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Potato usage in the Australian food
service sector
F Sheehan, R Lingham and L Cirillo
Green Land Holdings, Lingham Foods Pty Ltd
and Horticulture Australia
Project Number: PT00035
PT00035
This report is published by Horticulture Australia Ltd to pass on information concerning horticultural research and development undertaken for the potato industry.
The research contained in this report was funded by Horticulture Australia Ltd with the financial support of Greenland Holdings Pty Ltd.
All expressions of opinion are not to be regarded as expressing the opinion of Horticulture Australia Ltd or any authority of the Australian Government.
The Company and the Australian Government accept no responsibility for any of the opinions or the accuracy of the information contained in this report and readers should rely upon their own enquiries in making decisions concerning their own interests.
ISBN 0 7341 0544 4
Published and distributed by: Horticultural Australia Ltd Level 1 50 Carrington Street Sydney NSW 2000 Telephone: (02) 8295 2300 Fax: (02) 8295 2399 E-Mail: [email protected]
© Copyright 2002
Horticulture Australia
Potato Usage in the Australian Food
Service Sector
Final Report
Project PT 00035
April 2001
Prepared by
Frank Sheehan Secretary, Green Lands Holdings
Rod Lingham Lingham Foods Pty Ltd
Leo Cirillo Horticulture Australia Limited
Acknowledgments,
Green Lands Holdings Pty Ltd wishes to acknowledge the friendly assistance of
Horticulture Australia program Manager Mr Jonathon Eccles and Marketing Research
Manager Mr Leo Cirillo
1
Table of Contents
Potato Usage in the Australian Food Service Sector 1
Introduction 4
Consumption Data and Trends 4
Processing Potatoes Tonnages 5
Summary of Consumption Trends 6
The Food Service Sector 6
Tonnage Estimates in the Food Service Sector 6
The average consumption of potatoes per meal 6 Meals prepared by the Food Service Sector 7 Segments classifications 7 Segmentation of the Food Service Sector 7
Methodology 8
Product Review 8 Market Research Restaurant Segment 9 Market Research Motels and Clubs , 9 Survey Questionnaire Preparation 9
Survey Results 9
Tonnages Used in the Food Service Sector 9 Key Question Analysis & Variances 11
Nutritional Profiles 11 Preparation of Potatoes .« 11
Cuisine Preparation 11 Hasselback or scalloped styles 12
Cooked Potato Quality 12 Varietal Awareness of Consumers 12 Purchasing Specific Varieties 13
Size Grading 13 Quality Issues 14
Defects 14 Pricing and Defects 14 Wastage 15
Methods of Potato Preparation in the Food Service Segments 15
Growth in the Consumption of Potatoes in the Food Service Segments 16
Correlations to Increase Consumption 16
Conclusion 16
Bibliography 17 Disclaimer 18
List of Tables
TABLE 1 POTATO PRODUCTION BY STATE 4 TABLE 2 PER CAPITA CONSUMPTION 5 TABLE 3 COMPARITIVE USAGE IN AUSTRALIA AND USA 5 TABLE 4 PROBABLE POTATO USAGE IN AUSTRALIA 1999 5 TABLE 4 LIKELY BREAK UP OF THE FOOD SERVICE SECTOR BY SEGMENT
CLASSIFICATION 7 TABLE 5 ESTIMATED TONNAGES CONSUMED IN THE FOOD SERVICE SECTOR 8 TABLE 6 FOOD SERVICE TONNAGE ESTIMATES FROM SURVEY RESULTS 10 TABLE 7 ANALYSIS OF VARIANCE (ANOVA) TO NUTRITIONAL PROFILES AT THE 95 %
CONFIDENCE LEVEL 11 TABLE 8 ANALYSIS OF VARIANCE (ANOVA) TO CUISINE PREPARATION AT THE 95 %
CONFIDENCE LEVEL 12 TABLE 9 ANALYSIS OF VARIANCE (ANOVA) TO PREPARING HASSELBACK OR SCALLOP
STYLES AT THE 95 % CONFIDENCE LEVEL 12
2
TABLE 10 ANALYSIS OF VARIANCE (ANOVA) TO VARIETAL AWARENESS OF CONSUMERS AT THE 95 % CONFIDENCE LEVEL 13
TABLE 11 ANALYSIS OF VARIANCE (ANOVA) TO PURCHASING SPECIFIC VARIETIES AT THE 95 % CONFIDENCE LEVEL 13
TABLE 12 ANALYSIS OF VARIANCE (ANOVA) TO SIZE GRADING AT THE 95 % CONFIDENCE LEVEL 14
TABLE 13 ANALYSIS OF VARIANCE (ANOVA) TO DEFECTS IN POTATOES AT THE 95% CONFIDENCE LEVEL 14
TABLE 14 ANALYSIS OF VARIANCE (ANOVA) TO PRICING AND QUALITY AT THE 95 % CONFIDENCE LEVEL 15
TABLE 15 ANALYSIS OF VARIANCE (ANOVA) TO WASTAGE AT THE 95 % CONFIDENCE LEVEL 15
TABLE 16 SUMMARY OF METHODS OF PREPARATION 15 Clubs , 15 Motels 15 Restaurants 15 TABLE 17 GROWTH IN USAGE OF POTATOES 16
List of Appendices
Appendix 1 Business Profile Comparisons between Market Segments
Appendix 2.1 Response to Nutritional Awareness in Motels
Appendix 2.2 Response to Nutritional Awareness in Clubs
Appendix 2.3 Response to Nutritional Awareness in Restaurants
Appendix 3.1 Response to Cuisine Preparation in Motels
Appendix 3.2 Response to Cuisine Preparation in Clubs
Appendix 3.3 Response to Cuisine Preparation in Restaurants
Appendix 4.1 Response to Preparing Hasselback or Scallop Styles in Motels
Appendix 4.2 Response to Preparing Hasselback or Scallop Styles in Clubs
Appendix 4.3 Response to Preparing Hasselback or Scallop Styles in Restaurants
Appendix 5.1 Response to Varietal Awareness of Consumers in Motels
Appendix 5.2 Response to Varietal Awareness of Consumers in Clubs
Appendix 5.3 Response to Varietal Awareness of Consumers in Restaurants
Appendix 6.1 Response to Purchasing Specific Varieties in Motels
Appendix 6.2 Response to Purchasing Specific Varieties in Clubs
Appendix 6.3 Response to Purchasing Specific Varieties in Restaurants
Appendix 7.1 Response to Size Grading in Motels
Appendix 7.2 Response to Size Grading in Clubs
Appendix 7.3 Response to Size Grading in Restaurants
Appendix 8.1 Response to Size Grading in Motels
Appendix 8.2 Response to Size Grading in Clubs
Appendix 8.3 Response to Size Grading in Restaurants
Appendix 9.1 Response to Pricing and Quality in Motels
Appendix 9.2 Response to Pricing and Quality in Clubs
Appendix 9.3 Response to Pricing and Quality in Restaurants
Appendix 10.1 Response to Wastage in Motels
Appendix 10.2 Response to Wastage in Clubs
Appendix 10.3 Response to Wastage in Restaurants
3
Introduction Consumption information for potatoes in the Food Service Market is fragmented and often vague.
