Hospitality and catering: ‘homemade’ - when customers and professionals aren’t on the same page

In the hotel and catering sector, more and more establishments are using industrially prepared food, produced far away from their own kitchens. Some products therefore simply need to be reheated before being served.

In France, the Federation of Bakery Businesses estimates, for example, that industrially produced pastries delivered frozen could account for up to 80 per cent of the market. (2)

However, in the minds of consumers, certain types of establishments remain strongly associated with authenticity, tradition, and artisanal craftsmanship. Customers assume that what they are served was prepared on-site. How do they react when they discover that the actual practices at their favorite bakery or Italian restaurant violate this promise of authenticity?

A practice that is becoming commonplace across an entire industry (3) can nevertheless be experienced as a genuine betrayal by consumers. How can authenticity be both a strategic asset and a source of vulnerability? Is it possible to prevent this asset from turning into a trap?

Through four studies (1), we examined to what extent the use of processed foods might be perceived by consumers as a breach of authenticity. We also analyzed the consequences of this “betrayal” on consumers’ evaluations of and visits to restaurants, and assessed managerial responses that could mitigate these effects.

“I thought the pastries were made at my local bakery [...] I feel deceived and cheated.” (1)

But who had promised what? Even though bakeries do not explicitly claim to use artisanal or on-site production methods, our survey shows that nearly 89% of their regular customers nevertheless have these kinds of expectations.

In a bakery, just as in a restaurant, numerous cues can create expectations of freshness and artisanal preparation: the type of establishment, the decor, the menu, any awards on display, or even references to tradition and craftsmanship (4).

According to the theory of the psychological contract (5), exchange relationships are based on the perception of mutual obligations: what each person believes they owe the other, but also what they believe they can legitimately expect from the other.

However, these reciprocal obligations do not arise solely from explicit promises. They are also shaped by environmental cues (in this case, those of the establishment and its more or less authentic decor), and by normative expectations shaped by prior experience and culture. Traditional bakeries, for example, are an integral part of European heritage (6); this cultural anchoring helps create implicit expectations of expertise and tradition with regard to bakeries in general.

When actual practices contradict these expectations, this discrepancy can be experienced as a genuine breach of the psychological contract. This is what we call a violation of authenticity.

And when an establishment explicitly builds its positioning around authenticity, this psychological contract becomes even more demanding. The use of mass-produced products can then be perceived as a more significant violation.

This breach of authenticity can negatively impact the establishment’s reputation, the quality of its relationship with customers, and customers’ willingness to return (7).

To understand what is compromised when an establishment is associated with the use of industrial products, we drew on two central dimensions of brand evaluation: competence and warmth (8).

Competence refers to the establishment’s expertise, know-how, and ability to perform its services well. Warmth relates more to the intentions attributed to it: does it appear sincere, caring, and concerned with its customers’ best interests?

Relying on processed foods can undermine these two perceptions. It can cast doubt on the quality of the claimed expertise. It can also suggest that the establishment prioritizes its own economic interests at the expense of its customers’ expectations.

Our surveys have allowed us to clarify these mechanisms depending on the context:

• In French bakeries, the decline in intention to visit is primarily due to a perceived loss of expertise.
• In Italian restaurants evaluated by American consumers, the decline in intention to visit stems both from a loss of confidence in the establishment’s expertise and from a more negative assessment of its intentions.

Our study shows that consumers may disapprove of the use of industrial products, yet put this information into perspective when it pertains to an entire sector of the hospitality industry, such as bakeries or ethnic restaurants.

For example, in the experiment conducted with French consumers, learning that this practice was widespread in the bakery sector had virtually no effect on the evaluation of a specific bakery: the perceived warmth remained stable (from 5.59 to 5.61 out of 7), as did the perceived competence (from 5.64 to 5.62), and the intention to visit, which even increased slightly (from 5.01 to 5.21).

Thus, this general information has little impact on the evaluation of a specific establishment, as long as that establishment is not directly implicated.

In fact, consumers often give the benefit of the doubt to brands they perceive as authentic. This tendency is even more pronounced when it comes to their favorite bakery or restaurant, as we are often more inclined to preserve the positive image of an establishment to which we are attached (9).

But as soon as the use of industrial products is associated with a specific establishment, consumer reactions become more negative.

In our French study, when a bakery is identified as using these products, the perceived warmth drops from 5.61 to 4.82 and the perceived competence from 5.64 to 4.59. And when that bakery explicitly claims to be authentic, the backlash is even stronger.

The use of industrial products can thus become the norm within an industry, without necessarily being accepted by consumers.

In the hospitality and restaurant industry, authenticity is a well-known and powerful differentiator. It fosters consumer engagement, satisfaction, and loyalty (7).

This authenticity can be assessed based on concrete elements: traditional methods, artisanal expertise, fresh or local ingredients, and on-site preparation. Thus, while authenticity drives sales, it also creates obligations. It establishes implicit obligations regarding preparation methods, thereby reducing flexibility.

And the more an establishment builds its value around authenticity, the more it exposes itself to severe repercussions when its practices contradict this positioning. In our survey of French consumers, the use of industrial products undermines a bakery’s perceived competence even more when the bakery is deemed authentic.

The impact of violating authenticity is also very pronounced in our U.S. survey of Italian restaurants. When the use of industrial products is attributed to a restaurant, it is penalized much more severely if it is perceived as authentic: perceived warmth decreases by twice as much, perceived competence by nearly three times as much, and the intention to visit by nearly four times as much.

Authenticity is therefore a double-edged sword:it is both a powerful strategic asset and a source of vulnerability.

We tested three strategies likely to restore the establishment’s reputation after the use of processed foods was revealed: justifying this practice (notably by citing efficiency gains without a decline in quality); clearly indicating their presence on the menu; or committing to eliminating them entirely.

Simply eliminating processed foods appears to be the most effective strategy, ahead of identifying them on the menu; justifying their use comes in last.

For restaurants perceived as authentic, only a commitment to remove industrial products from the menu restores perceived warmth and competence to their previous levels.

However, this costly response for the restaurant is not enough to completely erase the consequences of the breach: intentions to visit do not fully return to their previous level.

For establisments, the primary challenge is to ensure consistency between their positioning and their actual practices. If there is a discrepancy, they have two options: modify their practices to align them with their promises of authenticity, or revise their communication to set more realistic expectations. The cost of inconsistency can, in fact, exceed the efficiency gains achieved through the use of industrial products.

Our findings also point to a path forward for the industry as a whole: while consumer expectations are shaped collectively, changing them may require a collective response.

Trade associations and professional organizations could better inform consumers about common industry practices and explain why certain industrial preparations are used: to maintain consistent quality, reduce certain operational constraints, and allow establishments to focus more on other aspects of the dining experience. Such communication could help shift consumer expectations to better align with the industry’s actual practices.

Suppliers also have a role to play. They could explain their manufacturing processes and demonstrate that standardized, large-scale production can help maintain a consistent level of quality over time, without necessarily being incompatible with the use of traditional preparation techniques.