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Calorie Posting in Chain Restaurants

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  • Bollinger, Bryan
  • Leslie, Phillip
  • Sorensen, Alan

Abstract

We study the impact of mandatory calorie posting on consumers’ purchase decisions, using detailed data from Starbucks. We find that average calories per transaction falls by 6%. The effect is almost entirely related to changes in consumers’ food choices—there is almost no change in purchases of beverage calories. There is no impact on Starbucks profit on average, and for the subset of stores located close to their competitor Dunkin Donuts, the effect of calorie posting is actually to increase Starbucks revenue. Survey evidence and analysis of commuters suggest the mechanism for the effect is a combination of learning and salience.

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Bibliographic Info

Paper provided by American Association of Wine Economists in its series Working Papers with number 56693.

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Date of creation: Jan 2010
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Handle: RePEc:ags:aawewp:56693

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Web page: http://www.wine-economics.org
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Keywords: Food Consumption/Nutrition/Food Safety;

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References

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  1. Shin-Yi Chou & Inas Rashad & Michael Grossman, 2005. "Fast-Food Restaurant Advertising on Television and Its Influence on Childhood Obesity," NBER Working Papers 11879, National Bureau of Economic Research, Inc.
  2. David Dranove & Daniel Kessler & Mark McClellan & Mark Satterthwaite, 2002. "Is More Information Better? The Effects of 'Report Cards' on Health Care Providers," NBER Working Papers 8697, National Bureau of Economic Research, Inc.
  3. Hongbin Cai & Yuyu Chen & Hanming Fang, 2007. "Observational Learning: Evidence from a Randomized Natural Field Experiment," NBER Working Papers 13516, National Bureau of Economic Research, Inc.
  4. Raj Chetty & Adam Looney & Kory Kroft, 2009. "Salience and taxation: theory and evidence," Finance and Economics Discussion Series 2009-11, Board of Governors of the Federal Reserve System (U.S.).
  5. Currie, Janet & DellaVigna, Stefano & Moretti, Enrico & Pathania, Vikram, 2009. "The Effect of Fast Food Restaurants on Obesity," Working Papers 47830, American Association of Wine Economists.
  6. Anderson, Michael L. & Matsa, David A., 2008. "Are restuarants really supersizing America?," CUDARE Working Paper Series 1056R4, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy, revised Jul 2010.
  7. Sara Bleich & David Cutler & Christopher Murray & Alyce Adams, 2007. "Why Is The Developed World Obese?," NBER Working Papers 12954, National Bureau of Economic Research, Inc.
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As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Posting calories in restaurants is Pareto improving
    by Economic Logician in Economic Logic on 2010-02-26 15:44:00
  2. [??]???????????
    by himaginary in himaginaryの日記 on 2012-06-30 07:00:00
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Cited by:
  1. Holmes, Ashley & Serrano, Elena & Davis, George C., 2011. "The Effect of Alternative Nutrition Menu Labels on Children’s Meals Purchases and Parent-Child Decision-Making," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103816, Agricultural and Applied Economics Association.
  2. Michael Luca & Georgios Zervas, 2013. "Fake It Till You Make It: Reputation, Competition, and Yelp Review Fraud," Harvard Business School Working Papers 14-006, Harvard Business School.
  3. Anil R. Doshi & Glen W.S. Dowell & Michael W. Toffel, 2011. "How Firms Respond to Mandatory Information Disclosure," Harvard Business School Working Papers 12-001, Harvard Business School, revised Jun 2012.
  4. FLEURBAEY, Marc & SCHOKKAERT, Erik, 2011. "Equity in health and health care," CORE Discussion Papers 2011026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Kelly Bedard & Peter J. Kuhn, 2013. "Making Nutritional Information Digestible: Effects of a Receipt-Based Intervention on Restaurant Purchases," NBER Working Papers 19654, National Bureau of Economic Research, Inc.
  6. Hunt Allcott & Michael Greenstone, 2012. "Is There an Energy Efficiency Gap?," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 3-28, Winter.
  7. Ellison, Brenna D. & Lusk, Jayson L. & Davis, David W., 2012. "Effect of Menu Labeling on Caloric Intake and Restaurant Revenue in Full-Service Restaurants," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 123325, Agricultural and Applied Economics Association.
  8. Giorgio Brunello & Maria De Paola & Giovanna Labartino, 2012. "More Apples Less Chips? The Effect of School Fruit Schemes on the Consumption of Junk Food," ISER Discussion Paper 0840, Institute of Social and Economic Research, Osaka University.
  9. Wang, Dan & Grebitus, Carola & Schroeter, Christiane, 2014. "The Influence of Social Networks on Food Choices in College Food Courts," 2014 AAEA/EAAE/CAES Joint Symposium: Social Networks, Social Media and the Economics of Food, May 29-30, 2014, Montreal, Canada 166092, Agricultural and Applied Economics Association & Canadian Agricultural Economics Society & European Association of Agricultural Economists.
  10. Papoutsi, Georgia & Drichoutis, Andreas & Nayga, Rodolfo, 2011. "The causes of childhood obesity: A survey," MPRA Paper 30992, University Library of Munich, Germany.
  11. Goddard, Ellen W. & Drescher, Larissa S. & Fernando, Jeewani, 2012. "The potential impact of the Health Check™ on diet quality of food away from home purchases," 2012 AAEA/EAAE Food Environment Symposium, May 30-31, Boston, MA 123523, Agricultural and Applied Economics Association.
  12. Loureiro, Maria L. & Rahmani, Djamal, 2013. "Calorie labeling and fast food choices in surveys and actual markets: some new behavioral results," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150622, Agricultural and Applied Economics Association.

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