategy and menu offerings, and the chain recently said it would phase in non-GMO ingredients on its menus.
Panera recently moved to antibiotic-free chicken and reintroduced its salad dressings without preservatives, artificial colorings or sweeteners. Then in May it released its “No No List,” a roster of 34 ingredients and items not in use and 47 that will be phased out by 2016, including artificial flavors, colors, sweeteners and preservatives.
Should convenience operators follow the trend and clean house in their foodservice offerings? Our research shows a portion of consumers respond positively to menu descriptors that speak to minimal processing and high nutrient levels. In fact, they’re willing to pay more for such items: Thirty-seven percent of consumers surveyed said they’d pay more for hormone- or preservative-free menu items, and 36% said the same about antibiotic-free items. Even with that, convenience retailers should make menu adjustments based on the preferences, interests and requests of their consumers, taking into account the consumers they’d like to attract.
Proceed Carefully
However, bringing more clean foods, beverages and ingredients into a foodservice offering has implications beyond tweaking menu-board descriptors. Removing antibiotics can leave some proteins susceptible to bacteria, so producers, suppliers and distributors must be vetted to ensure they’re meeting quality standards and are packaging and handling the product properly. Shelf life may be shorter for preservative-free items, possibly requiring new date-tracking systems and adjustments to storage practices and cold-chain management. Food-safety procedures will likely need to be updated and staff members trained in safe handling of these items.
Consideration of a clean menu makeover should involve input from multiple teams, including foodservice, quality assurance, risk management, training and marketing. External resources to support exploration of the options and implications include suppliers and associations such as NACS and the National Restaurant Association. Creating a cross-functional team at the outset can ward off food-safety-related headaches later, some of which could be of migraine proportions.
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