Information on the consumption of fresh potato products is an example of this with very little
information being readily accessible to growers. The aim of the project was to review the consumption
patterns in this sector and to identify trends that may present opportunities for the potato growing
industry. Specifically the objectives of this project were:
• to determine the usage of fresh potatoes within the Food Service sector.
• to determine usage trends in the various segments of the sector.
• to examine the 'fit' of prepared potatoes in the 'convenience driven culture'
• to estimate potential increases in consumption where convenience and nutritional values are
emphasised.
• to investigate varietal preference in the use of potatoes for specific purposes.
• to obtain feedback from chefs on potato types and forms of presentation.
• to obtain information affecting user attitudes and resistance to potato usage.
A major concern for the potato industry is changing demand for potato products with estimates of fresh
potato consumption falling at the rate 3.5 kg per person each decade. (Lewis, 1994.) This reduction in
consumption rates of fresh potatoes is occurring as younger generations consume more carbohydrate
substitutes such as rice, paste and noodles. Lewis's research found that the under 25 age group
consume 50% less meals containing potatoes than do the 55-65 age group.
Consumption Data and Trends
Data indicating overall production tonnages does not however reveal a reduction in the consumption of
potatoes.
TABLE 1 POTATO PRODUCTION BY STATE
Season NSW VIC Q L D SA W A TAS Total
1993
137,444 309,192 125,230 179,273 108,171 269,902 1,129,212
1994
138,676 322,147 118,002 202,645 111,813 291,423 1,184,706
1995
126,876 279,876 109,004 247,414 108,430 255,739 1,127,338
1996
162,456 335,649 103,845 282,568 121,546 302,035 1,308,099
1997
136,173 315,727 115,435 285,344 116,004 317,448 1,286,131
1998
146,505 295,102 121,589 306,634 128,198 373,578 1,371,606
1999
162,098 319,228 108,091 300,969 108,896 327,482 1,326,765
Source: ABS
4
The apparent consumption per head has not reflected the forecast decline.
TABLE 2 PER CAPITA CONSUMPTION
Year 1991/92 1992/93 1996/97 1997/98 1998/99
Total Per Capita Consumption *
(Kg per person per annum)
68.5 63.8 68.2 72.2 68
Fresh Per Capita Consumption +
(Kg per person per annum)
32 28
Source: * ABS
Source: +Derived from fresh consumption percentages
The trend from the overall consumption data is flat or indicating a slight increase.
Processing Potatoes Tonnages
The consumption of fried potato products (crisps and french-fries) is increasing both nationally and
internationally. Figures for 1990/91 show that 49% of the total crop was processed. This consisted of
crisps 11% and french-fries 38%. In the same period (1990/91) fresh potato consumption was estimated
at 534,000 tonnes. Comparative consumption data for Australia and the USA is included in the
following table.
TABLE 3 COMPARITIVE USAGE IN AUSTRALIA AND USA
Country Fresh Market Crisping French Fry Other Uses Production
% % % % Tonnes
Australia (l90/'91) 47 11 38 4 1,136,185
USA ('87) 40.1 15 37.5 17,886,000 ('90)
Source 1 Australia Bureau of Statistics in Horticulture Australia (1995).
Source 2 Lewis (1994) Fresh potato marketing research
Information directly relating to the percentage break-up of usage in Australia is difficult to obtain after
the above period (90/91). Non-direct data and personal conversations indicate it is likely that 55% of
potatoes are processed with 13% going into crisps and 42% into fries (98/99). Fresh potato
consumption is probably stable in terms of tonnage at around 550,000 tonnes per annum or 41% of the
total 1999 production.
TABLE 4 PROBABLE POTATO USAGE IN AUSTRALIA 1999
Country Fresh
Market
Crisping French Fry Other
Uses
Production
Tonnes
Australia ('99) 41 13 42 4 1,326,765
5
Summary of Consumption Trends
1. The growth in overall tonnes produced during the previous decade (90/00) has supplied higher
processing demand.
2. The consumption of fresh potatoes has shrunk as a percentage of total production, and remained
flat in terms of gross tonnages consumed. The rate of decrease in per head consumption from 32 to
28 kg being compensated only by an increase of 12% in Australia's population during the
corresponding period.
3. The actual 4kg reduction in consumption per head over the previous decade (90/00) is in line the
forecast reductions of 3.5 kg per person as forecast by Lewis
In this environment of reducing fresh potato consumption, trends in the usage of fresh potatoes in the
Food Service Sector are very important.
The Food Service Sector
Preparation in the food service sector overcomes several negatives perceptions associated with fresh
potatoes preparation including dirt removal, washing and peeling. The sector has the following
attributes that are of major interest to the potato producers
• Segments including restaurants and take away food premises have grown in turnover by 40% over
the last decade. (Restaurant & Catering Facts and Figures, 2001, p2.)
