APU Business Original

Menu Labeling Laws: Are They a Panacea or Patronizing?

By Dr. Sheri Hernandez
Faculty Member, Dr. Wallace E. Boston School of Business

When you’re dining out at your favorite chain restaurant or grabbing a coffee to go, have you noticed the calorie counts or other nutritional information next to your menu items? Was it shocking that your latte had more calories than your burger? Did seeing that calorie information influence which menu item you chose, or did you order what you were craving with an added sense of guilt or shame?

The American Population Has an Obesity Problem That the Government Is Working to Combat

There is no denying the United States population has a weight problem. More than 40% of the adult population in the U.S. is considered obese.

Because of the health issues that accompany obesity, the government has tried to combat this problem through various avenues. Different regulations and laws have been implemented or attempted, ranging from the U.S. Food and Drug Administration (FDA) banning of trans fats to local governments attempting to place a limit on the serving sizes of sodas.

States and local governments have the power to enact laws that are aimed at protecting public health. However, how much of consumers’ choices should be regulated by government and how much should be left to individuals to make their own decisions on what and how much they want to eat?

Should the government maintain a hands-off approach if people still try to sue restaurants for “making them fat” because they claim not to know a bacon cheeseburger every day is bad for their health? Despite the fact that most of these obesity lawsuits are tossed out, there is still a focus on ensuring junk food is not marketed in a way that misleads the consumer about its nutritional facts, which are right there on the product’s label.

Related link: Obesity Rates Are Significantly Rising Among U.S. Children

Government Steps In to Find Solutions

Enter government regulations to make sure nutritional facts are very visible and accessible.New York City led the charge, requiring restaurants to post calorie and nutritional information with a 2006 law that became enforceable in 2008. Other states and local communities followed, with other restaurants voluntarily posting calorie content or other nutritional information on menus and menu boards.

So was this attempt to encourage Americans to eat more healthfully successful? Did visible calorie contents on menus and menu boards cause people to consume fewer calories?

At first, yes. But as time went on, people ignored the calorie counts, and studies found that people were actually consuming more calories than before they were listed on menus.

For Certain Restaurants, Giving the Public Nutritional Information Became Federal Law

Despite studies suggesting posting calories and nutrition information on menus did not significantly reduce the number of calories consumed in the U.S. states and municipalities that tried it, public health advocates continued to advise that this awareness would change people’s habits and influence their decision making.

Although several states and cities had already enacted policies requiring menu labeling, it was not a federal requirement until the Patient Protection and Affordable Care Act (ACA) became law in 2010. The ACA contained a menu labeling provision requiring restaurants and food establishments with 20 or more locations selling similar items to post calorie content for every item on their menus or menu boards. This federal law trumped the local and state laws that were in place.

The Federal Law Raised Questions and Concerns from the Restaurant Industry

After the federal law about menu labeling went into effect, there were a lot of questions and concerns from the restaurant industry related to implementation, nutritional analysis, cost, compliance, and enforcement. Would consumers see the number of calories in their favorite combo meal, decide to skip takeout and pack a salad instead, significantly decreasing restaurant sales? Would restaurants be forced to revamp and revise their menu offerings to reach lower calorie levels?

Every new law or policy takes some time for industry compliance and implementation. While there was some flexibility during the COVID-19 pandemic, compliance with the menu labeling laws was fully required by 2018.

This implementation process was expensive. All of a restaurant’s menu items had to be analyzed for nutritional information, menus and menu boards had to be modified, and additional assurance related to compliance with standard recipes and portion sizes needed to be implemented. For instance, a restaurant had to serve a meal that actually contained the calories, amount of fat, amount of protein, and so on that the menu stated it did.

Were the Menu Labeling Laws Effective in Reducing Obesity?

Now that we are several years since menu labeling compliance became mandatory, what can be said about the effectiveness of these laws? Has the obesity rate decreased significantly since consumers see the calorie content of what they are ordering from fast food and chain restaurants?

Initially, the U.S. Department of Agriculture (USDA) research found that people who noticed the calorie content on menu boards in restaurants consumed about 180 calories fewer than someone who did not use the menu information to make decisions. This finding was made a few months after the requirements were enacted.

So was this the panacea solve the obesity problem in the United States? Not quite.

Studies conducted since the enactment of the calorie labeling show some good results, people who paid attention to the calorie content on menus reduced their calorie intake by 3%, hardly enough to have a significant impact on obesity. Previous studies on the impact of calorie posting for several years showed an initial decrease in calorie consumption of about 60 calories per order, but that was not sustained within the one-year follow-up period.

What about the other question? Did restaurants significantly change their menu offerings to reduce the number of calories? Maybe.

One study suggests that while restaurants did not change the recipes for their existing menu items to reduce calories, they introduced new items to the menu. The new items contained about 113 fewer calories than new items before the labeling was implemented.

Related link: How to Stick with Healthy Habits during Summer Travel

US Obesity Rates Have Not Declined, So Should Menu Labeling Be Eliminated?

But overall, obesity rates in the U.S. have not declined since the implementation of menu labeling laws. So were the menu labeling laws were a huge bust?

Not necessarily. There are some studies that show there are more people who are aware of calories and the importance of calorie intake as it relates to overall health. As with many public policies, you can find studies that show the benefits and drawbacks of menu labeling.

But what about that whole governmental oversight that was implied at the beginning of this article? Does seeing calorie content overall influence positive or negative outcomes when someone orders food and beverages?

Some say it’s time to get rid of the in-your-face calorie listings and go back to having them available for people who want to see them. What if listing calorie counts on menus is actually harmful? Many people don’t understand the science of health and nutrition, and calories are only a very small part of nutrition and healthy eating.

With fashion icons, Hollywood performing artists and insta-famous “influencers” implying skinny is best, people cutting their calories will not be focused on nutrition if they simply choose the lowest calorie option on the menu. When you factor in mental health issues and eating disorders, a constant barrage of calorie content may not be what society truly needs.

In addition, what if the better, nutritionally balanced restaurant option has more calories than an item with little nutrition? There can be a sense of guilt and shame that comes with opting for a menu item with more calories than another, even if it is more nutritious. After all, a salad containing mixed greens, tomatoes, chicken, cheese and some dressing may pack more calories than a handful of fried chicken nuggets, but which option is more nutritionally sound?

If people follow a healthy lifestyle and are in good health, they may just want to go out and have a nice steak meal as an occasional treat or to celebrate a special occasion. They should not be forced to have that steak served with a side of guilt and shame for not choosing the poached fish instead.

Providing consumers with information is not a bad thing. However, calorie content does not tell the entire nutritional story, and it could lead to people choosing less nutritious options simply because they believe listing calories is an attempt to have everyone consume less.

Compliance with menu labeling laws requires continued investment and enforcement. In the end, having calorie information “in your face” all the time may not be the best approach to managing health and nutrition.  

Dr. Sheri Hernandez is a full-time faculty member in the Dr. Wallace E. Boston School of Business, primarily teaching courses in the hospitality management program. She has extensive knowledge of restaurant operations, food safety, commodity price risk management, strategic sourcing, curriculum development and instruction. Dr. Hernandez combines her skills in the hospitality industry with her career experience in financial commodity price risk management, consulting, and purchasing to provide students with a customer-centric, yet financially sound approach to hospitality management and food safety initiatives.

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