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Taking the "Fancy" Out of "Fancy" Food

FOR THOSE OF US IN THE FOOD BUSINESS AND FOR OUR EXISTING CUSTOMERS, THE TERM "SPECIALTY" BRINGS TO MIND FOODS THAT ARE FRESH, PREMIUM-QUALITY, ARTISAN-MADE, LOCALLY GROWN AND OTHER POSITIVE DESCRIPTORS. But for many potential customers, the terms "gourmet" or "specialty" food still conjure up outdated notions of a fancy, elite and exotic world that is expensive, exclusive and filled with jargon-loving foodies and chefs.

Finding new customers and helping them shift away from that white-tablecloth-and-fine-china perception is an opportunity and a challenge for today's specialty food retailers. To continually expand their base—especially in difficult economic times—retailers need to connect, communicate and share the true enjoyment that high-quality food brings to life, in terms and settings that resonate with hesitant or uninitiated customers.

Focusing on "Premium" not "Gourmet"
Forty years ago, the term gourmet pertained to products that were exotic (think frog legs), imported (often from France) and costly for their time. Even 25 years ago, gourmet foods were thought of as brie and quiche rather than locally grown strawberries and organic butter.

Today, most consumers (specialty and others) want the food they buy to taste good, be good for them and be satisfying—helping the term "premium," become an effective descriptor for illustrating what specialty foods are all about.

Recent data by Seattle-based market research firm The Hartman Group shows that consumers no longer feel the need to justify buying premium foods. In fact, they expect them and believe they deserve them. The same study noted that 94 percent of households indicate that they use the same brands/products daily as they use for special events, demonstrating that the line between everyday and special-occasion food has all but disappeared.

The association between premium and quality is what helps attract consumers who are still on the fence about specialty foods. "Although there is some lag from consumers thinking that premium equals high prices and elitism, today's premium is connected to quality," says Michelle Barry, Ph.D., president, Tinderbox & Retail Intel, Seattle, a research and analysis firm focusing on consumer culture and trends. She explains, "premium equals quality and quality equals fresh."

Nancy Kelly, owner of Pellston Market in Pellston, Mich., a small specialty shop with a large seasonal summer clientele, says, "We try to take the fancy out of fancy food." Kelly's primary customer base of Midwestern tourists who are seeking unfamiliar items gives her an opportunity to showcase artisan and local products. "We communicate that we're selling food that was made with care and passion, and was not mass produced," she adds. In doing so, "we're reminding them that they're worth better food. In the last few decades we've reduced our food budgets and lost sight of the fact that what we put in our bodies is really important."

"The consumer trend of the decade is quality, fresh and local," emphasizes Barry. "So what people are buying to put in their desk drawer for a treat is of much higher quality, as is the food that's on the dining table on a Tuesday night."

Changing Consumer Perceptions
Communicating premium to the consumer is a subtle—and sometimes subliminal—art. And it often is most effective in perishable departments, not in wines or olive oils or other specialty categories that may first spring to mind. "The biggest tactic for retailers to use to express quality is in the produce department, which should be the first thing shoppers see. Showcase seasonal, fresh produce and it signals to the consumer that you're tuned into food and are paying attention," notes Barry.

Sharing the story behind a product—where it's from, who made it and how they made it—is also critical. Karen Keegan, co-owner with her husband Denis of Savor the Flavor, in Sierra Madre, Calif., notes, "Customers love any kind of information, whether they're buying the product or not. They're curious and often come in for ideas. They like quick wows."

"Consumers need touch points where they can connect, like demos where they can talk and ask questions and not be intimidated. They don't want to feel like they need to be fancy in order to like fancy food," notes Barry. In demos and sampling, the key is an active, but relaxed, experience. "Demonstrations are about the human connection and doing a straightforward demo is most successful. But, it should be about what customers like, not a tutorial on how they have to do it," she continues. "Shoppers want more flexibility. It needs to be playful and simple, not only about rules. The wine industry has done this really well. They're all about 'drink what you like, not what the rule book says you should.'"

Getting New Customers in the Door
It's possible, with a bit of legwork, to incite interest in the non-specialty food customer who is more likely to shop at a larger grocery store for savings, rather than in a gourmet food store. Sampling within the community is an excellent tactic for reaching new customers. Steven Rosenberg, owner of Liberty Heights Fresh in Salt Lake City, Utah, says, "We actively sample at our local farmer's market and use that as a platform to share the story of what we make in-house, using traditional recipes and the real food ingredients they are produced with." He adds, "There is much story-telling to convey what it takes to make great food."

