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<\/a>Locals Seafood is booming. Less than a decade ago, Speckman and college buddy Lin Peterson started the enterprise by selling Stumpy Point shrimp out of a tailgate cooler on the side of the highway. Today, not only is Locals supplying more than four dozen chefs across the Triangle, Speckman and Peterson\u2019s company additionally stocks a dozen grocers and regularly provides foodies with homegrown choices at farmer\u2019s markets.<\/p>\n\n\n\n
They also serve their own retail customers at Locals Oyster Bar and Seafood Market, an airy, hip, even trendy space in the Transfer Company Food Hall in downtown Raleigh. There, a massive floor fan rumbles on summer days, evoking a dockside restaurant, while customers devour authentic offerings from chef Eric Montagne, whose father taught him to fish in the south Florida seaways.<\/p>\n\n\n\n
In search of the highest quality product, Locals\u2019 seafood lovers can experience the difference between Woccocon and Slash Creek oysters, for instance, as well as enjoy much more from a wide sampling of both well-known and underappreciated fish. In many ways, the company is helping to maintain the state\u2019s seafood as a vibrant niche market.<\/p>\n\n\n\n
Nash says the North Carolina seafood market is brimming with potential, yet certain to face ongoing challenges.<\/p>\n\n\n\n
\u201cThere\u2019s a growing, global demand for seafood,\u201d Nash explains. \u201cBut there\u2019s also a finite supply of local products, an aging population of the fishing fleet, and quotas designed to keep fisheries sustainable, limiting catch sizes. It\u2019s never been more important to identify exactly what consumers want.\u201d<\/p>\n\n\n\n
What do these challenges mean for Locals Seafood?<\/p>\n\n\n\n
\u201cWe may need to change things,\u201d Speckman says. \u201cIf we want to maintain our mission, we have to know how we can we squeeze every penny out of the local seafood market.\u201d<\/p>\n\n\n\n
To do that, diagnosing available market opportunities is critical \u2014 which is how Speckman, Peterson and Nash came to join forces on a quest for the heart of the North Carolina seafood consumer.<\/p>\n\n\n\n Speckman and Peterson have avoided the pitfalls of a classic cautionary tale \u2014 a story that starts with a young entrepreneur setting in motion what seems like an exceptional business plan. The company operates on an efficient model. The projected profit margins are solid. The owner invests liberally in clever advertising and publicity, and the PR generates an explosion of awareness. Thousands of people, in fact, learn about the company, its slogan and its products. And then it promptly goes out of business.<\/p>\n\n\n\n The problem, Nash says, is that many businesses don\u2019t actually identify their core customers in order to learn what those consumers actually want, or how to meet their expectations and desires.<\/p>\n\n\n\n \u201cThe money and time it takes to actually understand your consumer base \u2014 their tastes and demands \u2014 is considerable,\u201d he explains. \u201cMost producers and retailers don\u2019t have the resources to do this.\u201d<\/p>\n\n\n\n Which means many new businesses end up suffering the wrath of the market.<\/p>\n\n\n\n Even Speckman \u2014 who has taught himself how to navigate numerous hoops and hurdles while shepherding Locals from that single roadside cooler to a successful business \u2014 says the company has tried a clunker of an idea or two.<\/p>\n\n\n\n \u201cHome delivery,\u201d he says, in a tone that doesn\u2019t need an eye roll. \u201cWe ended up spending a lot of time getting from point A to point B. There was always some guy who only wanted a half-pound of shrimp delivered, and he was always the farthest away.\u201d<\/p>\n\n\n\n Nash says that determining how best to meet customers\u2019 needs and expectations is crucial, but it\u2019s only one aspect of market research.<\/p>\n\n\n\n \u201cIn order to stay relevant, businesses must know how \u2014 and why \u2014 consumer desires change.