For restaurants and food business owners, sourcing quality ingredients and importing products unique to your brand play an important role in setting you apart from your competitors. Your patrons become loyal customers for the quality you retain—and your prices can reflect that. Today, the expansion of global trade and ease of digital communication allows for access to exotic, hard-to-find ingredients from around the world, making it possible to introduce products direct from their origin.
With consumers moving towards ethical buying habits, higher standards for quality and equality are vital in day-to-day business operations. In our latest installment of our Business Bites series, Unearthing Your Sources, our panel of experts shared how they operate profitable food businesses without compromising on quality or fair trade practices. Check out the three things to know when sourcing your products below!
Know Your Farmers
In today’s global market, consumers want to know where their ingredients and products are coming from. Whether it’s intended to support fair-trade practices or identify single-origin goods, it’s an important aspect to the buying process. Being able to connect your customers with the farmers you source from can be both a storytelling and brand building opportunity that results in loyalty and trust.
But, that isn’t the only reason food businesses want to know where, and who they’re sourcing from. Developing a relationship with your farmers can mean the difference between getting the right products for your business, and the best quality for your customers.
Burlap and Barrel stresses this sentiment. During the panel discussion, Ethan Frisch, co-founder of Burlap and Barrel, shared a story about a farm in upstate New York that he has been working with for the past two years. Over this time, Ethan has fostered a strong relationship with Norwich Meadows Farm, opening the door to new opportunities. After much discussion, they have decided to work together to develop a special project, which wouldn’t have happened without Ethan nurturing this relationship.
Know What Your Consumers Want
It’s important to identify what motivates your customers to buy. Is it your uniquely sourced products? Is it your commitment to fair-trade, sustainability or single-origin? Is it your packaging? Figuring out the most meaningful way to communicate to your customers is a time old challenge, but the rewards can be integral to your success.
When Raaka Chocolate rebranded in 2018, they invested time and resources to figure out what their consumers really wanted to know on their bar of chocolate. In order to make the reintroduction of their brand successful, they tested everything from taste to packaging, and even rewrote their brand story. After all, much had happened in the eight years since they had founded their company. Their new packaging is vibrant and bold, much like the chocolate that it encompasses. Although subtle, it is also modeled after the landscapes from which their cacao beans come from. Instead of using common buzz words like fair trade, when you open their bar of chocolate, you’ll see their term “transparent trade” to exhibit their commitment to be transparent in everything that they do, including sourcing.
Know Your Ingredients
Sourcing quality ingredients, especially in a restaurant, market or food business that’s just starting out, can make or break the business. Whether you provide access to a hard-to-find product, a uniquely curated selection or incorporate it into a signature dish, specialty ingredients help to grow a loyal following of customers that return time and time again. They can even create demand when an ingredient has limited quantities. But, relying on specialty ingredients can also pose a difficulty for new companies.
When Vega Coffee was starting out, they knew that they wanted to import coffee from Nicaragua. In order to receive the ingredients they desired, they had to create a system with the governments in both the US and Nicaragua to import the products through customs. Although this is an extreme example, navigating import laws is an important part of sourcing your products, so you must be prepared to do your research as a business owner.
One of Rishi Tea’s best selling drinks is a masala chai drink. A key ingredient to this drink is a delicious Madagascar vanilla, but because of climate change and a few other factors, the price of vanilla has sky rocketed in recent years. As a business owner, they weighed the benefits of raising the price of their best selling drink, but possibly seeing sales decline, with the cost of sourcing the vanilla. In order to keep the price the same, they decided to source vanilla from another country—something that is not easy to do, as vanilla is grown in few places around the world. In the end, they found an amazing quality vanilla in Mexico and were able to continue their masala chai offering without raising the price or compromising on quality.
ABOUT BUSINESS BITES
The BUSINESS BITES, brought to you by the Food Business Fundamentals program at ICC, is a series of workshops, discussion panels, networking events and resources designed to support entrepreneurs in the food industry.