Organic food consumption is increasingly popular in the USA and parts of Europe.

1. Organic food consumption is increasingly popular in the USA and parts of
Europe.
Healthy eating is becoming increasingly important in consumers‟ minds.
As people realize that health.
Problems are associated with modern lifestyles, interests in healthy eating are escalating. Some
of the trends emerged
in the last decade is the growing interest in organic food as well as in local food consumption.
These trends have had
an impact on the foodservice operation. Being known for serving local produced and
organic food can be an
important point of differentiation in the market place, giving a competitive advantage to the
restaurant. This paper
will identified perceived benefits and barriers to local food purchasing by retail food services as
well as
restaurateurs‟ views on the concept of organic dining, and their motivations for entering the
organic food service
sector. The paper aim is to define the concepts of locally produced and organic food, to identify
which food attributes

2. are critical in improving guests satisfaction and heightening revisit intention as well perceived
benefits and barriers
to locally produced and organic food purchasing.
Key words: restaurant, locally produced food, organic food, trends
INTRODUCTION
In the highly competitive restaurant industry, satisfying customers should be the critical
objective of businesses that
wish to build repeat purchase (Sulek, Hensley, 2004). Because food is a fundamental
component of the restaurant
experience, there can be no doubt that the food has, and will continue to have, a major
impact on consumer
satisfaction and return patronage. A crucial challenge facing restaurant industries today is to
provide quality food that
is not only compelling for the customers but also can be superior to business competitors. Food
quality is one of the
best means to maximize success in the restaurant business (Namkung, Jang, 2007).
According to Johns and Tyas (1996) healthy food could have a significant effect on customer
perceived evaluation of
the restaurant experience. Kivela et al. (1999) noted the importance of healthy foods in
restaurants and suggested
nutritious food as one of the core properties in dining satisfaction and return patronage. The
more notable thing is
that restaurant customers are increasingly interested in healthy menu items (Sulek, Hensley,
2004).
Despite the importance of food consumption in the context of the hospitality, relatively little
attention has been given
to examining local and organic food consumption in this research area (Kim et al., 2009).
Restaurants are finding ways to capitalize on these trends. Previous research has identified
perceived benefits and
barriers to local food purchasing by retail food services in various sectors of the industry.
Results are consistent
across all types of food services, including restaurants. Perceived benefits of good public
relations, support to the

3. local economy, possibility of purchasing smaller quantities, fresher and safer food, high
customer satisfaction, and
knowledge of product sources and production methods were identified (Casselman, 2010).
Barriers identified in
these studies related to payment procedure conflicts, reliable suppliers, year-round product
availability, lack of
knowledge about local sources, inconvenient ordering, limited availability and amounts,
variable cost, service,
inadequate distribution systems, and additional time to process foods in the operation
(Strohbehn et al., 2012).
In addition to locally produced food, organic food consumption is one of several new trends in
eating read as active
opposition to industrialized food provision.
Both in the world as well in Serbia, has increased interest in organic food production as a
consequence of several
factors. The most important of these are: a large area of uncultivated land suitable for organic
production (Canavari
et al., 2007), little ecological system pollution (Lehmann, 2000) linking agriculture and
tourism (Kušen, 2002),
improving the overall tourist offer (Meler and Cerović, 2003), increased consumer health
concerns (Lehmann, 2000;
Padel and Midmore, 2005) as well as the growing importance of renewable energy in the global
environment (Wier
and Calverley, 2002). These reasons are only starting points for quality organic agriculture
development.
Today, organic consumption is associated not only with health concerns, but also with
social, economic and
environmental sustainability. Agricultural and food industry experts agree that the peak of the
organic food trend has
not yet been reached, and there is still plenty of growth potential in the world organic market
(Ebrahimi, 2007).
This paper will identified perceived benefits and barriers to local food purchasing by retail food
services as well as

