Consumer V. Fast Food : In Defense of Fast Food (Part 2)

By Erin Froehlich

Is the consumer an innocent victim of a money-hungry fast food market, or are fast food restaurants just providing what the consumer has demanded? The question requires a closer look at the facts and impartial judgment for an answer. In our previous article, we looked at the consumer's case and examined all the ways the fast food industry is setting them up for dietary failure. Now, in this article, we'll hear the defense from the fast food industry and consider the ways the consumer is responsible. When we're through, we'll be ready to make our verdict. In our third and final article in the series, we'll decide once and for all- Consumer V. Fast Food Industry - who's guilty?

In Defense of Fast Food

Less-than-scrupulous marketing tactics, misrepresentation of their product's nutritional fitness, and less-than-forthcoming nutrition information, consumers have plenty of reason to blame the fast food industry for the obesity epidemic. However, there is another side to the story. As big fast food points out, consumers are not pushed into restaurants and forced to order, and though they may not know the exact calories in a meal, they have a general idea that fast food is not the healthiest option available. Oftentimes, people see these huge, billion dollar food companies, and feel powerless against them. However, the power in this relationship truly lies with the consumer. The way they collectively spend (or don't spend) their money is a highly influential vote. Consumer buying habits have the potential to shape or even change the fast food industry completely. Says the fast food industry, "We simply supply what consumers demand." Blame, they say, should be placed on the consumers themselves. Here's why:

Staying Competitive

Unlike some businesses, there is very little loyalty among fast food customers. One day they may go to McDonald's, and the next day, to Burger King. Says Morningstar analyst, R.J. Hottovy, "With minimal switching costs, customers can be fickle."

And this amounts to a whole lot of competition. Fast food chains know their offerings need to be the newest, cheapest and best, because if they aren't, at least two other options are close by. Furthermore, a drooping economy has consumers becoming even more frugal in their spending habits. One study found that in recent years, six in 10 have reduced the frequency of visits (to fast food chains) or the amount they spend when they go.

Says National Restaurant Consultants Inc, CEO Kevin Moll,"Today's restaurant operators are selling to a customer who has been financially impacted in a negative way, and as such, this consumer is specifically looking for two things: convenience and value...If the marketing proposal misses these two targets, it will not be effective."

In response to these demands, a sort of "how low can you go" competition has erupted between the chains. You may have noticed signs of this war yourself. These days, every fast food place has their own value menu and while few items were available at the birth of the value menu concept, offerings have come leaps and bounds in terms of variety and value from plain dollar hamburgers and small fries to double cheeseburgers, shakes and gorditas. Every restaurant is competing to be seen as the best value in the eyes of the consumer and this strategy has indeed kept customer visits from dropping too low. However, these price wars have their downside as well.

Says executive vice president of WD Partners consultancy Dennis Lombardi, while customer traffic may have increased,"the same can't be said for profit margins. Some people say this is a "penny-profit" business but [now] it is a tenth-of-a-penny-profit business. But it is certainly better than not having the cash register ring." And in the world of business, that cashier is king. To keep a steady flow of customers, companies are providing more filling calories and fat for their money. In order to stay on top, restaurants are using food to impress customers with value.

BOTTOM LINE: The pressure to impress fickle, frugal consumers has spurred price wars where success is a matter of providing the most food for the money.

Growing Expectations

An old saying in business goes - "Cheap, fast, or done well. Pick two." Of course, no one really wants to make that decision. We want it all, and our expectations of fast food it seems are no exception. In fact, researchers have found that consumers today are more demanding of fast food than ever before.

Says executive president for Technomic Darren Tristano, "You have always heard the term 'fast food' and now you are hearing the term 'food fast.'" In response, restaurants are trading up for sleeker styling and "premium" menu items. Consumers want fast food done faster and better? Well, if you believe that old saying, logically prices will have to increase. This is where the trouble comes in. With a down economy, consumers are actually going out and spending less on their food. In turn, restaurants are offering up increasingly cheap, yet filling, calorie-filled goodness for their money just to keep them. The fact is, healthier ingredients tend to more expensive, and healthy items don't attract customers the way more indulgent items do. Some say consumers have been spoiled by a boom in goods being transported worldwide and subsidized nationally. They have only a foggy idea of the work that goes in to growing, harvesting, and transporting a tomato. They no longer remember foods real worth. The fact is, fast food provides calories at an unbelievable value. A value we have come to expect, but also a value that has costs of its own, such as the use of fat and salt - two of the cheapest flavor enhancers available. Consumers want great atmosphere, speedy service, and tasty meals that are fresher and healthier, but they don't want to pay any more money for them.

BOTTOM LINE: While consumers may expect higher standards of quality, they also expect lower menu prices. Because healthier menu items are not as profitable for fast food chains and ingredients are often more expensive, these prices may not be compatible with health goals.

Meant in Moderation

Of course, we could hardly discuss the case for consumer responsibility without covering the topic of moderation. A diet made entirely of fast food, as the documentary "Super Size Me" clearly shows, is not, by a long stretch something anyone would consider healthy. However, this case is far from the typical amount of fast food consumption, and it is ultimately the consumer who must decide how much fast food will make up their diet. If you are like more than half of the American population, chances are that your decided amount of fast food is about once a week. Hardly a reason for concern, so long as fast food meals are balanced with an otherwise healthy diet and lifestyle.

