Local Iowa producers were surveyed to determine perceived benefits and obstacles in marketing to local restaurants and institutional foodservice operations; 195 (35%) responded. Results indicated that only 25% of producers currently were selling to foodservice operations. Benefits cited were: support for local farmers; fresher food; food traveling shorter distances; better quality food; and knowledge of food source. Year-round availability, lack of dependable market, and inability to change pricing were greatest obstacles. Extension educators can help facilitate linking local growers with foodservice operations to increase direct sales of local products to these operations.