Introduction p. 3
Significance p. 4
Trend Drivers and Patterns p. 5
Impact on the Hospitality Industry p. 7
Subway: A Case Study p. 7
Impact on Future Professional Development p. 9
Conclusion p. 10
References p. 11
Chemicals in the food chain and the relevance to the hospitality industry.
1.0 Introduction:
In the past, the process of a food chain was simple; foods were eaten as they were produces due to lack of preservation techniques. While it was considered to be important, food was categorized as just a commodity (Gauther, 2012). As industrialization increased, farmers became more distant from consumers and intermediaries appeared in the form of retailers and food processors. The supply chain for food is now “network between a company and its suppliers to produce and distribute a specific product, and the supply chain represents the steps it takes to get the product or service to the customer” (Investopedia, 2017) and considered to be the process for delivery of food from farm to fork. The food chain has become more complicated for the hospitality industry as the average income for consumers rises, criteria for food has changed, selection has increased, and issues with quality and safety have become more important (Boye and Arcand, 2012a)
In recent years, awareness about food safety has posed questions about the origins of foods and beverages offered in retail establishments. A series of health campaigns by independent and national organizations, particularly against fast food chains, highlights food safety issues. In response, the food industry has responded with public relations and marketing campaigns to address public concerns. The quality and safety of food in regard to the safe use of chemicals has far-reaching implications. For the purposes of this paper, food safety is discussed in the context of the hospitality industry; more specifically, the chemicals added or used in food chains through industrial processing methods, or caused by natural or environmental influences. In order to better assess the significance of chemicals in food chains, a closer analysis is required for a broad range of issues such as ecology, business, and regulation. The topic is discussed from a hospitality industry perspective, including the impact of food chain safety on the author’s future career in hospitality. Therefore, this paper explores the challenges of chemicals in food chains for the hospitality industry from ecological, business, and regulatory perspectives.
2.0 Significance:
Against a backdrop of growing global awareness about food safety, chemicals in food chain are a particularly significant issue for the hospitality industry. First, the hospitality industry is service-based with an emphasis on offering value-differentiated products and services, service excellence, and superior customer relations. Integral to the concepts of excellent service and superior customer engagement is the image of the company. In marketing hospitality services and products for existing and potential customers, companies have become increasingly sensitive to food safety in direct relation to the perception of the company by the public. Attention to chemicals in food chains becomes even more complicated when specific products and services are targeted by a safety campaign. By attempting to compete in the hospitality market, an increase in menu options may overlook food safety. The significance of safety, and health and wellness increases as consumers practice the reading of product labels and customer information pamphlets for food content, calories, and other pertinent data. Savvy purchasers of prepared food no longer assume that products are safe when offered by a business.
Another potential negative consequence of undesirable chemicals in the food chain in relation to the hospitality industry is the possibility of litigation for consumer harm. In 1993, an outbreak of Escherichia coli bacterium from fecal material were found in undercooked beef in hamburger patties was discovered in 73 Jack in the Box restaurants in Nevada, California, Washington, and Idaho (Hanlon, 2001). Most of the victims of food poisoning were under the age of 10 years. In all, 732 people were infected, 178 victims suffered permanent brain and kidney damage, and four children died. Aside from catistrphic publicity, humdreds of lawsuits were filed. One nine-year-old girl was awarded $15.6 million for undergoing kidney failure. This is one of the worst cases of food poisoning in a restaurant in history, and demonstrates the significant of food safety.
3.0 Trend Drivers and Patterns:
The challenge of chemicals in food chain is well documented in literature. The critique and review of chemicals in food chains covers a broad range of areas and ecosystems including, for example, oceans and industrial chemicals. A growing body of scientific and regulatory bodies has proposed sustainable solutions and regulations to minimize actual and potential risks produced industrially or generated ecologically by natural processes. For instance, the correlation between oceanic health and the wellbeing of humans is noted in published literature (Palumbi, 2010). Increased industrial activity in last 150 years has led to rising levels of toxicity in oceans. Toxicity levels can be identified not only in ocean life, where it is passed on from one generation to another, but growing levels of seafood-related infections.
Toxic pollutants are consistently found to be of harmful, if not fatal, for humans if present over acceptable levels; some of these toxins include Dichlorodiphenyltrichloroethane (DDT) and dieldrin in insecticides, the medication lindane, the fungicide hexachlorobenzene (HCB), and the carcinogenic polychlorinated biphenyl (PCB) found in building and contaminated rivers (Bro-Rasmussen, 1996). Despite definitive research and public education campaigns, contamination levels continue to rise. In response, a growing body of scientific and regulatory organizations has attempted to offer solutions or raise public awareness to further highlight risks posed by chemicals in food chain.
The increase of food production to meet an immediate need for the world's growing population has promoted faster industrialization (Boye & Arcand, 2012a). The alternative of green production is proposed to lessen the environmental impact, reduce food waste, and produce large amount of high-quality, low-chemical food (Boye and Arcand, 2012b). While organic farming is similar to green production in the use of small amounts of land where crops and animals rotate without the need for antibiotics or fertilizers, it cannot produce the large amounts of food needed for increasing numbers of consumers. Green farming relies more on the management of phosphorus and nitrogen agronomic cycles to support the fertility of the soil and decrease pollution. To protect the public, the products produced by organic and green farming are open to safety evaluations by government organizations.
Patterns of food consumption point to the need for food security as expressed in the sufficient access by all people, physically and economically, to nutritious and safe food access to sufficient, safe and nutritious food (Guyomard et al., 2012). A study by Paillard, Treyer and Dorin (2011) concluded that by 2050, patterns of food consumption will be a major problem for food security. Therefore, world diets will converge rapidly in developing countries with global significant waste of food and losses at the stages of distribution and final consumption.
