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Calorie Posting in Chain Restaurants

Author

Listed:
  • 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.

Suggested Citation

  • Bollinger, Bryan & Leslie, Phillip & Sorensen, Alan, 2010. "Calorie Posting in Chain Restaurants," Working Papers 56693, American Association of Wine Economists.
    • Handle: RePEc:ags:aawewp:56693
    DOI: 10.22004/ag.econ.56693
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    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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