Csapody, Bence. Enlightening Tourism. A Pathmaking Journal, Vol 14, No 1 (2024), pp. 51-69

https://doi.org/10.33776/et.v14i1.8106

Exploring the role of locally-sourced ingredients in the

rural hospitality system of Hungary

Csapody, Bence.* Institute of Sustainable Development, Tourism Department, Corvinus

University of Budapest, Fővám Square 8, Budapest H-1093, Hungary, bence.csapody@uni-

corvinus.hu

* Corresponding author

Received December 2023; Accepted July 2024

ABSTRACT

The aim of this research is to examine the role of local

ingredients in the Hungarian rural hospitality system and

to analyze the benefits and drawbacks of their utilization

in restaurants. Previous literature lacks comprehensive

studies investigating the use of local products in

restaurants and the collaboration between producers and

restaurants, particularly those employing qualitative

methods involving both parties. To address this research

gap, sixteen interviews were conducted with restaurant

representatives and local producers. The findings of this

research contribute to understanding the structural

barriers hindering the effective integration of local

products in restaurant operations. The study reveals that

the dynamic nature of restaurant offerings relying on

local ingredients, poses challenges for chefs, requiring

constant innovation. Additionally, factors such as

reliability, transparency, and hyper-local procurement

strategies play crucial roles in the adoption of local

products. However, logistics and communication emerge

as significant shortcomings in restaurant-producer

relations, and addressing these issues could improve

efficiency, financial outcomes, and product quality.

Furthermore, the study provides practical

recommendations for enhancing the efficiency of

collaboration between local producers and restaurants

and fostering mutual understanding between them.

RESUMEN

El objetivo de esta investigación es examinar el papel de los

ingredientes locales en el sistema de hostelería rural húngaro

y analizar los beneficios e inconvenientes de su utilización en

los restaurantes. La bibliografía anterior carece de estudios

exhaustivos que investiguen el uso de productos locales en los

restaurantes y la colaboración entre productores y

restaurantes, en particular los que emplean métodos

cualitativos con participación de ambas partes. Para colmar

esta laguna, se realizaron dieciséis entrevistas a representantes

de restaurantes y productores locales. Los resultados de esta

investigación contribuyen a comprender los obstáculos

estructurales que dificultan la integración efectiva de los

productos locales en las operaciones de restauración. El

estudio revela que la naturaleza dinámica de la oferta de los

restaurantes, basada en ingredientes locales, plantea retos a

los cocineros, ya que exige una innovación constante. Además,

factores como la fiabilidad, la transparencia y las estrategias

de aprovisionamiento hiperlocal desempeñan un papel crucial

en la adopción de productos locales. Sin embargo, la logística

y la comunicación surgen como deficiencias significativas en

las relaciones entre restaurantes y productores, y abordar estas

cuestiones podría mejorar la eficiencia, los resultados

financieros y la calidad de los productos. Además, el estudio

ofrece recomendaciones prácticas para mejorar la eficacia de

la colaboración entre productores locales y restaurantes y

fomentar el entendimiento mutuo entre ellos.

KEYWORDS

local ingredients; local products; local producers;

rural hospitality; restaurant procurement; Hungary

PALABRAS CLAVE

ingredientes locales; productos locales; productores locales;

hostelería rural; contratación en restaurantes; Hungría

ENLIGHTENING TOURISM: A PATHMAKING

JOURNAL

journal homepage: https://uhu.es/publicaciones/ojs/index.php/et

Csapody, Bence. Enlightening Tourism. A Pathmaking Journal, Vol 14, No 2 (2024), pp. 51-69

https://doi.org/10.33776/et.v14i1.8106

1. INTRODUCTION

Food from a short geographical distance is

considered a defining part of tourism products,

contributing to both the creation and consumption of

the travel experience (Datta, 2022; McKercher et al.,

2008; Robinson and Getz, 2014). Local dishes can

have a significant impact on the image of a

destination and on tourists’ satisfaction as well

(Aydin et al., 2022, Ab Karim et al., 2011).

Consumers have a keen interest in the origin of food

and “neolocalism” is considered an increasingly

popular consumer trend, connecting them to a

specific geographical area (Bacig and Young, 2019).

Recent research has shown that consumer demand

for environmentally friendly goods and services is

constantly increasing (Pekersen and Canöz, 2022),

bringing about many changes in the field of

hospitality management as well.

Restaurants aim to incorporate the highest

possible proportion of locally-sourced ingredients

into their operations (Lavecchia, 2008), and

managers seek to identify consumers who are willing

to pay a premium price for these services (Jang et al.,

2011). Several restaurants in Europe and North

America have played a significant role in reviving

forgotten food and recipes, promoting local food

heritage, thus revitalizing the cultural assets of

certain regions (Zocchi and Fontefrancesco, 2020).

Effective integration of locally-sourced ingredients

influence the competitive potential of local

businesses (Quattrociocchi et al., 2017). In this

regard, collaboration between local producers and

local restaurants is a crucial aspect.

The literature review revealed that the number of

qualitative studies examining the aspects of direct

collaboration between restaurants (purchasers and/or

chefs) and local producers is limited. Previous

research articles published in SCOPUS-indexed

journals that examined the cooperation between

producers and restaurants predominantly focused on

the United States (Alsetoohy et al., 2021; Pesci and

Brinkley, 2021; Sharma et al., 2014), Canada and

New Zealand (Roy, 2022), as well as Spain

(Meneguel et al., 2022), Italy (Paciarotti and

Torregiani, 2018), and Ireland (Duram and Cawley,

2012).

However, consumers’ food choices and supply

chains are subject to various socio-economic,

environmental, and political influences, thus they

highly vary by countries (Roy and Ballantine, 2020).

