April 12, 2016

Foodservice with a Story

Americans are spending more on food away from home than ever before as restaurant choices are becoming more diverse. With so many options, how can foodservice providers ensure that they are delivering operators products that will win in the competitive marketplace?

Foodservice with a story

“Even with the recent emphasis on food with a story claims, there remains over a billion dollar opportunity in foodservice to capitalize on this proposition,” says Brian Bell, Cargill Vice President of Sales and Marketing. “We studied consumer behavior and looked specifically at how food with a story could help drive premiums.”

Cargill initiated a study of more than 8,000 red meat consumers to understand emerging consumer attitudes, demands and behaviors. Not surprisingly, consumers, especially Millennials, are increasingly demanding food made from wholesome and sustainable ingredients. And as Millennials continue to garner more and more buying power, it is vital that foodservice providers deliver solutions that keep red meat on the menu.

Millennials reported trying to eat healthier more often and making their restaurant choices based on high quality ingredients. “The definition of quality is different among consumer segments, but for Millennials, quality is about freshness and the way their food was raised,” Bell explains.

One-third of consumers say it is important for them to be served meat from animals that were raised humanely. The Millennial segment specifically over indexes when it comes to avoiding eating meat that has been overly processed or has artificial flavors and colors. They favor natural/all-natural meat whenever possible.

What claims are consumers willing to pay more for?*

  • 29% no artificial flavorings/colors
  • 27% minimally processed
  • 26% free range

*Consumers were asked, “For which claims would you be willing to pay 10% – 20% more per lb for fresh meat?”

Where food is raised is also important. “Raised in the USA and sustainable farming practices are also important factors to the Millennial segment,” says Bell. “Foodservice providers should be as transparent as possible.”

For more information on consumer motivations and behavior, contact your local Cargill sales representative.