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Locally produced food in restaurants: Are the customers willing to pay a premium and why?

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  • Frode Alfnes
  • Amit Sharma

Abstract

Restaurant owners are always looking for new ways to increase profits. In this paper, we investigate the attitudes and perceptions of restaurant customers to locally produced food and their willingness to pay a premium. This study employs a field experiment conducted in a restaurant located on a Midwest US university campus. When ordinary customers entered the restaurant, we gave them the choice of two set menus that we had systematically varied with respect to price and origin. Then, while waiting for their order, we asked them to complete a short questionnaire about attitudes and perceptions. We find that a price signal must support local food labelling to obtain an increased interest from customers. When local food was marginally more expensive than other food, more customers chose local food than if it was sold at the same price.

Suggested Citation

  • Frode Alfnes & Amit Sharma, 2010. "Locally produced food in restaurants: Are the customers willing to pay a premium and why?," International Journal of Revenue Management, Inderscience Enterprises Ltd, vol. 4(3/4), pages 238-258.
    • Handle: RePEc:ids:ijrevm:v:4:y:2010:i:3/4:p:238-258
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    Citations

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    Cited by:

    1. Konrád Kiss & Csaba Ruszkai & Antónia Szűcs & Gábor Koncz, 2020. "Examining the Role of Local Products in Rural Development in the Light of Consumer Preferences—Results of a Consumer Survey from Hungary," Sustainability, MDPI, vol. 12(13), pages 1-24, July.
    2. Karolina Macháčková & Jiří Zelený & Daniel Lang & Zbyněk Vinš, 2021. "Wild Boar Meat as a Sustainable Substitute for Pork: A Mixed Methods Approach," Sustainability, MDPI, vol. 13(5), pages 1-21, February.
    3. Caterina Contini & Caterina Romano & Fabio Boncinelli & Gabriele Scozzafava & Leonardo Casini, 2017. "Does ‘local’ matter in restaurant choice? Results of a discrete choice experiment targeting German and Italian consumers," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-15, December.
    4. Giaccherini, Matilde & Gilli, Marianna & Mancinelli, Susanna & Zoli, Mariangela, 2021. "Nudging food waste decisions at restaurants," European Economic Review, Elsevier, vol. 135(C).

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