Contents

1.0 Background .......................................................................................................................................3

2.0 Rational .............................................................................................................................................3

3.0 Scope.................................................................................................................................................3

4.0 Aim and objective .............................................................................................................................4

5.0 Potential insightful outcome.............................................................................................................4

6.0 Application of theory into practice ...................................................................................................4

7.0 Method of analysis............................................................................................................................6

8.0 Evidence............................................................................................................................................6

9.0 Reference..........................................................................................................................................7
1.0 Background

UK food service industry had a steady growth where it grew from GDP 50,141 Million in 2008 to GDP

71,428 million in 2017, Further the eating out market also grew simultaneously (statista, 2017). Nando's

is the most visited restaurant chain in 2020 where it recorded 8,029,000 visitors (Statista, 2020). In

addition risen of the ethical buying behavior can be noticed in household level in UK where it grew 141%

in 2019 vs 2016 (Statista, 2021). With the climate changes and environmental disasters caused by

human, awareness about sustainability and the demand for green products has increased all over the

world. Yet the food service industry in UK is only accounted to 3.1% of entire organic food industry in

the country. As explain by (Shokri, Oglethorpe and Nabhani, 2014) journal article in UK small and

medium scale restaurants do not practice sustainable methods or materials. Further it explains the

larger scale restaurants has fair amount of concern and practices sustainable method yet it can insure

more costs. Which can be the reason that lesser practice of sustainability practices and this paper will

discuss about consumers’ willingness to pay premium for green products in food industry in UK.

2.0 Rationale

(Ottenbacher et al., 2019) has found that that consumers are willing to pay premium to sustainable food

products in Germany and the decision is based on consumers itself rather than restaurant service.

Further (Kim, Yoon and Shin, 2015) has found that In South Korea consumers who are sustainability

conscious are willing to pay 21% premium to green products in food service industry. (Schubert et al.,

2010) also found in his research that in US there is an untouched niche market for green restaurants

where consumer will pay more for green practices and green products. However shortage of the

research conducted on consumer willingness to pay a premium (CWPP) to greener products in UK food

industry triggered the need of the research. Outcome of the research will help restaurant to understand

the CWPP on green product and help to develop product to address unsatisfied needs of the market.

3.0 Scope

This paper will discuss about green food products such as organic, free range eggs, vegetarian and plant
based alternatives and food that are sustainability harvested without harming the natural balance.

Further this will not include green practices such as using bio gas and fair pay techniques. Scope is

limited geographically to UK’s food service industry. To further narrow it down author is only focusing

on restaurants and excluding catering, school, hospital and other cafeterias from the discussion.

4.0 Aim and objective

Aim of the research is to critically evaluate consumers’ willingness to pay premium for green products in

food industry in UK and it was broken down to below four objectives.

1. To evaluate and understand key aspect of green products focus of UK food industry.
2. To evaluate key triggers that influence consumers' willingness to pay a premium in food
industry in UK.
3. Critically assess consumer wiliness to pay a premium to green products in UK food industry
4. To establish most effective and appropriate green product practices that can improve
consumers’ willingness to pay a premium in food industry in UK

5.0 Potential insightful outcome

Study will provide insight and clarity of CWPP on green products in food service industry in UK further it

will give insights to the restaurant industry, about which aspects of green product is more attractive and

will provide opportunity to charge a premium and which aspects are not noticeable to the consumer.

Hence this study will provide new information to the food service industry in UKM and will help to

satisfy the niche market of sustainability conscious consumers.

6.0 Application of theory into practice

With the population growth world is facing natural recourse overuse and as an example (Pimentel,

2004) highlighted overuse of Colorado river has destroyed many species who live in water in that region.

(Schubertet al., 2010) also explained negative impact of over use of water, and chemicals to attain a

better harvest can adversely impact the nature. People such as Greta Thunberg has taken the natural

disasters in to the global forum and increase the awareness about the matter. and Green Products are a

growing interest are in all over the world (DiPietro, Cao and Partlow, 2013). Study consist with two
variable which are Green products and the Consumers’ willingness to pay a premium. McCarthy’s

(1960) four Ps or modified version use by all companies in the world and in this study author will

critically analyze product and price in order to identify there is product development opportunities in

the UK food service industry.

