IDEAS home Printed from https://ideas.repec.org/a/ags/jlofdr/274593.html
   My bibliography  Save this article

Impacts of Food Safety Recalls and Consumer Information on Restaurant Performance

Author

Listed:
  • Pruitt, J. Ross
  • Holcomb, Rodney B.

Abstract

Consumer expenditures on purchases of food away from home have risen in recent years to comprise nearly half of consumer food budgets. Using the monthly National Restaurant Association Restaurant Performance Index, we seek to determine the factors influencing restaurateurs’ perceptions of their current situation, same-store sales, and customer traffic from July 2002 through March 2017. Macroeconomic variables have little impact on restaurant performance, but concerns about public health perceptions do impact restaurateurs’ outlook. Concerns over the link between meat and poultry consumption and cancer also negatively impact restaurant owners’ perceptions of performance.

Suggested Citation

  • Pruitt, J. Ross & Holcomb, Rodney B., 2017. "Impacts of Food Safety Recalls and Consumer Information on Restaurant Performance," Journal of Food Distribution Research, Food Distribution Research Society, vol. 48(3), November.
  • Handle: RePEc:ags:jlofdr:274593
    DOI: 10.22004/ag.econ.274593
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/274593/files/JFDR_48.3_02_Pruitt.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.274593?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Young, L.R. & Nestle, M., 2002. "The contribution of expanding portion sizes to the US obesity epidemic," American Journal of Public Health, American Public Health Association, vol. 92(2), pages 246-249.
    2. Lin, Biing-Hwan & Guthrie, Joanne F., 2012. "Nutritional Quality of Food Prepared at Home and Away From Home, 1977-2008," Economic Information Bulletin 142361, United States Department of Agriculture, Economic Research Service.
    3. Capps, Oral, Jr. & Schmitz, John D., 1991. "A Recognition Of Health And Nutrition Factors In Food Demand Analysis," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(1), pages 1-15, July.
    4. Steven T. Yen, 1993. "Working Wives and Food away from Home: The Box-Cox Double Hurdle Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(4), pages 884-895.
    5. Nicholas E. Piggott & Thomas L. Marsh, 2004. "Does Food Safety Information Impact U.S. Meat Demand?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 154-174.
    6. Lusk, Jayson L. & Schroeder, Ted C., 2002. "Effects of Meat Recalls on Futures Market Prices," Agricultural and Resource Economics Review, Cambridge University Press, vol. 31(1), pages 47-58, April.
    7. Adhikari, Murali & Paudel, Laxmi & Houston, Jack E. & Paudel, Krishna P. & Bukenya, James O., 2006. "The Impact of Cholesterol Information on Meat Demand: Application of an Updated Cholesterol Index," Journal of Food Distribution Research, Food Distribution Research Society, vol. 37(2), pages 1-10, July.
    8. Lin, Biing-Hwan & Frazao, Elizabeth, 1997. "Nutritional Quality of Foods At and Away From Home," Food Review/ National Food Review, United States Department of Agriculture, Economic Research Service, vol. 20(2), pages 1-8.
    9. Nayga, Rodolfo M., Jr. & Capps, Oral, Jr., 1992. "Analysis Of Food Away From Home And Food At Home Consumption: A Systems Approach," Journal of Food Distribution Research, Food Distribution Research Society, vol. 23(3), pages 1-10, September.
    10. Mario Mazzocchi, 2006. "No News Is Good News: Stochastic Parameters versus Media Coverage Indices in Demand Models after Food Scares," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(3), pages 727-741.
    11. Vicki A. McCracken & Jon A. Brandt, 1987. "Household Consumption of Food-Away-From-Home: Total Expenditure and by Type of Food Facility," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 274-284.
    12. Lin, Biing-Hwan & Variyam, Jayachandran N. & Allshouse, Jane E. & Cromartie, John, 2003. "Food And Agricultural Commodity Consumption In The United States: Looking Ahead To 2020," Agricultural Economic Reports 33959, United States Department of Agriculture, Economic Research Service.
    13. David G. Swartz & Ivar E. Strand, Jr., 1981. "Avoidance Costs Associated with Imperfect Information: The Case of Kepone," Land Economics, University of Wisconsin Press, vol. 57(2), pages 139-150.
    14. Kyrre Rickertsen & Dadi Kristofersson & Solveig Lothe, 2003. "Effects of health information on Nordic meat and fish demand," Empirical Economics, Springer, vol. 28(2), pages 249-273, April.
    15. Pierre Chandon & Brian Wansink, 2007. "The Biasing Health Halos of Fast-Food Restaurant Health Claims: Lower Calorie Estimates and Higher Side-Dish Consumption Intentions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 34(3), pages 301-314, June.
    16. Yen, Steven T. & Lin, Biing-Hwan & Davis, Christopher G., 2008. "Consumer knowledge and meat consumption at home and away from home," Food Policy, Elsevier, vol. 33(6), pages 631-639, December.
    17. Miaoru Liu & Panagiotis Kasteridis & Steven T. Yen, 2013. "Who are consuming food away from home and where? Results from the Consumer Expenditure Surveys," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 40(1), pages 191-213, February.
    18. Okrent, Abigail M. & Alston, Julian M., 2012. "The Demand for Disaggregated Food-Away-from-Home and Food-at-Home Products in the United States," Economic Research Report 132469, United States Department of Agriculture, Economic Research Service.
