F Sheehan, R Lingham and L Cirillo Green Land Holdings ... · Greenland Holdings Pty Ltd. ... Appendix 1 Business Profile Comparisons between Market Segments Appendix 2.1 Response

Potato usage in the Australian food

service sector

F Sheehan, R Lingham and L Cirillo

Green Land Holdings, Lingham Foods Pty Ltd

and Horticulture Australia

Project Number: PT00035

danikah

Stamp

PT00035

This report is published by Horticulture Australia Ltd to pass on information concerning horticultural research and development undertaken for the potato industry.

The research contained in this report was funded by Horticulture Australia Ltd with the financial support of Greenland Holdings Pty Ltd.

All expressions of opinion are not to be regarded as expressing the opinion of Horticulture Australia Ltd or any authority of the Australian Government.

The Company and the Australian Government accept no responsibility for any of the opinions or the accuracy of the information contained in this report and readers should rely upon their own enquiries in making decisions concerning their own interests.

ISBN 0 7341 0544 4

Published and distributed by: Horticultural Australia Ltd Level 1 50 Carrington Street Sydney NSW 2000 Telephone: (02) 8295 2300 Fax: (02) 8295 2399 E-Mail: [email protected]

© Copyright 2002

Horticulture Australia

mailto:[email protected]

Potato Usage in the Australian Food

Service Sector

Final Report

Project PT 00035

April 2001

Prepared by

Frank Sheehan Secretary, Green Lands Holdings

Rod Lingham Lingham Foods Pty Ltd

Leo Cirillo Horticulture Australia Limited

Acknowledgments,

Green Lands Holdings Pty Ltd wishes to acknowledge the friendly assistance of

Horticulture Australia program Manager Mr Jonathon Eccles and Marketing Research

Manager Mr Leo Cirillo

1

Table of Contents

Potato Usage in the Australian Food Service Sector 1

Introduction 4

Consumption Data and Trends 4

Processing Potatoes Tonnages 5

Summary of Consumption Trends 6

The Food Service Sector 6

Tonnage Estimates in the Food Service Sector 6

The average consumption of potatoes per meal 6 Meals prepared by the Food Service Sector 7 Segments classifications 7 Segmentation of the Food Service Sector 7

Methodology 8

Product Review 8 Market Research Restaurant Segment 9 Market Research Motels and Clubs , 9 Survey Questionnaire Preparation 9

Survey Results 9

Tonnages Used in the Food Service Sector 9 Key Question Analysis & Variances 11

Nutritional Profiles 11 Preparation of Potatoes .« 11

Cuisine Preparation 11 Hasselback or scalloped styles 12

Cooked Potato Quality 12 Varietal Awareness of Consumers 12 Purchasing Specific Varieties 13

Size Grading 13 Quality Issues 14

Defects 14 Pricing and Defects 14 Wastage 15

Methods of Potato Preparation in the Food Service Segments 15

Growth in the Consumption of Potatoes in the Food Service Segments 16

Correlations to Increase Consumption 16

Conclusion 16

Bibliography 17 Disclaimer 18

List of Tables

TABLE 1 POTATO PRODUCTION BY STATE 4 TABLE 2 PER CAPITA CONSUMPTION 5 TABLE 3 COMPARITIVE USAGE IN AUSTRALIA AND USA 5 TABLE 4 PROBABLE POTATO USAGE IN AUSTRALIA 1999 5 TABLE 4 LIKELY BREAK UP OF THE FOOD SERVICE SECTOR BY SEGMENT

CLASSIFICATION 7 TABLE 5 ESTIMATED TONNAGES CONSUMED IN THE FOOD SERVICE SECTOR 8 TABLE 6 FOOD SERVICE TONNAGE ESTIMATES FROM SURVEY RESULTS 10 TABLE 7 ANALYSIS OF VARIANCE (ANOVA) TO NUTRITIONAL PROFILES AT THE 95 %

CONFIDENCE LEVEL 11 TABLE 8 ANALYSIS OF VARIANCE (ANOVA) TO CUISINE PREPARATION AT THE 95 %

CONFIDENCE LEVEL 12 TABLE 9 ANALYSIS OF VARIANCE (ANOVA) TO PREPARING HASSELBACK OR SCALLOP

STYLES AT THE 95 % CONFIDENCE LEVEL 12

2

TABLE 10 ANALYSIS OF VARIANCE (ANOVA) TO VARIETAL AWARENESS OF CONSUMERS AT THE 95 % CONFIDENCE LEVEL 13

TABLE 11 ANALYSIS OF VARIANCE (ANOVA) TO PURCHASING SPECIFIC VARIETIES AT THE 95 % CONFIDENCE LEVEL 13

TABLE 12 ANALYSIS OF VARIANCE (ANOVA) TO SIZE GRADING AT THE 95 % CONFIDENCE LEVEL 14

TABLE 13 ANALYSIS OF VARIANCE (ANOVA) TO DEFECTS IN POTATOES AT THE 95% CONFIDENCE LEVEL 14

TABLE 14 ANALYSIS OF VARIANCE (ANOVA) TO PRICING AND QUALITY AT THE 95 % CONFIDENCE LEVEL 15

TABLE 15 ANALYSIS OF VARIANCE (ANOVA) TO WASTAGE AT THE 95 % CONFIDENCE LEVEL 15

TABLE 16 SUMMARY OF METHODS OF PREPARATION 15 Clubs , 15 Motels 15 Restaurants 15 TABLE 17 GROWTH IN USAGE OF POTATOES 16