\u201d<\/p>\n\n\n\n According to Nash, consumer research already has outlined the broader story of the contemporary American food scene. Because we lead such busy lives, we\u2019re apt to devour pre-prepared, impulse-driven products of convenience. We prefer fresh, transportable meals, with minimally-processed ingredients and without artificial preservatives. Bold flavors and \u201chandcrafted\u201d quality characterize the most successful new product launches of the last few years.<\/p>\n\n\n\n In addition, people increasingly want fresh, natural foods with greater nutritional value, which, many consumers believe, will help prevent or alleviate even serious health conditions. Over time, consumers have become more trusting of niche food brands from local and regional businesses, as opposed to impersonal and distant national chains or international conglomerates.<\/p>\n\n\n\n In fact, when choosing their foods, people today tend to swoon over fresh, locally sourced, high-protein ingredients. Protein-rich, low-fat marine animals \u2014 laden with heartbeat- regulating, blood pressure-lowering omega-3 fatty acids \u2014 seem a perfect place for health-conscious foodies to invest their trust.<\/p>\n\n\n\n But these trends and preferences don\u2019t fully explain the complexities of the North Carolina seafood consumer base.<\/p>\n\n\n\n \u201cNorth Carolina Sea Grant can help fill in the gaps in market research,\u201d Nash says. \u201cRight now, for instance, roughly three-quarters of seafood is consumed in restaurants. But what does that really mean for seafood producers and retailers in our state? Ryan, Lin and I wanted to learn what, exactly, North Carolina seafood consumers want to eat \u2014 and how they want to prepare it.\u201d<\/p>\n\n\n\n Nash and Locals collaborated to design focus groups and online surveys that would elicit a fuller portrait of the seafood company\u2019s consumer base and the North Carolina seafood market at large. Their specific questions asked why people shopped at Locals, why they ate seafood, which seafoods were favorites, and which typically lesser known species they were familiar with.<\/p>\n\n\n\n Their questions also went deeper, seeking to uncover how seafood fit within consumer expectations and understandings of cooking itself. They probed consumer interests in meal kits \u2014 prepared meal components that seafood lovers could assemble and cook at home. Additionally, they asked if consumers would make use of ready- to-eat or heat-and-serve seafood, for which occasions they would consider using either, if they preferred refrigerated or frozen seafood meals, and even if they preferred particular kinds of packaging.<\/p>\n\n\n\n Nash and Speckman teamed for a Raleigh focus group, and Ann Simpson, then executive director of North Carolina Catch, led another in Chapel Hill. The online survey drew responses from 318 customers, nearly all residing in the Triangle.<\/p>\n\n\n\n With this information in hand, they could begin to create a profile of North Carolina seafood lovers.<\/p>\n\n\n\n \u201cFirst, we learned a lot about what was working,\u201d says Speckman. \u201cThe research confirmed we have loyal and trusting customers.\u201d<\/p>\n\n\n\n Nash says the company\u2019s relationship with its customers, in fact, would be the envy of any business.<\/p>\n\n\n\n \u201cIt was abundantly clear from the focus groups,\u201d says Nash. \u201cPeople really trust Locals Seafood Company. Customers see the staff as knowledgeable and reliable when helping them make their selections.\u201d<\/p>\n\n\n\n That trust goes a long way, especially given Locals\u2019 dedication to freshness and quality, which means bringing any available and appetizing species \u2014 even if lesser known \u2014 to market when timeliness dictates. This approach, however, can require some adventurousness on the part of the consumer.<\/p>\n\n\n\n Most focus group participants were equal to the challenge, collectively reporting they were familiar with a wide array of species: amberjack, black drum, bluefish, cape shark, croaker, king mackerel, mullet, pink snapper, sheepshead, white grunt, and white perch.<\/p>\n\n\n\n But, far more importantly, they said they were willing to try anything if Locals Seafood was offering it.<\/p>\n\n\n\n The online survey revealed other key information, too, including consumers\u2019 top three seafood favorites: oysters, clams and pink snapper. Participants also mentioned many other species they enjoyed from the North Carolina coast, including bass, crab, cobia, flounder, grouper, hogfish, mahi mahi, monk fish, octopus, pompano, scallops, shrimp, squid, Spanish mackerel, spots, swordfish, tilefish, triggerfish and tuna.