In 2018, the Food and Drug Administration released a menu labeling regulation stating that restaurants part of a chain of 20 or more and similar retail food establishments must provide the calorie counts next to menu items. This menu labeling law was set into place for the purpose of addressing the obesity epidemic plaguing the United States. As it stands, over 80% of Americans are either overweight or obese.
These new menu labeling requirements are purposed to give the consumer the needed nutrition information to empower them in making informed choices regarding the caloric values of the menu items they order and regain control over their health.
How Menu Labeling Positively Impacts Your Bottom Line
While the intention behind the new menu labeling law is noble in addressing the state of public health, there happens to be a bonus benefit for all parties involved. New information released by the National Institutes of Health reports that chain restaurants and similar retail food establishments that choose to comply with the Food and Drug Administration‘s enforcement of menu labeling see an average revenue increase of 3% over the course of a year. And the plus side, menu labeling seems to be an effective strategy in the war on American obesity, decreasing the amount of caloric intake per transaction by a whopping 14%.
And with more and more companies within the food and beverage industry, both on the Restaurant and CPG side, desiring to combine virtue and profitability — menu labeling requirements suddenly become less of a law that needs enforcing and more of a solution to a problem for your customers and your bottom line.
If haven’t been watching the trends, let us fill you in. The food industry is making massive strides towards sustainability, health and adequate production without damaging the environment for the 10 billion estimated world population for 2050. A jam-packed sentence addressing an equally overwhelming problem. The world population is increasing as health is simultaneously decreasing. Efforts have been made by the World Health Organization, the entire reason behind the push of the affordable care act to enforce menu labeling to address the issues of public health while trying to spin the other plates that are threatening to crash to the ground.
Menu-labeling, in this light, becomes a solution for the population as it grows in number to decrease in individual size with the benefit of riding a trend that will ultimately increase your revenue through compliance of this calorie labeling practice. If large companies like Nestle can believe in the profitability of virtuous practices and providing practical solutions for the sake of public health and the environment, imagine what that same practice could do for chain restaurants, grocery stores, convenience stores, movie theaters and similar retail food establishments?
Sometimes, it pays to be a problem solver.