List of Appendices

Appendix 1 Business Profile Comparisons between Market Segments

Appendix 2.1 Response to Nutritional Awareness in Motels

Appendix 2.2 Response to Nutritional Awareness in Clubs

Appendix 2.3 Response to Nutritional Awareness in Restaurants

Appendix 3.1 Response to Cuisine Preparation in Motels

Appendix 3.2 Response to Cuisine Preparation in Clubs

Appendix 3.3 Response to Cuisine Preparation in Restaurants

Appendix 4.1 Response to Preparing Hasselback or Scallop Styles in Motels

Appendix 4.2 Response to Preparing Hasselback or Scallop Styles in Clubs

Appendix 4.3 Response to Preparing Hasselback or Scallop Styles in Restaurants

Appendix 5.1 Response to Varietal Awareness of Consumers in Motels

Appendix 5.2 Response to Varietal Awareness of Consumers in Clubs

Appendix 5.3 Response to Varietal Awareness of Consumers in Restaurants

Appendix 6.1 Response to Purchasing Specific Varieties in Motels

Appendix 6.2 Response to Purchasing Specific Varieties in Clubs

Appendix 6.3 Response to Purchasing Specific Varieties in Restaurants

Appendix 7.1 Response to Size Grading in Motels

Appendix 7.2 Response to Size Grading in Clubs

Appendix 7.3 Response to Size Grading in Restaurants




Appendix 9.1 Response to Pricing and Quality in Motels

Appendix 9.2 Response to Pricing and Quality in Clubs

Appendix 9.3 Response to Pricing and Quality in Restaurants

Appendix 10.1 Response to Wastage in Motels

Appendix 10.2 Response to Wastage in Clubs

Appendix 10.3 Response to Wastage in Restaurants

3

Introduction Consumption information for potatoes in the Food Service Market is fragmented and often vague.

Information on the consumption of fresh potato products is an example of this with very little

information being readily accessible to growers. The aim of the project was to review the consumption

patterns in this sector and to identify trends that may present opportunities for the potato growing

industry. Specifically the objectives of this project were:

• to determine the usage of fresh potatoes within the Food Service sector.

• to determine usage trends in the various segments of the sector.

• to examine the 'fit' of prepared potatoes in the 'convenience driven culture'

• to estimate potential increases in consumption where convenience and nutritional values are

emphasised.

• to investigate varietal preference in the use of potatoes for specific purposes.

• to obtain feedback from chefs on potato types and forms of presentation.

• to obtain information affecting user attitudes and resistance to potato usage.

A major concern for the potato industry is changing demand for potato products with estimates of fresh

potato consumption falling at the rate 3.5 kg per person each decade. (Lewis, 1994.) This reduction in

consumption rates of fresh potatoes is occurring as younger generations consume more carbohydrate

substitutes such as rice, paste and noodles. Lewis's research found that the under 25 age group

consume 50% less meals containing potatoes than do the 55-65 age group.

Consumption Data and Trends

Data indicating overall production tonnages does not however reveal a reduction in the consumption of

potatoes.

TABLE 1 POTATO PRODUCTION BY STATE

Season NSW VIC Q L D SA W A TAS Total

1993

137,444 309,192 125,230 179,273 108,171 269,902 1,129,212

1994

138,676 322,147 118,002 202,645 111,813 291,423 1,184,706

1995

126,876 279,876 109,004 247,414 108,430 255,739 1,127,338

1996

162,456 335,649 103,845 282,568 121,546 302,035 1,308,099

1997

136,173 315,727 115,435 285,344 116,004 317,448 1,286,131

1998

146,505 295,102 121,589 306,634 128,198 373,578 1,371,606

1999

162,098 319,228 108,091 300,969 108,896 327,482 1,326,765

Source: ABS

4

The apparent consumption per head has not reflected the forecast decline.

TABLE 2 PER CAPITA CONSUMPTION

Year 1991/92 1992/93 1996/97 1997/98 1998/99

Total Per Capita Consumption *

(Kg per person per annum)

68.5 63.8 68.2 72.2 68

Fresh Per Capita Consumption +

(Kg per person per annum)

32 28

Source: * ABS

Source: +Derived from fresh consumption percentages

The trend from the overall consumption data is flat or indicating a slight increase.

Processing Potatoes Tonnages

The consumption of fried potato products (crisps and french-fries) is increasing both nationally and

internationally. Figures for 1990/91 show that 49% of the total crop was processed. This consisted of

crisps 11% and french-fries 38%. In the same period (1990/91) fresh potato consumption was estimated

at 534,000 tonnes. Comparative consumption data for Australia and the USA is included in the

following table.

TABLE 3 COMPARITIVE USAGE IN AUSTRALIA AND USA

Country Fresh Market Crisping French Fry Other Uses Production

% % % % Tonnes

Australia (l90/'91) 47 11 38 4 1,136,185

USA ('87) 40.1 15 37.5 17,886,000 ('90)

Source 1 Australia Bureau of Statistics in Horticulture Australia (1995).

Source 2 Lewis (1994) Fresh potato marketing research

Information directly relating to the percentage break-up of usage in Australia is difficult to obtain after

the above period (90/91). Non-direct data and personal conversations indicate it is likely that 55% of

potatoes are processed with 13% going into crisps and 42% into fries (98/99). Fresh potato

consumption is probably stable in terms of tonnage at around 550,000 tonnes per annum or 41% of the

total 1999 production.

TABLE 4 PROBABLE POTATO USAGE IN AUSTRALIA 1999

Country Fresh

Market

Crisping French Fry Other

Uses

Production

Tonnes

Australia ('99) 41 13 42 4 1,326,765

5

Summary of Consumption Trends

1. The growth in overall tonnes produced during the previous decade (90/00) has supplied higher

processing demand.

2. The consumption of fresh potatoes has shrunk as a percentage of total production, and remained

flat in terms of gross tonnages consumed. The rate of decrease in per head consumption from 32 to

28 kg being compensated only by an increase of 12% in Australia's population during the

corresponding period.

