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Restaurants’ Willingness to Pay for Tennessee Certified Beef

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Listed:
  • McKay, Lettie
  • DeLong, Karen L.
  • Jensen, Kimberly L.
  • Griffith, Andrew P.
  • Boyer, Christopher N.

Abstract

Tennessee beef producers and consumers have shown interest in a Tennessee Certified Beef (TCB) Program. Restaurants serving local foods may serve as an important outlet for TCB but there is no knowledge on how restaurants perceive TCB and willingness to pay (WTP) for TCB. Therefore, this study examines restaurants’ WTP for TCB ground beef and sirloin steak. A telephone survey of 150 Tennessee restaurants that offer locally sourced foods and beef was conducted in which the primary decision maker was asked contingent valuation questions to determine their WTP for TCB. A probit model was used to determine the factors affecting restaurants’ decision to purchase TCB. Results show that the TCB price had a significant impact on restaurants’ decision to adopt TCB. Preliminary results indicate if restaurants were already sourcing beef directly from a producer, selling local foods, and offering beef with no hormones added, they were more likely to indicate they would purchase TCB ground beef. Restaurants were more likely to indicate they would purchase TCB sirloin steak if they already offered beef with no antibiotics administered, natural beef, local beef, and believed offering TCB would make the restaurant more profitable. This research provides recommendations on the premium producers could receive for a TCB product purchased by restaurants as well as the business attributes of restaurants interested in providing such a product.

Suggested Citation

  • McKay, Lettie & DeLong, Karen L. & Jensen, Kimberly L. & Griffith, Andrew P. & Boyer, Christopher N., 2018. "Restaurants’ Willingness to Pay for Tennessee Certified Beef," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266578, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea18:266578
    DOI: 10.22004/ag.econ.266578
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    References listed on IDEAS

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    1. Dobbs, Leah Moore & Jensen, Kimberly L. & Leffew, Megan Bruch & English, Burton C. & Lambert, Dayton M. & Clark, Christopher D., 2016. "Consumer Willingness to Pay for Tennessee Beef," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(2), pages 1-24, July.
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    4. Shoshanah Inwood & Jeff Sharp & Richard Moore & Deborah Stinner, 2009. "Restaurants, chefs and local foods: insights drawn from application of a diffusion of innovation framework," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 26(3), pages 177-191, September.
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    Cited by:

    1. Wen Lin, 2023. "The effect of product quantity on willingness to pay: A meta‐regression analysis of beef valuation studies," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 646-663, July.
    2. Lingling Xu & Xixi Yang & Linhai Wu & Xiujuan Chen & Lu Chen & Fu-Sheng Tsai, 2019. "Consumers’ Willingness to Pay for Food with Information on Animal Welfare, Lean Meat Essence Detection, and Traceability," IJERPH, MDPI, vol. 16(19), pages 1-22, September.
    3. Maki Nakajima, 2022. "Sustainable Food Consumption: Demand for Local Produce in Singapore," Sustainability, MDPI, vol. 14(19), pages 1-22, September.

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