• The customers who are increasingly consuming meals prepared outside the home and driving the
trend towards increased turnover are those identified as consuming less fresh potatoes in the home.
• Growth rates in the Food Service Sector indicate that the number of meals consumed outside the
home will double in the next 20 years. (Restaurant & Catering Facts and Figures, 2001, p2.)
• Consumers are turning to 'comfort foods', traditional style meals similar to those previously
prepared in the home. (Qualitative Research University of Ballarat, 2001)
The food service sector is an important market avenue for the potato industry. Attitudes to convenience
and nutritional benefits of fresh potatoes are important. The lack of market information and research is
impeding the adoption of new technology and products.
Tonnage Estimates in the Food Service Sector
Prior to commencing the qualitative and quantitative market surveys, a preliminary study of the Food
Service Sector was undertaken.
The average consumption of potatoes per meal. Respondents to Lewis's survey indicated approximately 4 meals were likely to be prepared weekly
with potatoes. From the annual consumption figure of 32 kg in Table 2, this relates to approximately
600g per person per week. Each meal is likely to have 175 g of fresh potato, which is equivalent to one
medium size tuber.
6
Meals prepared by the Food Service Sector Estimates for 1998 are " nearly 4.2 billion meals were served by the food service industry or 222 meals
per head compared with 216 in 1996." (Robinson, 2000.)
Segments classifications > Heavy users with approximately 50% of meals containing potatoes
> Medium users with approximately 25% of meals containing potatoes
^ Light users with approximately 5% of meals containing potatoes
Segmentation of the Food Service Sector Phonedisc database distributed by Desktop Marketing Systems was used to determine the number of
premises and their locations. The figures obtained from this exercise related well to segment
information obtained from the restaurant and catering industry. It is however likely that some
duplication due to dual listings did occur. Each of the segments was classified by usage profile. To
assist in this process a publication over-viewing the non-household usage of horticultural products by
Patel (1990) was used. Restaurants were dual classified with those preparing modern Australian cuisine
(36.1%) listed as heavy users and other cuisine styles as light users. (BIS Shrapnel in Restaurant &
Catering Facts and Figures, 2001, pi.)
TABLE 4 LIKELY BREAK UP OF THE FOOD SERVICE SECTOR BY SEGMENT CLASSIFICATION
FOOD SERVICE
SEGMENT
No of
establishments
Heavy Users Medium Users Non Users
HOTELS 5593 9.22%
TAKEAWAY 16986 28.00%
CAFES 6959 11.47%
MOTELS 5030 8.29%
CATERING FUNCTIONS
4265 7.03%
NURSING HOMES 1361 2.24%
CLUBS SOCIAL GENERAL
2233 3.68%
TERTIARY EDUCATION
637 1.05%
RESTAURANTS 15790 9.40% 16.63%
HOSPITALS 1815 2.99%
Totals 60669 39.17% 15.15% 45.68%
The information prepared in Table 4 was then used to derive the likely break up of meals consumed in
the proportion that potatoes were likely to constitute.
7
The population figure used for Australia was 19 million. This was achieved in August 1999. (Source
ABS: Population size and growth).
TABLE 5 ESTIMATED TONNAGES CONSUMED IN THE FOOD SERVICE SECTOR
Totals Heavy Users Medium Users Light Users
Total Meals Per Head
Per Annum
222
Total Meals Per
Category
86.97 33.64 101.40
Percentage
Containing Potato (est)
50% 25% 5%
Meals Containing
Potato
43.48 8.41 5.07
Average Consumption
Per Meal (kg)
0.175
Total Potato
Consumption (kg)
7.61 1.47 0.89
Average Consumption
Per Head of Population
in Food Service (kg)
9.97
Estimated Market
(tonnes)
144590 27930 16910
Estimated Market Size
(tonnes)
189430
From Table 5 the estimates of potato usage in the total Food Service Sector per annum is 189,430
tonnes of product. The major users of potatoes include Restaurants (21.2 %), Hotels (19.4 %), Motels
(17.5 %) and Catering Functions (14.80 %).
No attempt has been made to differentiate the various segments based on the average number of meals
served or the unit size of the meal.
Methodology
To achieve the objectives of the project the following methodologies were utilised.
Product Review
A qualitative assessment exercise with key users was carried out to understand their expectations about
potatoes. Owners and Chefs working in the Food Service Sector were invited to the University of
8
Ballarat and shown samples of potatoes, different pack sizes and cooked product. The feedback was
then used to design the market survey form.
Key issues discussed by the participants included the following-
• Size grading of potatoes and the difficulty of portioning.
• Quality issues associated with defects, specially worse at certain times of the year.
• Achieving the best quality in cooked product and reducing greyness
• Purchasing suitable varieties for specific meals.
• The frustration of wastage caused by trimming to size and defect removal.
• The time taken to prepare hasselback and scalloped dishes.
• The 'time poor' nature of customers and the increasing trend towards eating out.
• The trend towards customers preferring 'comfort foods' and those requiring more complex preparation
Market Research Restaurant Segment
Fourteen (14) restaurants in Sydney that prepare predominantly modern Australian cuisine were
surveyed to determine information on potato usage.
Market Research Motels and Clubs
Ten (10) motels and twenty-two (22) clubs in Southern NSW and Northern VIC were surveyed to
determine information on their usage of potatoes. Survey forms with questions designed to obtain
information important to the final report were then prepared. Note several hotels were included with
motels in the survey results.
Survey Questionnaire Preparation
Hedonic (liking) scales were used to assess the level of agreement or disagreement to the questions
posed. The respondent's reaction was then measured and converted to a numerical value. The actual
questions asked appear at the top of each appendix containing the graphical presentation of the data.
The results were analysed using histograms, averages analysis of variance between segments
(ANOVA) and correlations.
Survey Results
Tonnages Used in the Food Service Sector
The survey form requested premises to define their consumption patterns into three categories
1. Fresh potato usage profile (excluding fries and chips).
2. Number of meals served weekly
3. Weekly usage of potatoes, (kg)
Appendix 1 is the profile of the businesses surveyed in the selected Food Service Segments.