According to Török and Agárdi (2020), in Hungary,

the period following World War II was characterized

by an emphasis on economies of scale driven by the

standardization of processes, mass production of

food products and delocalization of supply chains.

The trust-based relationship that had defined food

production and consumption for centuries became

increasingly less prominent and significant.

Recently, there has been a notable increase in

consumer demand for alternative, non-industrialized

food systems in Hungary. Highlighting this trend,

the characteristics of destinations have recently

become more important in the Hungarian hospitality

market; local ingredients are more valued, while

visitors expect rural-specific features in the

hospitality offerings (Kóródi et al., 2014). This

change is partly due to recent local product-oriented

developments, which are also reflected in consumer

behavior (Madarász et al., 2021). However, this shift

requires careful consideration in academic research

due to the country’s unique geographical features,

geopolitical position, and the resultant differences in

consumption patterns compared to Western

European countries. As previous studies highlight,

there is a noticeable gap in research on the benefits

and obstacles in sourcing local food products

directly from local producers in post-communist

Csapody, Bence. Enlightening Tourism. A Pathmaking Journal, Vol 14, No 2 (2024), pp. 51-69

https://doi.org/10.33776/et.v14i1.8106

countries like Hungary, where the unique historical

and political context calls for specialized

examination (Makowska et al., 2024). Research

including both the perspective of Hungarian

restaurants and producers is limited. This study

contributes to the literature by examining a less-

researched destination and understanding how

various, region-specific factors of Hungary shape the

use of local ingredients in the rural hospitality sector.

Therefore, this study addresses the following

research questions: What aspects influence the

utilization of local ingredients in the Hungarian

rural hospitality system through collaboration

between local producers and restaurants?

Exploring this topic, involving both restaurant

representatives and producers, through qualitative

methods may contribute to comprehending the

underlying reasons and motivations behind utilizing

local products. The findings of this study contribute

to the local food system discussion and have

implications for restaurants, producers and

policymakers. The results will contribute to filling

the research gap identified in the literature and

provide practical advice to enhance the efficiency of

collaboration between local producers and

restaurants.

This paper is structured as follows. After the

introduction, the literature on the demand and supply

of local products will be analyzed. The research

results are then presented, beginning with an

overview of the applied semi-structured interview

methodology, followed by a detailed analysis of the

interviews conducted with restaurant representatives

and local producers. Finally, the last section

illustrates the main practical and theoretical

implications, then the article concludes by

summarizing the limitations and further research

lines.

2. LITERATURE REVIEW

2.1. Integration of Local Food in Restaurant

Operations

Local products have been defined in various ways

in the literature, depending on the perspectives and

approaches of researchers. Previous studies have

unveiled multiple conceptions of local food among

both producers and consumers, encompassing

definitions associated with political aspects, the

proximity between purchase and sale, and the

geographical source of production (Sharma et al.,

2012). Trivette (2015) highlighted two approaches to

defining local food. “Local by relationship” approach

scrutinizes the actors within supply chains and the

direct interaction between producers and consumers,

while “local by proximity” considers geographic

and/or political boundaries. Research has referenced

a 100-mile radius (Dunne et al., 2011) or a 100-

kilometer radius (Duram and Cawley, 2012).

However, Duram and Cawley (2012) observed that

hospitality experts seldom ground definitions on the

geographical distance of origin. In accordance with

this, Sharma et al. (2009) define local food in the

restaurant sector as agricultural products that are

cultivated or processed in close proximity and

acquired by restaurants either directly from local

markets or mostly from local suppliers.

The geographic location of restaurants

significantly influences their ability to access and

procure local food items necessary for their menus

(Alsetoohy et al., 2021). Additionally, the utilization

of local products in restaurants is affected by various

factors, such as the chef's motivation. This

motivation is influenced by the quality of available

produce, the producers’ willingness to meet specific

requirements, storage capacity, and the prices

consumers are willing to pay (Duram and Cawley,

2012). Munjal et al. (2016) demonstrated that chefs

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are moving away from frozen and semi-finished

goods, opting for fresh and local products to be

processed based on authentic recipes. Moreover, the

availability of local products ensures a continuous

supply, leading many establishments to incorporate

them as ingredients. However, the “sustainability”

factor does not usually play a decisive role in the

purchasing decision of chefs (Ozturk and Akoglu,

2020).

Recent studies have also examined the underlying

reasons behind localist restaurant concepts. Ozturk

and Akoglu (2020) highlighted five factors, with

better taste and freshness of local products being the

most influential. Additionally, transparency and

traceability criteria can be seen as added advantages

of using local ingredients (Zocchi and

Fontefrancesco, 2020). An increasing number of

restaurants emphasize their close relationship with

the environment, with seasonality being a defining

component for authentic gastronomic experiences

(Home et al., 2020). Duram and Cawley (2012) also

noted that the variety of local ingredients presents

creative challenges for chefs who work with them.

Hyperlocal restaurant concepts, where a high

proportion of necessary ingredients are sourced from

the restaurant's own production, are also a major

trend in the hospitality industry (De Chabert-Rios

and Deale, 2018).

Since food costs typically account for a third of a

restaurant's operating costs (Bristow and Jenkins,

2018), the price of local products plays a significant

role in purchasing decisions. Dishes made from local

ingredients may be more expensive for both

consumers and restaurants, which is why lower costs

often explain the purchase of imported and/or

intermediate products (Alsetoohy et al., 2021).

However, Zocchi and Fontefrancesco (2020) argue

that farming activities carried out by the restaurants

themselves can result in cost savings.

