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CONSUMER PREFERENCES FOR GREEN RESTAURANT PRACTICES

CONSUMER PREFERENCES FOR GREEN RESTAURANT PRACTICES. WHO ARE WE. Environment Agriculture Food (EAF) Group at the University of Chicago Consumer Research Team Green Restaurant Research Team Program on Global Environment at University of Chicago. Summary of Others Findings.

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CONSUMER PREFERENCES FOR GREEN RESTAURANT PRACTICES

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  1. CONSUMER PREFERENCES FOR GREEN RESTAURANT PRACTICES

  2. WHO ARE WE • Environment Agriculture Food (EAF) Group at the University of Chicago • Consumer Research Team • Green Restaurant Research Team • Program on Global Environment at University of Chicago

  3. Summary of Others Findings The most important claims to impact willingness to pay are: • Local and Organic • Fair Trade • Carbon Reduction • Onozaka, Yuko Et. Al., “Defining Sustainable Food Market Segments: Do Motivations and Values Vary by Shopping Locale,” American Journal of Agricultural Economics, January 2011

  4. Summary of Others Findings • Opportunities to drive demand are: • Recycling • Use of double door • Local sourced menu options • Ray Wang, “Investigations of Important and Effective Effects of Green Practices in Restaurants,” Procedia : Social and Behavioral Sciences 40 94-98, 2012.

  5. Summary of Others Findings • About 85% of Americans are willing to pay something for green practices (Our survey confirms this for Chicagoans) • Schubert, Kandampully, Solnet, Kralj “Exploring Consumer Perceptions of Green Restaurants in the US,” School of Tourism, University of Queensland, 2010

  6. OUR SURVEY • Survey of 321 patrons from Chicago Area via Surveymonkey • General dining characteristics • Consumer environmental concerns • Willingness to pay for green practices • General demographics

  7. KEY QUESTIONS In the past MONTH, how many times have you purchased food from any of the following types of restaurants?

  8. KEY QUESTIONS On AVERAGE, how much do you spend when you eat out?

  9. KEY QUESTIONS On a scale of 1-10, when choosing to visit a restaurant for DINNER, how important are the following characteristics about the restaurant?

  10. KEY QUESTIONS From most to least common:Tasty Modern Vegetarian Friendly Independent New Artisanal Expensive What characteristics do you expect green restaurants to exhibit?

  11. KEY QUESTIONS How do you usually find out that a restaurant is engaged in environmentally friendly practices? From Most to Least Common While Dining Restaurant Website Publicity Friends/Family Social Media Another Website Community Outreach

  12. CONSUMER SEGMENTATION • Who are you serving? • We divided patrons into three “clusters”- different groupings based on data analysis • We segmented these clusters even more to determine their preferences with regards to certain environmental factors

  13. CLUSTER DESCRIPTIONS • 1: Not Engaged—not engaged with environmental issues; the food factor is ambiguous • 2: Highly Engaged—people who are highly engaged in the environment and food issues • 3: Eco-Conscious—people who are engaged in the environment but not food

  14. DEMOGRAPHICS

  15. AVERAGE SPENDING EATING OUT

  16. CONSUMER TRUST SURVEY QUESTIONS • On a scale of 1-10, how does the fact that a food item is USDA Certified Organic affect your decision to buy the item? • On a scale of 1-10, how much do you trust claims from restaurants about environmentally friendly practices?

  17. CONSUMER TRUST

  18. Conjoint analysis for entrees between $15 - $19 Tested willingness to pay for: • 80% of ingredients organic, 50% or no organic. • Locally sourced ingredients v.s Not local CONJOINT INTRODUCTION

  19. CONJOINT DATA RESULTS

  20. CONJOINT INCOME

  21. CONJOINT AGE

  22. While Chicago ranks 8 for frequency for carry out lunch, it is not in the top 20 for dine in lunch • Chicagoans tend to describe themselves as “Foodies” more often then other Americans • In terms of WTP for green practices Chicagoans are not different with the exception of highly educated consumers have higher WTP in Chicago then elsewhere CHICAGO VS USA Source: “Dinning Out,” Living Social, Washington, September 15, 2011.

  23. GENERAL CONCLUSIONS • Chicagoans are willing to pay a premium! • Communicate: website draws consumers, during dining repeat business • Consumers are more likely to believe green claims when they are specific and what they can relate to • Eco-conscious consumers care more about green practices than foodies, but foodies care too • Affluent women age 30-44: highest demand for green practices • Consumers care most about local food and recycling

  24. ACKNOWLEDGEMENTS • Green Chicago Restaurant Coalition • Green Seal • Public Policy Department at the University of Chicago • Pam Cohen • Nancy Himmelfarb • Sabina Shaikh

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