However, as many as 20% of Americans are eating fast food every other day at least. Among these are the "elite" 14% of the nation, a population made up of mostly under 40 men, employed with high incomes - and accounting for almost half of all fast food sales. With the average fast food meal containing about 827 calories, we hope this elite group is getting plenty of exercise. They'll require about two hours of walking or one hour of swimming per meal to avoid weight gain! Unfortunately, that's only a little less than the government's recommended two and half hours per week of exercise.

Sometimes, it is argued that people like them can't help themselves. "They are as addicted to fast food as a smoker is to cigarettes." However, this comparison is a fairly weak one as fast food contains no actual addictive agent like nicotine. While a person may be addicted to fast food, they may also be "addicted" to any other repeated behavior, like exercise for example. Furthermore, as one lawyer, Joe Price, commented on recent court cases against the fast food industry

"A moderate amount of smoking is bad for you. A moderate amount of eating is what we all should be doing. And big food is not about to repeat the mistakes of big tobacco. Instead of digging in its heels, many in the food industry are embracing their critic's idea. Companies are voluntarily changing their products and marketing."

Fast food companies point out they can't be responsible for what and how often consumers order, what they eat otherwise, or the amount of exercise they get. Says Don Thompson, the Chief operating officer of McDonald's USA:

"I don't think I would want to tell someone who comes into McDonald's for a Big Mac, 'No, you can't have a Big Mac. Because we took it off. Because of our critics....You know as McDonald's, our role and intent is not to say, 'You can or cannot have this.'...I do believe in moderation...Too much of anything can be a problem. "I love McDonald's French Fries, so you know what? I'll walk a little further - I'll exercise a little harder, and I'll run around with my kids a little more."

BOTTOM LINE: While a fast food heavy diet may lead to obesity, a moderate amount of fast food, balanced with an active lifestyle, will not. It is not the job of fast food companies to tell consumers what to eat and how much.

Desire Vs. Purchase Discrepancy

Dependent on consumer dollars, fast food companies know the importance of meeting customer desires. In the fast food chains today, just-a-place-to-sit has made way for modern atmosphere, low prices have become even lower, and the menu of fattening, calorie-laden foods is now dotted with healthy options. Of course, spurring this health movement was a wave bad publicity documentaries, nationally covered court cases, and a public outcry demanding change. People were saying fast food chains should either improve their menu's nutrition or place warning on their doors akin to those placed on cigarettes. While documentaries rarely spoke about moderate, once-a-week customers, and the court cases fell through, the fast food industry felt something should be done in regards to these concerns. In response, fast food chains have made a plethora of changes. New, healthier options have been added, some classic items reformulated, and some options, like the now infamous super size, have been dropped. However, this apparent outcry for healthier food may not match the actual buying habits of the average consumer. For example, McDonald's is currently exploring the addition a veggie side dish for children. Says McDonald's head nutritionist, Cathy Kapica,

"We've tested dozens of vegetables with children. They liked none of them. But we're still working. We're very committed. But I think one of our biggest barriers is parental perception of vegetables at McDonald's. Moms have told us, 'I'm not going to come to McDonald's for vegetables."

The idea was posed to a group of panelists, made up of overweight parents and children. Asked if they are buying the healthier items fast food chains have been putting on their menus, one panelist Katie spoke up, "If I went to McDonald's and I had to choose between a hamburger and a salad, I would pick the hamburger."

At this, Lauren, another panelist chimed in, "That's what you know. That's what you've grown up doing."

"Yeah, that's what I know. That's what I eat." Katie agreed.

The fact is, what most people really want from fast food is not what they aim for in their overall diet. For the majority, going to a fast food chain is a special once-a-week treat; it's not something they eat at every meal. Everyone knows that fast food isn't the healthiest option. While these people may agree that fast food chains should aim to change this, don't expect them to order a salad minus chicken and dressing. When they come to their favorite chain, what they really want is to indulge. They don't want to be shamed with signs on the doors listing the risks of fast food or to get in line to order a meal with the calories they're about to consume displayed for everyone around them to see.

The fact that the things consumers say they want may not always be reflected in the way they buy was an issue discussed in an interview between McDonald's Don Thompson and MSNBC's Stone Phillips. Says Phillips, "This is a touchy topic in the industry. When the restaurant chain 'Ruby Tuesday' put a calorie count on its menu, sales dropped. The calorie count was largely abandoned." Yet, an optimistic mood remains when it comes to health and fast food.

Stone Philips: "You know years ago, Ray Kroc, your founder, was asked what products McDonald's would be selling in the year 2000. He said he didn't know, just that you'd be selling more of them than anybody else."

Don Thompson: "I don't think Ray had in his wildest dreams that today we'd be selling more than 300 million salads a year. You know I don't think he would have thought we'd be selling apples, you know 54 million pounds of apples in the US alone."

Stone Phillips: "Can good nutrition and good business go hand in hand in the fast food world?"

Don Thompson: "I absolutely believe they can."