News

Organic foods surge through restaurants

April 11, 2006

NEW YORK — A new study shows the use of organic foods is growing in the foodservice market.

According to "Organic on the Menu: Healthy Eating Trends in Foodservice," a new report from market research publisher Packaged Facts, organic menu items account for only 2 percent of total foodservice sales. But the report said foodservice market for organics appears to be growing at a rate of 20 percent annually, keeping pace with retail sales of organics, which have grown at an average of 18 percent since 1997.

According to the report, organics have particularly taken off in college foodservice operations, with 18- to 24-year-olds being strong advocates of not only vegetarian and vegan fare, but also food with a conscience, such as "certified humane," "sustainable," and "fair trade."

"Consumer demand for organics is growing exponentially, and what they're buying at retail for home consumption is the same standard of food they want when they eat out," said Don Montuori, the publisher of Packaged Facts. "Even McDonald's has introduced fair-traded and organic coffees to their menu, at least in the U.K., which should give other marketers and restaurateurs an idea of just how big organics on the menu are going to be."

Organics have especially impacted the fast-casual segment. (To read more about organics in fast casual Click here) In February, Organic To Go became the first fast casual to become a certified organic restaurant.

"Organic foods is such an emerging trend that we feel we are educating the population," said Jason Brown, chief executive of the Los Angeles-based restaurant. "Our best customer is somebody who just wants to eat well for themselves."