Offering locally sourced food enhances the

satisfaction of guests by providing them with

knowledge about the environmental impact,

nutritional value, food safety protocols, utilization of

local agricultural resources, and support for local

farmers (Alsetoohy et al., 2021). Thus, many

restaurants choose to collaborate with local suppliers

and service providers as part of their corporate social

responsibility strategy, as concerns about social

sustainability rise among companies (Pozo and

Tachizawa, 2018). This has the potential to improve

the community’s social connections and promote

social equity for local residents. Thus, offering food

made from local ingredients, restaurants can enhance

their corporate image (Rahman et al., 2018; Kala,

2020). Communicating the use of local ingredients

positively influences consumers' perceptions, evokes

positive emotions, and increases their intention to

revisit the restaurant (Bacig and Young, 2019).

Moreover, menus based on local ingredients can

significantly contribute to the restaurant's association

with its destination, helping guests gain a deeper

understanding of the place and fostering an implicit

connection with the surrounding landscape (Home et

al., 2020).

2.2. Challenges and Opportunities of Local

Producers

According to recent studies, the increased

demand for local foods not only benefits the local

economy but also promotes agricultural

diversification and sustainable regional development

(Boas et al., 2021; Deere and Royce, 2019).

However, recent articles have also highlighted

various difficulties and obstacles. Paciarotti and

Torregiani (2018) emphasize that producers

encounter significant challenges in managing their

daily activities, as they must handle both production

and sales responsibilities, which has a direct impact

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on transportation logistics and overall delivery times.

The time and effort invested in sales-related tasks,

such as order processing, customer communication,

and coordination with distribution channels, can

divert valuable resources away from production

activities. Consequently, the efficiency and

effectiveness of transport operations may be

compromised.

The link between the local producers’ markets

and the local hospitality appears to be relatively low

(Paciarotti and Torregiani, 2018). One of the major

difficulties faced by producers is ensuring a

consistent quantity and quality of products, while

dealing with fluctuating demand in the hospitality

sector. Producers often struggle to meet the ordered

quantity from all customers due to seasonal

variations in demand. However, effective

information sharing between restaurants and farmers

plays a crucial role. If information is quickly and

accurately conveyed, farmers can anticipate sales for

the upcoming seasons and plan accordingly (Pesci

and Brinkley, 2021). According to Roy et al. (2017),

personal relationships between producers and chefs

have improved over time through direct interactions,

resulting in restaurants valuing purchased goods

more than before. Another advantage of direct

interactions between farmers and restaurants is that

farmers often incorporate feedback into their

production decisions (Pesci and Brinkley, 2021). To

enhance supply chain efficiency, the proactive

seasonal planning and regular communication can be

provided by the distributors (Givens and Dunning,

2019). Providing predictable and reliable demand

information not only allows producers to increase

production volume (Paciarotti and Torregiani, 2018)

but also enables them to expand their product

portfolio (Deere and Royce, 2019). In this context,

utilizing up-to-date digital solutions may be essential

for businesses, particularly during crisis periods, as

they contribute to survival and operational

effectiveness (Irimiás and Mitev, 2020).

A significant portion of the sales problems faced by

small farmers are attributed to inefficiencies in work

organization, resulting in disproportionately high

sales costs compared to the production volume.

Brinkley et al. (2021) highlight that small producers

invest significant human and financial resources in

sales and marketing, facing constant competition

from more efficient larger producers for sales

contracts.

2.3. Cooperation of Local Producers and

Restaurants in the Hospitality Systems

Given the volatility of both the restaurant

industry and food producers, the survival of actors

relies heavily on their market connections, suppliers,

and customers (Pesci and Brinkley, 2021). However,

recent studies indicate that the primary obstacles for

restaurants sourcing locally are inadequate

communication (Paciarotti and Torregiani, 2018) and

weak relationships between local food producers and

restaurants (Alsetoohy et al., 2021) as well as a lack

of awareness regarding local product availability

(Paciarotti et al., 2022; Sharma et al., 2014).

Moreover, major barriers include limited product

availability and logistical difficulties (Paciarotti and

Torregiani, 2018).

To standardize and enhance the use of local food

in restaurants and strengthen local food value chains,

Duram and Cawley (2012) proposed several

strategies: (1) improve certification and labeling for

authenticity; (2) provide marketing support to

connect farmers and chefs; (3) establish programs

integrating producers, consumers, and chefs; (4)

create professional designations for restaurants

sourcing directly from producers; and (5) offer

education for sourcing from small-scale producers.

Paciarotti et al. (2022) developed a simulation

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framework to quantify the economic impacts of local

food distribution systems and identify key logistical

success factors for supply chains linking producers

and restaurants. This framework aims to reduce

delivery distances, thereby lowering costs and

mitigating negative externalities of road

transportation, such as air pollution and accidents.

Managing food supply chains between local

producers and restaurants presents significant

challenges. As the procurement of raw materials is a

critical and resource-intensive aspect of restaurant

operations, chefs often favor the coordination of

ordering and delivery through wholesalers,

optimizing time efficiency and ensuring prompt

delivery (Givens and Dunning, 2019). Utilizing local

food hubs to connect producers and restaurateurs

offers the dual benefits of boosting local food

consumption and providing a more coordinated and

optimized food distribution system (Paciarotti et al.,

2022). The restaurant’s connections with local food

hubs are instrumental in developing direct

purchasing relationships with producers. These

actors facilitated the expansion of the supplier

network, promoted socially embedded relationships,

and encouraged producers to adopt sustainable

practices and produce high-quality goods (Pesci and

Brinkley, 2021).

3. METHODOLOGY

The research objective is to identify the

potential barriers and enablers of local products’

distribution within the hospitality system of Hungary.

