Foodservice business is booming

Avocado sales to the foodservice segment just keep growing.

According to a Datassentials survey commissioned by the Mission Viejo, Calif.-based Hass Avocado Board, two-thirds of the 306 foodservice operators surveyed said they use more avocados now than they did two years ago, and more than half expect to increase use in the coming two years.

Avocados have moved beyond being just a guacamole ingredient, said Robb Bertels, vice president of sales and marketing for Mission Produce Inc., Oxnard, Calif.

Restaurants have found applications for avocados for breakfast, lunch and dinner in sandwiches, salads and other menu offerings, including avocado toast for breakfast.

"That's positive news for the industry," Bertels said. "It helps to spur the overall demand in the U.S."

About 55% of the avocados shipped by Henry Avocado Corp., Escondido, Calif., go to foodservice customers, said president Phil Henry.

"The demand from foodservice has been extremely strong, even with these higher prices we've been experiencing," he said in late July.

Retail sales tend to fall off when prices rise, he said.

"Foodservice tends to be more constant."

Henry said avocados can be used for every meal at foodservice, even in snacks or sliced on top of an omelet.

Foodservice sales have taken a major jump over the past five years, as has total avocado business, he said.

There was a time when avocados were seen almost exclusively in Mexican restaurants, said Xavier Equihua, president CEO of the Peruvian Avocado Commission, Washington, D.C.

"I see them everywhere now," he said.

Although avocados are a staple on many menus in California and on the East Coast, there's still room to expand in the Midwest, he said.

"We've been getting calls from many restaurants," he said. "The problem is supply."

If too many restaurants start adding avocados, there may not be enough fruit to go around, he said.

"Foodservice business has been great," said Rob Wedin, vice president of sales and marketing for Calavo Growers Inc., Santa Paula, Calif.

Sales have increased as sandwich shops like Jason's Deli and Panera Bread step up their use of avocados, as are companies like El Pollo Loco, California Pizza Kitchen and Chipotle Mexican Grill, he said.

Chipotle offers customers a chance to receive free chips and guacamole as part of its Chiptopia Summer Rewards program, he said.

A couple of Florida Restaurants have been looking at Florida green-skin Slimcados from Homestead, Fla.-based Brooks Tropicals Inc. for farm-to-table promotions, said Mary Ostlund, director of marketing.

There are advantages to offering Florida avocados for foodservice operators, she said. For example, they're lighter tasting than the more common hass avocado, and they're produced locally.

"There's huge interest from the consumer and foodservice to do locally grown," she said.

Ostlund said she hopes to seen more Slimcados at foodservice.

"We're definitely building the foundation to do that," she said.

New Limeco LLC, Princeton, Fla., does not sell its avocados directly to foodservice operators, but the company does business with distributors who sell to restaurants, said Eddie Caram, general manager.

A number of Puerto Rican, Dominican and Caribbean restaurants in South Florida and New York prefer the green-skin avocados from Florida, he said.

They're typically served in avocado salads or used to make guacamole, Caram said.

"In local restaurants in South Florida, any Hispanic restaurant you would probably go to will have a Florida avocado on their menu from now until February," he said.

Foodservice business also is booming at Giumarra Agricom International, Escondido, Calif., said Gary Caloroso, marketing director.

"We're seeing more (avocado) menu items added, including salads, sandwiches, even breakfast items," he said.

"There's a lot more consumption and growth to happen for the industry through foodservice, so it's really wonderful," he said. "It's great for the industry.

Foodservice attitudes

In November, the Mission Viejo, Calif.-based Hass Avocado Board commissioned Chicago-based Datassential to conduct an online survey of 306 foodservice operators from a broad cross-section of the industry to determine their attitudes toward avocados.

Results of the study:

• Most operators offer avocados and place at least some importance on health and wellness. Fresh avocados are the most prevalent avocado format with, two-thirds of operators using this format at 4.3 boxes per week
• Two-thirds of operators use more avocados now than they did two years ago, and more than half expect to increase use in the coming two years
• Recipe ideas are the most helpful attribute to increase avocado use. Information on packaging that helps avocados keep longer would also be of help, as would additional information on health and wellness benefits
• Containing good fats and antioxidants are the benefits operators are most aware of for avocados, while containing folate and lutein are the least known. Low in fat and low in calories have high appeal but lower awareness
• Use of digital and interactive menus is low, which is a barrier for ease of integration of symbols on operator menus. u u Less than half of operators use some type of health and wellness symbol on their menus
• Calorie posting remains low, and overall operators agree that it has had or would have little impact on most consumers
• Avocado applications in dips, salad dressings and as a mayonnaise replacement have the highest current use and considered use of any avocado innovation
• The Love One Today logo is viewed as believable and appealing. Awareness of the logo is low, with only 23% very or somewhat familiar. Operators worry about costs and space on their menu for the logo and are unclear what the benefit would be to them to use the logo