<\/p>\n\n\n\n Lovers of North Carolina seafood, then, present a diverse and educated palate, for which Locals certainly deserves its share of the credit. Of course, credit also goes to the state\u2019s long heritage of seafood cooking and consumption.<\/p>\n\n\n\n But where is the North Carolina seafood market headed?<\/p>\n\n\n\n Here, the answer becomes complicated, because it relies on consumers\u2019 attitudes about the process of cooking seafood, how and why they cook, and when they prefer to take shortcuts from traditional cooking.<\/p>\n\n\n\n First, focus group discussions quickly confirmed that seafood certainly isn\u2019t only for people who enjoy dining out. The home kitchen, in fact, is alive and well. These consumers unequivocally indicated that they enjoy cooking seafood, although some noted they have less time than they want for it.<\/p>\n\n\n\n The online survey also revealed seafood\u2019s regular presence in kitchens across the Triangle. Forty-five percent of respondents said they cook seafood at home during a typical week, and nearly 36% indicated they do so twice weekly. Almost 1 in 10 reported they cook seafood at home three times a week.<\/p>\n\n\n\n Because they value cooking with fresh ingredients, seafood lovers in the focus groups seemed more reluctant than online respondents to use any kind of prepared product in their kitchens, except for pre-made crab cakes or fish cakes \u2014 and only then if they could cook them at home.<\/p>\n\n\n\n Many people, however, were open to additional ideas that could enrich the cooking experience.<\/p>\n\n\n\n \u201cWe did learn a lot about what would make people\u2019s lives easier,\u201d Speckman says. \u201cTo start with, everybody wants recipes.\u201d<\/p>\n\n\n\n The staff at Locals also knew about this need first-hand from their fish market patrons. \u201cA lot of people come to the market asking for recipes,\u201d says Sarah Grace Smith, who oversees marketing for the company. \u201cBecause of that, we have a lot of recipes available on our website.\u201d<\/p>\n\n\n\n In addition, both the online survey and the focus groups found that consumers want to use soup stocks and seasoning blends, with the focus groups additionally indicating a desire for marinades and vinaigrettes.<\/p>\n\n\n\n \u201cThe goal of the focus group consumers clearly is to enhance the seafood cooking experience, without watering it down,\u201d Nash says. \u201cThe online survey showed us that people would purchase enhancements to use any day of the week, with some exceptions for preparing meals for the holidays or special occasions.\u201d<\/p>\n\n\n\n Consumers also expressed interest in meal kits that contain prepared ingredients, primarily to use during weekdays. In fact, 62% of the people who took the online survey indicated they would buy meal kits, although the product had much more appeal for consumers under age 65.<\/p>\n\n\n\n The value of cooking fresh seafood varies according to who is responding and how. In contrast to focus group consumers, a majority of the online participants \u2014 across all age groups \u2014said they would purchase heat-and- serve seafood products and that they would use them during the workweek, when time was at a premium.<\/p>\n\n\n\n And what about the absolutely easiest products to put on the table at home \u2014 those foods you don\u2019t even have to heat up?<\/p>\n\n\n\n \u201cMany people do want an option for scoop-and-serve seafood,\u201d says Speckman.<\/p>\n\n\n\n Although it might seem like blasphemy in a state with a heritage of pan-seared sheepshead and shad roe with bacon, this finding from the online survey obviously reflects the realities of contemporary life. A majority of consumers, especially within the 24-to-44 age range, will buy pre-cooked, ready-to-serve products. About half said they would eat them during the week and half on the weekend \u2014 meaning, of course, that on any day of the week a sizable portion of the seafood consumer base in the study will eat scoop-and- serve meals.