Safety evaluations, regulations, and inspections are conducted by national, inter-organizational, and global bodies. For instance, the European Food Safety Authority (EFSA) carries out food risk assessments on a wide range of substances and chemicals (EFSA, 2016). These assessments address naturally occurring chemicals in foods, but also additives introduced intentionally that result in chemical residues from production, distribution, packaging or consumption processes.
4.0 Impact on the Hospitality Industry:
The impact of chemicals in food chains on the hospitality industry goes well beyond immediate health implications into ecological, regulatory, and business arenas. A positive correlation is has been identified between financial and environmental performance in U.S food and beverage supply chains (Jackson & Singh, 2015). More specifically, hospitality companies with higher environmental rankings are found to perform better financially. Catering to both business and environmental needs, hospitality companies promoting food safety continue to enhance fiscal and developing a positive corporate image. This is particularly important in an increasingly competitive hospitality business ecosystem in which environment stewardship and sustainability stand out as increasingly important corporate accountability standards for consumers and regulatory bodies. By encouraging food safety standards for consumer satisfaction and business requirements, a company may maintain sustainable growth by adapting to rapidly changing industry and consumer habits.
5.0 Subway: A Case Study:
For current purposes, Subway is discussed as a case in point of the use chemicals in food chains. Indeed, Subway's controversy over a specific chemical added to company's bread offerings represents an ideal case of the impact on established fast food companies and the entire hospitality industry; the industry relies largely on food and beverage offerings served in-house or in partnership with food companies. The announcement by Subway of removing a "dough conditioner" chemical from the company's bread offerings was a response to fierce campaigning by multiple stakeholders including activist groups, individuals, and industry watchdogs (Landau, 2014). According to numerous accounts, a consistent narrative started to emerge by which Subway appeared to add a potentially risky chemical to human health, albeit in approved amounts, into the company's bread recipe. In 2014, the blog Food Babe launched a petition urging Subway to remove the chemical azodicarbonamide from the bread recipe. According to the Environmental Working Group, azodicarbonamide is used in numerous products including, in addition to yoga mats, flip-flops and packing insulation (Shanker, 2016). The petition led to a similar removal of azodicarbonamide from bread sold in the fast food chains McDonald’s, Chick-fil-A, Wendy’s, White Castle, and Jack in the Box. Controversy over the chemical was fueled by the contradiction that while the Food and Drug Administration (FDA) approved using the dough conditioner in small amounts, the European Food Safety Authority bans the use of the chemical in food. The World Health Organizations (WHO) issued a warning of possible links between azodicarbonamide and asthma, while the Center for Science in the Public Interest's cites of potential links to cancer. The negative publicity harmed the corporate image Subway as warnings against azodicarbonamide attracted the attention of the media and evolved into a national food scare (CBS News, 2014; Haiken, 2014). Amplified by social media's power, Subway's quick response emphasizes public reactions to chemicals in food chains, even in cases of unconfirmed health hazards.
In the context of the hospitality industry, Subway's case is ideal for highlighting challenges with which the hospitality companies contend. These challenges include food safety, customer relationship management across different digital and conventional media platforms, business requirements for growth and market positioning enhancement across different consumer segments, geographical spreads, and consumption patterns. Although it appears Subway was neither negligent nor lacked transparency, the contrast between regulatory agencies created a situation that resulted in negative public relations for the company that lingers long after the chemical was pulled from the recipe. According to Ahluwalia, Burnkrant, and Unnava (2000), negative publicity has the potential to be “devastating” to a company; results decrease the financial status of the corporation by lowering evaluation of the product and the brand by the consumer (Tybout, Calder and Sternthal, 1981; Huang and Chen 2006). In 1980, McDonald’s reported a 25 percent drop in sales following a rumor there were worms in the hamburger meat in their products (Tybout, Calder and Sternthal, 1981). Matos and Veiga (2005) conducted a study to determine how a company might recover from negative publicity and concluded that 1) the negative impact on the public is higher when the news media is involved, 2) negative opinion about the company’s image, product image, or behavioral intention relates more to its responsibility than shortcoming in the product or service, and 3) the degree of persuasion against a brand is based on brand loyalty. Therefore, to deflect negative publicity, a company should strive to establish brand loyalty and in order to persuade the public of unintentional harm (no matter how small), promote the values of the corporation. The media may be quick to report negative publicity, and slow to disseminate information exonerating the victim owning to lack of sensationalism.
6.0 Impact on Personal Future Development:
As a professional in the hospitality industry, I believe chemicals in food chains are a significant issue which will continue to impact my career. The hospitality companies rely on image, and building a strong brand requires substantial time and financial investment. Therefore, I believe that it is of vital important to pay particular attention to the safety of food and beverage as main business drivers in hospitality industry. Safety standards and regulations are learned by participating in professional seminars, participation in community awareness-raising campaigns, subscribing to hospitality industry journals, and completing adequate practical experience as an intern in widely acclaimed companies for safety standards. In doing so, I can integrate food safety properly into my professional development and help contribute to safeguards for my future employers.
7.0 Conclusion:
In conclusion, chemicals in food chains remain a particularly complex issue spanning numerous areas. For current purposes, central focus is how chemicals, whether naturally occurring or man-made, might impact the hospitality industry in general and author's professional career. The challenge has becoming increasingly significance in recent years largely because of a growing global awareness of health and wellness issues and the advent of social media. Subway's azodicarbonamide chemical in company's bread is a case in point; forced to remove the chemical, Subway exemplifies a blueprint response for food companies protective of corporate image. In response to growing pressure from consumers, industry activists and media, it is crucial for hospitality companies to promote strong brand loyalty and ensure proper adherence to regulations. The topic of chemicals in food chains underscores how important food safety is to a future career in hospitality.
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