Hotel F&B Magazine
All Back Issues » January/ February 2008 Issue

Social Responsibility And Specialty Coffee
By David Henkes
David Henkes
David Henkes

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



Share:
Digg Facebook LinkedIn Stumble Upon Twitter Email a Friend Print





Facebook      LinkedIn







Associations & Affiliations