Low-Cal Menu Items Boost Chain Restaurant Growth

A new report finds that during a five-year period, low-calorie drinks and food drove growth for chain restaurants and QSRs such as Panera, Wendy's and McDonald's.

February 08, 2013

NEW YORK - During a five-year period (2006 to 2011), low-calorie drinks and food drove growth for all chain restaurants, according to The Hudson Institute??s "Lower-Calorie Foods: It??s Just Good Business" study.

The study looked at nearly two-dozen of the biggest U.S. restaurant chains, including Applebee??s, Arby??s, Burger King, McDonald??s, Olive Garden, Outback Steakhouse, Panera, Red Lobster, Taco Bell and Wendy??s. The vast majority of the chains (17 out of 21) reported that reduced calorie menu items sold better than regular menu items.

Nine of the chains upped the list of low-calorie menu options during that time period, and realized a 5.5% same-store sales bump on average. The dozen chains that didn??t tinker with the number of low-calorie options registered a 5.5% same-store sales drop on average. The chains with more reduced-calorie menu items also saw a jump in traffic, while traffic at the other chains decreased.

Some of the chains in the study have advertised food choices by calories, such as Applebee??s under 500 calorie dishes and McDonald??s "Favorites under 400 Calories" menu. The report focused on the number of low-calorie menu items sold, not offered. The study also defined low-calorie sandwiches and entrees as having less than 500 calories.

"This report suggests that the smart [chains] will get it and be more aggressive" in offering low-calorie options, said Hank Cardello, the report??s lead author. The study emphasized "lower-calorie foods and beverages is a proven pathway to improved servings, traffic and sales" and "public health officials and policymakers need to heed core restaurant chain business metrics in order to most effectively work with [the] industry to address the obesity epidemic."

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