PROCUREMENT MANAGEMENT FOR FOOD SERVICE.

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PROCUREMENT MANAGEMENT FOR FOOD SERVICE.

Abstract

Surimi is a type of food ingredient containing fish proteins from fish refined via heading, gutting, mincing, washing, removing water and freezing the remaining protein. It is a paste of inexpensive fish shaped, colored and flavored to form an imitation of lobster, shrimp and crabmeat. It has gelling properties enhancing formation into different shapes.Surimi seafood is vacuum packed and pasteurized to kill bacteria, is fat free with low cholesterol and nutritionally it contains Omega-3 oil.Surimi can be marketed in retail stores, supermarkets, restaurants, bars among other places. Its sale has seen its introduction in the U.S., it has faced challenges and growths in its acceptance in the market place seeing to it that seafood restaurants, quick service seafood restaurants and grocery store delis are trying their best to market the surimi seafood product.

In 2002, the American Heart Association stressed on the importance of omeega-3 fatty acids, therefore encouraging people to eat fish twice a week as it is the source of beneficial long-chain omega-3 polyunsaturated fatty acids. January 2005, the U.S. Government gave out a revised Dietary Guidelines for Americans recommending two servings of fish per week as it resulted to lower risk of heart disease and sudden cardiac death, a killer of 250,000 Americans yearly.

Surimi is the fastest seafood import in the US. According to Spencer & Tung (1994), imports from Japan have increased from 6 million pounds five years after introduction, to 30 million pounds and the National Fisheries Institute's estimates an increase to 50 million pounds. ''From a marketing point of view the sky's the limit,'' said William Gilman, director of marketing at Intersea Fisheries, an importer of the finished product. ''It goes into retail stores, to salad makers, food processors, to bars for happy hours, restaurants for seafood stuffing and salad - you name it, you can find someone using it.'' Surimi products are appearing frequently in retail fish markets, supermarkets and in restaurants.

Park (1995) believes that the current state of Surimi products varys from negative to positive. .Surimi-based products are legitimate if properly labeled. Manufacturers and importers label surimi products listing ingredients used and using the word ''imitation'' in the product name. However, problems occur when the imitation items are sold more expensively than shellfish products they are to replace. In restaurants, misrepresentation is notable. Citing a case Last winter by the New York City Department of Consumer Affairs whereby three restaurants, all called Sea World, advertised a Surimi imitation crabmeat as Alaskan king crab.

According to a survey of telephone interviews and visits to city retail fish stores, supermarkets, restaurants and fast-food outlets, most surimi-based products resemble crab legs or flaked crabmeat ‘but is called something else like Sea Shells, Sea Legs, ''crab sticks,'' or simply ''seafood..'' According to ( Park, 1995 ), ''If a food is nutritionally equivalent, or even superior, to the food it replaces, it need not be called imitation, but it must bear a name that is not false or misleading.'. The US surimi sector is focusing on upping the quality of the product and looking for new ways to reinvigorate a category that has stagnated in recent years.

Consumption has declined from about 185,000 metric tons in 2003 to about 175,000t in 2013 — a drop of 5%.

Plans are underway to make surimi itself in the US as most of it is imported from Japan. This is the case as The Federal Government has funded the Alaska Fisheries Development Foundation with $1.3 million to explore the possibilities of surimi manufacture in the United States.

Processors like Trident Seafood’s in Motley, Minnesota, and look forward to increase sales through focusing on higher quality products, not on cutting prices.

Spencer& Tung( 1994) state that the surimi sector has consolidated down to eight players, that is, Trident in Minnesota; four plants in Washington state, with Maruha Nichiro-owned Trans-Ocean Products; Nippon Suisan Kaisha -owned King & Prince Seafood; True World Foods’s Shining Ocean; and Sugiyo; with Aquamar in California; LM Foods in New Jersey and Ocean Foods in Toronto, Canada. In the meantime, plans are underway to expand surimi sales in the US and abroad. As the industry is getting together this week in Astoria, Oregon for the annual Surimi School and Surimi Forum. New ideas on expanding the category , introduction of new premiums and hot products are set to be the big topics.

There are several ways to market surimi seafood products according to the manager of GT Fish &Oysterin in Chicago that is a seafood restaurant specializing in selling surimi.. One of them is advertising where he says they ensure that the surimi is appealing as they offer it in a delicious selection to attract customers especially at diner.In addition, the restaurant markets its food product by printing materials as its fast and popular method of marketing surimi. The restaurant prints business cards, leaflets, attractive menus and offers special pricing coupons to its clients. They also use employees to pass the printed material to areas with lots of people like the streets. The restaurant places adverts in local newspapers and community publications in order to attract clientele to have a taste of their surimi.

According to the restaurant manager, word of mouth is the best and quickest method of marketing they use. The restaurant manager said that word of mouth marketing works for them as they have witnessed patrons recommend their surimi to families and friends therefore making them create even bigger sales.

Lastly, by placing advertisements about their delicacy online, GT Fish & Oysterin has been able to reach a bigger audience such that they use a worldwide web with a small budget therefore creating a lot of interest for their surimi. According to the GT Fish &Oysterin Manager, they use other companies on the web to help them in marketing in order to make higher profits. The restaurant achieves this by using local companies for example one situated near them by placing marketing material in their establishments for people to see where to find a great place to eat

On the other hand, Quickservice restaurants are fast, efficient, in take out ready foods at cheap affordable prices. According to a manager at McDonalds, the quick service restaurant has a huge market share due to its numerous locations estimated to be 33,000 therefore is able to sell its surimi based products to a large population. Additionally, McDonald’s restaurant offers its surimi consistently because of its highly regulated production systems therefore its contents tastes the same everywhere and is promptly delivered thus marketing for itself.Seemingly,McDonalds franchises with other entrepreneurs outside according to its manager. This means therefore that it stands high chances to expand its surimi-based products, its brand too thus create more investments.

Upon a tour at Starbacks, a grocery store deli in New York, the manager provided tips on how the grocery store markets its surimi based food products. Majorly he said, is creation of a good customer database achieved by obtaining their details as such building strong relationships in this case retaining them. The restaurant has achieved this by getting feedback of their customer experiences in purchases made of their surimi products thus putting into consideration their likes, dislikes, and have learnt to handle customer complaints. The Starbacks manager pointed out regular communication with their customers as another marketing method. It created awareness of the new dishes of surimi in offer in this case enabling Starbacks develop a personality with its clientele.Starbucks has in addition identified its marketing radius therefore availed its surimi based products to them by opening the deli restaurants near them. Another plus for Starbacks is it has got its customers online and know just how to reach them.Starbucks restaurant gets a high market for its surimi products as it ensures quality services to its customers by attending to them without fail via internal operations bearing in mind that their customers are there future business,(Park,2005).

References

Park,J.W. Surimi and Surimi Seafood, second edition: CRC Press,2005. Print.

Spencer& Tung. Seafoods: Chemistry, Processing Technology and Quality.Pp. 218-398, Springer Publishers, 1994.Print.