3. The actual 4kg reduction in consumption per head over the previous decade (90/00) is in line the

forecast reductions of 3.5 kg per person as forecast by Lewis

In this environment of reducing fresh potato consumption, trends in the usage of fresh potatoes in the

Food Service Sector are very important.

The Food Service Sector

Preparation in the food service sector overcomes several negatives perceptions associated with fresh

potatoes preparation including dirt removal, washing and peeling. The sector has the following

attributes that are of major interest to the potato producers

• Segments including restaurants and take away food premises have grown in turnover by 40% over

the last decade. (Restaurant & Catering Facts and Figures, 2001, p2.)

• The customers who are increasingly consuming meals prepared outside the home and driving the

trend towards increased turnover are those identified as consuming less fresh potatoes in the home.

• Growth rates in the Food Service Sector indicate that the number of meals consumed outside the

home will double in the next 20 years. (Restaurant & Catering Facts and Figures, 2001, p2.)

• Consumers are turning to 'comfort foods', traditional style meals similar to those previously

prepared in the home. (Qualitative Research University of Ballarat, 2001)

The food service sector is an important market avenue for the potato industry. Attitudes to convenience

and nutritional benefits of fresh potatoes are important. The lack of market information and research is

impeding the adoption of new technology and products.

Tonnage Estimates in the Food Service Sector

Prior to commencing the qualitative and quantitative market surveys, a preliminary study of the Food

Service Sector was undertaken.

The average consumption of potatoes per meal. Respondents to Lewis's survey indicated approximately 4 meals were likely to be prepared weekly

with potatoes. From the annual consumption figure of 32 kg in Table 2, this relates to approximately

600g per person per week. Each meal is likely to have 175 g of fresh potato, which is equivalent to one

medium size tuber.

6

Meals prepared by the Food Service Sector Estimates for 1998 are " nearly 4.2 billion meals were served by the food service industry or 222 meals

per head compared with 216 in 1996." (Robinson, 2000.)

Segments classifications > Heavy users with approximately 50% of meals containing potatoes

> Medium users with approximately 25% of meals containing potatoes

^ Light users with approximately 5% of meals containing potatoes

Segmentation of the Food Service Sector Phonedisc database distributed by Desktop Marketing Systems was used to determine the number of

premises and their locations. The figures obtained from this exercise related well to segment

information obtained from the restaurant and catering industry. It is however likely that some

duplication due to dual listings did occur. Each of the segments was classified by usage profile. To

assist in this process a publication over-viewing the non-household usage of horticultural products by

Patel (1990) was used. Restaurants were dual classified with those preparing modern Australian cuisine

(36.1%) listed as heavy users and other cuisine styles as light users. (BIS Shrapnel in Restaurant &

Catering Facts and Figures, 2001, pi.)

TABLE 4 LIKELY BREAK UP OF THE FOOD SERVICE SECTOR BY SEGMENT CLASSIFICATION

FOOD SERVICE

SEGMENT

No of

establishments

Heavy Users Medium Users Non Users

HOTELS 5593 9.22%

TAKEAWAY 16986 28.00%

CAFES 6959 11.47%

MOTELS 5030 8.29%

CATERING FUNCTIONS

4265 7.03%

NURSING HOMES 1361 2.24%

CLUBS SOCIAL GENERAL

2233 3.68%

TERTIARY EDUCATION

637 1.05%

RESTAURANTS 15790 9.40% 16.63%

HOSPITALS 1815 2.99%

Totals 60669 39.17% 15.15% 45.68%

The information prepared in Table 4 was then used to derive the likely break up of meals consumed in

the proportion that potatoes were likely to constitute.

7

The population figure used for Australia was 19 million. This was achieved in August 1999. (Source

ABS: Population size and growth).

TABLE 5 ESTIMATED TONNAGES CONSUMED IN THE FOOD SERVICE SECTOR

Totals Heavy Users Medium Users Light Users

Total Meals Per Head

Per Annum

222

Total Meals Per

Category

86.97 33.64 101.40

Percentage

Containing Potato (est)

50% 25% 5%

Meals Containing

Potato

43.48 8.41 5.07

Average Consumption

Per Meal (kg)

0.175

Total Potato

Consumption (kg)

7.61 1.47 0.89

Average Consumption

Per Head of Population

in Food Service (kg)

9.97

Estimated Market

(tonnes)

144590 27930 16910

Estimated Market Size

(tonnes)

189430

From Table 5 the estimates of potato usage in the total Food Service Sector per annum is 189,430

tonnes of product. The major users of potatoes include Restaurants (21.2 %), Hotels (19.4 %), Motels

(17.5 %) and Catering Functions (14.80 %).

No attempt has been made to differentiate the various segments based on the average number of meals

served or the unit size of the meal.

Methodology

To achieve the objectives of the project the following methodologies were utilised.

Product Review

A qualitative assessment exercise with key users was carried out to understand their expectations about

potatoes. Owners and Chefs working in the Food Service Sector were invited to the University of

8

Ballarat and shown samples of potatoes, different pack sizes and cooked product. The feedback was

then used to design the market survey form.

Key issues discussed by the participants included the following-

• Size grading of potatoes and the difficulty of portioning.

• Quality issues associated with defects, specially worse at certain times of the year.

• Achieving the best quality in cooked product and reducing greyness

• Purchasing suitable varieties for specific meals.

• The frustration of wastage caused by trimming to size and defect removal.

• The time taken to prepare hasselback and scalloped dishes.

• The 'time poor' nature of customers and the increasing trend towards eating out.

• The trend towards customers preferring 'comfort foods' and those requiring more complex preparation

Market Research Restaurant Segment

Fourteen (14) restaurants in Sydney that prepare predominantly modern Australian cuisine were

surveyed to determine information on potato usage.

Market Research Motels and Clubs

Ten (10) motels and twenty-two (22) clubs in Southern NSW and Northern VIC were surveyed to

determine information on their usage of potatoes. Survey forms with questions designed to obtain

information important to the final report were then prepared. Note several hotels were included with

motels in the survey results.

