Sales of weight-loss drugs like Wegovy and Ozempic have surged in recent months, and some analysts are concerned that this could lead to a decline in demand for restaurant meals. These drugs work by suppressing appetite, and they can be very effective at helping people lose weight.
A recent survey by investment firm BTIG found that 30% of restaurant customers said they were concerned about the impact of weight-loss drugs on their eating habits. The survey also found that 10% of customers said they had already reduced their spending on restaurant meals because of the drugs.
The weight-loss drug trend is adding to the challenges that US restaurants are already facing. Restaurants are already grappling with high inflation, labor shortages, and rising food costs. The decline in traffic is putting further pressure on restaurant margins and profitability.
Some restaurants are trying to adapt to the weight-loss drug trend. For example, some restaurants are offering smaller portion sizes or healthier menu options. However, it remains to be seen whether these efforts will be enough to offset the decline in demand for restaurant meals.
The weight-loss drug trend is a significant development for the US restaurant industry. It is too early to say what the long-term impact of the trend will be, but it is clear that restaurants will need to adapt in order to remain competitive.
Here are some specific examples of how weight-loss drugs are impacting US restaurants:
Walmart has seen a slight pullback in food consumption among customers taking weight-loss drugs.
Conagra Brands is considering tweaking portion sizes or ingredients in response to the trend.
The S&P 500 restaurants index has fallen by 1.3% since the concerns about weight-loss drugs were first raised.
Foot traffic at McDonald’s, KFC, and Taco Bell has declined in recent months.
It is important to note that the weight-loss drug trend is still relatively new, and it is too early to say what the long-term impact will be on the US restaurant industry. However, it is clear that the trend is something that restaurants need to be aware of.