hen discussing beverage
happenings in HOTEL
F&B (November/
December 2007), we identified
the growth in specialty coffee as
a primary trend. As noted,
foodservice operators have recognized
the strong consumer
demand for premium coffee and
are reaping the rewards of
adding it to their beverage lineup.
Beyond the “Starbucks effect” (i.e., being able to
charge a premium for a cup of coffee) and the resulting
sophistication in consumers’ coffee preferences, there
are other issues hotel food and beverage managers must
consider when evaluating coffee programs and the specific
varieties to offer. Coffee is one of the major areas in
the industry to be heavily impacted by the corporate
social responsibility (CSR) movement. As a result, there
are both advantages and potential pitfalls to be aware of.
It’s true that this can be a hazy concept. Yet, for anyone
who believes corporate social responsibility is a
niche movement limited to college campuses and
activists, it’s time to wake up. Most major restaurant
chains are touting CSR initiatives, whether it’s fair
wages for tomato pickers, energy efficiency, all-natural/
all-organic ingredients, etc.
While approaches are broad and far-reaching, it can
be helpful to think of CSR in our industry as a virtuous
“halo” surrounding foodservice operators who are
addressing issues related to menu, staff, the environment,
and more. For example, 2007 brought increased awareness
and response to “green” concerns (such as global
climate change) and social issues (including wages,
health insurance, and immigration reform).
We believe corporate social responsibility is increasingly
top-of-mind among consumers. For foodservice
users specifically, some key attitudes are noteworthy.
As part of the new Foodservice Center for Corporate
Social Responsibility, we recently conducted a survey on
CSR issues. Overall, foodservice users report that our
industry does a bit better than business in general when
it comes to addressing social issues. Nonetheless, there
is more work to be done. We found that fully 88 percent
of consumers would like the industry to more proactively
address social responsibility issues. And while most
were not willing to pay more at restaurants that follow
such practices, a clear majority (54 percent) said they
would visit that restaurant more often.
The biggest CSR issues for foodservice consumers
are strongly related to labor. For specialty coffee, this
speaks directly to consumers’ desire for fair trade products.
Many are concerned that growers are not sharing
in the category’s spectacular growth. As a result, a
large number will go out of their way, or pay more, to
support certified fair-trade coffee. Our sense is that the
trend toward shade grown coffee has not yet reached a
point of critical mass, but that could likely be next.
Somewhat surprisingly, our survey also found that
organic and natural are lesser concerns for consumers.
That said, those who are conscious about the origin of
their food and beverages tend to be more passionate
about this, and foodservice operators would be wise to
take this into account with coffee programs. Organic
coffee may not yet be on the radar for the mainstream
consumer, but you can bet that there is a strong and
growing contingent who evaluate their coffee choices
based on these criteria.
CSR is only starting to impact the foodservice industry,
but the coffee category is one that falls directly in the
bullseye of this movement. Hotel food and beverage
directors need to understand current consumer attitudes
and demands in this area. For companies able to connect
with consumers’ CSR sensibilities, there is potentially a
big payback. For those who fail to do so, there is also a
major downside risk.
David henkes is a senior principal at Technomic, a Chicago-based consultancy focused on away-from-home eating and rinking. For more information on beverage trends in foodservice or on other issues, please contact Henkes at 312-506-3927 or at dhenkes@technomic.com