Table 6 shows the calculated tonnages in the various Food Service Segments. The following criteria
and suppositions were used to develop the table.
9
• Hotels and motels were treated similarly in terms of the usage profiles.
• An average figure of 26 kg per week was calculated from the survey forms collected and this
figure was then substituted for premises (small) with less than 50 kg per week.
• Only restaurants categorised as serving modern Australian cuisine (36.1%) were included in the
figures.
• Catering functions, nursing homes and hospitals were included as large users.
• Tertiary institutions were included as light users.
• No figures were included for the take away segment. No reliable data is available for this segment.
The total tonnage derived from the survey was 157,299 tonnes. This compares to the estimated tonnage
of 189,430 tonnes calculated in section 3.2. As no tonnages were allocated to the take away and non-
Australian cuisine restaurant segments it is probable that the figure of 157,299 tonnes underestimates
the actual tonnage used.
TABLE 6 FOOD SERVICE TONNAGE ESTIMATES FROM SURVEY RESULTS
WEEKLY USAGE OF
POTATOES (KG)
CATEGORY OF FOOD SERVICE
OPERATION
No of
establishments
<50 50 - 200 >200 Total
Tonnes per
annum
HOTELS 5,593 90.00% 10.00% 0.00% 10,441
TAKEAWAY 16,986
CAFES 6,959 35.71% 57.14% 7.14% 34,377
MOTELS 5,030 90.00% 10.00% 0.00% 9,390
CATERING FUNCTIONS 4,265 100.00% 44,356
NURSING HOMES 1,361 100.00% 14,154
CLUBS SOCIAL GENERAL 2,233 17.65% 47.06% 35.29% 15,559
TERTIARY EDUCA TION 637 100.00% 861
RESTAURANTS 15,790 35.71% 57.14% 7.14% 28,158
HOSPITALS 1,815 100.00% 18,876
Totals 60,669 157,299
10
Key Question Analysis & Variances
Nutritional Profiles
Respondents were asked "Consumers are generally aware that potatoes are a useful source of Vitamin
C and minerals?" The response scale included Unlikely to Definitely. Appendices 2.1, 2.2 and 2.3
show the survey results for motels, clubs and restaurants respectively. The averages on the scale of 0-
100 were 24.8,17.7 and 39.8 respectively. These results are poor and indicate the low nutritional
esteem in which potatoes are widely held. Potatoes are a vegetable and should be part of the drive to
increase fruit and vegetable consumption in the population. The Food Service Sector needs
information to assist in attracting and retaining customers whose interests include a healthy diet and
consuming interesting food products. Common verbal response included the lack off promotional
material and consumers not caring about potatoes.
TABLE 7 ANALYSIS OF VARIANCE (ANOVA) TO NUTRITIONAL PROFILES AT THE 95
% CONFIDENCE LEVEL
Premise Description DIFFERENT NO DIFFERENCE
Clubs and Motels V
Motels and Restaurants V
Restaurants and Clubs V
Respondents in restaurants indicated that their customers were more aware of the nutritional benefits of
potatoes than those in clubs.
Preparation of Potatoes
Cuisine Preparation
Respondents were asked "Consumer's preferences are more towards cuisine that is time consuming to
prepare in their own home?" The response scale included Strongly Disagree to Strongly Agree.
Appendices 3.1, 3.2 and 3.3 show the survey results for motels, clubs and restaurants respectively. The
averages on the scale of 0-100 were 68.7,63.1 and 63.9 respectively. The results reflected the trend by
'time poor' consumers to eat meals that require more complex preparation outside their homes.
Potatoes fit well into this category with a variety of preparation techniques being used. Response in the
restaurant section included the appreciation by customers of the additional effort to prepare special
dishes such as mash and sculptured product.
11
TABLE 8 ANALYSIS OF VARIANCE (ANOVA) TO CUISINE PREPARATION AT THE 95 %
CONFIDENCE LEVEL
Premise Description DIFFERENT NO DIFFERENCE
Clubs and Motels V
Motels and Restaurants V
Restaurants and Clubs V
Hasselback or scalloped styles
To assess the degree of difficulty in preparing a potato dish, response to the statement "Hasselback or
scalloped potato dishes are popular but difficult to prepare?" The response scale included Strongly
Disagree to Strongly Agree. Appendices 4.1, 4.2 and 4.3 show the survey results for motels, clubs and
restaurants respectively. The averages on the scale of 0-100 were 47.8, 49.6 and 38.4 respectively. The
results indicated that food preparers did not see preparation effort as restrictive to service of this type of
product. Kitchen hands were often given this task and this was viewed as 'character building'. The
rewards are considered greater than the effort as numerically and verbally expressed by the
respondents.
TABLE 9 ANALYSIS OF VARIANCE (ANOVA) TO PREPARING HASSELBACK OR
SCALLOP STYLES AT THE 95 % CONFIDENCE LEVEL
Premise Description DIFFERENT NO DIFFERENCE
Clubs and Motels V
Motels and Restaurants V
Restaurants and Clubs V
Cooked Potato Quality
Varietal Awareness of Consumers
Respondents were asked, "Consumers value the different varieties used for mashing, baking, roasting,
salad etc. The response scale included Rarely to Frequently. Appendices 5.1, 5.2 and 5.3 show the
survey results for motels, clubs and restaurants respectively. The averages on the scale of 0-100 were
42.3,44.5 and 42.8 respectively. This indicated that die consuming public sometimes was interested,
but in general respondents did not feel pressure to use specific varieties for their designated purposes.
12
TABLE 10 ANALYSIS OF VARIANCE (ANOVA) TO VARIETAL AWARENESS OF
CONSUMERS AT THE 95 % CONFIDENCE LEVEL
Premise Description DIFFERENT NO DIFFERENCE
Clubs and Motels V
Motels and Restaurants V
Restaurants and Clubs V
Purchasing Specific Varieties
Participants were asked to respond to the statement "Purchasing specific potato varieties is important
for mashing, baking, roasting etc?" The response scale included 'Rarely to Frequently'. Appendices
6.1, 6.2 and 6.3 show the survey results for motels, clubs and restaurants respectively. The averages on
the scale of 0-100 were 51.9, 49.9 and 74.2 respectively. Decision makers in the motel and club
segments place limited value on the functional properties associated with the various varieties.
