What’s so special about Baton Rouge?
Ask that question to a typical Capital City resident, and you’re likely to hear, “LSU sports, the culture and the Mississippi River.” But ask that question to a foodie, and you’re likely to hear, “Mayhaw honey from Golden Delight Honey, tea cakes from Gourmet Goodies, bambino capellini from Fresina’s Italian Specialties, chestnut cakes from Marie’s, seasoned quail from Chris’ Specialty Meats and fresh-baked feta baguettes from Our Daily Bread.”
To the delight of the Baton Rouge foodie population, the city is home to a diverse—albeit small—assortment of specialty food retailers. And what’s so special about the specialty food business here is that it’s turning out to be deliciously recession-proof. Indeed, the majority of the small, family-owned and -operated retailers scattered throughout the city continue to enjoy growth during the economic downturn.
The continued viability of the local specialty food business lies in contrast to the state of the national industry, which like most sectors is facing a slowdown in sales because of the economy. In total, specialty food manufacturers recorded $60 billion in sales in 2008; 58% reported that sales decreased last year because of the economy, according to a report released by Mintel International and the National Association for Specialty Food Trade.
What’s more, of the 1,500 respondents surveyed in the 2006 Mintel/NASFT study, a record-high 73% were found to be “specialty food shoppers”—people who buy food that is “above average” in presentation or price or in some other way is considered “special.” The 2008 research saw that number drop to 56%.
“This is not the best time to be in the specialty food business,” says Marcia Mogelonsky, Mintel’s senior research analyst. “Until the downturn, specialty food had been doing extremely well all over the country. Very few in the industry were doing poorly. Everyone was doing good or great depending on their product. And there was lots of innovation and interest. But, since the downturn, many people have stopped shopping for specialty food.”
So why are Capital City consumers bucking the trend? A major reason, Mogelonsky says, is that Baton Rouge is a food town.
“It’s a San Francisco, a New York City,” she says. “People are very educated about food and like to experience good food. Food is a priority.”
Another reason is that the downturn has caused many consumers, not just in Baton Rouge but throughout the United States, to curtail the amount of money they spend on dining out. “People have stopped eating out,” Mogelonsky says. “So instead of eating out, they will occasionally buy fancy food to eat in with style.”
The tendency to cut back on eating out hasn’t just benefitted Baton Rouge specialty food shops, which has been the one bright spot in the otherwise dim outlook for national manufacturers. The Mintel/NASFT research found that 15% of specialty food manufacturers reported that 2008 sales were up 10% or more.
Fresina’s Italian Specialties is one Baton Rouge specialty food shop that counts itself among that lucky 15%. Frank Fresina bought the business, which has been manufacturing pasta since 1926, from his cousin 17 years ago, and runs it with his wife, Linda.
Fresina keeps track of sales the conventional way, with the help of an accountant, and the old-fashioned way, by the amount of pasta the Drusilla Lane shop makes. Both methods show that business is on the rise, he says. Fresina’s is doing so well that it plans to begin distribution of a selection of its signature products in gourmet food shops in Texas, Arkansas, Alabama and Mississippi.
“Our sales are up 10% over last year, and we’re making more pasta,” Fresina says.
Fresina’s offers everything from signature sauces cooked and jarred locally to a variety of imported products from Italy, including the typical—cans of tomatoes, balsamic vinegars and olive oils—and the atypical— Sicilian almond nut cream, wild fennel pate and terra cotta garlic roasters.
“Our products allow customers to have a gourmet meal at home,” he says. “They can have a meal that they would have to pay a lot of money for in a restaurant.”
Chris’ Specialty Meats is another local business that is thriving despite the downturn. Twyla Lachaussee has owned and operated the business with her brother Chris for the past 15 years.
Lachaussee says both locations, on Millerville Road just south of Interstate 12 and on Highland Road just west of I-10, are enjoying steadily increasing sales. Business is up 8% this quarter when compared to the same period last year, she says. On top of that, Lachaussee, who already has franchises up and running in Central and Zachary, recently sold one in Gulf Shores, Ala.
And despite that sales of pre-made specialty food meals have slipped nationally because they typically are on the expensive side, at Chris’ it’s the shop’s pre-made products that are helping to drive the sales uptick. Customers view the pre-made, boil-in-a-bag gumbos, soups, etouffees and stews as a way to eat a delicious meal at home, while still enjoying the luxury of not having to undertake all the prep work, Lachaussee says. Also, with the economy in mind, Lachaussee says she keeps the price of the store’s pre-made meals affordable.
