The current global recession is having a beneficial effect on lower-cost, more locally oriented foodservice operators, according to Denis Punter, executive chairman of Total Produce UK.
Interviewed in the latest issue of Eurofruit Magazine, Mr Punter said fresh produce suppliers were having to adapt to harsh market conditions by paying particular attention to how consumers are spending their money in what is one of the most challenging trading climates for many years.
“Consumers still want to go out and to eat out, but they are spending their money in different ways,” he told Eurofruit Magazine. “At present, the cheaper establishments such as takeaway outlets and small restaurants seem to have more to offer.”
Furthermore, many people are opting to stay at home for their holidays instead of going abroad. “This is also helping local stores and foodservice, which makes me optimistic about the wholesale trade,” he observed.
One of the country’s largest fresh produce distributors, Total Produce UK is apparently well placed to cope with the challenges presented by the economic downturn, insisted Mr Punter.
While the major UK supermarkets are doing well at present, he suggested the wholesale trade and independent stores – which make up the bulk of the company’s business – are also doing reasonably well.
“In some respects, I think the current economic environment is favouring smaller operators,” he argued. “Consumers are looking to make shorter journeys or ditch their cars altogether, but they’re still after quality and convenience. We serve a big number of independents and these trends are starting to show through.”
With a lot of people on fixed incomes and the number of unemployed rising, many in the UK are budgeting day to day, he added: 'At smaller outlets, it’s easier for people to budget and there’s less of a risk that they will end up with additional impulse purchases in their basket.”
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