Survey Questionnaire Preparation

Hedonic (liking) scales were used to assess the level of agreement or disagreement to the questions

posed. The respondent's reaction was then measured and converted to a numerical value. The actual

questions asked appear at the top of each appendix containing the graphical presentation of the data.

The results were analysed using histograms, averages analysis of variance between segments

(ANOVA) and correlations.

Survey Results

Tonnages Used in the Food Service Sector

The survey form requested premises to define their consumption patterns into three categories

1. Fresh potato usage profile (excluding fries and chips).

2. Number of meals served weekly

3. Weekly usage of potatoes, (kg)

Appendix 1 is the profile of the businesses surveyed in the selected Food Service Segments.

Table 6 shows the calculated tonnages in the various Food Service Segments. The following criteria

and suppositions were used to develop the table.

9

• Hotels and motels were treated similarly in terms of the usage profiles.

• An average figure of 26 kg per week was calculated from the survey forms collected and this

figure was then substituted for premises (small) with less than 50 kg per week.

• Only restaurants categorised as serving modern Australian cuisine (36.1%) were included in the

figures.

• Catering functions, nursing homes and hospitals were included as large users.

• Tertiary institutions were included as light users.

• No figures were included for the take away segment. No reliable data is available for this segment.

The total tonnage derived from the survey was 157,299 tonnes. This compares to the estimated tonnage

of 189,430 tonnes calculated in section 3.2. As no tonnages were allocated to the take away and non-

Australian cuisine restaurant segments it is probable that the figure of 157,299 tonnes underestimates

the actual tonnage used.

TABLE 6 FOOD SERVICE TONNAGE ESTIMATES FROM SURVEY RESULTS

WEEKLY USAGE OF

POTATOES (KG)

CATEGORY OF FOOD SERVICE

OPERATION

No of

establishments

<50 50 - 200 >200 Total

Tonnes per

annum

HOTELS 5,593 90.00% 10.00% 0.00% 10,441

TAKEAWAY 16,986

CAFES 6,959 35.71% 57.14% 7.14% 34,377

MOTELS 5,030 90.00% 10.00% 0.00% 9,390

CATERING FUNCTIONS 4,265 100.00% 44,356

NURSING HOMES 1,361 100.00% 14,154

CLUBS SOCIAL GENERAL 2,233 17.65% 47.06% 35.29% 15,559

TERTIARY EDUCA TION 637 100.00% 861

RESTAURANTS 15,790 35.71% 57.14% 7.14% 28,158

HOSPITALS 1,815 100.00% 18,876

Totals 60,669 157,299

10

Key Question Analysis & Variances

Nutritional Profiles

Respondents were asked "Consumers are generally aware that potatoes are a useful source of Vitamin

C and minerals?" The response scale included Unlikely to Definitely. Appendices 2.1, 2.2 and 2.3

show the survey results for motels, clubs and restaurants respectively. The averages on the scale of 0-

100 were 24.8,17.7 and 39.8 respectively. These results are poor and indicate the low nutritional

esteem in which potatoes are widely held. Potatoes are a vegetable and should be part of the drive to

increase fruit and vegetable consumption in the population. The Food Service Sector needs

information to assist in attracting and retaining customers whose interests include a healthy diet and

consuming interesting food products. Common verbal response included the lack off promotional

material and consumers not caring about potatoes.

TABLE 7 ANALYSIS OF VARIANCE (ANOVA) TO NUTRITIONAL PROFILES AT THE 95

% CONFIDENCE LEVEL

Premise Description DIFFERENT NO DIFFERENCE

Clubs and Motels V

Motels and Restaurants V

Restaurants and Clubs V

Respondents in restaurants indicated that their customers were more aware of the nutritional benefits of

potatoes than those in clubs.

Preparation of Potatoes

Cuisine Preparation

Respondents were asked "Consumer's preferences are more towards cuisine that is time consuming to

prepare in their own home?" The response scale included Strongly Disagree to Strongly Agree.

Appendices 3.1, 3.2 and 3.3 show the survey results for motels, clubs and restaurants respectively. The

averages on the scale of 0-100 were 68.7,63.1 and 63.9 respectively. The results reflected the trend by

'time poor' consumers to eat meals that require more complex preparation outside their homes.

Potatoes fit well into this category with a variety of preparation techniques being used. Response in the

restaurant section included the appreciation by customers of the additional effort to prepare special

dishes such as mash and sculptured product.

11

TABLE 8 ANALYSIS OF VARIANCE (ANOVA) TO CUISINE PREPARATION AT THE 95 %

CONFIDENCE LEVEL


Clubs and Motels V



Hasselback or scalloped styles

To assess the degree of difficulty in preparing a potato dish, response to the statement "Hasselback or

scalloped potato dishes are popular but difficult to prepare?" The response scale included Strongly

Disagree to Strongly Agree. Appendices 4.1, 4.2 and 4.3 show the survey results for motels, clubs and

restaurants respectively. The averages on the scale of 0-100 were 47.8, 49.6 and 38.4 respectively. The

results indicated that food preparers did not see preparation effort as restrictive to service of this type of

product. Kitchen hands were often given this task and this was viewed as 'character building'. The

rewards are considered greater than the effort as numerically and verbally expressed by the

respondents.

TABLE 9 ANALYSIS OF VARIANCE (ANOVA) TO PREPARING HASSELBACK OR

SCALLOP STYLES AT THE 95 % CONFIDENCE LEVEL


Clubs and Motels V



Cooked Potato Quality

Varietal Awareness of Consumers

Respondents were asked, "Consumers value the different varieties used for mashing, baking, roasting,

salad etc. The response scale included Rarely to Frequently. Appendices 5.1, 5.2 and 5.3 show the

survey results for motels, clubs and restaurants respectively. The averages on the scale of 0-100 were

42.3,44.5 and 42.8 respectively. This indicated that die consuming public sometimes was interested,

but in general respondents did not feel pressure to use specific varieties for their designated purposes.