Therefore, the primary research question (RQ) of the

study is as follows: What aspects influence the

utilization of local ingredients in the Hungarian rural

hospitality system through collaboration between

local producers and restaurants?

In addition to the main research question, four

sub-questions have been formulated:

Q1: How do Hungarian producers and restaurant

professionals define the term "local ingredient"?

Q2: What are the main directions of producers' sales

activities and the role of local restaurants in them?

Q3: What are the main characteristics of restaurants'

procurement strategies and the role of local

ingredients in them?

Q4: What steps are necessary for fostering effective

collaboration between local producers and

restaurants?

Due to the nature of the research questions, a

qualitative approach is proposed for the present

study, allowing for a thorough exploration of the

underlying reasons and explanations of the issue.

Qualitative methods provide an in-depth

perspective that helps researchers understand

phenomena differently than a purely positivist

approach (Riley and Love, 2000). Inductive analysis

is employed to understand these various realities as

they are uncovered, leading to study designs that can

adapt to unforeseen realities (Riley and Love, 2000).

Over the past decade, qualitative tourism researchers

have predominantly used interviews and

observations (Wilson et al., 2020). Interviews are

particularly valued by social scientists for examining

social realities and tourists’ experiences.

Nevertheless, some scholars argue that tourism

research is well-suited for exploring innovative,

experimental, and mixed methods to study social

phenomena (Wilson et al., 2020).

Therefore, semi-structured in-depth interviews

were carried out with key decision-makers in

sourcing food in restaurants and local producers in

Hungary to examine their opinions, motivations, and

attitudes.

The research is structured into four main steps:

1) Interview guide development based on

literature, and pre-test;

2) Sampling;

Csapody, Bence. Enlightening Tourism. A Pathmaking Journal, Vol 14, No 2 (2024), pp. 51-69

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3) Conducting interviews (data collection); and

4) Data analysis and findings.

Following the literature review proposed in the

previous section, two interview guides were designed

to address the main actors within the hospitality

ecosystem: local producers and restaurateurs. The

preliminary version of the interview guides was then

pre-tested with professionals from both fields to

assess the difficulty, correct interpretation of

interview questions, and time consumption.

The research employed a non-probability,

purposive sampling approach. The list of

interviewees was compiled based on a local

restaurant guide rating Hungarian restaurants (Dining

Guide) and an online source on local producers'

rating in Hungary (Magyar Konyha) to represent a

wide range of destinations, including lakeside and

mountain areas of Hungary (see Table 1). Urban

destinations within Hungary were specifically

excluded from the sampling strategy, as were

international cuisine restaurants catering

predominantly to foreign tourists. All selected

restaurants offer a variety of traditional Hungarian

dishes. Participants were selected from those who

purchase local ingredients to compile their menus

and were assumed to have information on the

operation of local supply chains. The sample

included only representatives of enterprises operating

outside the administrative boundaries of Budapest,

the capital of Hungary. All interviewees operated

within destinations designated by Hungarian

Government Decree 429/2020. (IX. 14.). As a result,

16 face-to-face, semi-structured interviews were

conducted with representatives of 9 Hungarian rural

restaurants (coded as R1 – R9), as well as with 7 local

producers (coded as P1 – P7), as detailed in Table 1.

These establishments were contacted initially via

telephone to schedule on-site interviews. The data

collection phase was conducted over a two-month

period in November-December 2022.

Code of

Interviewee

Gender

Position

Location of

Represented

Business

(destinations based

on Hungarian Gov.

Decree 429/2020

(IX. 14))

Restaurants

Female

General

manager,

owner

Eger region

Male

Executive

chef

Greater

Budapest

Female

General

manager

Tokaj and

Nyíregyháza

Male

Executive

chef

Győr and

Pannonhalma

Male

Executive

chef,

owner

Sopron region

Male

General

manager,

owner

Eger region

Female

Executive

chef,

owner

Balaton

Female

Executive

chef

Szeged region

Male

General

manager

Debrecen and

surroundings

Producers

Male

Individual

operator

Greater

Budapest

Male

CEO,

owner

Greater

Budapest

Female

Individual

operator

Balaton

Male

CEO

Eger region

Female

CEO,

owner

Szeged region

Female

Individual

operator

Greater

Budapest

Male

Individual

operator

Debrecen and

surroundings

Table 1. Interviewees and location of represented

businesses (own editing)

The interview guides were developed by

adapting previously utilized guiding questions (Pesci

and Brinkley, 2021; Ozturk and Akoglu, 2020) and

integrating findings from prior research (Duram and

Cawley, 2012; Paciarotti and Torregiani, 2018). In

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both interview guides, there were 11 open-ended

questions, including six main questions and five sub-

questions (Table 2).

Interview questions

Restaurants

1. What does your establishment consider its main

missions, and how is this reflected in its business

concept?

• How would you characterize the current market

environment in which you operate?

2. Identify your current main procurement

channels/sources!

• What changes have you experienced in terms of

goods supply over the past 5-10 years? Please

mention some positive and negative phenomena

in the procurement area!

3. If you are referring to local products, what distance

do you consider local? (expressed in kilometers)

4. Do you use goods from local producers near the

restaurant? If yes, why? If not, why not?

• If yes, what products do you buy from local

sources?

• If you answered yes to the previous question,

what characterizes the cooperation with local

producers and suppliers? What role does the

“locality” concept play in the restaurant's

business model?

• If you answered no, why not? What are the

primary factors that lead you not to choose local

sources?

5. Do you agree with the statement that it is simpler

and cheaper to source raw materials from large

supermarkets, and furthermore, local producers may

not always be able to provide the same quality and

quantity of goods? Please share your experiences

related to this!

6. What changes are necessary to promote and ensure

the continuous supply of local ingredients?

