Feb 22, 2010
Starbucks study found menu labeling doesn’t hurt its business
Last week I wrote a blog post wondering if the proposed menu labeling bill in Maryland is going too far in that it takes away consumers’ accountability for their own health.
Today I got an e-mail in response to the blog from a PR rep for Starbucks Coffee. She included the results of a recent study Starbucks had commissioned on menu labeling, which requires restaurants and chains to post nutritional information next to each menu item.
Much to my surprise, the study conducted by Stanford University found that calorie-posting at Starbucks led to a 6 percent reduction in calories (from 247 to 232) per transaction. AND (this is what really surprised me) the amount spent per transaction was not significantly affected, and in some cases proved to be effective marketing.
“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,” the study said.
The study’s authors analyzed transactions at Starbucks company stores in New York City from Jan. 1, 2008, to Feb. 28, 2009, with mandatory calorie posting in that city taking effect on April 1. For controls, they authors also looked at every transaction at Starbucks company stores in Boston and Philadelphia, where there is no menu labeling.
The study also looked at individual behaviors by analyzing Starbucks card holders’ purchases in New York and conducted surveys after calorie posting became mandatory in Seattle last January.
The results are interesting in that it seems to show if lower-calorie food or snack alternatives are offered (such as Starbucks’ 120-calorie mini-donut), customers will likely substitute their usual order and not necessarily spend less. But where menu labeling CAN hurt is if you don’t have that option, like at Dunkin’ Donuts. Sorry, but a bagel (even though it has more calories — but also less fat) is nowhere near close to being a substitute for a donut.
Does this change anyone’s opinion about menu labeling? Or does it reinforce it?


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