4. restaurateurs‟ views on the concept of organic dining, and their motivations for entering the
organic food service
sector. Green Kitchen Organic Food Restaurant Logo
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The paper aim is to define the concepts of local and organic food, to identify which food
attributes are critical in
improving guests satisfaction and heightening revisit intention as well perceived benefits and
barriers to locally
produced and organic food purchasing.
LOCAL FOOD CONSUMPTION IN RESTAURANTS
Sharma et al. (2012) defined local food as food grown or processed locally and purchased by
restaurants from the
local market or primarily through local producers.
Many national and local organizations, such as the Green Restaurant Association (GRA), define
local food as being
within a 100-mile radius around an operation, whereas “regional” food is expanded to a
300-mile radius (Green
Restaurant Association, 2012). According to the U.S.D.A.‟s Economic Research Service
(ERS), the 2008 Food,
Conservation, and Energy Act states that for a food to be considered local or regional it must
not travel more than
400 miles from its origin, or can originate from the state in which it was grown (Martinez, 2010).
According to COI/FSA (2007), the main reasons for buying local food are: supporting local
businesses and the local
community; food quality issues, including where the food comes from and its freshness; and
environmental factors
such as reducing food miles and pollution.
Purchasing local food supports small and mid-size farmers who in turn provide many benefits to
their communities,
including farming in ways that protect biodiversity and natural habitats, local air and water
quality, and preserve
scenic landscapes and open space (Alfnes and Sharma, 2010).
The demand for fresh, local food has been growing rapidly in recent years, spurred by
celebrity chefs, farmers‟

5. markets, Buy Fresh, Buy Local campaigns, and other initiatives. One of the most visible of all
sustainable practices
found throughout foodservice operations is the use of locally-sourced products. Consumer
interest in local food has
grown considerably over the last five years, mirrored by state-supported or sponsored „buy
local‟ or „state grown‟
campaigns (Darby et al., 2008).
On the National Restaurant Association‟s list of top 10 restaurant trends, locally grown food
has been at the very
top for multiple years. Restaurants‟ recent increased use of local foods also has been noted
(Alfnes and Sharma,
2010). The demand-side benefits to restaurants of using local foods are clearer. For instance,
studies have argued
that restaurants use local foods to differentiate their products (Grunert, 2005) and because
doing so give them a
motive to charge higher prices (Alfnes and Sharma, 2010). Alonso and O‟Neill (2010) found
that convenience was
rated high, price was a modest factor, signage to promote was important, and wait staff were
important as opinion
leaders
Research has shown that individuals purchase locally grown foods for perceived tangible
benefits such as
freshness and taste, as well as for more intangible motivations such as sustainability and
community support
(Anderatta et al., 2011). Food consumed closer to the time it is harvested may also retain more
vital minerals and
nutrients than food that is transported for days before it reaches the consumer. Because it is
harvested at the peak of
flavor and freshness, local food generally requires less processing and added fats, salt and
sugar. In Dombrosky‟s
work on the acceptance of local wines in restaurant settings noted the influence of wait staff in
house promotions
(Dombrosky, 2012).

6. Hjalager and Richards (2002) stated that tasting local food is an essential part of the tourism
experience since it can
serve as both a cultural activity and entertainment. Local food and beverages on holiday also
play an important role
in introducing tourists new flavours and different traditions at destinations (Sparks et al.,
2003). In the field of
hospitality and tourism, previous studies have examined various issues, such as local food as
tourist attractions in
terms of economic benefits and local development (Tellstrom et al., 2005); an examination of
success factors for
culinary tourism in the marketing of tourism destinations (Okumus et al., 2007); attraction of
and impediments to
local food experiences (Cohen and Avieli, 2004); conceptualizing the relationship between food
consumption and the
tourist experience (Quan and Wang, 2004); and effects of gastronomy on the tourist
experience at a destination
(Kivela and Crotts, 2006).
Customers are increasingly willing to pay more for the quality and flavor of fresh, local
foods. As one chef
explained, “When I get my tomatoes from the farmer, they were picked the day before delivery.
They keep much
longer and taste better than tomatoes that were picked weeks before they get to my restaurant.
Customers notice”
(NRA, 2014).
ORGANIC FOOD CONSUMPTION IN RESTAURANTS
Organic food consumption is increasingly popular in the USA and parts of Europe. The Global
Strategic Business
Report (Global Industry Analysts, 2006) notes that the USA, Germany, Great Britain, Denmark,
Italy, and Austria
are world leaders in the trend of eating organically and have developed well-structured markets
catering to organic
food consumption.
The term “organic” can be broadly described as food grown without the assistance of
man-made chemicals.