Producers

1. What does your enterprise consider its primary

missions, and how does this manifest in day-to-day

operations?

• How would you characterize the market

environment in which you currently operate?

2. Identify your current main sales channels!

• What changes have you observed in the sales of

goods produced/manufactured by your

enterprise in the last 5-10 years? Please

mention some positive and negative phenomena

in this area!

3. If you are referring to local products, what distance

do you consider local? (expressed in kilometers)

4. What significance do local sales hold in the life of

your suppliers, particularly in relation to local

restaurants?

• What characterizes your relationship with local

partner hospitality establishments?

• What are the positive aspects of the

collaboration with local restaurants?

• What are the negative aspects of these

collaborations?

5. Do you agree with the assertion that sourcing

ingredients from large supermarkets is simpler and

cheaper than from local sources? Please share your

experiences related to this!

6. What changes are necessary to promote the

popularity and ensure the continuous supply of local

ingredients?

Table 2. Questions raised in the interview guides (own

editing)

The concepts of local food products and

sustainability mentioned in the questions were briefly

explained to the interviewees. The interviews were

conducted in Hungarian language. They lasted for 70

to 90 minutes and were tape-recorded, accompanied

by detailed notes. Data underwent a filtering process

to remove irrelevant information, thus, only

statements aligned with the research objectives were

selected. Subsequently, the transcripts of the

interviews were coded line-by-line. The interviews

were analyzed thematically, revealing distinct themes

and sub-themes that pertain to the significance of

local food and its utilization in restaurants. In the

presentation of the research results that follow, direct

quotes from the interviewees are included to clearly

illustrate their opinions on the topic.

4. RESULTS

4.1. Definition of “local products”

Providing a precise definition of local products

was one of the primary objectives of this study.

However, based on the responses of the interviewees,

a wide range of definitions emerged. One participant

asserted that only ingredients sourced from within the

boundaries of the restaurant's immediate settlement

can be considered local. In contrast, the majority of

participants defined local products based on a

specified distance. Some interviewees mentioned a

radius of 15 to 20 kilometers, while others expressed

a more flexible perspective, considering goods from

within 30 or even 50 kilometers as local.

Concurrently, there was a general consensus that, for

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the sake of a diverse restaurant offering, it is also

necessary to procure products from more distant

sources. Moreover, the study reveals variations in the

definition of local products, which are contingent

upon the specific product types under consideration

(Table 3). This is exemplified by the distinct sourcing

strategies employed by the restaurants, where some

products exclusively originate from the region, while

other ingredients are procured in close proximity to

the restaurant. These nuanced distinctions underscore

the complexity inherent in defining and sourcing

local products, highlighting the importance of

considering contextual factors and product-specific

criteria in establishing local sourcing practices.

“There is a buffalo reserve that falls outside the 30-

kilometer radius for us, but they offer such unique

products that we still consider the distance acceptable”

(R6)

“Regarding wines, our menu exclusively features those

from the southern coast of Lake Balaton, so we do not

source them from the northern coast or other regions.

However, our vegetable producer and dairy

manufacturer are located just two corners away from

the restaurant” (R9)

Table 3. Different perspectives on the definition of local

products (own editing)

4.2. Analysis of logistics and producers’ sales

channels

In this study, one of the objectives was to

examine the challenges faced by local producers in

terms of logistics and sales channels. Thus, during the

interviews, participants were asked about the

advantages and disadvantages of direct sales to

restaurants. Based on the responses, it was found that

the catering industry was not identified as the primary

target for direct sales. According to the interviewed

producers, restaurants tend to order minimal

quantities directly from them and predominantly

purchase from wholesalers. One interviewee

mentioned two high-end restaurants in their

immediate vicinity, but only one of them showed

interest in local products, while the other primarily

sourced from wholesalers for unknown reasons.

Additionally, some producers mentioned farmers'

markets and mass caterers as their target customers.

Moreover, several producers heavily relied on

exports.

During the interviews, participants also

discussed what they considered to be the most

significant threat to the supply of local ingredients.

The majority of participants identified lower-quality,

cheap imported goods as the main danger, which

could be addressed through producer cooperation and

actions taken by authorities. Furthermore, one

interviewee emphasized the need for Hungarian

producers to focus on producing high-quality

products in order to compete with imported goods.

Looking back at recent years, suppliers reported

positive changes in restaurateurs' interest in local

products. According to several interviewees, there is

an increasing openness among consumers towards

regional products. One participant mentioned that the

foundation of quality Hungarian gastronomy lies in

local products: “(...) because high-quality Hungarian

cuisine begins there, that restaurants are supplied

with locally grown ingredients” (P4). Additionally,

chefs are gaining more knowledge about the use of

special ingredients and are handling them with

greater consciousness in their work, allowing for

creativity and exploration of flavors and aromas:

“They like to play with their colors, tastes, and

smells” (P2).

Overall, based on the interviews, logistics

emerged as the most problematic aspect for small

producers. One interviewee mentioned being

responsible for production, logistics, and sales to

partners simultaneously. Another supplier found

delivery to be particularly challenging, especially

during the summer when demand is highest, as

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delivering perishable dairy products quickly and

professionally poses a challenge. Another producer

mentioned that they used to have in-person meetings

with existing and potential partners but could no

longer accommodate them due to time constraints.

They also highlighted that the decrease in personal

contact is a negative consequence of increased

administrative burdens affecting small and medium-

sized enterprises (SMEs). Some interviewees

emphasized the advantages of digital solutions, such

as outsourcing logistics to external companies and

integrating webshops for efficient order processing

and delivery. Strategic marketing efforts were also

deemed highly profitable and rapid cash-generating

processes. Furthermore, the role of word-of-mouth

marketing was mentioned, as consumers and

hospitality professionals can effectively promote

local suppliers among their colleagues.