Restaurants place a higher value on selecting specific varieties for different purposes. Kiffler, often
used in salad side dishes was often cited as an example of this. Restaurant chefs valued potato
preparation as a part of a varied and attractive menu for their customers. Potatoes were an important
component of 'comfort foods'.
TABLE 11 ANALYSIS OF VARIANCE (ANOVA) TO PURCHASING SPECIFIC VARIETIES
AT THE 95 % CONFIDENCE LEVEL
Premise Description DIFFERENT NO DIFFERENCE
Clubs and Motels V
Motels and Restaurants V
Restaurants and Clubs V
Size Grading
Responses to the statement "Small potatoes are less likely to have quality defects and are simpler to
cook and portion?" were recorded. The response scale graduated from 'Strongly Disagree to Strongly
Agree. Appendices 7.1, 7.2 and 7.3 show the survey results for motels, clubs and restaurants
respectively. The averages on the scale of 0-100 were 65.1, 59.1 and 58.5 respectively. An overall
slight bias towards the smaller potatoes was evident from the results. No statistical differences were
found between segments at the 95% confidence level.
13
TABLE 12 ANALYSIS OF VARIANCE (ANOVA) TO SIZE GRADING AT THE 95 %
CONFIDENCE LEVEL
Premise Description DIFFERENT NO DIFFERENCE
Clubs and Motels V
Motels and Restaurants V
Restaurants and Clubs V
Quality Issues
Defects
Participants were asked to respond to the statement "Fresh potatoes often contain defects such as rot
and discolouration?" The response scale graduated from 'Rarely to Frequently'. Appendices 8.1, 8.2
and 8.3 show the survey results for motels, clubs and restaurants respectively. The averages on the
scale of 0-100 were 44.2, 46.1 and 46.8 respectively. The results indicated that quality problems occur
sometimes and uniformly across segments. Respondents were generally happy with the quality of
product. If they were unhappy the action was to return the potatoes and if necessary change supplier.
TABLE 13 ANALYSIS OF VARIANCE (ANOVA) TO DEFECTS IN POTATOES AT THE 95
% CONFIDENCE LEVEL
Premise Description DIFFERENT NO DIFFERENCE
Clubs and Motels V
Motels and Restaurants V
Restaurants and Clubs V
Pricing and Defects
To assess any impact of seasonality on quality and price responses to the following question were
collected "Price fluctuations occur most often when potato quality is poor? The response scale
graduated from 'Rarely to Frequently'. Appendices 9.1, 9.2 and 9.3 show the survey results for motels,
clubs and restaurants respectively. The averages on the scale of 0-100 were 31.8, 36.2 and 59.9
respectively. Restaurants exhibited more sensitivity to the quality component of this question.
Respondents indicated the need to supply food that reflected the cost of the meal and the individual
aspirations of the consumers.
14
TABLE 14 ANALYSIS OF VARIANCE (ANOVA) TO PRICING AND QUALITY AT THE 95
% CONFIDENCE LEVEL
Premise Description DIFFERENT NO DIFFERENCE
Clubs and Motels V
Motels and Restaurants V
Restaurants and Clubs V
Wastage An issue raised by participants in the qualitative assessment section was the amount of time and
wastage associated with trimming potatoes to size and removing defects. Respondents were asked the
following " Cutting potatoes to size and trimming defects causes excessive losses." The response scale
was graduated from 'Rarely to Frequently'. Appendices 10.1, 10.2 and 10.3 show the survey results
for motels, clubs and restaurants respectively. The averages on the scale of 0-100 were 37.3,48.6 and
27.7 respectively. The responses of clubs indicated this sometimes occurs, in restaurants the bias was
towards rarely. Restaurants were more likely to serve mashed potato and trimmings were incorporated
in this dish.
TABLE 15 ANALYSIS OF VARIANCE (ANOVA) TO WASTAGE AT THE 95 %
CONFIDENCE LEVEL
Premise Description DIFFERENT NO DIFFERENCE
Clubs and Motels V
Motels and Restaurants V
Restaurants and Clubs V
Methods of Potato Preparation in the Food Service Segments Respondents were asked to rank from 6 the most frequent, to 1 the least frequent, the methods of
preparation of potatoes used in their premises. Table 16 shows the averages of the responses collected
and the percentage of the total.
TABLE 16 SUMMARY OF METHODS OF PREPARATION
Mashing Roasting Baking Scallop Salad Frying Clubs
Averages 2.54 5.07 4.44 4.40 3.62 2.50 % of total 11.25% 22.46% 19.67% 19.51% 16.03% 11.08%
Motels Averages 3.89 4.70 4.22 4.90 3.33 3.88 % of total 15.61% 18.86% 16.94% 19.66% 13.38% 15.55%
Restaurants Averages 5.71 4.50 3.78 1.60 3.10 3.45 % of total 25.80% 20.32% 17.06% 7.22% 14.00% 15.60%
15
Roast potatoes suited the high volume nature of the clubs. This was evident with bistro style cuisine. In
motels the responses were more even with the scallop style receiving the highest score. Restaurants
demonstrated a preference towards the preparation of mash. Chefs in this segment used a variety of
preparation methods and raw material types to achieve their desired outcome.
Growth in the Consumption of Potatoes in the Food Service Segments Respondents were asked their opinion as to whether the consumption of potatoes in their businesses
was growing, stable or shrinking.
TABLE 17 GROWTH IN USAGE OF POTATOES
Clubs and Motels Restaurants Growing 4 7 Stable 24 7 Shrinking 2 0
In the restaurant segment 50% the responses indicated that their usage of potatoes will increase. The
preference of consumers for mash and 'comfort foods' was driving this response. It is interesting to
note that only two of the respondents considered that their consumption likely to decrease. This is
different to previous surveys of trends indicating that per head consumption will decrease.
