Direct-to-Restaurant & Foodservice Programs Category Guide

The Foodservice Opportunity

Restaurants, cafeterias, hotels, and other foodservice operations increasingly seek local, high-quality dairy products. These accounts offer higher prices than commodity markets, more predictable demand, and marketing opportunities through restaurant partnerships.

Types of Foodservice Accounts

Independent Restaurants

Chef-driven restaurants often seek local ingredients and can feature your farm by name. They typically order smaller volumes but pay premium prices.

Restaurant Groups

Multi-unit operators offer larger volume opportunities but may require more consistent supply and pricing.

Institutional Foodservice

Schools, hospitals, and corporate cafeterias provide steady volume but often work through distributors and have strict requirements.

Hotels and Resorts

Hospitality accounts value local sourcing for guest experience and may feature products in restaurants, bars, and room service.

Getting Started

Product Requirements

• Consistent quality and supply
• Appropriate packaging for foodservice use
• Proper licensing and certifications
• Liability insurance
• Traceability documentation

Sales Approach

• Research target accounts and their values
• Develop samples and presentations
• Meet with chefs and purchasing managers
• Start with trial orders to prove reliability
• Build relationships over time

Logistics Considerations

• Delivery frequency: Most foodservice needs multiple deliveries per week
• Order timing: Short lead times require inventory and production planning
• Cold chain: Temperature control from farm to kitchen
• Invoicing and payment: Net 30 terms are common in foodservice

Pricing Strategy

Foodservice prices typically fall between retail (highest) and wholesale/commodity (lowest). Consider all costs including delivery, packaging, and sales time. Volume commitments may justify lower prices. Don't undercut yourself to win accounts you can't serve profitably.

Cost Considerations

Sales costs include sampling, delivery vehicles, cold storage, and sales time. Some farms use food brokers or distributors who take 10-25% margins but handle sales and logistics. Direct sales retain more margin but require more farm resources.