Going organic, is it a fad, a lifestyle or a neat way of impressing customers?
We investigate.
Organic
food and being green are this season's hot trends, really hot!
Consumers are buying organic produce in the supermarket in growing
quantities and they seem prepared to pay almost twice the price of
conventionally produced products to avoid pesticides and chemicals in
and around their food.
As
the hospitality industry responds and embraces this trend by putting
organic ingredients on the menu, we are seeing a classic tension
building between price and perceived benefit. America loves plentiful
and inexpensive dining. We eat out more than any other nation and our
consumers have always been incredibly price sensitive when it comes to
food items. Starbucks increases the price of an already exorbitant cup
of Joe by 25c and you would think that a barrel of oil had just hit
$100 from the fuss everyone makes. No one wants to run a restaurant
that is more expensive than the competition unless you are trying to
give your cash register time off.
I went in search of the business reasons behind going organic. My
thinking, which proved totally wrong, was that there must be money in
this, or why else would someone go to all the trouble.
John Elkhay - owner of the Chow Fun Food Group - is either Rhode
Island's most successful independent restaurateur or has the best PR
company on the planet. He is a cheerful, experienced and focused
businessman. His business card carries the title "Maestro" and on the
back has no less than five logos for the various successful restaurants
that he operates in Rhode Island. Among them is Citron, a chic and
classy wine bar and bistro situated in Providence. Citron is "organic"
right down to the coffee.
"At a certain point in your life you start thinking about your family
and what you are turning over to them," said John when I asked him why
he went organic.
What!
This was the first inkling that the whole green/organic thing is a bit
more profound than just a business decision. "When I ate spareribs that
had no growth hormones and the cow had been fed a vegetarian diet, I
said, ‘wow!' and thought to myself, ‘I really hope that we can afford
to sell this'," John recounts. It was obvious now that Citron might be
a business and it might be in business to make a profit, but for John
this whole thing is more about what he, his family, his friends - and
ultimately his customers - are eating more than anything else.
John tells a great tale about the whole process of getting an organic
restaurant up and running. "I started looking into organics for the
restaurant. Onions are double the price! I was shocked," he moaned.
"Organic filet is $22 a pound. To make it acceptable to the market we
do a 6oz. filet and a single starch or vegetable." Finally we arrive at
the business part of this equation. Organic food costs a great deal
more than mass produced, chemical drenched, carbon-using items. They
tend to come from smaller local farms and producers, both are labor
intensive. To meet the market's desire for reasonable prices, John has
had to compromise a little on the size and quantity of food.
The public is very interested in healthy eating. In a recent survey by
Technomic, Inc. for American Express (see previous article) consumers were
strongly interested in natural and organic foods and 69% of them
thought that organics were pesticide free and 64% thought they were
preservative and hormone free. So they may like the idea, but will they
pay a premium for it in a restaurant? John shrewdly wanted to avoid an
"expensive" restaurant label for Citron. He has adjusted and honed the
menu with clever use of portion control and adding only a premium that
is acceptable to the average diner.
Not everything at Citron is organic. "A few things don't make sense,
pepper and salt are examples, they are so expensive that it is not
worth the impact it would have on the overall menu price," he
recounted. It's not a religion, just a philosophy. Some things are very
mainstream. "You read about the condition chickens are bred in and how
horrible they are," he said, "you realize how many hormones and
antibiotics you are ingesting." That's pretty much the attitude of most
chefs in New England. Some things are more esoteric. "Organic coffee is
very important to me, I drink a lot of coffee. What's on the coffee
beans winds up in you. There is also the question of fair trade, making
sure that you are not taking unfair advantage of coffee farmers." John
is, like me, an avid coffee drinker, so coffee makes it onto the list
of things that must be organic in his restaurants.
John is uniquely positioned to be running an organic restaurant. When I
asked him if he would still do it if this was his first restaurant, he
candidly replied, "Opening a restaurant is tough enough without trying
to be organic from the start." As a shrewd judge of his local market
John knows that an unknown restaurateur might have a tougher time with
such a project than he has had.
Organics have spread throughout the Elkhay empire since Citron opened.
Most of his restaurants now offer organic wines and 10, his steak and
sushi restaurant, offers organic steak. It's very expensive though and
sells by the number of ounces the customer wants to pay for rather than
by the more normal 8oz., 16oz., etc.
There's a great deal of interest in the subject of being green,
offering natural foods and being organic. "Being organic is different
from marketing yourself as organic," John contended. Citron is pretty
unusual in its total adoption of organic principles. The company also
tries to be as green as possible and here I found a common theme with
last month's "Going Green" article. Organic is a subset of being
"green." As soon as you start talking about organic produce you stray
into the "buying produce locally issues" and the impact that has on
reducing fossil fuel usage and so on.
Holly Safford, founder and president of The Catered Affair recently
announced an organic division and is very open about her own motivation
for establishing her new business unit group. "I think it's a more
philosophical decision because I believe that it's the right thing to
do. As a small business I think we need to be more earth friendly and
earth conscious," she said. "By offering organic fare we can help make
more people aware, help sustain local farming and reduce the amount of
greenhouse gases as food is not transported as far."
"I love the idea of working with local farmers, even though it's easier
to work with a traditional vendor who delivers everything to your
loading dock," she said. Holly believes that the whole organic and
green movement is a powerful change in the way we approach food. She
acknowledges that not everyone "gets it" at the moment. "There are
people for whom only the price, the food quality and impressive wines
are important," she noted.
"We have a short growing season in New England, so supplies are limited
and they are in great demand," Holly continued "Going 100% organic is
just impractical at the moment. Some things are just not available."
I asked Holly if she could see the day when the large produce providers
delivered organic and locally produced items directly to her, acting as
a broker for the smaller vendors. "I think that would be a bad thing!
We want to keep things small and local. It would not be good if organic
became just another arm of the foodservice agribusiness. That business
is guilty of so many wrongs and responsible for so much of what we
don't like about the food business."
Holly is convinced about the flavor and taste of both organic and
locally produced products. "I love local artisan cheeses, they are
outstanding," she said. "The flavors and the way the food presents will
be of great interest to many people, the difference in the flavor of
dairy products and vegetables is remarkable."
I asked her how the new business unit was going. "I haven't had a lot
of requests for organic events yet, but that's not why I did this. I
believe it will become more popular and I predict things will continue
to move forward and become more refined."
My quest for the clever business rational behind going green or moving
to organic food and beverages has come up strangely empty. If the folks
in this month's article or last month's on going green are to be
believed - they are doing it for the good of their conscience and the
planet in general.
I found
the whole subject oddly disturbing. Most of us are apparently wolfing
down chemicals and reducing the planet to a wasteland of carbon
footprints. Perhaps we had all better get with the program! Pass the
organic coffee, someone.