Correlations to Increase Consumption Respondents were asked if additional increases in consumption could be achieved if the problems
identified throughout the survey were addressed. Their responses were correlated against their survey
results to assess the 'drivers' that influence their decision making.
The three strongest factors were as foliows-
1. Consumer awareness of potatoes being a useful source of Vitamin C and minerals (0.40)
2. Purchasing specific potatoes is important for mashing , baking and roasting etc (0.36)
3. Price fluctuations occur most often when potato quality is poor (0.27)
The correlation factors are comparatively low compared to other similar exercises. This was due to the
average response being biased towards the 'Unlikely' end of the scale. This should not detract from the
importance of the above in influencing growth in potato consumption.
Conclusion From the survey and additional sources of information the following conclusions were reached
• Of the total consumption of 550,000 tonnes of fresh potatoes it is probable that 157,000 to 189,000
tonnes is used in the Food Service Sector
• It is likely that potato consumption in the overall sector is increasing. It was not determined if the
increase is proportional to the overall growth rate in the Food Service Industry.
16
• It is likely that increases in the consumption of potatoes in the Food Service Sector have offset
some of the per head consumption losses forecast by Lewis (94) in the, 'meals prepared at home'
category.
• Potatoes are a 'good fit' within the 'culture of convenience'. Preparation outside the home
overcomes the negatives of dirt, peeling, cooking and preparing. They are a comfort food associated
with images of home cooking.
• The lack of nutritional information is holding back the industry. Rice marketing is seen as model
for informing consumers. Potatoes being a vegetable have advantages over other carbohydrate
substitutes. In the restaurant segment it was considered that a uniform promotional campaign would
assist the potato industry.
• Previous finding indicated a preference for 'good all round varieties' that are useful for most
preparation purposes. Clubs and motels to a large degree still conform to this view. Restaurants are
more likely to want new specialised varieties that add 'sensory excitement' to the meals being served.
As restaurants are often trend setting in the food preparation industry it is likely that potatoes will be
seen more widely as adding value rather than volume to meals.
• Motels and clubs predominantly prepare potatoes through baking, roasting and scalloping. The
major method used by the restaurants to prepare potatoes is mashing. Restaurants were more confident
about the growth in the consumption of potatoes.
• Quality, price sensitivity and wastage were other issues of concern. Overall these issues did not
appear as an impediment to the growth of the industry.
• In preparing marketing strategies it will be important to recognise that the Food Service Sector is
composed of several categories. As demonstrated by the survey restaurants are significantly different in
many responses to motels and clubs.
The potato industry has an opportunity to further develop fresh product sales. Marketing to the Food
Service Sector requires targeting and uniform promotional activity. Included in this should be varieties
that add new visual and flavour impacts to the meal.
Recommendations
• That further market research be undertaken to determine potato usage in the Non Australian
Cuisine Restaurant Sector. Note the Italian Restaurant, Luna Blu surveyed in Sydney used approx
100 kg a week. The restaurants need to be further categorised into segments such as Indian, Italian
etc. Individual preferences need to be established in each segment.
• That further market research be undertaken to determine potato usage in the institutional segments
• That a promotional campaign to elevate the nutritional status of potatoes within the Australian
public be developed. Many respondents during the survey commented on the effectiveness of the
rice industry promotional efforts.
• That alignment between potato varieties and functional properties be more closely established and
promoted to the Food Service Sector.
• That the information flows and mechanisms for introducing new and specialised varieties be
charted and reviewed.
17
• That market research regarding potato usage, preferences and impediments to market access be
undertaken hf key opportunity export markets.
These recommendations are not in any formal order of importance and should be prioritised. The list is
not exhaustive in scope and other ideas having more merit may be forthcoming from stakeholders. The
export project would be large and require extensive investigation of import laws (threats) as well as the
opportunities. The ability of primary producers to capitalise on market trends would be important to the
overall industry.
Bibliography Australian Restaurant and Caterers Association, www. restaurantcater.asn.au BIS Shrapnel. (1998). The Australian Food Service Market. Coombs, Bob., (1995). Horticulture Australia. Hawthorn East: Morescope Lewis (1994) Fresh Potato Marketing Research. Horticultural Research and Development Corporation Patel, Hasha., (1990) An overview of the Non-Household Market for Horticultural Products. Department of Agricultural and Rural Affairs. Robinson, R., (2000) Market serves food for thought, www.afr.com.au Rogers, W. Murray., Food Markets- Capturing Emerging Opportunities, www.afgc.org.au
Disclaimer Lingham Foods Pty Ltd disclaims all liability and responsibility arising out of the use of any information or data included in this report.
Rod Lingham
18
Appendix 1 Business Profile Comparisons Between Market Segments
Business Profiles NUMBER OF MEALS SERVED WEEKLY <500 500-1900 >1900
Clubs Regional 17.65% 41.18% 41.18% Motels Regional 90.00% 10.00% 0.00% Restaurants City 42.86% 50.00% 7.14%
No of Meals Served per Week
00.00% , - - • — — - -----90.00% , -80.00% i --;
60.00% • • - -
M Clubs Regional
• Motels Regional 50.00% - "- • Restaurants City
40.00% - •
30.00% ! --20.00% ' - - -10.00% i - I f\ I f\
<500 500- >1900 1 90 0
Business Profiles FRESH P6TATO USAGE PROFILE. Heavy - 50% Medium - 25% Light - 5%
Clubs Regional 59.09% 31.82% 9.09% Motels Regional 60.00% 20.00% 20.00% Restaurants City 35.71% 50.00% 14.29%
Potato Usage Profile
OCIubs Regional
• Motels Regional
• Restaurants City
Heavy - Medium - Light ~ 5% 50% 25%
Percentage of Meats Served
Appendix 2.1 Chart 1
10
8-i-
Awareness Level Among Consumers About Nutritional Benefits of Motels
6 6
Res
pons
es
5-
4 -
- _\
3 -• " • v . ' ' '
2 -2 -
1 -
n -r.;:;r-:; 1 -
n -r.;:;r-:; "_
20 40 60
Survey Scores
80
Page 1
Appendix 2.2 Chart 5
Awareness Level Among Consumers About Nutritional Benefits o
20-
18-
Clubs
20-
18-
• • •
16 -
14 -
12-
16 -
14 -
12-
• :
Res
pon
ses
o
.. :
8-• - •
6-
• ' * ' • ' •
4
2
.