Another shop that works hard to make price concessions is longtime natural food store Our Daily Bread, which has been in business since 1982 and specializes in offering a variety of fresh baked breads. The Florida Boulevard location also includes a grocery department and café.
Alvin Himel, who has owned Our Daily Bread since 1989, says the downturn has had no impact on his business, and he is busier today than he was last year at this time. “Maybe we would be even busier if the economy was stronger, but we haven’t been hit by the recession at all,” he says.
Himel says one reason customers keep coming back is that he keeps his products more affordable than his competition. “We keep our prices significantly lower than anything comparable,” he says. For instance, he says the shop’s signature product, its assortment of fresh-baked breads, is priced 40% lower than a comparable bread line.
It was the economic downturn that caused Golden Delight Honey owner James Henderson to begin focusing 100% on his commercial beekeeping and honey production business. After the economy tanked, Henderson was laid off from his day job as a wildlife biologist, and the part-time gig became his livelihood.
This shift was an incentive to expand his business. Now, in addition to distribution at his shop on North Leighton Drive, Henderson sells his honey, along with an array of honey-based products such as beeswax candles, soap and lip balm, on a Web site called LocalHarvest.org, with 9,000 other locally owned and operated agricultural businesses from across the country. The strategy has proved successful.
“Business has been great,” Henderson says. “I was worried about whether the recession would affect my business, but it seems like it has had no impact.”
Henderson believes one reason for his success is that he has made a name for himself nationally by introducing his own unique, Louisiana-inspired mayhaw honey into the marketplace. “I think I’m the only beekeeper with this kind of honey,” he says. Another reason his sales have remained solid, he says, is that the majority of his products are inexpensive and offer consumers the opportunity to treat themselves without spending a lot of money.
Henderson’s theory is correct, according to the Mintel/ NASFT study, which indicates the major driver behind specialty food purchases in the past six months has been “self-gifting.” Consumers need a little cheering up and, for that reason, one segment of the specialty food business is actually booming, not just in Baton Rouge but all over the globe.
International research from Japan to Germany to the United States shows that specialty food retailers catering to the sweet tooth are seeing a boon in sales. Tellingly, a survey of 1,500 consumers carried out after the economy plummeted by Techmonic, a Chicago-based food service research firm, did not find one person who regularly skipped dessert.
Two Baton Rouge specialty food shops that sell recession-busting sweets, Marie’s Chestnut Cakes and Gourmet Goodies, have seen their sales increase during the downturn.
For her part, Marie Dixon, the owner of Marie’s Chestnut Cakes, whose product line consists of the three versions of her unique chestnut cakes, has seen such a jump in her business since the recession that she developed a Web site in order to begin selling her cakes nationally. Prior to launching Mariescakesonline.com, Dixon distributed her cakes at a handful of locations, including Calvin’s Bocage Market, Tony’s Seafood and Dee’s Seafood.
In addition to the Web site, which has been up and running since December, Dixon currently is searching for the perfect retail location to open Marie’s Cakes and Sweet Shop, where she’ll sell her plain, pecan and chocolate chip cakes along with a variety of other confections.
At Gourmet Goodies on Scenic Highway, owner Emma Royal also is providing comfort to economy-rattled customers. Gourmet Goodies has a small product line consisting of pralines, old-fashioned cookies called tea cakes and a prize-winning chocolate pecan crispy. “People come here when they are depressed about the economy; we find ourselves to be a comfort,” Royal says.
And it’s not only human consumers who are turning to specialty food items to get through the hard times—four-legged customers also are getting their fix. Delightful Dog Bites, which launched in January 2008, sells a line of healthy, handmade treats that are distributed through the company’s Web site and local grocery stores. In addition to the pet treats, the company sells pet-healthy cakes through its Web site and by special order.
Company owner Marlene Most says sales have been going so well that she can no longer keep up with the demand and is working to increase the manufacturing process, which currently consists of hand rolling all of the treats. “The bites are flying right off the shelves now,” Most says. “Even with the economy, people are still interested in making sure their dogs are getting something healthy.”
While the economy hasn’t dampened her success, it did play a role in her business strategy, Most says. “I wasn’t sure that people were going to be spending money on their dogs,” she says. “So I have been really conservative in terms of growth, I didn’t want to jump into it without knowing whether it would be a viable business, but it seems to be, so I feel a lot more comfortable and confident about expanding. Now I hope to jump it up big time.”
