While the rest of the foodservice industry has been in a slump since last fall, organic suppliers say business is steady.
“We are seeing demand growing — better than ever,” said Dan Holt, director of foodservice sales for the Earthbound Farm brand, marketed by San Juan Bautista, Calif.-based Natural Selection Foods LLC.
Holt said Earthbound Farm sees the most growth from the smaller channels.
“The most growth is with regional chains and independents that realize the value of responsibility of business practices and product offerings,” he said.
The core group of organic shoppers has solidified in its buying practices and searches for dining options that fit its needs, said Ron Cropper, chief executive officer of Sustainable Foods and vice president of Chicago-based Goodness Greeness Inc.
Diners that used to settle for non-organic options no longer want to compromise.
“They ask, ‘Is that organic?’ and if the answer is no they ask, ‘What do you have that is?’” Cropper said. “That individual has become true to the way of life.”
George Finch, owner and partner for Third Coast Produce in Houston said while there hasn’t been a big change in organic business, the business is steady.
“There is more consistency in the organic mix today than there has been in a long time,” he said.
Once the economy settles, foodservice will mirror what happened in the retail category, said Simcha Weinstein, director of marketing for Bridgeport, N.J.-based Albert’s Organics.
“Just as retailers began to see several years ago that carrying organic produce wasn’t really optional — it became necessary — the foodservice arena will soon be experiencing a similar awakening,” he said. “The very same people who shop for organic foods are also wanting to eat the same way when they dine out.”
Consistency of supply was a major barrier for a lot of foodservice outlets, Weinstein said.
“Most chefs are wanting to know that if they begin to use an organic item that they can count on its availability, then they also begin to move to expand their organic offerings and suddenly you are seeing entire soups and casseroles with all organic ingredients,” he said.
“Price is always a concern in the foodservice industry and the closer in price an organic item is to the same conventionally grown item, the more likely it will make it onto the menu.”
In the three years since it opened, sourcing and availability of organic produce has gotten a lot better for Fort Lauderdale, Fla.-based Pizza Fusion.
“In the beginning, three years ago, it was a little tough,” said Ashley Rathgeber, in charge of procurement for the national chain. “There wasn’t a good network.”
As Pizza Fusion has opened more stores, Rathgeber said, it’s easier to find suppliers willing to work with the organic restaurant.
“A one or two location business doesn’t get treated the same as a 20-restaurant chain,” she said. “Suppliers don’t want to bring an item that we need just for one or two stores.”