August 24, 2011

While technology has allowed members of the hospitality industry to source worldwide, globalization has spawned one interesting and almost contradictory trend: buying local.

But what does buying local mean for specific operations, and furthermore, how can one do so?

In today's ever-expanding world, a growing number of businesses are exploring how they can source and purchase more products closer to where they are consumed. The urge to buy locally can be driven by many goals, including adopting green or sustainability initiatives, supporting local businesses, giving an authentic, "regionally flavored" experience to guests or minimizing supply chain costs.

One point of confusion many businesses face when trying to implement a strategy that leverages local sources is the very definition of the term "local." Does it mean around the corner? One-hundred miles away? Eight hours away?

According to the U.S. Department of Agriculture, there is no consensus as to what constitutes "local." However, in a report cited by the USDA, Congress defined "local" in the 2008 Food, Conservation and Energy Act as within 400 miles of a location or within the state. Whole Foods defines "local" products as those that only take a day - a seven hour drive - to reach their final destination. Furthermore, a recent survey of Avendra's regional suppliers revealed a myriad of responses, ranging from "it depends on the client's definition" to up to 500 miles.

For businesses looking to source local, there are a few tips that can help them on their way.

First, define "local." A Florida-based business may have a different definition of local than one in North Dakota, Toronto or San Francisco. Compare travel costs and determine what makes sense for the business.

Businesses need to communicate their goals to supplier partners. Many suppliers are ready to help. For example, all of Avendra's regional fresh food suppliers are required to carry a local offering.

Those in the hospitality industry should stay current with seasonal offerings. In many cases, it's easier to buy something locally when it's in season. For example, a hotel in Oregon, may want to focus on raspberries in the summer and pears in the fall. Tools like this interactive map from epicurious display the produce items in season in your state during any given month.

Lastly, businesses shouldn't forget to promote their support of local companies. Presenting the story of a local grower can be compelling to guests. Customers want to feel connected to a community, and putting a face on a service can help businesses boost loyalty and satisfaction.