The restaurant business is in a competitive industry
where price conscious consumers make economic choices about where and when to
eat. Understanding customers and their needs affords opportunities to draw them
back again and again allowing for greater revenue generation. According to
research nearly half all food expenditures are outside of the home (Guthrie,
Lin, & Frazao, 2002). Since
customers dine out on a frequent basis getting the menu right can make a huge
difference in customer perceptions and sales.
With the 2010 Healthcare Reform Law food service
with 20 or more outlets and food within stores must come with nutritional
information. This does not apply to small restaurants that may be making
individual choices to include such information. Therefore, research into the
specific advantages and disadvantages of labeling food is beneficial for
smaller operations.
The specific information that is required and where
it is posted is another grey area in the law. This means that some
establishments might put the information on their website, a posting in the
facility, or any number of places. However, one must wonder if there is a
benefit to including this information specifically within the menu.
A study conducted by Pulos and Leng (2010) helps to
highlight a number of aspects related to offering nutritional data on menus.
The study was conducted in conjunction with the Pierce County Washington Health
Department. Their goal was to determine if including nutritional information
changed ordering patterns by customers. If there was a change they wanted to
see if there were ways to improve the program.
To conduct their study they looked at independently
owned restaurants to compare the pre-labeling and post-labeling impact on
customer purchases. Information in the labeling included calories, fat, sodium,
and carbohydrates. Out of the six participating businesses a number were not
aware of their nutritional data and the health department helped them calculate
appropriate numbers. Pre and post label orders were collected from the restaurants.
Two hundred and six customers’ surveys were included in the study.
Results:
- In four of the six restaurants showed that post
labeling purchases contained less calories.
-In five of the six restaurants the post labeling
purchases contained less fat.
- In the study the food purchased
contained 15 fewer calories, 1.5 fewer grams of fat and 45 fewer milligrams of
sodium.
-Approximately a third of the
customers made at least one behavioral change due to the nutritional
information.
-Approximately 71% of people
noticed the nutritional information.
-Approximately 80% of people
under 46 years of age noticed the nutritional information and 60% of people
over the age of 46 noticed the information.
Business Analysis:
Businesses that are not required
to include nutritional information on their menus may consider changing based
upon the demographics of their customers. Younger patrons appear to be more
health conscious than older patrons. Purchasing patterns did adjust which items
were bought when nutritional information was presented which resulted in few
calories consumed. However, 15 calories a few days a week isn’t likely to make
a large difference in obesity. The bigger change appears to be the businesses
themselves that actually adjusted their food with alternatives to move their
calorie counts downward. No information was presented on what this actually did
in terms of revenue. Businesses will need to weigh and balance the benefits and costs associated with nutritional information to determine if it
enhances their branding, customer satisfaction and image. The study did
highlight how government and business have an opportunity to work together to understand
problems and make movement toward choices that do not damage commerce.
Guthrie J, Lin & Frazao E.
(2002). Role of food prepared away from home in the American diet, 1977–78
versus 1994–96: changes and consequences. J
Nutritional Education Behavior, 34 (3)
Pulos, E and Leng, K. (2010) Evaluation of voluntary
menu-labeling program in full-service restaurants. American Journal of Public Health, 100 (6).
