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SAN FRANCISCO MARKET PROFILE
says Frank Ballentine, president of Greenleaf, a produce wholesaler and food distributor based in nearby Brisbane. “Corporate cafes are also serving cocktails with appetizers and bar food for after-work socializing in a friendly environ- ment,” says Ballentine.
Greenleaf supplies corporate cafes as well as many restaurants claiming to suffer loss of busi- ness when vast numbers of corporate employees have no need to go out of the office for lunch. Technology companies recognize employees have to deal with housing shortages, astronom- ical rents, major traffic issues and significant commutes. Their business strategy is to keep employees happy and working longer hours by feeding them high-quality, produce-centric food prepared by chefs often recruited from the restaurant world.
WHOLESALE OPPORTUNITIES
According to the San Francisco Fact Sheet, there are 4,415 restaurants in San Francisco and 54 of the establishments have a Michelin
(L to R) Gary Teilmann, Georgette Nelson, Frank Ballentine, Jun Quilatan of Greenleaf in Brisbane.
Star. Fierce competition keeps the businesses sharp, and demands today’s Bay Area chefs not only know produce but also know the farms where products are grown. Some chefs still walk the produce wholesale markets and make their own selections, but the process has expanded. It’s no longer just about sourcing quality produce. Corporate eyes are prudently watching the dollars and pennies.
“For the terminal markets, restaurant customers fall into two categories — corporate
chains, with rigid, prescribed, contract-driven, focus-group-driven venues, or independent restaurants, stand-alone or part of a small group, spread strategically across the Bay Area,” says Gilbert “Gib” Papazian II, president of Lucky Strike Farms, a wholesaler/distributor in Burl- ingame. “The restaurant, institutional and school foodservice business remains vibrant with ever changing opportunities, but more and more, fair competition has given way to illusive ‘cost-plus’ agreements and ridiculously compli- cated rebate allowances,” he notes.
THE SF MARKET
The SF Market is the official name of the San Francisco Wholesale Produce Market. Rebranding occurred in 2018, and the facility on Jerrold Avenue that opened in 1963 operates at full capacity with 28 merchants. GoodEggs, an online grocery sales and delivery service, has access to the produce on the market. Workers staging orders with groceries and meal kits featuring fresh produce have access to more than 5,000 items in the marketplace. The food
COMPETITIVE RESTAURANT SCENE
San Francisco is not shy about being a food city, but the level of competition in the restaurant business is beyond fierce. Chefs strive to work in the Bay Area market, but there are many management hardships involved, including labor. Minimum wage is $15 per hour but that rate will rise to $15.59 July 1. In a supply-constrained housing market, how does a restaurant secure, train and maintain staff in a city where the average rent for a one-bedroom unit costs more than $3,500?
The San Francisco Travel Association reports dining is the top activity for visitors, and 2017 figures show the region welcomes 69,979 visitors per day. Chef-driven fine dining – the white tablecloth business – is certainly alive but no longer all the rage because the shift has moved to casual fine dining. Innovative fast casual is the dining concept embraced by Millennials. Browsing restaurant menus reveals not only what’s hot and happening, but also what’s meaningful to today’s Bay Area diners. Kombucha on tap is not rare. The movement to feature mushrooms on, in and around all things food is legit and tailored for diners focused on reducing meat consumption while not giving up flavor and texture. Menus notably offer plant-based protein meals, gluten-free and Paleo options while promoting local and organic sprouts for nutrition and “for
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crunchy goodness.”
Chefs have to be innovative, and menus
must inform, educate, enlighten and present the establishment’s food offerings as an experience that must not be missed. This seems true more than ever because the competitive food environment now involves a wide range of meal kits for at-home prepara- tion and food deliveries from supermarkets and all types of dining concepts. With profit- ability in mind, numerous restaurants with too many empty seats up front have scram- bled to cook for consumers not eating inside the restaurants. The shift to reduce labor, decrease menu size and prepare meals for take-out, online orders and home deliveries is a recognized strategy. Business is said to be booming, but many are scrambling to adjust.
IN PRAISE OF MIXOLOGISTS
The Bay Area, of course, is filled with wine connoisseurs, but mixologists take their profession seriously when creating beverages for high-end restaurants and casual dining establishments. Elaborate mocktails — drinks from the bar featuring an assortment of fresh herbs, fruits and vegetables but no alcohol, are highlighted on countless restaurant menus. In this health- minded region, scores of consumers enjoy the social aspect of drinking without the
alcohol. Beyond the use of celery, basil, cucumbers, pomegranate and pineapple, many swanky alcohol-free drinks feature aloe, lemongrass, carambola, melons, pickles and a wide assortment of berries. These drinks are sold at cocktail prices and are served to guests seeking calorie-friendly elaborate flavors suitable for celebrations and after-work mingling.
Business for establishments needing pre-cut citrus and produce, along with prepped herbs and specialty fruit is signif- icant. “Our bar accounts were expanding so much that we had to make them sepa- rate accounts from the restaurants,” says Frank Ballentine, president of Greenleaf. The company sources edible flowers from three local vendors to keep up with demand.
If restaurants are featuring produce-cen- tric entrees, it makes sense for bars to corre- spondingly spotlight fruits and vegetables in mocktails and cocktails. And yes, posting photos and reviews of bar drinks featuring produce is a passionate endeavor for many consumers. For example, an impressed Yelp reviewer detailed a restaurant’s promotion using local produce in the handcrafted liba- tions. Similar to the smoothie movement, farmers, wholesalers and distributors are likely applauding the trending implementa- tion of fresh fruits and vegetables in bar-style drinks. pb