Food Service Growers Find New Customers
February 17, 2021 Food service growers suffered the greatest setbacks due to restaurants and schools closing down during the pandemic’s onset.
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Although most growers saw stronger crop prices in 2020, food service growers saw the opposite — 82% had flat or lower prices. And these growers destroyed more crops than any other group.
So understandably, this sector found new customers for their crops.
Most Growers Found New Markets
Almost three-fourths of growers redirected their food service crops. The top pick for new customers were direct to consumers, followed by supermarkets/retail.
We offered the traditional sales outlets common for our industry. But growers were creative, and 19% found non-traditional outlets. Food banks, the most frequent write-in, received a lot of these crops. Some sent their crops to auctions, and others switched from fresh produce to the seed market.
The big questions on growers’ minds are how many restaurants will survive the COVID-19 disruptions, and how many will open to take their place.
What Will Happen To Restaurants?
In November 2020, the National Restaurant Research Group conducted a study. It found 17% of U.S. restaurants had already shut their doors permanently. Most were well-established eateries.
The industry is pushing hard for a bailout. Once most Americans have vaccines, the industry hopes that as travel restarts and other hospitality workers return to their jobs, consumer demand for restaurants will rebound.
Food service producers are trying to navigate demand. Will other growers moving on provide an opening? How can they establish sales when new restaurants open to replace those closed?
Or is the industry in for another very rough year, meaning demand will continue to decline and it’s time to move on?
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