In addition, merchants should keep an eye out for new customers who may not be shopping but are accompanying a regular customer. Rosenberg points out, "We seize that opportunity to share the story of specific items and discuss the integrity of ingredients and the tradition such as the producer's family history." Also, with new customers, "sharing a taste is always the key," he advises.

Some retailers brand their stores as "destination spots," making it even easier to drawn in new shoppers. For example, recent 2008 Specialty Food Magazine Retailer Award winner Papa Joe's in Detroit, Mich., considers itself to be the "Disneyland of specialty foods" because it offers so many experiences within the store, such as a wine bar, a library and an open kitchen that makes food preparation seem like entertainment, drawing curious onlookers as well as the established clientele.

Reconnecting With the Kitchen
One constant in a fluctuating economy is that for many customers, food that they feel an emotional association to equals comfort. "It's about processes and traditions," notes Barry. "There are so many choices that consumers have become disconnected from their food. There's a resurgence to connect," she adds. Helping your customers understand that much of today's specialty food shares a heritage with our grandparents' time—when food was made by hand in traditional ways, and always with care—can emphasize this connection.

But whether customers are cooking more due to economic or emotional reasons, the current economy provides an opportunity for specialty food retailers to show customers how they can have high-quality meals that are as good, if not better, that eating out—without the enormous time commitment of cooking completely from scratch. According to the Food Marketing Institute (FMI) U.S. Grocery Shopper Trends 2008 report, 71 percent of Americans are more compelled to cook at home and eat less often at restaurants because of financial concerns. To meet this need, retailers like Keegan offer foods for different kinds of cooks. "We have both products for people like my husband, who finds cooking meditative and wants to spend all day in the kitchen, to me, who wants it to take 15 minutes but taste like it took all day to cook," she notes.

Understanding Generational Influences
Who is buying the bulk of premium today? By sheer volume, the Baby Boom generation—currently estimated at about 78 million people holding upwards of three-quarters of the nation's wealth—is a prime consumer group. "The Millennials and Gen Xers get a lot of attention, but when it comes to generational influences, it's the Baby Boomers who are doing a lot of the premium shopping. They are actively looking for quality, reading labels, researching and experimenting," comments Barry. Retaining this demographic as it ages and continually increasing these consumers' basket size means rethinking the shopping experience to fit their changing needs. (See sidebar, p. 32).

However, younger generations are making their impact as well. Consumers aged 18-34 are the most likely of all age groups to purchase specialty foods, according to the 2007 Specialty Food Magazine Today's Specialty Food Consumer report. As these consumers, who were brought up under the influence of globalization, become the primary shoppers, we expect specialty and mainstream to merge even more, Barry says. "Take cheese, which went from just being cheddar and Jack, to now every store having at least 20 to 30 cheeses to choose from. We've also seen it in beer, and the culture has supported this."

She adds, "The 30s have families so the idea of premium for them is grounded in children's foods and health and wellness." Popular with this group are organics, natural cereals and healthful prepared foods for busy two-career parents.

Meanwhile, for the twenty-somethings, premium "is a normal everyday experience that they experiment with," notes Barry. This group grew up eating out, traveling and, as the so-called Starbucks generation, is used to the concept of paying a high-ticket price for small luxuries, such as $4 for a latte. "Where they choose to spend dollars shifts according to their tastes and preferences." Barry continues. As this group has a palate for premium but probably has not reached its income potential, small treats most appeal to them. According to the 2007 Today's Specialty Food Consumer report, they are most likely to buy grab-and-go items such as cold beverages, chocolate, cookies and salty snacks.

Looking at the Big Picture
Successful specialty retailers reach out to all demographics and consumer segments. They see each customer who walks through the door as an individual with independent needs, but with a common goal of eating well. Calvin Mayne, vice president and specialty food buyer at Dorothy Lane Market, a three-store independent specialty food market in Dayton, Ohio, says, "We don't sell to a particular demographic. We're about great food and drink and we want to share that with whoever wants to enjoy it. We present a focused emphasis on a great food experience."

Denise Shoukas is a contributing editor to Specialty Food Magazine.