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Fad Diets Come And Go, But Restaurants Are Finding Plenty Of Success Catering To Health-Conscious Consumers

Remember when McDonald’s launched the McLean Deluxe in the early ’90s to ride the wave of the low-fat diet era? The burger featured a 91% fat-free beef patty (the secret ingredient was a seaweed extract) and lasted a few years on the menu before it was yanked due to poor sales.

It is now considered one of McDonald’s top five biggest menu flops.

This example brings up an important question: What role, if any, should restaurants play in the latest fad diet or in the chase for the fickle health-conscious consumer in general? After all, restaurant visits have long been considered an indulgence and, from A (Atkins) to Z (Zone), diets come and go quicker than most operators can change a static menu board.

But that hasn’t stopped restaurant concepts from trying. And lately it seems as though there has been a higher degree of success in doing so—at least more so than the McLean Deluxe.

Noodles & Company, for example, just expanded its zucchini-noodle based offerings with two new menu items as part of a new category, “Zoodles and Other Noodles.” In a release, the company said the expansion is in response to overwhelmingly positive guest feedback to its initial Zoodles launch last year. During the company’s Q4 earnings call, executive chairman Paul Murphy said the zucchini noodle is an important step toward the brand’s objective of resonating from a health perspective.

Chipotle launched its Lifestyle Bowls in the beginning of the year. During the company’s latest earnings call, CEO Brian Niccol also said they have resonated with consumers in “a big way.”

“In fact, during the first few days, it generated over a billion earned media impressions,” he said.

The company is now testing several other menu items highlighting “the ideas of lifestyle goals,” Niccol said. This comes on the heels of the chain’s vegan and vegetarian bowls launch in 2018, which made up 12% of Chipotle’s total meals sold last year.

Even the most famous doughnut concept is getting involved. During Dunkin’s Q1 earnings call, CEO Dave Hoffman specifically called out the success of the brand’s Power Breakfast Sandwich.

“It’s a terrific first step for us into the better-for-you category and proves customers are open to more menu options at Dunkin’,” he said. The company is building off that success with a new egg white power bowl.

Mooyah Burgers, Fries & Shakes just jumped into the specialty diet space with its new line of Lifestyle Burgers, including The Paleo, The Keto, The Low Cal, The Vegetarian and The Gluten-Free. For the former three burgers, the bun is replaced by iceberg lettuce.

Natalie Anderson Liu, Mooyah’s vice president of Brand, said restaurant chains should be quick to respond to consumer dietary preferences and lifestyle trends, no matter how quickly they come or go.

“This is simply a matter of being a good listener to guests. Beyond want, we have found that consumers expect us to have menu items that help them achieve their goals,” she said.

So far, the Lifestyle Burgers launch has been “huge.” Thirty-one percent of guests who ordered one of these options were first-time visitors, Liu said.

“This is incredibly exciting and confirms the relevance of featuring our menu this way,” she said.

Liu believes more chains will toe this line of healthier (“lifestyle”) menu offerings.

Two years ago, Scott Davis was named president of CoreLife Eatery after serving as an executive at Panera for nearly two decades. He has a deep perspective of the industry and confirms there is a growing connection between consumers’ dietary demands and restaurants’ responses.

“Over the last couple of decades, as healthy eating has become more popular, restaurants have mostly played role of a ‘marketplace’–essentially providing healthy options or special menus,” he said. “The key is not getting stuck on one style of eating or dieting. Promoting general wellness, clean sourcing and ‘what works for you’ can help. ‘Healthy’ is different for everyone.”

Davis concurs with Liu that we’re now in an era of “expectation” versus “want” when it comes to restaurants providing healthier options.

“On the flip side, consumers do not want to be told what they should or should not be eating. They do not want to feel judged about eating,” he said.

That being said, it’s important for restaurant brands to stick to their core competencies.

“Chasing trends and expanding menus beyond logical extensions of the concept almost always fails. You must be able to gain credibility with your customer,” Davis said.

Great Harvest Bread Co. CEO Mike Ferretti agrees, noting that restaurant companies should be conscious of consumer diet trends, but only adapt to the ones that make business sense for the brand.

“You can’t do them all, and they impact different parts of the country at different times,” he said. “It is easier to steer customers to the things we believe in that fit our brand.”

If a brand swings and misses on a specialty diet offering, Ferretti said it can have an “extreme” impact on the business. Conversely, if it’s a hit, it can have the same effect for the positive.

“Think of all the low-carb businesses that popped up and were gone in a year,” he said. “Alternatively, things like Atkins and Keto hurt us at first, but eventually people come back to whole grains, so it swings.”

Because of this unpredictability, expanding menus to appeal to a broader group of consumers who are chasing a broader variety of diets can be both risky and rewarding.

“Fads are fads. People and businesses will do what they do,” Ferretti said. “What has staying power—the broad ones really driving the industry—is healthy, simple, clean.”

Davis adds that vegan and vegetarian diets have had such staying power since the 1970s and will continue on that path while contributing to a growing cohort of consumers who identify as flexitarians. About one third of consumers now consider themselves to be flexitarians, meaning they simply want another choice than traditional protein every now and then even if they’re not technically vegan or vegetarian.

Don’t expect this pace to slow anytime soon. And don’t expect restaurants to stop trying to reach this growing number of consumers.

“Lifestyle demands are not going away and restaurants will endear themselves and earn loyalty by keeping their menus relevant,” Liu said. “This has resulted in a competitive advantage for us and, more importantly, an increase in sales.”

I have covered the restaurant industry since 2010 when I was named editor of QSRweb.

Source: Fad Diets Come And Go, But Restaurants Are Finding Plenty Of Success Catering To Health-Conscious Consumers

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