12

TABLE 10 ANALYSIS OF VARIANCE (ANOVA) TO VARIETAL AWARENESS OF

CONSUMERS AT THE 95 % CONFIDENCE LEVEL


Clubs and Motels V



Purchasing Specific Varieties

Participants were asked to respond to the statement "Purchasing specific potato varieties is important

for mashing, baking, roasting etc?" The response scale included 'Rarely to Frequently'. Appendices

6.1, 6.2 and 6.3 show the survey results for motels, clubs and restaurants respectively. The averages on

the scale of 0-100 were 51.9, 49.9 and 74.2 respectively. Decision makers in the motel and club

segments place limited value on the functional properties associated with the various varieties.

Restaurants place a higher value on selecting specific varieties for different purposes. Kiffler, often

used in salad side dishes was often cited as an example of this. Restaurant chefs valued potato

preparation as a part of a varied and attractive menu for their customers. Potatoes were an important

component of 'comfort foods'.

TABLE 11 ANALYSIS OF VARIANCE (ANOVA) TO PURCHASING SPECIFIC VARIETIES

AT THE 95 % CONFIDENCE LEVEL


Clubs and Motels V



Size Grading

Responses to the statement "Small potatoes are less likely to have quality defects and are simpler to

cook and portion?" were recorded. The response scale graduated from 'Strongly Disagree to Strongly

Agree. Appendices 7.1, 7.2 and 7.3 show the survey results for motels, clubs and restaurants

respectively. The averages on the scale of 0-100 were 65.1, 59.1 and 58.5 respectively. An overall

slight bias towards the smaller potatoes was evident from the results. No statistical differences were

found between segments at the 95% confidence level.

13

TABLE 12 ANALYSIS OF VARIANCE (ANOVA) TO SIZE GRADING AT THE 95 %

CONFIDENCE LEVEL


Clubs and Motels V



Quality Issues

Defects

Participants were asked to respond to the statement "Fresh potatoes often contain defects such as rot

and discolouration?" The response scale graduated from 'Rarely to Frequently'. Appendices 8.1, 8.2

and 8.3 show the survey results for motels, clubs and restaurants respectively. The averages on the

scale of 0-100 were 44.2, 46.1 and 46.8 respectively. The results indicated that quality problems occur

sometimes and uniformly across segments. Respondents were generally happy with the quality of

product. If they were unhappy the action was to return the potatoes and if necessary change supplier.

TABLE 13 ANALYSIS OF VARIANCE (ANOVA) TO DEFECTS IN POTATOES AT THE 95

% CONFIDENCE LEVEL


Clubs and Motels V



Pricing and Defects

To assess any impact of seasonality on quality and price responses to the following question were

collected "Price fluctuations occur most often when potato quality is poor? The response scale

graduated from 'Rarely to Frequently'. Appendices 9.1, 9.2 and 9.3 show the survey results for motels,

clubs and restaurants respectively. The averages on the scale of 0-100 were 31.8, 36.2 and 59.9

respectively. Restaurants exhibited more sensitivity to the quality component of this question.

Respondents indicated the need to supply food that reflected the cost of the meal and the individual

aspirations of the consumers.

14

TABLE 14 ANALYSIS OF VARIANCE (ANOVA) TO PRICING AND QUALITY AT THE 95

% CONFIDENCE LEVEL


Clubs and Motels V



Wastage An issue raised by participants in the qualitative assessment section was the amount of time and

wastage associated with trimming potatoes to size and removing defects. Respondents were asked the

following " Cutting potatoes to size and trimming defects causes excessive losses." The response scale

was graduated from 'Rarely to Frequently'. Appendices 10.1, 10.2 and 10.3 show the survey results

for motels, clubs and restaurants respectively. The averages on the scale of 0-100 were 37.3,48.6 and

27.7 respectively. The responses of clubs indicated this sometimes occurs, in restaurants the bias was

towards rarely. Restaurants were more likely to serve mashed potato and trimmings were incorporated

in this dish.

TABLE 15 ANALYSIS OF VARIANCE (ANOVA) TO WASTAGE AT THE 95 %

CONFIDENCE LEVEL


Clubs and Motels V



Methods of Potato Preparation in the Food Service Segments Respondents were asked to rank from 6 the most frequent, to 1 the least frequent, the methods of

preparation of potatoes used in their premises. Table 16 shows the averages of the responses collected

and the percentage of the total.

TABLE 16 SUMMARY OF METHODS OF PREPARATION

Mashing Roasting Baking Scallop Salad Frying Clubs

Averages 2.54 5.07 4.44 4.40 3.62 2.50 % of total 11.25% 22.46% 19.67% 19.51% 16.03% 11.08%

Motels Averages 3.89 4.70 4.22 4.90 3.33 3.88 % of total 15.61% 18.86% 16.94% 19.66% 13.38% 15.55%

Restaurants Averages 5.71 4.50 3.78 1.60 3.10 3.45 % of total 25.80% 20.32% 17.06% 7.22% 14.00% 15.60%

15

Roast potatoes suited the high volume nature of the clubs. This was evident with bistro style cuisine. In

motels the responses were more even with the scallop style receiving the highest score. Restaurants

demonstrated a preference towards the preparation of mash. Chefs in this segment used a variety of

preparation methods and raw material types to achieve their desired outcome.

Growth in the Consumption of Potatoes in the Food Service Segments Respondents were asked their opinion as to whether the consumption of potatoes in their businesses

was growing, stable or shrinking.

