Fat Chance  ©

 At a recent wedding to which my lovely wife and I were invited to here in Chicago, the bride’s sister made a speech outlining the moment she realized that she was losing her baby sister to Chuck, the groom and new brother-in-law to be.

The three were dining at a restaurant when the waiter came to the table and asked what they would like to drink. As the bride-to-be was at that time powdering her nose, the sister ordered a Diet Coke for her. Chuck jumped in and said that she would take water, because it was too late in the evening for his future wife to consume caffeine! These people were no kill-joys – indeed at the wedding the bride was out on the dance floor with a bottle of beer in her hand! But this little anecdote does illustrate how intensely some Americans consider food and beverage consumption.

To some extent, this backdrop helps to provide a better understanding of the media hype which currently surrounds the whole issue of fat and obesity in the US Marketplace. Industry figures suggest that up to 60% of US citizens are technically obese – something that government and health authorities are becoming increasingly worried about. This obesity has lead to substantial growth in diabetes and coronary related conditions which are adding billions to the US healthcare budget and driving health insurance premiums sky high.

Combine these national trends with a rapacious legal industry which smells multi million dollar law-suits for their poor deranged clients who have been enticed to consume high calorie foods (aw!) and you have a foodservice (and food) industry that is seriously concerned about the implications for future growth and litigation.

The Kraft Corporation has been to the forefront in terms of consumer education but most recently also in terms of product changes. It has announced that it will be introducing smaller portion sizes in coming months, reducing fat levels in many of its products and completely removing trans-fatty acids from all products. And of course, the media and concerned citizens write “about time” and “jolly good show –what!”.

But will this type of logic succeed in foodservice?

David Overton, Chairman and CEO of the hugely successful The Cheesecake Factory recently interviewed in Restaurants and Institutions Magazine suggested that people do not want reduced calories when they dine out. Overton said “we have had lo-cal cheesecakes and they have not sold well. We find that when people dine out, they want every calorie that they pay for!”

In terms of customer behaviour, Overton may well be correct, but the major chains are taking no chances. McDonald’s – which is the primary defendant in a major action brought by “fat activists” is now making strenuous efforts to portray healthful images associated with its brand. Nutritional information is available in-store and on corporate web-sites. New products such as their immensely successful premium salads convey an image of healthfulness that is likely to change customer perception – even if very slightly – that the chain sells nothing but high calorie food.

The burger giant has also adopted a healthfulness programme first introduced by The Coca-Cola Corporation called Step To It.

The Applebee’s chain has partnered with Weight Watchers to bring great tasting low calorie meals to patrons in its continuing efforts to grow foodservice profit. This is a clever marketing ploy because of the size of the Weight Watchers franchise in the United States. Here again, the image may be the most important element of this promotion, it is seen as responding to customer sentiment and  Applebee’s as a result have got universally good – and extensive – press following the announcement.

Chili’s restaurant group has a concept on its menu called Guiltless Grill which features the fat content for each of the respective Guiltless Grill menu items. While Chili’s have not indicated margins on these menu items, they likely generate higher profit margin than standard dishes.

And did you hear about the company that reduced the size of its portions and raised cheque average? Nope, I’m not hallucinating! Outback Steakhouse has responded to the wishes of the “Grey Market” who have asked for smaller portions. Following test market, the chain is rolling this concept out nationally by year end. Their findings suggest that guests who previously share entrees because they were so large, now purchase two full (smaller) entrees and also purchase now appetizers! Hence the increase in cheque average. It isn’t logical, but most of us do park our brains when we go to a restaurant.

This is the paradox that is facing the trade in general. It has to be seen to be responsible, it has to offer choice, but the bottom line is that most consumers will still opt for the less healthy option – simply because it tastes better. Until the total food industry is able to bring really good tasting healthy food to the market place, the level of hype surrounding good healthy food will be substantially greater than the actual consumption level.

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Conor Cunneen is President GROW Foodservice Profit. He is an acclaimed and award winning motivation speaker, strategy speaker, leadership speaker and marketing speaker. He is the 2003 Chicago Toastmasters Humorous Speaker of the Year.

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