Supplying The Foodie Economy

Feb. 12, 2016

Traverse City’s reputation as a foodie town continues to grow, and more businesses than just restaurants are benefiting from the boom. Ancillary food service businesses — from knife sharpeners to kitchen cleaning companies — are enjoying the related uptick in sales.

“Without a doubt we have benefited from it,” said Evan Smith, CEO of Cherry Capital Foods. He explained that his company, a local- and regional-source food distributor, has experienced nearly 50 percent growth for the past several years.

“You don’t get that kind of growth just because you’re good at something in a business like food,” said Smith. “ It’s because there’s people in the community demanding it and a growing awareness.”

Smith pointed to Traverse City’s rising number of tourists, whether attracted by festivals or the area’s scenic appeal, as the main impetus for expanded food service. “All those people demanded better food and we have chefs that responded,” he said.

For Smith, that increased demand directly translates to moving more locally produced product.

“We’re a broad line distributor, which means anything that walks or flies or is grown in Michigan, we’re selling,” he said. “[We’re] bringing products to [consumers] that are fresher. It has a flavor, a taste of place, a terroir; it’s local.”

More than just a boon for his business, Smith sees the expansion of Traverse City’s food industry as a clear recipe for economic vitality.

“That money stays in the community and it multiplies much faster than dollars that leave the community,” said Smith. “It’s just a beautiful thing when your local economy is circulating food and the money.”

Food itself is not the only aspect of the food service industry, and not the only area to experience increased sales, as Brian Neu is quick to point out.

“With so many visitors discovering our area, the focus on quality appears to be a top priority and, in the restaurant business, a wobbly table or chair or torn booth is a bad first impression,” said Neu, who founded Neuco Seating in 1993. “Chairs are the first thing you notice when you sit down for a meal and the last thing you notice when you push them in at the end,” he said.

Neu recognized the growing need for qualified upholstery services during his prior work in the food service industry. Since then, he has served local restaurants, resorts and business cafeterias, addressing the needs of everyone from Georgina’s to Crystal Mountain to Munson Medical Center.

“We sell and service restaurant, hotel and office furniture, and can provide design, layout, setup and follow up,” stated Neu.

His company’s growing bevy of services also includes vinyl and upholstery repair, as well as on-site pickup and delivery.

Neu even launched his own line of furniture maintenance products — Finyl Fix — last year to help his customers keep on top of their upholstery game.

“As the area grows, we are fortunate to be growing with it,” he stated. “We are proud to get the repeat business that we do, and so many local referrals.”

For Neu, guiding customers toward quality, especially as a growing number of startup restaurants open, is an ongoing effort.

“There’s a lot of furniture online, but there aren’t as many options and it’s hard to distinguish what’s quality furniture,” he stated. “We work closely with designers and architects and project managers to ensure the customer gets the right colors on different furniture pieces and that the layout works with the shape of the building.”

“We find that [restaurant owners] are putting much more time into their seating experience than in the past,” stated Neu.

He shared that more and more owners come to his showroom to “test drive chairs and booths for comfort” before making their choice.

According to Neu, the trickiest aspect of the upholstery game is “working with restaurants to service their furniture around their busiest hours.”

“It’s not uncommon to work early mornings [and] late nights so they don’t lose any valuable seating.”

While unexpected interruptions in service could spell doom for growing restaurants, it can equal opportunity for companies that service food industry equipment.

“If something has broke[n] down, they’re thrilled to see us show up,” said Steve Tlamondon, service contractor for Hobart, a food industry equipment manufacturer and servicer. “It’s a crisis situation — that always seems to happen on a Friday night — when they’re all busy and the range quits or the fryer or the dishwasher. It’s a panic situation.”

Hobart, while a national company, has maintained a presence in Traverse City for more than 75 years, said Tlamondon. Locally, he explained, Hobart works with chains like Buffalo Wild Wings, but also with independent restaurants like Trattoria Stella.

“There’s a lot of new businesses that have started and we’re doing quite well, a lot because it has become a foodie city and the notoriety that has gone along with that,” he said.

The maintenance needs of the ever-widening range of food service equipment available, and often required, in restaurants keeps the local Hobart team busy.

“I would say the average person doesn’t realize it takes a whole gamut of refrigeration equipment, preparation equipment — slicers, grinders, food processors — and, of course, then you’ve got the cooking end of it,” said Tlamondon.

He explained restaurants also rely on the “not very glamorous” equipment his company provides, such as garbage disposals and dishwashers.

“There’s a lot of people that benefit from the restaurant business up here,” agreed Dave Allen, owner of Allen Food Equipment Services.

Allen, a former Hobart employee, started his own operation in 1999. Now he focuses on detailed equipment repair and servicing the foreign-produced equipment with which his competitors are often not familiar. Allen also repairs espresso machines, another benefit as area cafes continue to spring up.

Allen said he’s experiencing more restaurants proactively requesting his services before they experience any serious issues.

“More customers are actually, rather than waiting until there’s a catastrophic failure, picking up the phone when they hear a funny noise,” said Allen. “When times were tight, boy, I tell you people were getting by on minimal equipment.”

He attributes this increased vigilance to an overall revenue increase for area restaurants.

Many ancillary food service business owners predict the industry growth in Traverse City will remain steady in the coming months and expand in future years.

“I think restaurant owners will continue to see this area as the place to open a restaurant or expand what they have,” said Neu.

He cited numerous restaurants, including The Franklin, Harrington’s and Georgina’s, which are either operated by the owners of other notable restaurants or have moved to a larger space to serve their growing devotees.

“It seems that there’s more [restaurants] going up and making it now,” echoed Allen. “The winter time has been nice and steady, so no complaints there.”