TABLE 17 GROWTH IN USAGE OF POTATOES

Clubs and Motels Restaurants Growing 4 7 Stable 24 7 Shrinking 2 0

In the restaurant segment 50% the responses indicated that their usage of potatoes will increase. The

preference of consumers for mash and 'comfort foods' was driving this response. It is interesting to

note that only two of the respondents considered that their consumption likely to decrease. This is

different to previous surveys of trends indicating that per head consumption will decrease.

Correlations to Increase Consumption Respondents were asked if additional increases in consumption could be achieved if the problems

identified throughout the survey were addressed. Their responses were correlated against their survey

results to assess the 'drivers' that influence their decision making.

The three strongest factors were as foliows-

1. Consumer awareness of potatoes being a useful source of Vitamin C and minerals (0.40)

2. Purchasing specific potatoes is important for mashing , baking and roasting etc (0.36)

3. Price fluctuations occur most often when potato quality is poor (0.27)

The correlation factors are comparatively low compared to other similar exercises. This was due to the

average response being biased towards the 'Unlikely' end of the scale. This should not detract from the

importance of the above in influencing growth in potato consumption.

Conclusion From the survey and additional sources of information the following conclusions were reached

• Of the total consumption of 550,000 tonnes of fresh potatoes it is probable that 157,000 to 189,000

tonnes is used in the Food Service Sector

• It is likely that potato consumption in the overall sector is increasing. It was not determined if the

increase is proportional to the overall growth rate in the Food Service Industry.

16

• It is likely that increases in the consumption of potatoes in the Food Service Sector have offset

some of the per head consumption losses forecast by Lewis (94) in the, 'meals prepared at home'

category.

• Potatoes are a 'good fit' within the 'culture of convenience'. Preparation outside the home

overcomes the negatives of dirt, peeling, cooking and preparing. They are a comfort food associated

with images of home cooking.

• The lack of nutritional information is holding back the industry. Rice marketing is seen as model

for informing consumers. Potatoes being a vegetable have advantages over other carbohydrate

substitutes. In the restaurant segment it was considered that a uniform promotional campaign would

assist the potato industry.

• Previous finding indicated a preference for 'good all round varieties' that are useful for most

preparation purposes. Clubs and motels to a large degree still conform to this view. Restaurants are

more likely to want new specialised varieties that add 'sensory excitement' to the meals being served.

As restaurants are often trend setting in the food preparation industry it is likely that potatoes will be

seen more widely as adding value rather than volume to meals.

• Motels and clubs predominantly prepare potatoes through baking, roasting and scalloping. The

major method used by the restaurants to prepare potatoes is mashing. Restaurants were more confident

about the growth in the consumption of potatoes.

• Quality, price sensitivity and wastage were other issues of concern. Overall these issues did not

appear as an impediment to the growth of the industry.

• In preparing marketing strategies it will be important to recognise that the Food Service Sector is

composed of several categories. As demonstrated by the survey restaurants are significantly different in

many responses to motels and clubs.

The potato industry has an opportunity to further develop fresh product sales. Marketing to the Food

Service Sector requires targeting and uniform promotional activity. Included in this should be varieties

that add new visual and flavour impacts to the meal.

Recommendations

• That further market research be undertaken to determine potato usage in the Non Australian

Cuisine Restaurant Sector. Note the Italian Restaurant, Luna Blu surveyed in Sydney used approx

100 kg a week. The restaurants need to be further categorised into segments such as Indian, Italian

etc. Individual preferences need to be established in each segment.

• That further market research be undertaken to determine potato usage in the institutional segments

• That a promotional campaign to elevate the nutritional status of potatoes within the Australian

public be developed. Many respondents during the survey commented on the effectiveness of the

rice industry promotional efforts.

• That alignment between potato varieties and functional properties be more closely established and

promoted to the Food Service Sector.

• That the information flows and mechanisms for introducing new and specialised varieties be

charted and reviewed.

17

• That market research regarding potato usage, preferences and impediments to market access be

undertaken hf key opportunity export markets.

These recommendations are not in any formal order of importance and should be prioritised. The list is

not exhaustive in scope and other ideas having more merit may be forthcoming from stakeholders. The

export project would be large and require extensive investigation of import laws (threats) as well as the

opportunities. The ability of primary producers to capitalise on market trends would be important to the

overall industry.

Bibliography Australian Restaurant and Caterers Association, www. restaurantcater.asn.au BIS Shrapnel. (1998). The Australian Food Service Market. Coombs, Bob., (1995). Horticulture Australia. Hawthorn East: Morescope Lewis (1994) Fresh Potato Marketing Research. Horticultural Research and Development Corporation Patel, Hasha., (1990) An overview of the Non-Household Market for Horticultural Products. Department of Agricultural and Rural Affairs. Robinson, R., (2000) Market serves food for thought, www.afr.com.au Rogers, W. Murray., Food Markets- Capturing Emerging Opportunities, www.afgc.org.au

Disclaimer Lingham Foods Pty Ltd disclaims all liability and responsibility arising out of the use of any information or data included in this report.

Rod Lingham

18

http://restaurantcater.asn.au

http://www.afr.com.au

http://www.afgc.org.au

Appendix 1 Business Profile Comparisons Between Market Segments

Business Profiles NUMBER OF MEALS SERVED WEEKLY <500 500-1900 >1900

Clubs Regional 17.65% 41.18% 41.18% Motels Regional 90.00% 10.00% 0.00% Restaurants City 42.86% 50.00% 7.14%

No of Meals Served per Week

00.00% , - - • — — - -----90.00% , -80.00% i --;

60.00% • • - -

M Clubs Regional

• Motels Regional 50.00% - "- • Restaurants City

40.00% - •

30.00% ! --20.00% ' - - -10.00% i - I f\ I f\

<500 500- >1900 1 90 0

Business Profiles FRESH P6TATO USAGE PROFILE. Heavy - 50% Medium - 25% Light - 5%

