C is for Customer Cubed – How to go from Farmers Market to Customers Market
26 May 2012 Leave a Comment
in A to Z of Growing a Local Food Business, Farmers Markets, Producers Tags: artisan producers, farmers market, local food, south coast, southern highlands food
So you’re an old hand at the local farmers market, your regular customers can’t get enough of your unique hand crafted product. You also capture your share of the one-off farmers market attendees.
You’re turning over $1000 in a day, taking home $200 after all your expenses…life’s good?
What’s missing is any chance of business growth. If you don’t want to grow you are at the right show.
The alternative to the Farmers Market is what I call The Customers Cubed Market – I call it this because there are more customers there than farmers – and this is why your artisan food business can grow there.
You also have more levels of customer at the Customers Market – at least 3:
- Distributor
- Retailer
- Consumer
As a supplier to the customer market you need to dance with 3 partners, all of them dancing slightly different dances. Importantly you need to choose a ball gown that works for all 3 dances. (If you’re wondering what this odd reference to dancing is all about check out this simple “new marketing” article that my business partner recently shared with me http://blogs.hbr.org/cs/2012/05/marketing_needs_a_new_metaphor.html?awid=5234573821286001113-3271).
What this means from a practical viewpoint is that you need to understand how your product will improve the lives of 3 people.
For example
- will it complement the products in a distributor’s range so they can deliver more to the same customer base?
- will it provide a simple interesting story for a waiter to share and boost her tips?
- is the jar size just right for Rachel Williams of Engadine’s Osso Bucco recipe so she doesn’t have a half a jar left in the fridge until it goes mouldy?
Dealing with Customer Cubed is way more complicated than the one dimensional transaction at a farmers market.
For an artisan producer used to the goodwill in a Farmers Market, where to be honest there is plenty of pissing in the producers pocket, the realisation that a customer has specific demands can be an affront to the ego.
And the biggest demands come from the second customer – The Retailer. They think differently to the artisan producer – essentially they have a customer that they want to consistently please. Most producers have a product that they want someone to use.
The single greatest demand I hear from retailers/food service is consistency. Once the initial charm of an artisan product wears off (normally the second or third order) a retailer will no longer tolerate size variation or a burnt edge. These are things Farmers Market customers will normally let you get away with.
Spend some time on your production systems and quality control (especially when you start employing staff). As an absolute minimum get a photo of how your product should always look. If you don’t meet the standard get ready to refund the retailer.
Artisans who think a little less like a producer and more like a retailer will have a far better chance of growth. A great example of this is Brisbane’s Di Bella Coffee Roasters http://www.dibellacoffee.com.au/about-us/about-di-bella-coffee.html - they grew from Farmers Markets to International company and have an awesome retail concept happening that combines production and food service.
Just writing this has given me more doubt about the term “Artisan”. Now that Woolies has “Artisan” Lettuce is it time for a more practical term for small batch food producers. I’m thinking something that captures the effort involved but also that the purpose of the product is to be consumed and enjoyed – not hung on a wall.
B is for Branding
23 Apr 2012 Leave a Comment
in A to Z of Growing a Local Food Business, Producers
It’s an interesting time to be involved in food branding – with the Woolies/Coles generics on the rise and newspaper articles like this one about vanishing brands appearing regularly http://www.smh.com.au/business/suppliers-count-the-cost-as-woolies-and-coles-shoot-it-out-over-prices-20120420-1xcfl.html .
The most important aspect of this for a small local food producer is to note how customers perceive a brand to be their brand. As soon as your precious artisan product starts moving off the shelf or the menu you have “lost” a little ownership of “your” brand to your customer. But don’t panic – this transfer of brand ownership is a great way to accelerate your sales.
So what is a brand?
Essentially a brand is the emotional link between a potential customer and your product, it is the promise.
A brand is physicalised through logos and taglines, but depending on your sales channel it can also be physicalised through the person who is selling your product.
It is very common for a product to sell like crazy at a farmers market with the producer behind the table embodying the brand and then fall over as a retail/foodservice product…does this ring a bell?
There are some intrinsic brand strengths in being an artisan producer – the most important being that you have a strong true story to tell, and generally it’s a story that your potential customer will be emotionally drawn to. If you can find ways to effectively project this story it will go a long way to giving your product the boost you are looking for.
5 Tips for Branding a Local Food Product
- Know your story – try getting someone close to you to write a paragraph of how your product came about, someone who knows your dream. Maybe this is a partner or a loyal regular customer.
