Comedian Bill Maher often refers to the natural food retail giant Whole Foods as "whole paycheck" due to its expensive prices. His reference reflects a general perception that is often a reality for many people. The Organic Food Association cites the price of organic versus conventional can be anywhere from 15 to 100 percent higher. With that price difference, organic food can feel more like a luxury than a necessity. The Food and Drug Administration (FDA) defines organic in the procedures that farmers grow and process food. Because these terms are more stringent than conventional farming the practices are much more labor intensive. Additionally, shunning the use of products like pesticides and synthetic growth hormones often results in lower product yield, which leads to smaller amounts of food that farmers can bring to market. The consequence of this supply and demand paradigm is the inevitable price hike of organic foods.
A 2009 study by the National Restaurant Association (NRA) cites that 76 percent of adults are trying to eat healthier at restaurants than they were just two years ago. That study was determined over several demographics signaling an overall shift in the dietary consciousness of Americans. The NRA completed another recent study in which sustainability, local sourcing and nutrition are cited as some of the most popular culinary themes.
Additionally, in wake of the recent egg recall, the OTA reports an increase in the sale and demand of organic eggs. Seemingly people are getting the message, the problem is whether the prices can remain static. There is an understanding amongst sectors of the public that organic prices will always be higher but there is a breaking point. As organic food prices continue to ascend, people may shy away from the marketplace.
"In the beginning a lot of people didn't understand this kind of food and still there are concerns. People say things like they don't understand why it was so expensive, you just serve vegetables," says Melngailis. "People don't know that when you use all organic ingredients that it's not here, it's not grown locally. So when we have to import something from Italy, these foods are hard to find and highly perishable and that makes it that much more expensive. Not to mention the process of how we cook takes a long time."
Price concerns are a true decision-making factor for anyone who aspires to work in this industry. There are organic restaurants like Sprout's in Chicago and Nora's in Washington D.C where a dinner for two can reach triple digits with ease. Sprouts offers their cuisine at a price fixed amount of $60 while Nora's offers appetizers for as much as $15 dollars and entrees in the $29-$35 range. Of course, not every organic place will have those prices (like organic fast-food restaurants). There are several variables to consider but on average customers can expect a price difference to be anywhere from 10 to 30 percent higher than at conventional places.
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6. Avoid vegan stereotypes.
Melngailis knows how to shake up the monotony sometimes prevalent in the organic restaurant world by mixing staff personalities. She mentions that in some places she has seen, everybody has a similar make-up, and that creates an elitist attitude. When that notion permeates through a workplace, it discourages potential customers, as people are generally sensitive to spend money in an eatery where they feel they are being judged. "A lot of the staff members here are not vegetarian and I did that on purpose," she says. "It's better for the restaurant to have different mentalities present. It creates a more open vibe, which helps business because we want to reach a more open audience."
Melngailis cautions organic restaurant owners from allowing their establishments to sink into what she calls "pretentious" behavior. "We stay away from the whole 'perfect, we're so environmental, this is what we do to be sustainable' thing," she says. "There's too much of that. There's a place that I know of and they make great food but they have a sign in the window that says if you wear fur you're not welcome. That's really bold and aggressive. That's the stereotypical angry Vegan." Potential restaurateurs can talk politics or volunteer for PETA in their spare time. At your restaurant, serving customers should be first and foremost in your mind.
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7. Value supplier relationships.
Organic farms are at a premium and playing hardball may not be the wisest option. Due to the finite nature inherent in organic farming giving ultimatums and deadlines may not bring your business any closer to acquiring the products you need. Both the restaurant owner and the farmer have expectations they are working to fulfill and it is patience that is key here. This is not to say that the organic food industry doesn't have the same market demands as any other industry. Exceptions are sometimes part of this business, especially during difficult economic times. "Sometimes we pass the price on a little to the customer. We try not to push the prices up too much but we don't want to compromise our standards and we want to use the best quality products and ingredients," Keith-Jennings says.
The best way to overcome the demands of an uneven market, Keith-Jennings says, is by sticking by the people you trust the most. "Everybody wants to work together but it's frustrating when you can't compete in the market. With this current downturn, we've lost vendors because we couldn't afford their products. We generally try and stay committed to the farmers we've been with for years. And they stay committed with us. Sometimes they are more lenient in letting us stretch the bill out a little longer."
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8. Think long-term.
While initial news of a raw foods restaurant helped save marketing money by creating its own word of mouth buzz, Melngailis knew she needed a long-term strategy. Under her umbrella organization One Lucky Duck, she manages an online organic lifestyle boutique where she sells many of the items on her Pure Food & Wine menu. "When people go back to Arizona or London or wherever they're from they can find our stuff online and that's how we tie the businesses together and continue to grow. That way people don't have to come here and have this isolated experience and leave and not have a way to find this kind of food again."
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