7. Organic food is certified for meeting specific standards, including being produced without
most conventional
pesticides, synthetic fertilizers, antibiotics and growth hormones. The market for organics
grows every year. People
purchasing some organic products, and demand for organic meat, fish and poultry growing the
fastest, according to
the Organic Trade Association. Fifty-eight percent of consumers who responded to 2011
Thomson Reuters-NPR
Health Poll, preferred organic food to conventional, and 63% of respondents under age 35
chose organic when
possible.
The study of organic food purchasing behaviour is difficult because organic food products are
available in the market
together with conventional ones and the purchase decision depends on many factors that can
vary sharply across
individuals.
Although there is a small proportion of dedicated organic food buyers, most sales come from
the majority of buyers
who switch between conventional and organic food purchases (Pearson, Henryks, Jones, 2011).
The motivation to purchase organic food is driven by health concern, environmental concern,
sensory properties,
food safety and ethical concerns (Lockie et al., 2004). Health concern is found to be the
primary motive to buy
organic food (Zanoli et al., 2004). According to Chen (2009), health consciousness is the
main determinant on
enhancing the positive attitude toward organic foods.
Figure 1. Empirical model of consumer behaviour for organic food products (Gracia and de
Magistris, 2013)
In a University of Auckland study, 390 medical students answered questions about their health
worries and food-
related behaviour. Results suggest that health worries are significantly associated with organic
food consumption
(Devcich et al., 2007), and many people believe organic food will protect them from disease.

8. Taste attracts people to eat organically, because the taste of organic food is considered by
some to be superior to that
of conventional food. Taste is the main motive to buy organic in Italy and Sweden (Zanoli et al.,
2004).
Price premiums and limited availability are the significant deterrents to buying organic food.
The price premium
(typically 50%–75% more than conventional food) is a major barrier for many consumers.
Brown and Sperow
estimate the cost of a diet using all organic ingredients would increase food expenditure by
nearly 50% for a family
of four in the USA, and both McCoy (2002) and Pearson (2001) considered the price premium as
the most important
factor limiting demand for organic food.
Acording to Poulston and Yiu (2011) Customers‟ psychological reactions to organic menus has
a significant impact
on market penetration. They claim that that very few customers appeared to know enough about
organic food to be
able to discuss the personal or societal benefits of eating and farming organically. They thought
that customers dined
organically not for personal or societal reasons, but more to gain the respect of their peers.
Pseudo-green customers,
whose physiological needs, safety needsand social needs have already been satisfied, are likely
to eat organically for
social recognition and respect. Customers were well educated with high disposable incomes,
but according to the
participants, did not necessarily understand what organic food is, or even believe in the benefits
of organic eating.
They appeared to be attracted by the green image of organics that gave them a sense of
self-value and self-respect.
Like the up-scale restaurateur, they were possibly motivated more by fashion than by organic
food per se, and are
likely to exit the market if they find an interesting replacement for organic food.
The American Chef Survey (Stensson, 2006) revealed that organic produce was one of the top
three preferred menu

9. trends. The survey found that 52% of up-scale restaurants with organic menus expected
increased sales in future,
42% of casual dining restaurants expected organic food choices to increase, and 27% of
family restaurants saw
strong sales potential in organic menus.
According to Perlik (2005) of Restaurants and Institutions in the USA, 69% of fine dining
restaurants use organic
products on their menus, compared to 33% of casual restaurants. Perlik found that the
main reason (29%) for
restaurateurs to purchase organic products was for their superior quality, with customer
demand the next most
common reason (27%). About half the study's participating restaurateurs said they did not
currently serve organic
menus, with higher prices given as the most common reason (34%), and organic items not
fitting their menu as the
next most common (21%). Perlik (2005) noted that although many restaurateurs serving
organic items do not
necessarily indicate them on menus, others viewed an organic menu as a point of pride and an
opportunity to educate
consumers. Participants noted that limitation of supply often forced organic items out of
menus (Poulston, Yiu,
2011).
CONCLUSION
The demand-side benefits to restaurants of using locally produced and organic foods are
clearer. Previous studies
has shown that individuals choose locally grown foods for perceived tangible benefits such as
freshness,
taste as well as for more intangible motivations such as sustainability and
community support. The
motivation to purchase organic food is driven by health concern, environmental concern,
sensory properties, food
safety and ethical concerns. Health concern is found to be the primary motive to buy organic
food.

10. Studies have argued that restaurants use locally grown and organic foods to differentiate their
products and because
doing so give them a motive to charge higher prices. Healthy food as well locally produced
food could have a
significant effect on customer perceived evaluation of the restaurant experience. The Chef
Survey revealed that
organic produce was one of the top three preferred menu trends. According to numerous
predictions demand for
organic and locally grown food are going to rise. The fact is that it wont be popular among wider
population because
of high prices, however it is certain that one part of the population will be able to afford it. That‟s
why restaurant
managers should pay attention to these trends and act according to market demands.
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