- Know your potential customer- whilst it’s great to know your regular farmers market buyers, it is critical to remember that the customers you will be marketing to are probably different. If you are selling through food service you need your brand to talk to chefs, waiters and diners.
- Have a simple promise- ideally this should be how your product will help the customer. An example close to home for me is Phatt Ducks pies which promise food service customers “A pie so incredible that their customers will be telling everyone about it”.
- Deliver the Message- a) through your packaging* and promotional material-there are some fantastic new ways of doing this using QR codes linked to online videos of you talking like you would at a farmers market and b) through your distributor and on-seller- if your distributor isn’t as good as you at delivering the message then you should look for one who is.
5. Consistently Fulfil the Promise- this is so critical, especially as you grow and become more commercial and less artisan. This means that the quality of your product must not slip, even when you are are employing others to make it. Invest in your training and quality systems as these are equally important to your brand as promotional materials.
*Packaging is a whole separate topic that we will deal with in a later post – but it is critical you understand a) the legal requirements http://www.foodstandards.gov.au/consumerinformation/labellingoffood/and and b) the needs of your on-sellers – especially in relation to barcoding.
It all starts with Attitude – The A-Z Guide of Growing Your Local Produce Business
13 Mar 2012 Leave a Comment
in A to Z of Growing a Local Food Business, Producers Tags: Local, Local Food Local Produce Growing your Business
I’m the first to admit that I’m not an old hand at local produce distribution. However, the last couple of years of planning the Pigeonhouse150 concept and the last couple of months of actually taking local produce to food retailers have taught me an incredible amount about what works and what doesn’t.
While my eyes and ears are fresh I thought there would be some real value in sharing these observations as an A-Z series of short blog posts titled
“Growing Your Local Produce Business”
What better place to start than….
A for Attitude
Every day I get to meet some amazing artisans and primary producers. Their care and love of their product is unmistakable and inspiring.
Only 1 in 10 of these talented artisans will create a viable local produce business.
The artisans I see prospering and developing their products always possess the following key attitudes
- Willingness to share the journey – understanding that they cannot do it all themselves. Often this involves letting their “baby” be carried by others and maybe influenced by others. Only through this will the product grow into a strong brand.
- Loving the customer more than their product – No – the customer is not always right, but when you find the right customers you need to accept that making their life better is your ultimate goal. It may threaten your artistic integrity but adapting your product for customers is part of sharing the journey.
- If it’s fun it gets done - nothing worse than going to the farmers market and seeing Trev the Beekeeper sitting in his directors chair reading The Apiarists Monthly and doing his best to ignore market goers. If you don’t enjoy the activity you shouldn’t be doing it – find a way to outsource it or find another way to get your product to market. That way you focus on what you enjoy – which is probably what you’re best at anyway.
The common theme in these attitudes is that working for yourself does not mean working by yourself.
Stay tuned for next weeks A-Z instalment…
B is for Branding (no iron or campfire required)
Your comments are always appreciated.
Strength of Demand for Local Foods Shocks New Distributor
19 Feb 2012 Leave a Comment
After just 2 weeks of being a local food distributor Pigeonhouse150 is overwhelmed with the demand for unique local produce on the South Coast of NSW.
Our foundation local producers are
1910 Bottling Company http://the1910bottlingcompany.com/ -an incredible and ever changing range of preserved products and innovative sauce creations under 2 labels – 1910BC and Phatt Duck & The Hog. Food like it used to be but unlike anything else you will find now. Produced at Robertson on the edge of the Southern Highlands.
1910BC products & Phatt Duck & The Hog now available on the South Coast
- Deli on Kinghorn St Nowra
- Nowra Fresh
- Coolangatta Estate Winery
- Silos Winery
- Crooked River Winery
- Graze Balgownie
- Keiraville Butchery
- Our Bookshop Cafe Berry
Phatt Duck http://www.phattduck.com.au-creating artisan pies and cakes from his East Bowral kitchen the Phatt Duck range includes sensations such as Thirlmere Duck with Shiitake mushroom from the old Mittagong Railway Tunnel. His Gluten Free Sticky Pineapple, carrot and Macadamia Cake has been described by a South Coast customer as “The Greatest Gluten Free Experience of my life”.
Phatt Duck artisan baked products available on the South Coast
- Gerringong Deli & Cafe – Hot & Cold Pies and Cakes
- Deli on Kinghorn St Nowra -Hot & Cold Pies and Cakes
- Our Bookshop Cafe Berry- Hot Pies
- Graze Balgownie – take home family and individual pies
- Keiraville Butchery -take home family and individual pies
More locations will be added this week so stay posted – especially if you live in Wollongong!
