Bringing Back Foodservice Bites

The recession is taking a bite out of the foodservice industry with consumers shifting their dollars to eating at home―or at least shifting to cheaper items and skipping the extras. Chef Charlie Baggs of Charlie Baggs Inc. offers some advice on how to build the business back up.

   -Lynn A. Kuntz

Casual dining vs. eating at home clash

What will get the consumer back in the restaurants spending like before? Create a value, provide convenience, good service and quality food are just the start.

The solution is right in front of our eyes: Authentic recipes with quality ingredients that are not easy to produce at home.

Customers are attempting to cook at home with a perception that it is cheaper and the quality can be elevated above restaurant quality. The current consumer is better informed that ever before. They learn from the Food Network about cooking techniques and authentic flavor combinations. Today’s market has created a new platform of customer that can shop for ingredients, cook the meal and clean up as they go. Serving in the home provides a value that the restaurant cannot compete with. A home-cooked meal fills the air with aroma, keeps the family in one place creating the bond and reduces the travel time and cost of fuel.

The problem is the consumers don’t know how to cook. So they are using piece-meal concepts or manufactured grocery products to create their own meals. While the consumer may not be able to perform basic cooking techniques they will try and learn from their mistakes.

These advantages are quite a hurdle to rise above. What is the problem?

We need to change the message that restaurant quality “rules” and is not easy to cook at home. A benefit relevant to consumers is the convenience of going out to eat. Time is money. It’s easier to clean up and takes less time to shop and get organized to cook at home.

Another approach: Product developers for foodservice have to start developing products that are better than the home-cooked meal. Keeping an eye on the grocery stores and the value-added products offered to consumers is critical to nailing the target market. Technology with prepared meals in the grocery is continuing to compete with restaurant quality.

The consumer is cooking more at home to save money and increase the perceived value. However, many are relying on manufactured products to reheat and create the home-cooked meal. It still makes it seem like they are taking care of their families. But, in fact the same manufactures are producing products for the grocery and the restaurants. Is there really a difference?

Another factor is innovation or originality. The new volcanic taco by Taco Bell is marketed to be intriguing and flavorful. It’s not something you will make at home, but may want to try out of curiosity. In addition, independent restaurants often do a better job of maintaining product integrity. They focus on a specialty product that provides quality and value and provide a neighborhood experience. This you cannot find at home. Specialized concepts with a limited menu offering that focuses on quality and value that cannot be competed with at home may be the answer.

What will bring the consumer back to the restaurant? Creating a new customer base with repeat business is critical for sustained growth and life of a restaurant concept.

   -Charlie Baggs