In one of the biggest changes to consumer behavior, ever, glucagon-like peptide-1 receptor agonists (GLP-1s) are souring the drive-thru. These medications were first created to control diabetes. They do more than just positively regulate blood sugar levels, they positively influence users’ food-related decision-making and spending behavior. Our recent research suggests that individuals on GLP-1s are opting for healthier food choices. Consequently, they are cutting back big time on spending at quick-serve and other limited-service restaurants.
Our survey of 500 young Canadians last month found a remarkable trend. Forty-two percent of survey respondents said they’ve been opting for healthier alternatives since beginning their GLP-1 treatments. These medications primarily act by slowing gastric emptying, resulting in longer periods of satiety. Accordingly, 34% of patients on GLP-1s said they eat less frequently. Moreover, 30% said they enjoy working with smaller portion sizes more than before. An increasing number of consumers are being sensitive to nutrition. Because of it, they’re avoiding the lure of processed foods and picking nutritious options that contain less added sugar and more fruits and veggies.
Because of their growing popularity and success, the effect of GLP-1s on the habits of consumers is huge. Further, as per the same survey, 31% of respondents reported that their taste buds have changed since beginning the medication. That move is spurring an 8% drop in dollar spending at fast-food joints, coffee shops, and other quick-service restaurants. This decline happens in the first year of treatment. Industry experts estimate that this drop may translate to hundreds of millions of dollars in revenue lost for these companies.
“All of a sudden, they become more mindful, so instead of going out for burgers and fries once a week, they may replace that with something else, maybe a grilled chicken sandwich instead of a burger, and maybe a salad instead of fries on the side,” said Jordan LeBel, a marketing expert.
Reactions from the fast-food industry are already starting to show just how alarming these changes could be. Others, like Shake Shack, would be even more at risk as consumer tastes change toward healthier options. Companies are reacting to this by testing new items on their menus that align with the evolving preferences of GLP-1 injectors. This means adding more produce, snack foods and protein lattes that help achieve the nutritional goals tied to these medical products.
Some restaurant leaders push back on the severity of the impact. Within the quarterly present from Tim Hortons president Axel Schwan, it was acknowledged that GLP-1s have not yet materially impacted their business operations. Industry observers warn that the long-term effects may be far-reaching.
Kantar’s research suggests the reverse—people moving away from traditional fast food eating habits like “supersizing.” As consumers welcome the apparent ability to lead healthier lifestyles, thanks in large part to GLP-1s, the desire for high-calorie, low-nutrient choices will wane.
As this trend keeps gaining traction, most consumers don’t really know how it will impact their favorite fast-food chain in the future. When you add in the permanent move towards healthier consumption that has been brought about by the pandemic, it seems like chains will have to adjust to remain profitable.