Local Sourced Ingredients features in 5 of the top 10 U.S. Restaurant Trends for 2012.
13 Jan 2012 Leave a Comment
According to a survey of nearly 1800 Chefs in America local food sourcing will be far and away the biggest trend in 2012 for American restaurants.
Whilst not all American food trends make their way to Australia (twinkies anyone?) we can definitely expect local sourcing to be massive.
Despite the efforts of a few chefs eg Alex Herbert at Bird Cow Fish, Justin North of Becasse/Quarter 21, Jared Ingersoll of Dank St Depot/Cotton Duck and David Campbell Hungry Duck Berry the vast majority of the Australian food service industry is not ready for this opportunity.
The top 10 menu trends for next year will be:
1. Locally sourced meats and seafood
2. Locally grown produce
3. Healthful kids’ meals
4. Hyper-local items
5. Sustainability as a culinary theme
6. Children’s nutrition as a culinary theme
7. Gluten-free/food allergy-conscious items
8. Locally produced wine and beer
9. Sustainable seafood
10. Whole grain items in kids’ meals
“Local sourcing of everything – from meat and fish, to produce, to alcoholic beverages – is another big trend for 2012. Local farms and food producers have become an important source of ingredients for chefs and restaurateurs wishing to support the members of their business community and highlight seasonal ingredients on menus,” said Joy Dubost, Ph.D, R.D., director of Nutrition & Healthy Living for the National Restaurant Association
said Michael Ty, CEC, AAC, ACF national president. “We are also pleased to see an emphasis on local sourcing across major ingredient categories, including produce, a vital component of children’s diets.” said Michael Ty, CEC, AAC, ACF national president.
Rounding out the top 20 hot menu trends are:
11. Newly fabricated cuts of meat
12. Farm/estate-branded items
13. Food trucks/street food
14. Artisan spirits
15. House-made/artisan ice cream
16. Health/nutrition as a culinary theme
17. Non-traditional fish
18. Fruit/vegetable kids’ side items
19. Children’s mini-meals (i.e. smaller versions of adult menu items)
20. Culinary cocktails
The American Culinary Federation, Inc., established in 1929, is the premier professional organization for culinarians in North America. With more than 20,000 members spanning 225 chapters nationwide, ACF is the culinary leader in offering educational resources, training, apprenticeship and programmatic accreditation.
Check out the full report from the ACF here .
5 Win-Win-Win Ways for Restaurants to pay weekend penalties
12 Jan 2012 Leave a Comment
The frenetic penalty rate debate ignited by Pay-Master-Chef Calombaris in his “The Power Index” interview is contentious within the hospitality for a couple of reasons:
- The % of revenue that most restaurants receive on weekends -often more than 80% of their trade. Very few industries face this challenge – so it’s easy to see why a reduction in a dominant variable cost would be so appealing.
- The number of casual workers in the industry who have limited availability due to their own personal circumstances mean that often there is no shortage of workers willing to do weekends. Basic supply/demand would suggest paying a higher price for an input when supply is high doesn’t make sense.
- Many Chef/owners have recently crossed the line from “exploited” employee to “exploiting” employer. There is also no separation between factory floor and management in hospitality- it’s generally all hands in. This means management is much closer to their employees (unless they are busy being a celebrity).
Rather than delve deeper into the why, lets get constructive. Lets look for some ideas that offer a win for employees, employers and the customer.
As Alex Herbert, owner of @Birdcowfish tweeted “If the customer won’t pay full price where does the cash come from”.
Trying to think outside the square I thought it would be best to start with other “not-for-profit” industries and some of the novel approaches they have to solving issues with margins.
- A Poker Machine for every restaurant – lets learn from our cousins in Clubland and ask Barry O’Farrell if we can have a one armed bandit next to the wine cellar. Takings could be used to subsidise penalty rates and the restaurant soccer team.
- Sausage Sizzles – if its good enough for a private school why not get Neil Perry on the grill outside Bunnings on a Saturday* morning. Personally I’d pay up to $3.50 for a truffle infused wagyu snag on Tip Top White.
- Wine and Song – encourage your underpaid waiters and chefs (open kitchen only) to sing/busk whilst they serve. Wine buckets placed between tables could be used to collect gold coins from grateful patrons.
- Nude Calendar – Use your pics from the boho staff party to either a) produce a tasteless calendar or b) blackmail your staff into accepting a flat rate on weekends. Then again some staff would probably pay to be in the calendar.