According to (GRA, 2021) following can be understood as qualifiers to be a of green food products.

Second variable is how comfortable is consumer to pay a premium. As per (Kamboj and Matharu, 2021)

the consumers’ willingness to pay is depending on attitude toward sustainable products, perceived

value and knowledge about sustainability issue. Further (Kamboj and Matharu, 2021) has explained

attitude towards sustainability is influence by once health, environmental consciousness and focus

towards sustainability.

Figure 02; Proposed conseptual frame work on CWPP on green products

As displayed above, Green product will be taken as the independent variable while willingness to pay

premium is the dependent variable.

7.0 Method of analysis

Quinlan’s (2019) Secondary methodology was chosen to conduct the research due to unavailable means

of collecting the primary data in the pandemic situation and due to ethical concerns. Even though

primary method is considered to be the best method, given well-define scope and objectives will allow

author to adopt secondary methodology. It was decided to explore the existing theories in order to

derive on conclusion so this can be identify as a deductive research. Systematic review was chosen as

research strategy as the Comparative analysis and multiple case studies couldn’t be selected due to lack

of existing restaurants chains who already practices green food products in chosen demographical area.

Further availability of great number of research articles related to chosen topic will be a reason to

conduct systematic review. Key words has helped to collect the data and author decided to collect data

only related to this millennium as going further back will not be time accurate. In addition PRISMA tool

will be used to collect the necessary articles (Saunders, et al., 2015) and in order to check the accuracy

of theoretical frame work thematic analysis will be used as a tool. To summarize research will be
qualitative research and systematic review will the data collection method to further specify Realist

synthesis method will be implement.

8.0 Evidence

As the summary the research is being conducted to understand the relationship between price and

Green Product focus of UK food service industry. Motive of the research is to provide information and

knowledge to the restaurants in UK to develop their services and be a voice to the unheard green

conscious consumer in the UK market.

It is apparent that some aspects of green product are more attractive to the consumers than

others. Therefore, focusing on most attractive aspect of green product can help the restaurants

to charge a premium which will help the restaurant to breakeven faster. In this context, this

study will be helpful for both academics and restaurants.

Reference

DiPietro, R. B., Cao, Y. and Partlow, C. (2013) ‘Green practices in upscale foodservice operations:
Customer perceptions and purchase intentions’, International Journal of Contemporary
Hospitality Management, 25(5), pp. 779–796. doi: 10.1108/IJCHM-May-2012-0082.

E. J. McCarthy (1960) in his book, "Basic Marketing - A Managerial Approach.“

Kamboj, S. and Matharu, M. (2021) ‘Modelling the predictors of consumers’ willingness to pay premium
price for

sustainable products’, Journal of Asia Business Studies, ahead-of-print(ahead-of-print). doi:

10.1108/jabs-03-2020- 0099.

Kim, S., Yoon, J. and Shin, J. (2015) ‘Sustainable business-andindustry foodservice: Consumers’
perception and willingness to pay a premium in South Korea’, International Journal of
Contemporary Hospitality Management, 27(4), pp. 648–669. doi: 10.1108/IJCHM-09-2013-0400.

Ottenbacher, M. C. et al. (2019) ‘QSR customer sustainable behaviors and brand practice perceptions on
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Pimentel, D. (2004) ‘Ethical issues of global corporatization: Agriculture and beyond’, Poultry Science,
83(3), pp. 321–329. doi: 10.1093/ps/83.3.321.

Quinlan, C., Babin, B. & Carr, J., 2019. Business Research Methods. 2nd ed. Andover: Cengage Learning.

Saunders, M. N. K., Lewis, P. & Thornhill, A., 2015. Research methods for business students. 7th ed.
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Shokri, A., Oglethorpe, D. and Nabhani, F. (2014) ‘Evaluating sustainability in the UK fast food supply
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statista (2017) ‘Restaurants in the United Kingdom (UK)’,

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