However, a lack of quality was considered a

significant disadvantage of local products by some

interviewees. According to one participant, certain

Hungarian small producers tend to justify quality

deficiencies resulting from their lack of knowledge

by blaming bureaucratic burdens. They claim that the

need to handle paperwork alongside production leads

to compromises in product quality.

Moreover, the majority of suppliers emphasized

that the most challenging aspect of working with

restaurants is the unpredictability of orders, which is

often difficult to reconcile with seasonal to produce.

Producers highlighted the problems related to

ingredient supply caused by seasonal fluctuations in

catering demand, which is common in several

Hungarian destinations, such as Balaton and Eger

regions.

4.3. Analysis of restaurants’ ingredient

procurement

During the interviews with restaurants’

representatives, the focus was on understanding the

role of local products in their concepts. All the

investigated establishments shared a common

practice of highlighting seasonal dishes, the

procurement strategy of the restaurateurs revolved

around utilizing ingredients available during the

current season to compose their menus. However,

there were variations in the quality and utilization of

local ingredients among the restaurants. One

restaurant primarily relied on local ingredients from

its inception, as its concept was built upon a strong

emphasis on sourcing from local producers. In

contrast, another interviewee expressed concerns

about the limited availability of locally sourced

goods, which is why they could only create

temporary thematic programs and periodically

available tasting menus based on them. Nevertheless,

they sold products from nearby farms in the

delicatessen attached to their restaurant.

In terms of the quantity of locally grown produce

used by restaurants, an executive chef from a rural

establishment mentioned that they relied on

approximately 40 percent from local small-scale

producers and 60 percent from wholesalers. In

another interview, it was noted that local producers

alone are insufficient to meet the demand for all

necessary ingredients required by restaurants in the

current Hungarian context. However, their products

were seen as valuable additions to the menu,

contributing to the uniqueness of the restaurants. One

interviewee referred to the concept of hyper-local

sourcing, where representatives of restaurants

mentioned meeting their ingredient needs through

their own production or by foraging for vegetable

ingredients such as fruits, herbs, and seeds in nature.

Regarding changes in the procurement of local

products over the past five years, the majority of

participants reported positive trends. They observed

an overall improvement in the quality of farmers'

products, enabling them to replace a certain amount

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of imported goods with locally sourced ones.

According to a restaurant manager, they used to rely

heavily on wholesalers for most of their necessary

products. However, due to dissatisfaction with the

quality of goods, they gradually increased their

purchases from local producers.

Some interviewees mentioned that the

relationship with local suppliers had changed as a

result of the COVID-19 pandemic. They reported

more frequent negotiations, even on a daily basis.

Conversely, a representative from another restaurant

noted that after reopening following the COVID-19

lockdown, local suppliers struggled to meet the

required quantities due to reduced inventory

volumes.

The interviews also explored the details of

contact between restaurants and producers. Producers

now often visit restaurants in the hope of establishing

collaborations. However, some restaurateurs

expressed difficulties in finding local producers, and

even when they did, the producers were unable to

consistently supply the quantities needed by the

restaurant. This aspect was discussed in most

interviews, highlighting that local suppliers often

struggle to ensure a continuous supply, with both the

quantity and quality provided being quite

unpredictable. While most restaurants prefer ordering

smaller quantities multiple times due to limited

storage capacities, local suppliers often struggle to

meet these demands. Additionally, communicating

“lack of quality” issues to suppliers was considered

challenging, as it could strain the relationship.

Transparency emerged as one of the most crucial

aspects in restaurant-producer relations, according to

the narratives of the restaurant representatives.

Interviewees emphasized the importance of finding

trustworthy suppliers, noting that physical proximity

was essential for transparency, allowing restaurant

representatives to visit farms and observe their

production activities. Many participants considered

trust and personal knowledge of the supplier to be

more important than relying solely on products with

various certifications such as responsible,

sustainable, or organic labels.

However, according to the restaurateurs,

suppliers had significant shortcomings in marketing

and logistics. Some mentioned that farmers' markets

were useful for marketing products, but during one

interview, it was highlighted that products from small

producers were often sold there at the same price as

those intended for restaurants that continuously

purchased larger quantities.

Nevertheless, based on the interviews, only a

few restaurants were able to fully base their menus on

local sources due to fluctuations in quantity and

rapidly changing product quality. Thus, popular

permanent menu items sometimes had to be prepared

with ingredients from more predictable but distant

sources. The nose-to-tail approach was also

mentioned in multiple interviews, indicating that

local producers often sell whole poultry, prompting

restaurants to create menu offerings that utilize the

entire animal.

Finally, despite the efforts to prioritize local

sourcing, all the restaurants still had to purchase

imported ingredients. France and Austria were

frequently mentioned among the foreign sources,

while some participants also mentioned Japan and

India. One restaurant manager noted that until a

Hungarian alternative was found, they would serve

international products such as wagyu beef and Bresse

chicken. An executive chef overseeing a fine dining

restaurant and a bistro reported ordering special

foods from foreign suppliers primarily for the fine

dining menu, while compromises were necessary for

the bistro, often relying on cheaper non-premium

goods from wholesalers. In contrast, a representative

from another restaurant mentioned that procuring

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goods in the Hungarian capital city, Budapest, faced

fewer barriers compared to their current countryside

restaurant, as high-quality product wholesalers were

easily accessible.

