THE USE OF LOCAL PRODUCTS AS A TOOL FOR SUSTAINABLE DEVELOPMENT AND COMPETITIVE DIFFERENTIATION OF RESTAURANTS

Abstract

The article examines the process of localizing food products in Ukraine’s restaurant business under the conditions of ongoing economic and social transformations. It highlights that the transition toward the use of local ingredients is driven by a combination of global and national factors, including sustainable development trends, increasing consumer demand for transparency in food sourcing, the growth of ethical and environmentally responsible consumption, and significant disruptions in international logistics chains caused by geopolitical instability and war-related constraints. The study identifies that demand for local food is formed at the intersection of economic, social, and value-based dimensions of consumption. Consumers are increasingly motivated not only by price and taste, but also by the origin of products, their environmental footprint, and their contribution to local communities. This shift is further reinforced by the expansion of gastronomic tourism, digital communication channels, and social media, which actively shape perceptions of local cuisine and promote regional food identities. The paper characterizes the main barriers to the widespread implementation of local products in the restaurant sector. These include infrastructural limitations in rural supply chains, insufficient storage and logistics capacity, lack of standardized quality and certification systems for small producers, as well as regulatory constraints that complicate cooperation between farmers and hospitality businesses. Organizational challenges, such as the absence of long-term contractual relationships between restaurants and suppliers, are also emphasized. Special attention is given to the SWOT analysis of the development of the local food model in Ukraine’s restaurant industry. The analysis demonstrates that key strengths include product authenticity, high quality of raw materials, and alignment with global sustainability trends. Weaknesses are associated with seasonality, fragmented supply, and logistical instability. Opportunities lie in the development of gastronomic tourism, formation of a national food brand, and expansion of state support programs. Threats include macroeconomic instability, inflationary pressure, climate risks, and insufficient policy coordination. The economic effectiveness of using local products is assessed through reduced logistics costs, improved supply chain efficiency, and the multiplier effect on regional economies. It is demonstrated that spending on local procurement stimulates additional economic activity within communities, supporting employment, small-scale farming, and related service sectors. Overall, the study substantiates that the use of local products in the restaurant business is not only a marketing strategy, but also a significant instrument of regional economic development, enhancement of food security, and strengthening the resilience of local economic systems.