<\/p>\n\n\n\n The research revealed other important tidbits, too. Focus group responses implied a potential market segment for smoked North Carolina seafood, for instance. Consumers also noted it was critical for prepared seafood products to include detailed instructions that would deliver a consistent outcome. Focus groups additionally emphasized that prepared portion sizes should accommodate the appetites of one to four people.<\/p>\n\n\n\n But the inescapable, overarching conclusion of the survey and focus groups, which has implications for what to sell and how to sell it, is that consumers of local seafood do not all place the same value on cooking. These consumers include traditional cooking purists, as well as people who want enriched or augmented cooking experiences and other consumers willing to trade cooking for convenience.<\/p>\n\n\n\n Generally speaking, the online survey suggests that consumers do trend younger as convenience increases from meal kits to heat-and-serve to scoop-and-serve meals. But local seafood lovers likely do not comprise completely separate groups. A single consumer might belong to each of the groups at different times, depending on the day of the week, type of product and the occasion.<\/p>\n\n\n\n Speckman has helped to build Locals Seafood in no small part because the risks associated with change scare him far less than with keeping the status quo.<\/p>\n\n\n\n \u201cWhen we first started this business, I thought we were going to be selling all of our seafood online,\u201d he says. \u201cBut we evolved naturally into a predominately wholesale distributor. We allowed the demand to drive our growth and development.\u201d<\/p>\n\n\n\n With new insights about the market, Locals is reflecting that adaptability again.<\/p>\n\n\n\n \u201cWe want to have different seafood products for each category of consumer,\u201d Speckman says. While the company remains committed to bridging the sea-to-table gap with fresh North Carolina catches, Locals Oyster Bar and Seafood Market now offers fish stock and prepared foods that include shrimp salad, smoked fish dip and a ceviche. All still rely on quality North Carolina seafood, while also meeting consumer needs for enriching and pre-made products.<\/p>\n\n\n\n \u201cI\u2019ve also wanted to offer products that people could assemble at home with some easy instructions,\u201d Speckman adds. Always the innovator, he says Locals is even developing a sushi-grade product that chefs and retail consumers will be able to use in raw dishes.<\/p>\n\n\n\n To Nash, the company\u2019s multi- pronged approach makes sense. While Locals continues to respond to North Carolina seafood consumers\u2019 wide-ranging tastes, the company also is positioning itself to deal with changes in the economy.<\/p>\n\n\n\n \u201cWe clearly found there are still consumers who enjoy preparing seafood at home, and that many other people also will use fresh products that facilitate home cooking without fully replacing the cooking process,\u201d Nash says. \u201cIf the economy goes bad, out of necessity many more seafood- loving restaurant-goers may retreat to their own kitchens to cook. Locals can address their tastes.\u201d<\/p>\n\n\n\n Regardless of what local consumers can afford and where they can afford to eat it, North Carolinians likely will continue to covet quality seafood, and Locals Seafood likely will find an avenue to satisfy their desires.<\/p>\n\n\n\n \u201cOver the years, we\u2019ve never really pigeon-holed ourselves,\u201d Speckman says. \u201cWe just always knew we wanted to bring a North Carolina product as fresh as possible to consumers and let them dictate what works and what doesn\u2019t.\u201d<\/p>\n\n\n\n The Community Collaborative Research Grant program <\/a><\/em>supported this project. North Carolina Sea Grant administers the program in partnership with NC State\u2019s William R. Kenan Jr. Institute for Engineering, Technology and Science<\/a><\/em>, and with the N.C. Water Resources Research Institute<\/a>. <\/em><\/p>\n\n\n\n \u2022 Read more about North Carolina\u2019s Sea-to-Table movement<\/a>.<\/a>The Business Owner’s First Commandment<\/h2>\n\n\n\n
<\/a>To Cook or Not to Cook<\/h2>\n\n\n\n
<\/a>What Works and What Doesn’t<\/h2>\n\n\n\n
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\u2022 Access information and resources for seafood lovers<\/a>.
\u2022 Read more about Locals Seafood<\/a>.<\/p>\n\n\n