If you work for or with a restaurant or any brand that plays in the foodservice space, you really need to read this post. My next-door office neighbor at FHKC, Melissa Novak, authored the following post for Fleishman-Hillard’s employee portal. Upon reviewing it, I asked if I could share it with my readers. Melissa does a great job of highlighting the details of the new menu labeling law that goes into effect in late 2011/early 2012. How many calories are there in that double cheeseburger? And more importantly, how will this new law impact the perception of foodservice brands.
As a very health-conscious person who makes smart choices at restaurants, I will never forget the day I decided to check out the nutritionals on my favorite “healthy” meal at Houlihan’s. The Ahi Tuna Salad, with seared tuna, light non-creamy dressing, cashews, banana, and cilantro. To this day, I cannot even speak of the four-digit calorie number and fat content. Click here if you must know. Maybe now I’ll think twice before making fun of people who order the Caesar salad because they want a healthier option.
That’s what the new menu labeling law is all about – providing information and options. It was technically signed into law as part of the healthcare bill in March, 2010, and we expect foodservice outlets to begin implementation this year, with enforcement starting end of 2011/beginning of 2012. All foodservice, broadly defined as restaurants, concessions, movie theaters, grocery store delis, convenience stores and vending machines, with 20 or more units operating under the same name must display calories where the consumer can make his/her decision. Calories must be printed in the SAME FONT SIZE as the menu item name on printed menus, carry-out menus, menu boards, drive-thru boards, on-line, etc. In addition, a supplemental piece, which includes the major nutrients on a nutrition label (total fat, saturated fat, sugar, carbs, sodium), must be available upon request for all items served.
As you can imagine, these new regulations will require foodservice operators to make significant changes and investments in menu development, culinary R&D, marketing, operations, training, technical systems. Quick Trip probably doesn’t even have the nutritional information for their taquitos or cinnamon rolls, much less a means by which to display them. Have you ever seen the calories and fat in a bag of popcorn at the movies, the number one money-maker for the theater industry? And there’s a difference between simply calories on the menu to comply with the law and implementing a nutrition strategy that makes sense for the brand. Case in point is Ruby Tuesday’s, who thought they were doing the right thing seven years ago by printing calories on the menu, without context, explanation or desire by their core audience. Sales plummeted, calories were removed within a couple months, and Ruby Tuesday’s has still not recovered financially.
As protectors of many restaurant and foodservice retail brands, we need to understand the law (final proposed regulations are due from FDA by March 2011) to help our clients win by developing an effective nutrition strategy. Not every restaurant can or should be Seasons 52, but they can provide healthier alternatives (and not dry chicken and steamed broccoli), online nutrition calculators and other resources, use healthier frying oil, offer at least a couple healthier kids menu items. Subway created a whole new category around nutrition, Panera is winning in the fast casual space with options and nutritional transparency and even Disney theme parks default their kids meal sides to apples and milk. There are a lot of ways to do this right, and we need to ensure our clients understand the impact (and opportunity) for their brands.
Melissa Novak is a senior vice president and partner at Fleishman-Hillard’s Kansas City office. As a member of the FH Food and Agribusiness global practice group, she and her team specialize in strategic marketing communications for food and restaurant clients, ensuring their brands are well-positioned for issues like menu labeling, front-of-pack labeling and dietary guidelines implications.
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