- Dude-Food Sundays – Make Sundays All-American – including the wages. Staff will have so much fun wearing Stetsons and saying “Y’all” they won’t even notice they only got paid $5.50/hr.
More ideas heartily welcomed….
Without threatening the idea of a decent minimum wage we could also consider the simple idea of letting employers and employees sort out a weekend wage that works for both of them. Simple, if the restaurant is unable to pay what the employee thinks they are worth they won’t have an employee and they won’t be open on the weekend.
Radical, I know.
*Assumes Chef Neil Perry will be paid the 25% Saturday penalty
Why I love Coles and Woolies
09 Jan 2012 3 Comments
Interesting post-script to this opinion piece from http://www.smh.com.au/business/milk-wars-leave-sour-taste-in-farmers-mouths-20120120-1q9st.html today – in a fairly scary article about the Dairy Wars if you read right to the bottom there is a positive angle. Jonesy’s Dairy http://www.jonesysdairyfresh.com/ in Victoria is reporting a sales increase of 10-20% since the supermarket madness began. That’s why I love Coles and Woolies – they create opportunities for innovators.
The drumbeats of dissatisfaction are getting louder and more frequent when it comes to Australia’s 2 big grocery retailers.
Until quite recently these drumbeats were emanating from and confined to ethical consumers with a high degree of concern over the perceived abuse of market power by the duopoly. The mainstream consumer wasn’t interested or listening.
They are now.
The main catalyst for the change was the $1/litre milk war that commenced in 2011. It became suddenly apparent to anyone who knew that milk came from a cow that a price 75% lower than bottled water from the sky was not sustainable.
The price based promotion gave many mainstream consumers a new, uneasy feeling. They realised that inadvertently their behaviour was hurting Australian Farmers. Despite our highly urbanised life many Australians have a deep seated connection with the land and the men and women who toil and risk all to keep Australian agriculture alive and productive.
It’s a largely romantic notion, and one not shared by everyone – after all the duopoly milk price is still $1/litre.
But Coles and Woolies, through their short term greed, have awakened this notion, and awakened a new type of customer. They have created a new market segment, a consumer I like to call the “Casually Informed Consumer”.
This is why I love Coles and Woolies.
The new Casually Informed Consumer doesn’t make every purchase according to a strict rulebook of ethics. They are vaguely and intuitively aware of the impacts of their purchasing behaviour. Whilst they are not hungry for every scrap of information they are interested. In particular they are interested in the story of the product, The Where and more importantly The Who.
The opportunity for producers, distributors, small food retailers and food service now exists to communicate with this consumer, to explain the benefits of our local produce and to justify the small price difference that may exist versus a foreign or mass producer competitor product.
Woolies and Coles have already started talking to this market, and yes their message could be accused of being deceptive or at least manipulative. Personally I think more people than ever are seeing through their advertising, especially when the product and service doesn’t meet the expectations.
Their greatest challenge for the duopoly is the poor level of product knowledge of their staff. This cannot change in a hurry and this is why other marketing channels eg. Farmers Markets, Specialist online stores like www.foodo.com.au and savvy new specialist retailers like Urban Food Market will prosper.
The main reason I love Coles and Woolies is that they have created the gap in the market and motivated the customer to seek a change. Best of all the gap they have created is one they will struggle to fill in the short-medium term.
Smart producers and distributors can look to the next phases in the evolution of Australian Food Retail – especially
1. Exponential growth in Chef driven education of food consumers – this is where any new food trend begins. Just a quick look at how important local sourcing is in the USA confirms this – check out this US Restaurant Association survey of 2012 “What’s Hot”
2. Small permanent retailer/marketplaces that tell the true story of the producer, that allow the producer to receive a fair price for their product.
In the meantime it gives me a weird kick to see a high quality product like Country Valley Dairy sitting in the Woolies fridge next to the home brand at more than twice the price and still selling well. I think we all need to acknowledge that Coles and Woolies are going to be part of most Australians lives (at least for us to buy toilet paper), and that when they do genuinely allow good local producers access to their shelves at a sustainable price that it probably is a good thing.
So by all means lets boycott Coles and Woolies whenever you can, support your favourite local producers and small retailers if they are providing the service and product you want. Also, when you see a half-arsed or false promo by the big supermarkets use social media to shoot it down.
My parting question is if Coles and Woolies were genuinely doing a good job of distributing local produce and advertising truthfully would we support them?
Other (more informed blogs) I recommend are
and
