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

Frode Alfnes, Amit Sharma

Research output: Contribution to journalArticlepeer-review

18 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)238-258
Number of pages21
JournalInternational Journal of Revenue Management
Volume4
Issue number3-4
DOIs
StatePublished - Oct 2010

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Finance
  • Economics and Econometrics
  • Strategy and Management

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