OPINIONFinancing

Yes, you can operate a sustainable restaurant in a small town

Technomic's Take: Black Valley Provender in Everett, Penn., shows how a restaurant can operate in a small town using local ingredients and higher-priced menus.
Farm
Restaurants can be sustainable in small communities. Here's how one does it. | Photo: Shutterstock.

Technomic's Take

Nestled in a valley in the Allegheny mountains along the historic Lincoln Highway, you will find Everett, Penn. With a population of a couple hundred shy of 2,000, Everett resembles many western Pennsylvania towns, with a main street with various businesses and restaurants–some thriving, some shuttered–anchored by a Sheetz and a Dollar General.

Typically, my anecdotal writing around Technomic’s quantitative research is strongly rooted by dining experiences in major cities. It’s what I know. But this is not a folksy fish out of water story, as I grew up not too far from Everett, in Windber, a town with a population twice the size of Everett which, if you’re from a small town, you know that this somehow provides you with an unfounded air of superiority. Thus, I stopped by a new restaurant on Main Street only for a coffee because, clearly harboring a bias and an (un)healthy dose of Western Pennsylvania skepticism, my expectations were low (and I never miss a chance to Sheetz, which is verb I just made up).

What I did find at the Black Valley Provender was an impeccably designed, farm-to-table restaurant serving locally-sourced British-American, high-quality food, one that could be easily dropped into any larger town or city. So, are they the fish out of water in this story? After speaking with Joe Capricci, who co-owns the Black Valley Provender with wife Alana Foor, also owner of the Black Valley Farm, I’m convinced that the answer is no, they’re a great fit for the Everett community. However, that’s not to say their experiences are not applicable to larger market independents and chains.

In a  recent survey, Technomic asked consumers why they favor chain restaurants over independents or vice-versa. Consumers who prefer chains largely say it’s because chains are more affordable and a better value, are conveniently located and are trusted brands. While consumers favoring independents do so primarily to support a local business, better ingredients, higher quality food and beverages and service.

Addressing these drivers in a small market can be a challenge, however.

To get consumers to want “to support a local business” as we asked in the survey, operators need to first raise awareness of the business and get them in the door to try something unfamiliar. Consumers in smaller, more rural markets, may not necessarily be rushing to try the newest restaurant in town and may need convincing by friends and family in the community to give it a try (i.e., that skepticism I mentioned earlier). That requires establishing trust in the brand, something that chains have the advantage. “You have to get the local people on board,” said Capricci. “That translates into building good relationships with the business community and participating in community activism.” Hosting events, social media and doing the work to engage in the communities and build connections and trust have allowed the Black Valley Provender to create conversations around the restaurant and what it offers.

When it comes to menu offerings, restaurants using sustainable, local ingredients, often run up against the value proposition, especially in markets where consumers are more sensitive to price. In Technomic’s Corporate Social Responsibility & Sustainability study, 47% of consumers say they’d visit a restaurant that’s considered sustainable even though they’d have to pay a premium. While this is driven by city dwellers (62%) and income, 39% of those in rural areas say they’d be willing to pay a premium, in line with those in the suburbs, indicating opportunities for these types of concepts. This number is likely to grow. Capricci said that customers are “absolutely” becoming more aware of sustainability issues and how that translates into quality and price. For example, when the value-priced bread became unavailable at the local grocery store due to supply chain issues and an organic, “better-for-you” brand was the replacement, “the minute they ate it, they changed their mind about sustainability.” said Capricci.

Traffic has been pretty consistent since the restaurant opened in April 2022, indicating there is a willingness to pay for higher priced, locally sourced items when the quality is there. However, you must get your pricing right. For Capricci and Foor, this means picking prices they’re comfortable with and putting it out there. “You have to get pricing right the first time. I’ve erred on the side of caution to where I’m comfortable and have yet to get locked into a bad pricing structure.” The key for operators looking to increase sustainable offerings at a manageable price is to understand what’s available seasonally, understand the limits and be flexible with the menu. As Capricci explained, “If I put strawberries on the menu in December, I won’t make a dime.” Operators should also take advantage of state-run agriculture programs if available, like PA Preferred, which is a resource for restaurants to connect to local suppliers.  

While hiring is a challenge in restaurants throughout the country, operators serving creative, from scratch seasonal items in an area with a small labor pool and price-sensitive customers that expect top-notch service to accompany the higher prices, it’s acutely difficult.

At the Black Valley Provender, addressing labor challenges comes down to, again, building personal relationships with the community, staff and customers. Capricci’s recommendations are to first start by being a restaurant people want to find by building connections and your reputation and creating an environment people want to work in.  Conventional routes such as advertising on job sites have not brought in the quality candidates needed, and tapping into connections has been more successful. Further, operators should make efforts to recruit retirees. From a population growth perspective, there are fewer Gen Z to recruit and from a business perspective, Capricci can attest that his “key employees are retirees that want to work in the industry they’ve spent their lives in.” I’d be remiss if I didn’t mention Mr. Capricci’s one more bit of advice on labor: “Be prepared to work 100 hours a week.”

When it comes to added service, Capricci engages the customers to tell them about the story of their restaurant and the origins of the ingredients, including from their farm, to build connections and a memorable experience. “I try to improve someone’s day by interacting with them,” said Capricci.

Finally, while there are unique challenges for independent restaurants and restaurants in a small town compared to a city, I found a lot of commonalities that would resonate up and down the Lincoln Highway when it comes to engaging customers and earning loyalty, including here in Chicago. The core of which are best summed up by a bit of advice from Mr. Capricci, “recognize the value within your community and build connections that help you further that value.”

For more information on custom research, click here or reach out to Technomic atinfo@technomic.comortechnomic.com. Technomic is a sister company of Restaurant Business.

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