    19. Thomas Marsh & Ted Schroeder & James Mintert, 2004. "Impacts of meat product recalls on consumer demand in the USA," Applied Economics, Taylor & Francis Journals, vol. 36(9), pages 897-909.
    20. Mutondo, Joao E. & Henneberry, Shida Rastegari, 2007. "A Source-Differentiated Analysis of U.S. Meat Demand," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(3), pages 1-19, December.
    21. Tonsor, Glynn T. & Mintert, James R. & Schroeder, Ted C., 2010. "U.S. Meat Demand: Household Dynamics and Media Information Impacts," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 35(1), pages 1-17.
    22. Jekanowski, Mark D. & Binkley, James K. & Eales, James S., 2001. "Convenience, Accessibility, And The Demand For Fast Food," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(1), pages 1-17, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yadavalli, Anita & Jones, Keithly, 2014. "Does media influence consumer demand? The case of lean finely textured beef in the United States," Food Policy, Elsevier, vol. 49(P1), pages 219-227.
    2. Fujioka Soichiro & Fukushige Mototsugu, 2019. "The Future of Demand for Food Away from Home and Prepared Food: Cohort and Age Effects in Japan," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 17(1), pages 1-17, May.
    3. Shang, Xia & Tonsor, Glynn T., 2017. "Food safety recall effects across meat products and regions," Food Policy, Elsevier, vol. 69(C), pages 145-153.
    4. Okrent, Abigail M. & Kumcu, Aylin, 2016. "U.S. Households’ Demand for Convenience Foods," Economic Research Report 262195, United States Department of Agriculture, Economic Research Service.
    5. Heiman, Amir & Lowengart, Oded, 2008. "The effect of information about health hazards on demand for frequently purchased commodities," International Journal of Research in Marketing, Elsevier, vol. 25(4), pages 310-318.
    6. Taylor, Mykel & Klaiber, H. Allen & Kuchler, Fred, 2016. "Changes in U.S. consumer response to food safety recalls in the shadow of a BSE scare," Food Policy, Elsevier, vol. 62(C), pages 56-64.
    7. Martin Browning & Lars Gårn Hansen & Sinne Smed, 2013. "Rational inattention or rational overreaction? Consumer reactions to health news," IFRO Working Paper 2013/14, University of Copenhagen, Department of Food and Resource Economics.
    8. Hamrick, Karen & Okrent, Abigail, 2014. "The Role of Time in Fast-Food Purchasing Behavior in the United States," Economic Research Report 191034, United States Department of Agriculture, Economic Research Service.
    9. H. Holly Wang & Paul Gardner de Beville, 2017. "The media impact of animal disease on the US meat demand," Agribusiness, John Wiley & Sons, Ltd., vol. 33(4), pages 493-504, September.
    10. Okrent, Abigail M. & Alston, Julian M., 2011. "Demand for Food in the United States: A Review of Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," Monographs, University of California, Davis, Giannini Foundation, number 251908, December.
    11. Edgardo Ayala & Joana Chapa, 2017. "AH1N1 impact on the Mexican pork meat market," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 32(1), pages 3-25.
    12. Sven Anders & Anke Mőser, 2010. "Consumer Choice and Health: The Importance of Health Attributes for Retail Meat Demand in Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(2), pages 249-271, June.
    13. Binkley, James K., 2005. "The Effect of Demographic, Economic, and Nutrition Factors on the Frequency of Food Away from Home," 2005 Annual meeting, July 24-27, Providence, RI 19502, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Adam Dvir, 2022. "Is mass media an effective channel for conveying nutritional information? Welfare implications of the WHO classification of processed meats as carcinogenic on consumers in Israel," French Stata Users' Group Meetings 2022 21, Stata Users Group.
    15. Stavroula Malla & K. K. Klein & Taryn Presseau, 2020. "Have health claims affected demand for fats and meats in Canada?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(3), pages 271-287, September.
    16. Paudel, Laxmi & Adhikari, Murali & Houston, Jack E., 2005. "Assessing the Impacts of Low Carbohydrate Related Health Information on the Market Demand for US Vegetables," 2005 Annual meeting, July 24-27, Providence, RI 19541, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Rosa Ferrer Zarzuela & Helena Perrone, 2017. "Consumers’ costly responses to product-harm crises," Economics Working Papers 1571, Department of Economics and Business, Universitat Pompeu Fabra.
    18. Rahkovsky, Ilya & Jo, Young & Carlson, Andrea, 2018. "Consumers Balance Time and Money in Purchasing Convenience Foods," Economic Research Report 276227, United States Department of Agriculture, Economic Research Service.
    19. Bakhtavoryan, Rafael & Capps, Oral, Jr. & Salin, Victoria, 2012. "Impact of Food Contamination on Brands: A Demand Systems Estimation of Peanut Butter," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(3), pages 1-13, December.
    20. Matthew Houser & Jeffrey H Dorfman & Roderick M Rejesus, 2019. "The Long‐Term Effects of Meat Recalls on Futures Markets," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(2), pages 235-248, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlofdr:274593. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/fdrssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.