0-
' : • . • - *
0-20 40 60 80
Survey Scores
Page 1
Appendice 2.3 Response to Nutritional Awareness in Restaurants
Category - Nutritional Consumers are generally aware that potatoes are a useful source of Vitamin C and minerals?
Survey Results Average Std Deviations 14 39.79 31.57
Awareness Level Among Consumers About Nutritional Benefits of Potatoes
10-
Restaurants
9 -
8 -
7 -
6
-8 -
7 -
6
'
Res
po
nse
s
. •.'
4 -
3 -
2 -
t
4 -
3 -
2 -
• . t
1 . ' ' • . : • " .
• . . '•
20 40 60 80 100
Survey Scores
Appendice 3.1 Response to Cuisine Preparation in Motels
Consumer's preferences are more towards cuisine that is time consuming to prepare in their own homes?
Survey Results Average Std Deviations 10 68.7 11.3632
Agreement that Consumers Prefer Cuisine that is Difficult to Prepare at Home
10 -
Motels
9 - - |
8 -
7 -
6
8 -
7 -
6
f
Res
pons
es
4 - -" ™ * ***" '
3 -• ' . • • " • • ; . . . -
2 -
1 -
i
0 -20 40 60 80 100
Survey Scores
Appendix 3.2 Chart 1
Agreement that Consumers Prefer Cuisine that is Difficult to Prepar
10-
Clubs
8 - •
6-
...
Res
po
nse
s
4
1 - ' • » » ' "
I
* ,.: -' " I : . • * *.
2
•
2
' " " ' " - •
. •
20 40 60 80
Survey Scores
Page 1
Appendice 3.3 Response to Cuisine Preparation in Restaurants
Consumer's preferences are more towards cuisine that is time consuming to prepare in their own homes?
Survey Results 14
Average 63.86
Std Deviations 13.50
Agreement that consumers prefer cuisine that is difficult to prepare at home
Restaurants
14
12
1 0 -•
<D <A C o a in a K
8 -
20 40 60 80
Survey Scores
100
Appendice 4.1 Response to Preparing Hasselback or Scallop Styles in Motels
Hasselback or scalloped potato dishes are popular but difficult to prepare?
Survey Results 10
Average 47.80
Std Deviations 22.59
Degree of Difficulty in Preparing Hasselback or Scallop Dishes
10 -,
Motels
9 i |
8 j f
7 i i i ! 1
!
6
i
Res
po
nse
s
en
i i i
Res
po
nse
s
en
i
4
3
2
• •
| i i i
4
3
2 - ; " ' • '
• W - . .
i
|
0 -
. . . - •
i
0 -
20 40 60 80 100
Survey Scores
Appendice 4.2 Response to Preparing Hasselback or Scallop Styles in Clubs
Hasselback or scalloped potato dishes are popular but difficult to prepare?
Survey Results 16
Average 49.63
Std Deviations 21.36
Degree of Difficulty in Preparing Hasselback or Scallop Dishes Clubs
10-
I
2 J
20 40 60
Survey Scores
80 100
Appendice 4.3 Response to Preparing Hasselback or Scallop Styles in Restaurants
Hasselback or scalloped potato dishes are popular but difficult to prepare?
Survey Results Average Std Deviations 13 38.38 13.00
Degree of difficulty in preparing hasselback or scallop dishes Restaurants
10-
9 •
8
7 -
6
Res
pons
es
H^B
4 -
3 -
2
^^^^^^^^^^^S^ j 5 ^ ^ S ^ ^ ^ S ^ ^ s
0 -iSlBlilsllIllllllI ^ ^ ^ ^ ^ ^ ^ ^ P 5
0 -
20 40 60 80 100
Survey Scores
Appendix 5.1 Chart 1
Degree of Value Consumers Place on Specific Purpose Varieties for Mashing, Ba Motels
10
6 -
(A
c
60
Survey Scores
Page 1
Appendix 5.2 Chart 1
Degree of Value Consumers Place on Specific Purpose Varieties for Mashing, Bak Clubs
8-
BHilfSBKaHHHMHB&i 6- llii BliIiIII^BHiliH
Res
pons
es
s lllji^Blliiill^B ^
stiw^&li^^^^^^^^^^»\l^^^M
^S^s^Kl^^S^^^^^^^^B
2
111
20 40 60 80
Survey Scores
Page 1
Appendix 5.3
Appendice 5.3 Response to Varietal Awareness of Consumers in Restaurants
Consumer's value the different varieties used for mashing, baking, roasting, salad etc?
Survey Results 13
Average 42.77
Std Deviations 36.60
Degree of Value Consumers Place on Specific Purpose Varieties for Mashing, Baking, Roasting, Salad etc
Restaurants IU -
9 -
8
7 -
Res
pons
es
5 -
4
3
2
5 -
4
3
2
5 -
4
3
2
1 -
0-
•
20 40 60
Survey Scores
80 100
Page 1
Appendix 6.1 Response to Purchasing Specific Varieies in Motels
Purchasing specific potatoes varieties is important for mashing, baking, roasting etc?
Survey Results 10
Average 51.90
Std Deviations 23.66
Degree of Importance of Purchasing Specific Potato Varieties
10-
Motels
i |
9 -
8 -
Res
po
nse
s R
esp
on
ses
4 -
3
1 -. . ' . ' • . , '
0 -20 40 60 80
1
100
Survey Scores
Appendix 6.3 Response to Purchasing Specific Varieies in Restaurants
Purchasing specific potatoes varieties is important for mashing, baking, roasting etc?
