America’s Restaurants Face a Dilemma: How to Sell Food in the GLP-1 Era
Six months ago, Deborah Van Trece, chef and owner of Twisted Soul Cookhouse & Pours in Atlanta, noticed she was running out of containers for diners to take leftovers home. It wasn't a few bites left over. It was half a plate. No, it was that more customers were on GLP-1 weight-loss medications. Restaurants, from cozy upscale establishments to national fast-food chains, are figuring out how to adapt menus for the 11 percent of adults, roughly 30 million Americans, using drugs like Wegovy, Ozempic and Zepbound. People on these medications are eating out less and spending less when they do. We always ask guests about meals that aren’t fully consumed, and they are very forthcoming in letting you know it’s the shots, Ms. Van Trece said. The number of people taking these medications is expected to rise, and as consumers seek more protein to protect muscles, the response would seem straightforward: put more protein on the menu, and cut portion sizes. But adding protein to a plate can be expensive; beef prices remain at a record high. Businesses have to determine whether consumers would be willing to pay $5 or $7 more for a few additional grams of chicken or beef. And does half a sandwich mean it will cost 50 percent less? Not likely, as restaurants must still cover rent, labor and rising food expenses.
Higher food prices and rising labor costs since the pandemic have already strained profitability. One-third of restaurants said they were unprofitable in the first half of this year. Fast-food chains are facing significant challenges as their calorie-dense foods are not what people on weight-loss medications are seeking. Still, Mc Donald’s, which has seen customer visits slow down this year, is treading carefully. During its investor day meeting in Chicago, it served analysts a salad topped with Mc Crispy chicken strips and offered a grilled chicken wrap. Chris Kempczinski, CEO of Mc Donald’s, reiterated the restaurant chain had not seen any effect from consumers on GLP-1 medications, but the company is testing new options to adapt.
Source: New York Times Business · Summarized by HeadlinesBriefing