“Local producers could never take over the role of

wholesalers, howbeit they should spice up my menu

with their products.” (R5)

“We usually visit the nearby forest and pick the pine

buds, so that we can produce syrup of them.” (R1)

“Our chef buys the cheese from a local source where

we know what the goats are fed with.” (R9)

“We consider ‘organic’ label as a plus, however, it is

more important for us to know the supplier

personally.” (R3)

Table 4. Comments from interviewees on different

perspectives of local product procurement (own editing)

4.4. Necessary steps for effective collaboration

of local producers and restaurants

It was also deemed important to investigate the

steps deemed necessary by the interviewees to

enhance the efficiency of collaboration between local

producers and restaurants. Both the majority of

restaurant representatives and producers emphasized

the prominent role of state measures and

governmental bodies. Some participants believed that

calling for additional development programs and

tenders specifically tailored to small producers would

be necessary. They pointed out that the current tender

systems primarily benefit larger farmers due to the

high financial contribution and technical

requirements imposed on them. Additionally, several

individuals stressed the need for legislative

amendments, highlighting the practical obstacles

faced by the farm-to-table concept in Hungary, where

multiple certificates are required as proof of origin

for all products.

Moreover, one interviewee drew attention to the

deficiencies in Hungary’s vocational education

system, particularly in the field of dairy processing

techniques. They expressed concern about the

absence of established educational institutions

addressing this area of expertise. Education-related

issues were further discussed, with interviewees also

addressing challenges in research and development.

One producer suggested that a new production

culture based on traditional local crops and

vegetables could evolve in a few decades, potentially

reducing the country's long-term import needs and

making domestic products more widely accessible

and affordable. However, it was emphasized that

even with decisive government actions, it may take at

least 15 years to observe measurable changes.

During interviews with representatives of

specific catering establishments, the significance of

local cooperatives and associations was highlighted.

These organizations, comprising local operators with

extensive networks within a particular settlement or

micro-region, were seen as beneficial for fostering

connections between the demand and supply sides of

local products. Organizing forums and professional

events was considered advisable to facilitate such

connections. Additionally, professional support in

the areas of sales and marketing was deemed

necessary.

The interviewees also discussed the importance

of a shift in attitude, which some anticipated with a

generational change in the sector. However,

restaurant representatives also expected a change in

the mindset of local suppliers. They stressed the

importance of suppliers being flexible and responsive

to changes, producing in accordance with demand,

and maintaining continuous communication with

restaurants and other producers. Conscious

production planning, focusing on growing unique or

different varieties of produce, was seen as a potential

means to improve the financial outcomes of local

producers significantly.

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Figure 1. Supply chain models in hospitality (own editing)

5. DISCUSSION

This study was conducted with the aim of

analyzing the role of local ingredients in the

hospitality ecosystem and identifying the limitations

associated with their procurement. Based on a review

of the existing literature and this empirical research

finding, it is evident that restaurants in Hungary, as

well as in South and Western European countries,

face similar logistical challenges in sourcing local

products (Meneguel et al., 2022; Paciarotti and

Torregiani, 2018; Duram and Cawley, 2012). In line

with Roy and Ballantine (2020), this study’s findings

have emphasized that the definition of local

ingredients represents a primary challenge influenced

by geographical, political, and economic factors. A

notable disparity was observed between the interview

results and the literature. While previous sources

considered products within a 100-kilometer radius as

local (e.g., Duram and Cawley, 2012), the

interviewed participants mentioned significantly

shorter distances, typically ranging from 15 to 50

kilometers.

The results of the interviews revealed

considerable variations in the level of local ingredient

utilization by restaurants, owing to fluctuating

availability and quality of goods. Nonetheless,

respondents highlighted the importance of freshness

regardless of origin, corroborating previous research

findings (Ozturk and Akoglu, 2020; Munjal et al.,

2016). The frequent changes in restaurant offerings

based on seasonal and local ingredients, including

tasting menus and thematic programs, can also be

interpreted as a challenge for chefs, as it demands

constant innovation, and these findings align with the

results of Duram and Cawley (2012). Additionally,

the aspect of reliability and transparency, also

emphasized in the works of Zocchi and

Fontefrancesco (2020) and Roy et al. (2017), can

serve as additional motivation for local procurement.

In line with De Chabert-Rios and Deale (2018),

this research also identified hyper-local procurement

strategies, as representatives of several catering

establishments reported meeting their ingredient

needs through in-house production. The research

underscores logistics and communication as major

challenges in restaurant-producer relationships

(Alsetoohy et al., 2021; Paciarotti and Torregiani,

2018).

Diverse perspectives regarding engagement were

evident, with some facing difficulties in finding local

producers (Sharma et al., 2014) and insufficient

knowledge about the availability of local products

(Paciarotti et al., 2022). Moreover, restaurateurs

highlighted the unpredictability in both quantity and

quality from small-scale producers, while suppliers

emphasized the fluctuating demand and increased

orders during peak seasons as significant hurdles.

The interviews with producers also identified the

issue of producers being responsible for multiple

tasks, including production, marketing, and sales,

which has already been highlighted in previous

literature (Paciarotti and Torregiani, 2018).

Furthermore, in line with the findings of Irimiás

and Mitev (2020), the adoption of digital solutions

and the emphasis on strategic marketing activities

can play a key role in this context. Greater

involvement of professional organizations and

governmental bodies is expected in promoting these

Producers

Producers Wholesalers Restaurants

Consumers

Restaurants

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initiatives (Duram and Cawley, 2012). Several

interviewees expressed the need for active

intervention by authorities, such as issuing

development tenders, implementing deregulatory

legislative amendments, and promoting research and

development projects.

5.1. Theoretical Implications

The study highlights the complexities inherent in

defining and sourcing local products, emphasizing

the need to consider local contextual factors and

product-specific criteria. This contributes to existing

literature on the challenges of local sourcing

practices in the hospitality industry.