Survey Results 13.00
Average 74.23
Std Deviations 22.14
Degree of Importance of Purchasing Specific Potato Varieties
10 -
Restaurants
9 -i
8 -
7 -
6 -<o <D <o c a 5-10 CO
0£
4 -
3 -
2
1
7 -
6 -<o <D <o c a 5-10 CO
0£
4 -
3 -
2
1
7 -
6 -<o <D <o c a 5-10 CO
0£
4 -
3 -
2
1
0 -20 40 60 80 100
Survey Scores
Appendix 7.1 Response to Size Grading in Motels
Small size potatoes are less likely to have quality defects and are simpler to cook and portion?
Survey Results Average Std Deviations 10 65.10 11.49
Degree of Agreement that Small Potatoes have Less Defects and are Easier to Cook
10-
Motels
9
8 -
6 -
Res
pons
es
en
4
3 -
2 -
1 - , • _ •
I
0 - i
20 40 60 80 100
Survey Scores
Appendix 7.2 Response to Size Grading in Clubs
Small size potatoes are less likely to have quality defects and are simpler to cook and portion?
Survey Results 17
Average 59.12
Std Deviations 18.98
Degree of Importance of Purchasing Specific Potato Varieties Clubs
9
8 -
7 -
6 -
9
8 -
7 -
6 -••
Dns
es
5 -
Res
pi 5 -
4 -
3 -
4 -
3 - *
. - . -'-'
2 -
1 -
0 -
- : •
2 -
1 -
0 -
. ' • ' • - • • • '
20 40 60 80
Survey Scores
100
Appendix 7.3 Response to Size Grading in Restaurants
Small size potatoes are less likely to have quality defects and are simpler to cook and portion?
Survey Results Average Std Deviations 14 58.50 25.50
Degree of Agreement that Small Potatoes have Less Defects and are Easier to Cook
10 -i
Restaurants
i
9 -
8
7
R j
i i
f
1
Res
po
nse
s i i
j
i
4
2
1 -
: • ' . - . .
• ' ' ' . . . '
I
0 -
20 40 60 80 100
Survey Scores
Appendix 8.1 Chart 1
Frequency of Defects in Fresh Potatoes such as Rot and Dicolo
10 -
9 -
Motels
10 -
9 -
8 -
Res
po
nse
s
en
en
i
Res
po
nse
s
en
en
i
,'
4-
3
2 •
1
0
' ' • ' -
3
2 •
1
0
;
3
2 •
1
0 20 40 60 80
Survey Scores
Page 1
Appendix 8.2 Chart 1
Frequency of Defects in Fresh Potatoes such as Rot and Discolo
20
18 -
Clubs
20
18 -
16 -
14 - •
12- •
Res
po
nse
s
o
8 -
6 -
4 -
-
8 -
6-
4 -
- . - . • . : - - . _ • ' :
8 -
6-
4 -• ' : . - •
8 -
6-
4 -• ' : . - •
2 -* . * • •
' 2 -
* . * • •
'
.... -
20 40 60 80
Survey Scores
Page 1
Appendix 8.3 Response to Frequency of Defects in Potatoes in Restaurants
Fresh potatoes often contain defects such as rot and discolouration?
Survey Results Average Std Deviations 12 46.75 28.96
Frequency of Defects in Fresh Potatoes such as Rot and Discolouration
10 -
Restaurants
9
8 ; •
7 •
6
Res
pons
es
|
3 -
2 -
1 -
-
•
0-20 40 60 80 100
Survey Scores
Appendix 9.1
Appendix 9.1 Response to Pricing and Quality in Motels
Price fluctuations occur most often when potato quality is poor?
Survey Results Average Std Deviations 10 31.80 30.31
Frequency of Price Fluctuations when Quality is Poor
10-
Motels
9
8 •
7 -
6 -
Res
po
nse
s R
esp
on
ses
•
4 - | i
3 -
i
j
i
2
1 -
' :'
0 -20 40 60 80 100
Survey Scores
Page 1
Frequency of Price Fluctuations when Quality is Poor Clubs
20 40 60
Survey Scores
80
Appendix 9.3
Appendix 9.3 Response to Pricing and Quality in Restaurants
Price fluctuations occur most often when potato quality is poor?
Survey Results Average Std Deviations 14 59.93 27.03
Frequency of Price Fluctuations when Quality is Poor
10 -,
Restaurants
9 -
8 -
7 -
6 -
Res
po
nse
s
en
Res
po
nse
s
en
;
4 -
3 -', •
• ; • '
2
1 -
i
' : • • . .
' • • • " • . • ' • -
2
1 -
i
' : • • . .
' • • • " • . • ' • -
• ' • • - "
n - " 20 40 60 80 100
Survey Scores
Page 1
Appendix 10.1 Chart 1
Frequency Waste is Caused by Cutting to Size and Trimmi Motels
9-
8-
7 -
6 -
Res
pons
es
Ol
Res
pons
es
Ol
• •'• " : • • ' "
4-
3
2
1
i ' ' , : , ' 4-
3
2
1
; . . . - ^ . 1 : . . • -
• : •.
. . ' " > " ' • " "" ' • , ' •
• • " ' • • " ' • - - • " • ' . ' ' , -
. "i '
' • • ' * ' . '
0 20 40 60 80
Survey Scores
Page 1
Appendix 10.2 Chart 1
Frequency Waste is Caused by Cutting to Size and Trimmin Clubs
m
9
8 -
7 -
9
8 -
7 - ^^^^^//EmS/jSu^^^^R ^B^g^KKKKK^^m
6 -
V) o in c 2. 5" 10
OS
4 -
3 -
2
1 -
l l l l l
"
MMBI^M^^^^m : * .
V) o in c 2. 5" 10
OS
4 -
3 -
2
1 -
20 40 60 80
Survey Scores
Page 1
Frequency waste is caused by cutting to size and trimmi Restaurants
9-9 -
8 - • ' -
7 -
• •
Resp
onse
s
6-
5 - : "
4 - -
3 - • : • • ' * . -
2 ' ; '.,
2 ' ; '.,
1
n .
• • • • • • ' : - : V . ' , ' . . • ' *-1
n .
• • • • • • ' : - : V . ' , ' . . • ' *-
• • • • • ' • •
20 40 60
Survey Scores
80