Transparency key to consumer trust, loyalty

Americans’ growing interest in knowing the story behind the food they consume continues to drive a move toward transparency, on both the retail and foodservice sides of the business.

In a 2016 study by Label Insight, 94% of consumers said it’s important for brands and manufacturers to be transparent about what is in food and how it is made, and 83% said they would value access to more extensive information about the items they purchase. The study also concluded that making trustworthy product information readily available encourages customer loyalty.

Restaurants, supermarkets and operators across segments are gradually heeding the call for greater transparency. A number of national and regional restaurant chains have scoured their menus, eliminating ingredients such as artificial colors and flavors, and some have chosen to proactively disclose nutritional data in preparation for the FDA’s mandatory menu labeling rules (pushed back to May 2018).

In the retail space, transparency is seen as a way to engage with consumers, who are looking for more than simply information. “They desire transparency that engages them, offering assurances of food safety, the pursuit of health and wellness, the appetite for discovery and a closer connection to food,” the Food Marketing Institute found in a recent analysis. In addition, shopper ratings favor retailers who are focused on transparency.

A commitment to transparency signals a commitment to food safety and quality. These essential values, in turn, provide foodservice and grocery operators a point of difference in an increasingly commoditized marketplace

Because transparency can take many forms, businesses selling food need to examine their customer base to determine what they value and speak to those priorities. Among the more commonly sought types of disclosures:

• What products don’t have. GMOs, allergens, additives, high-fructose corn syrup, sugar, sodium and other ingredients that some consumers wish to avoid.

• Product origins. Pinpointing an exact geographic location isn’t crucial (although It can add cachet if it’s a local farm or artisan producer, for instance). Consumers want to know some of the story behind the food—for instance, if it’s local, humanely raised or sustainably harvested.

• Environmental factors. Recycling, energy efficiency, composting and community involvement aren’t related to food, but they are a reflection of the organization’s values, and they matter, especially to millennials and Gen Z.

Finally, regardless of how information is conveyed, ensuring that staff is trained to answer these kinds of questions is the final step in creating a transparent culture.