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market-farming - Re: [Market-farming] selling to restaurants

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  • From: "richard AT coonrockfarm.com" <richard AT coonrockfarm.com>
  • To: Market Farming <market-farming AT lists.ibiblio.org>
  • Subject: Re: [Market-farming] selling to restaurants
  • Date: Fri, 23 Mar 2012 09:22:20 -0500

1/3rd of our business is to restaurants, the other 2/3rds are CSA and farmers markets.  We do a 20% discount for restaurants and our other wholesale customers like home delivery services.  That is enough discount for high end restaurants that can charge a premium but it is difficult for chain restaurants or small, non gourmet restaurants to use local produce and meat because factory produce and meat is so much cheaper.  Rule of thumb is that a restaurant needs to charge at least 3X the cost of the ingredients on the plate.  If buying local increases the plate ingredient cost by $2.00 then that is a $6.00 increase in price for the restaurant customer.

Richard @ Coon Rock Farm

On 3/22/12 2:34 PM, "Carla Maness" <manessfarm AT gmail.com> wrote:

For those of you who sell to restaurants, what do you charge?  Wholesale? Retail? Do you think it's worth doing? 

We've sold our produce at our farmers market for 10 years now, and we've been happy with that. We've recently been approached by a chef who wants to use our produce. 
 
Right now we're just talking about what we grow, in what quantities and seasonal availability, but I know pricing discussions are coming up.  So far his concern is that we won't have enough produce for what the restaurant uses. I think we can handle that just fine. 

I'd love any feedback anyone can offer.

Thank you!

Carla 
Maness Farm
Perkins, OK
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