Clubs Regional 59.09% 31.82% 9.09% Motels Regional 60.00% 20.00% 20.00% Restaurants City 35.71% 50.00% 14.29%

Potato Usage Profile

OCIubs Regional

• Motels Regional

• Restaurants City

Heavy - Medium - Light ~ 5% 50% 25%

Percentage of Meats Served

Appendix 2.1 Chart 1

10

8-i-

Awareness Level Among Consumers About Nutritional Benefits of Motels

6 6

Res

pons

es

5-

4 -

- _\

3 -• " • v . ' ' '

2 -2 -

1 -

n -r.;:;r-:; 1 -

n -r.;:;r-:; "_

20 40 60

Survey Scores

80

Page 1


Awareness Level Among Consumers About Nutritional Benefits o

20-

18-

Clubs

20-

18-

• • •

16 -

14 -

12-

16 -

14 -

12-

• :

Res

pon

ses

o

.. :

8-• - •

6-

• ' * ' • ' •

4

2

.

0-

' : • . • - *

0-20 40 60 80

Survey Scores

Page 1

Appendice 2.3 Response to Nutritional Awareness in Restaurants

Category - Nutritional Consumers are generally aware that potatoes are a useful source of Vitamin C and minerals?

Survey Results Average Std Deviations 14 39.79 31.57

Awareness Level Among Consumers About Nutritional Benefits of Potatoes

10-

Restaurants

9 -

8 -

7 -

6

-8 -

7 -

6

'

Res

po

nse

s

. •.'

4 -

3 -

2 -

t

4 -

3 -

2 -

• . t

1 . ' ' • . : • " .

• . . '•

20 40 60 80 100

Survey Scores

Appendice 3.1 Response to Cuisine Preparation in Motels

Consumer's preferences are more towards cuisine that is time consuming to prepare in their own homes?


Agreement that Consumers Prefer Cuisine that is Difficult to Prepare at Home

10 -

Motels

9 - - |

8 -

7 -

6

8 -

7 -

6

f

Res

pons

es

4 - -" ™ * ***" '

3 -• ' . • • " • • ; . . . -

2 -

1 -

i

0 -20 40 60 80 100

Survey Scores


Agreement that Consumers Prefer Cuisine that is Difficult to Prepar

10-

Clubs

8 - •

6-

...

Res

po

nse

s

4

1 - ' • » » ' "

I

* ,.: -' " I : . • * *.

2

•

2

' " " ' " - •

. •

20 40 60 80

Survey Scores

Page 1

Appendice 3.3 Response to Cuisine Preparation in Restaurants

Consumer's preferences are more towards cuisine that is time consuming to prepare in their own homes?

Survey Results 14

Average 63.86

Std Deviations 13.50

Agreement that consumers prefer cuisine that is difficult to prepare at home

Restaurants

14

12

1 0 -•

<D <A C o a in a K

8 -

20 40 60 80

Survey Scores

100

Appendice 4.1 Response to Preparing Hasselback or Scallop Styles in Motels

Hasselback or scalloped potato dishes are popular but difficult to prepare?

Survey Results 10

Average 47.80


Degree of Difficulty in Preparing Hasselback or Scallop Dishes

10 -,

Motels

9 i |

8 j f

7 i i i ! 1

!

6

i

Res

po

nse

s

en

i i i

Res

po

nse

s

en

i

4

3

2

• •

| i i i

4

3

2 - ; " ' • '

• W - . .

i

|

0 -

. . . - •

i

0 -

20 40 60 80 100

Survey Scores

Appendice 4.2 Response to Preparing Hasselback or Scallop Styles in Clubs


Survey Results 16

Average 49.63


Degree of Difficulty in Preparing Hasselback or Scallop Dishes Clubs

10-

I

2 J

20 40 60

Survey Scores

80 100

Appendice 4.3 Response to Preparing Hasselback or Scallop Styles in Restaurants



Degree of difficulty in preparing hasselback or scallop dishes Restaurants

10-

9 •

8

7 -

6

Res

pons

es

H^B

4 -

3 -

2

^^^^^^^^^^^S^ j 5 ^ ^ S ^ ^ ^ S ^ ^ s

0 -iSlBlilsllIllllllI ^ ^ ^ ^ ^ ^ ^ ^ P 5

0 -

20 40 60 80 100

Survey Scores


Degree of Value Consumers Place on Specific Purpose Varieties for Mashing, Ba Motels

10

6 -

(A

c

60

Survey Scores

Page 1


Degree of Value Consumers Place on Specific Purpose Varieties for Mashing, Bak Clubs

8-

BHilfSBKaHHHMHB&i 6- llii BliIiIII^BHiliH

Res

pons

es

s lllji^Blliiill^B ^

stiw^&li^^^^^^^^^^»\l^^^M

^S^s^Kl^^S^^^^^^^^B

2

111

20 40 60 80

Survey Scores

Page 1

Appendix 5.3

Appendice 5.3 Response to Varietal Awareness of Consumers in Restaurants

Consumer's value the different varieties used for mashing, baking, roasting, salad etc?

Survey Results 13

Average 42.77


Degree of Value Consumers Place on Specific Purpose Varieties for Mashing, Baking, Roasting, Salad etc

Restaurants IU -

9 -

8

7 -

Res

pons

es

5 -

4

3

2

5 -

4

3

2

5 -

4

3

2

1 -

0-

•

20 40 60

Survey Scores

80 100

Page 1

Appendix 6.1 Response to Purchasing Specific Varieies in Motels

Purchasing specific potatoes varieties is important for mashing, baking, roasting etc?

Survey Results 10

Average 51.90


Degree of Importance of Purchasing Specific Potato Varieties

10-

Motels

i |

9 -

8 -

Res

po

nse

s R

esp

on

ses

4 -

3

1 -. . ' . ' • . , '

0 -20 40 60 80

1

100

Survey Scores

Appendix 6.3 Response to Purchasing Specific Varieies in Restaurants

Purchasing specific potatoes varieties is important for mashing, baking, roasting etc?