The findings underscore the critical role of trust

and transparency in fostering successful relationships

between restaurants and local suppliers. This

contributes to supply chain literature by highlighting

the importance of relational factors in the context of

local food procurement.

External factors such as government policies and

educational systems significantly influence the

feasibility of local sourcing initiatives. This

emphasizes the interconnectedness of the local food

ecosystem with broader socio-economic structures,

adding depth to discussions on sustainability and

food system resilience.

The study suggests a potential shift in the local

food culture towards conscious production planning

and a focus on unique varieties of produce. This

opens avenues for further research on the socio-

cultural dynamics driving changes in food

preferences and consumption patterns over time.

Overall, the findings contribute valuable insights

for both practitioners and researchers in

understanding the complexities and opportunities

associated with local food sourcing in the hospitality

industry.

5.2. Practical Implications

Based on the research findings, restaurants should

invest in building strong relationships with local

producers to secure a consistent supply of high-

quality ingredients. Transparency and trust emerged

as key factors in these relationships, suggesting the

importance of personal connections and open

communication channels.

Understanding the nuanced definitions of “local

products” as revealed in this study is crucial for

restaurants seeking to align their sourcing strategies

with consumer preferences. Restaurants should

consider adopting flexible definitions based on both

distance and contextual factors to ensure a diverse

and appealing menu offering.

Small producers face significant challenges in

logistics, which can impact their ability to supply

restaurants consistently. Restaurants could explore

digital solutions, such as outsourcing logistics and

integrating webshops, to streamline the ordering

process and ensure timely delivery of perishable

goods.

Both restaurants and producers advocate for

government support and legislative amendments to

promote the farm-to-table concept. Calling for

development programs tailored to small producers

and addressing vocational education gaps in food

processing techniques are essential steps towards

fostering a thriving local food ecosystem.

6. CONCLUSIONS

This study provides an analysis of the role of local

ingredients in the hospitality system, uncovering

various challenges and opportunities associated with

their procurement in Hungary. The study reveals a

notable disparity between traditional definitions of

“local” in existing literature and the perceptions of

stakeholders in Hungary. While previous studies

often defined local products within a 100-kilometer

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radius (Duram and Cawley, 2012), this study

demonstrates significantly shorter distances,

typically ranging from 15 to 50 kilometers. This

discrepancy underscores the importance of context-

specific definitions that consider geographical,

political, and economic factors in determining the

locality of ingredients.

Challenges abound in the sourcing and

procurement of local ingredients, affecting both

restaurants and local producers. Fluctuating

availability and quality of goods pose significant

obstacles, necessitating constant adaptation by chefs

and producers alike. Logistics and communication

emerge as major pain points in restaurant-producer

relationships, highlighting the critical need for

streamlined communication channels and transparent

partnerships to ensure a consistent supply chain.

The study identifies a growing trend towards

hyper-local procurement strategies, where

restaurants seek to meet their raw material needs

through in-house production or collection. This trend

reflects a broader shift towards sustainability and

authenticity in culinary offerings, signaling an

opportunity for stakeholders to embrace local

sourcing practices and strengthen connections with

the surrounding community.

In conclusion, it is essential to facilitate

communication between the parties involved.

Smooth communication can help the daily work of

stakeholders, such as menu compilation for

restaurant representatives and production planning

for producers. This positive aspect was also

emphasized in the research conducted by Givens and

Dunning (2019). In the long term, these efforts can

lead to improved financial results and product

quality, enhancing efficiency and reducing the

dependence of restaurants on products from distant

sources.

The adoption of digital solutions and strategic

marketing activities emerges as crucial drivers for

enhancing efficiency and reducing dependence on

distant sources (Irimiás and Mitev, 2020). Moreover,

greater involvement of professional organizations

and governmental bodies is essential to promote

these initiatives effectively. Stakeholders anticipate

active intervention from authorities, including the

issuance of development tenders, implementation of

deregulatory legislative amendments, and promotion

of research and development projects to support local

sourcing initiatives.

In the pursuit of a more sustainable and resilient

food system, fostering collaborative efforts between

restaurants, local producers, and governmental

bodies is paramount. By facilitating communication,

embracing technology, and advocating for supportive

policies, stakeholders can work towards building a

robust local food ecosystem that promotes economic

prosperity, environmental stewardship, and social

well-being. Ultimately, these efforts are crucial for

ensuring the long-term viability and sustainability of

local sourcing practices in the hospitality industry.

6.1. Limitations and future research

However, the present research has several

limitations that should be acknowledged and

addressing them through planned future research

would contribute to a more comprehensive

understanding of the subject matter. Firstly, it is

important to note that the results of the current study

cannot be generalized due to the specificities of the

methodology employed. To overcome this limitation,

conducting future quantitative research involving a

larger sample of representatives from diverse

restaurants would provide a broader perspective on

the role of local ingredients in the hospitality system.

Secondly, the timing of data collection may have

influenced the findings, as the interviews were

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conducted within a context characterized by elevated

energy costs and inflationary pressures, thus, the

public mood was predominantly negative.

Thirdly, the research focused exclusively on

certified rural restaurants and ranked producers,

which may have limited the insights gained.

Extending the scope of the research to include other

types of catering establishments, would provide a

more comprehensive understanding of the challenges

and opportunities related to local ingredient

procurement across the broader hospitality sector.

Additionally, involving a wider range of suppliers in

the study would allow for a deeper exploration of

their motivations, practices, and the everyday

challenges they face in supplying local ingredients.

By addressing these limitations and pursuing

these research ideas, a more comprehensive

understanding of the role of local ingredients in the

hospitality system can be achieved, ultimately

leading to the development of effective strategies and

practices that promote sustainable and locally

integrated food systems.

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