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By Kindra Gordon
Selling Beef
What do CostCo, Buckhorn Steakhouse & Country Natural Beef do to successfully sell beef? Here, they spill their secrets.
It’s true that everyone in the beef industry is invested in the task of selling beef. But, admittedly, some folks are a little closer to putting red meat on the consumer’s plate than others. Here, a restaurant owner, retail grocery club, and well-known beef cooperative provide the scoop on how they’ve built their success.

What is CostCo’s philosophy on selling beef?
In a word it’s quality, according to Charlie Winters from CostCo Wholesale Corp., Issaquah, WA.

“Our mission at CostCo is to continually provide our members with quality goods and services at the lowest possible price, and that will never change,” Winters says.

With 527 warehouses nationwide, his company is the fourth largest retailer in the U.S., and the eighth-largest in the world. CostCo is also the largest buyer of USDA Choice Beef in the world – as well as the largest buyer of salmon and lamb.

Despite its large scale, Winters says its primary focus is always the customers – and bring quality products to them. He adds that price may be a deciding factor for some consumers, however CostCo’s attention to detail in how meat is processed is proof that quality outweighs price in most cases.

How do you ensure quality in a restaurant setting?
John Pickerel, owner and operator of ten Buckhorn Steak & Roadhouse restaurants located in the San Francisco Bay area, says the key to restaurant success is always offering a consistent, premium beef product.

Pickerel started his first restaurant with “beef on a bun” and a little au jus. The business grew by always offering a reliable product – premium Choice Angus beef, wet aged, carefully seasoned, and cooked medium rare.

He recognized the success a restaurant could have by offering patrons a stellar eating experience – and from then on he says he’s been devoted to “doing meat right.”
He says, “We’re fanatical about it. We take quality very seriously and promote the flavor….We’re aggressive about explaining to the customer why they should and will enjoy our beef.”
Annually, Buckhorn restaurants serve 500,000 pounds of CAB brand beef to more than 100,000 patrons. In 2006, Buckhorn Steak & Roadhouse was selected as the National Beef Backer Award winner.

Pickerel is so focused on serving high-quality beef, he says, “If we do our job right, we can convert die-hard vegetarians, stubborn children and skeptical Texans. They will talk about the experience and return for more.”

What other restaurant lessons has Pickerel learned?
At Buckhorn restaurants the focus on quality isn’t only on the entrée’s served; it’s also on the staff who is serving the customers. This helps create that premier dining experience
Pickerel employs his own meat cutter, to cut beef to customer specifications, and in his restaurants he focuses on educating servers as well. They must earn certification through Buckhorn’s own “Cow School,” which trains employees on the differences in meat cuts as well as the differences in beef quality, aging, marination and preparation methods.

How was success achieved in Country Natural Beef ranch-to-retail cooperative?
In 1986, Doc and Connie Hatfield of Brothers, OR, blazed a new trail for the beef industry when they formed an alliance with 14 other ranch families with the goal of producing beef to meet specific consumer needs and wants. They formed Country Natural Beef, a cooperative that would merchandise beef to consumers seeking beef grown without added hormones and antibiotics.

They began by marketing 3-5 head/week in 1986, and today, Country Natural Beef has grown to sales of more than 50,000 head in 2007. The cooperative now includes more than 100 ranches owning more than 100,000 mother cows.

Connie Hatfield explains that emphasizing the connection between the beef products and the cooperative’s producer families has been core to Country Natural Beef’s success.
Consumers find appeal in learning that the beef they buy was raised in environmentally friendly production systems and under low-stress conditions. It’s a merchandising step that adds an emotional connection and further differentiates Country Natural Beef in the marketplace, she says.

How do ranchers help make the cooperative a success?
Rancher involvement has been integral to the growth and success of Country Natural Beef. Ranch members must agree to deliver cattle that are committed to the program 12-18 months in advance. Ranchers must also follow requirements for animal handling and management principles.

Beef promotion and interaction are also part of member duties. Ranch members must attend two 3-day membership meetings per year. As well as agree to spend one weekend in the city promoting Country Natural Beef, and devote at least one day to hosting customers attending an appreciation day on the ranch or a rancher-sponsored tour.

Of the ranch-to-retail alliance that is entering its 22-year, Doc Hatfield concludes, “It provides more value to the customer and more price and meaning to our rancher’s work. It’s simple, but it isn’t always easy.”

Editor’s Note: This article is based on comments made by speakers at the Range Beef Cow Symposium held in Fort Collins, CO, Dec. 11-13. To review more presentations by speakers at the event visit www.rangebeefcow.com.

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