Economic viability of local food marketing for restaurant operations
and growers/producers in Iowa

The purpose of this study is to investigate the economic costs and benefits and the non-economic factors that would influence restaurants and producers to buy/sell locally grown/produced foods. The objectives of this study are to:

1) Determine the economic and non-economic costs and benefits to restaurants for purchasing locally grown foods,
2) Investigate whether locally purchased food can be developed into a competitive advantage for restaurants through increased market share and variable pricing strategies,
3) Identify economic implications for local growers/producers who wish to establish sustainable partnerships with local foodservice operations, and
4) Educate Iowa restaurateurs and local growers/producers about the factors influencing the viability of buying and selling local foods.

Dr. Amit Sharma is the Principal Investigator (PI), Mr. Jason Ellis is the project coordinator, Dr. Catherine Strohbehn and Dr. Mary Gregoire are advisors, and Dr. Sue Ravenscroft and Dr. B. Michael Doran (College of Business) will collaborate on the project. Thus far, two undergraduate students have worked on this project through independent studies monitored by D. Sharma.

At present, 80 percent of the objective 1 interview with restaurant establishments has been completed. Data analysis is expected to begin at the end of November 2005. The mail survey for this objective is being tested. It is expected that the final survey will be sent at the beginning of December 2005. Finally, the choice experiment for investigating objective 2 has begun. There has been a slight modification of its timeline. Instead of completing the entire experiment in fall 2005, part of it will be conducted in spring 2006. The fall 2005 component is likely to be completed by December 1, 2005.

Amit Sharma
Apparel Education Studies Hospitality Management Department - Iowa State University
Phone: 515.294.8552
Email: amsharma@iastate.edu