Survey Results 13.00

Average 74.23


Degree of Importance of Purchasing Specific Potato Varieties

10 -

Restaurants

9 -i

8 -

7 -

6 -<o <D <o c a 5-10 CO

0£

4 -

3 -

2

1

7 -

6 -<o <D <o c a 5-10 CO

0£

4 -

3 -

2

1

7 -

6 -<o <D <o c a 5-10 CO

0£

4 -

3 -

2

1

0 -20 40 60 80 100

Survey Scores


Small size potatoes are less likely to have quality defects and are simpler to cook and portion?


Degree of Agreement that Small Potatoes have Less Defects and are Easier to Cook

10-

Motels

9

8 -

6 -

Res

pons

es

en

4

3 -

2 -

1 - , • _ •

I

0 - i

20 40 60 80 100

Survey Scores



Survey Results 17

Average 59.12


Degree of Importance of Purchasing Specific Potato Varieties Clubs

9

8 -

7 -

6 -

9

8 -

7 -

6 -••

Dns

es

5 -

Res

pi 5 -

4 -

3 -

4 -

3 - *

. - . -'-'

2 -

1 -

0 -

- : •

2 -

1 -

0 -

. ' • ' • - • • • '

20 40 60 80

Survey Scores

100




Degree of Agreement that Small Potatoes have Less Defects and are Easier to Cook

10 -i

Restaurants

i

9 -

8

7

R j

i i

f

1

Res

po

nse

s i i

j

i

4

2

1 -

: • ' . - . .

• ' ' ' . . . '

I

0 -

20 40 60 80 100

Survey Scores


Frequency of Defects in Fresh Potatoes such as Rot and Dicolo

10 -

9 -

Motels

10 -

9 -

8 -

Res

po

nse

s

en

en

i

Res

po

nse

s

en

en

i

,'

4-

3

2 •

1

0

' ' • ' -

3

2 •

1

0

;

3

2 •

1

0 20 40 60 80

Survey Scores

Page 1


Frequency of Defects in Fresh Potatoes such as Rot and Discolo

20

18 -

Clubs

20

18 -

16 -

14 - •

12- •

Res

po

nse

s

o

8 -

6 -

4 -

-

8 -

6-

4 -

- . - . • . : - - . _ • ' :

8 -

6-

4 -• ' : . - •

8 -

6-

4 -• ' : . - •

2 -* . * • •

' 2 -

* . * • •

'

.... -

20 40 60 80

Survey Scores

Page 1

Appendix 8.3 Response to Frequency of Defects in Potatoes in Restaurants

Fresh potatoes often contain defects such as rot and discolouration?


Frequency of Defects in Fresh Potatoes such as Rot and Discolouration

10 -

Restaurants

9

8 ; •

7 •

6

Res

pons

es

|

3 -

2 -

1 -

-

•

0-20 40 60 80 100

Survey Scores

Appendix 9.1

Appendix 9.1 Response to Pricing and Quality in Motels

Price fluctuations occur most often when potato quality is poor?


Frequency of Price Fluctuations when Quality is Poor

10-

Motels

9

8 •

7 -

6 -

Res

po

nse

s R

esp

on

ses

•

4 - | i

3 -

i

j

i

2

1 -

' :'

0 -20 40 60 80 100

Survey Scores

Page 1

Frequency of Price Fluctuations when Quality is Poor Clubs

20 40 60

Survey Scores

80

Appendix 9.3

Appendix 9.3 Response to Pricing and Quality in Restaurants

Price fluctuations occur most often when potato quality is poor?


Frequency of Price Fluctuations when Quality is Poor

10 -,

Restaurants

9 -

8 -

7 -

6 -

Res

po

nse

s

en

Res

po

nse

s

en

;

4 -

3 -', •

• ; • '

2

1 -

i

' : • • . .

' • • • " • . • ' • -

2

1 -

i

' : • • . .

' • • • " • . • ' • -

• ' • • - "

n - " 20 40 60 80 100

Survey Scores

Page 1


Frequency Waste is Caused by Cutting to Size and Trimmi Motels

9-

8-

7 -

6 -

Res

pons

es

Ol

Res

pons

es

Ol

• •'• " : • • ' "

4-

3

2

1

i ' ' , : , ' 4-

3

2

1

; . . . - ^ . 1 : . . • -

• : •.

. . ' " > " ' • " "" ' • , ' •

• • " ' • • " ' • - - • " • ' . ' ' , -

. "i '

' • • ' * ' . '

0 20 40 60 80

Survey Scores

Page 1


Frequency Waste is Caused by Cutting to Size and Trimmin Clubs

m

9

8 -

7 -

9

8 -

7 - ^^^^^//EmS/jSu^^^^R ^B^g^KKKKK^^m

6 -

V) o in c 2. 5" 10

OS

4 -

3 -

2

1 -

l l l l l

"

MMBI^M^^^^m : * .

V) o in c 2. 5" 10

OS

4 -

3 -

2

1 -

20 40 60 80

Survey Scores

Page 1

Frequency waste is caused by cutting to size and trimmi Restaurants

9-9 -

8 - • ' -

7 -

• •

Resp

onse

s

6-

5 - : "

4 - -

3 - • : • • ' * . -

2 ' ; '.,

2 ' ; '.,

1

n .

• • • • • • ' : - : V . ' , ' . . • ' *-1

n .

• • • • • • ' : - : V . ' , ' . . • ' *-

• • • • • ' • •

20 40 60

Survey Scores

80

F Sheehan, R Lingham and L Cirillo Green Land Holdings ... · Greenland Holdings Pty Ltd. ... Appendix 1 Business Profile Comparisons between Market Segments Appendix 2.1 Response

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