The proliferation of GLP-1 use for weight loss and management of a variety of health conditions has made some restaurants fearful of traffic declines. But chains have yet to see any significant harm from this consumer trend.
“We have seen no obvious impact from GLP-1s in our data,” Krispy Kreme CEO Joshua Charlesworth said in an interview during the ICR Conference. “I think that's because it's such an infrequent purchase that the vast majority of our doughnuts are purchased in dozens for sharing occasions — 40% of them are for gifts for somebody else.”
While there are some customers who purchase doughnuts often, guests typically buy Krispy Kreme doughnuts two to three times a year, Charlesworth said. He added that the doughnuts are made fresh, never frozen and contain no artificial ingredients or preservatives. Many doughnuts have less than 10 grams of sugar and are made with pantry items like flour, yeast and milk. The Original Glazed is only 190 calories, he said.
“I think we should take the high ground and say, ‘look, it’s not for every day and for those of you who are going through a new eating regime, that’s great,’” Charlesworth said. “When you want a little moment of joy for yourself — or more likely [something] to bring to an event — we’re super relevant.”
GLP-1 users aren’t forgoing trips to restaurants, either, but are simply altering their ordering habits, Circana said in a report on consumer survey data and receipt tracking released last week.
These customers have maintained their frequency and have only decreased the average number of items per trip by 1%, that research showed. Circana said this aligns with broader trends, with 35% of restaurant guests ordering smaller portion sizes in October due to health reasons.
GLP-1 users order entrees more frequently than sides, snacks and breads, Circana found. Sixty-three percent of these guests are ordering more vegetables, while 55% are seeking more fruit options.
Circana said restaurants can better label lighter options and highlight healthy items on their menus to make certain dishes more attractive to these diners. Many chains, like Blaze Pizza, Smoothie King and Chipotle, have added protein-rich menu items or started marketing such items as GLP-1 friendly, for example.
There also has been a significant decline in alcohol consumption, which lends an opportunity for full-service chains to promote more mocktails and functional beverages, Circana said.
“Circana has tracked foodservice data for 50 years, and consumers have been following various diet plans for the entirety of that time,” David Portalatin, senior vice president and industry advisor for Food and Foodservice at Circana, said in a statement. “Restaurants continue to adapt and grow with those trends. With GLP-1 usage, the biggest change to restaurants won’t be that consumers stop going out to eat, it will be how they go out to eat and what they order.”
GLP-1 impact on full-service chains
The full-service segment has not been impacted by GLP-1 use, either, Darden CEO Rick Cardenas said during a presentation at the ICR Conference this month.
“We had the hypothesis that it wouldn't be that big, because we're not just about the meal, we're about the social occasion,” Cardenas said. “We're about getting together with friends and family, and we're not as much of an impulse buy.”
He said GLP-1 medication helps reduce hunger impulses and reduces snacking.
“We have a portfolio of brands that have broad menus and we have something for everyone,” Cardenas said. “If GLP-1 use grows a little bit more, and there's a little bit more of a desire for protein or smaller portions, we have that. We can bring more of those things into our restaurants and menus.”
Olive Garden, for example, has added lighter portions to its menu, and Longhorn quietly added a lunch section over eight years ago that offers smaller portions as well, Cardenas said.
Fogo de Chão’s CEO Barry McGowan said the industry should celebrate the impact the medications have on individuals.
“I think as an industry, we need to change the narrative about it, because it’s amazing,” McGowan said. “It’s liberating people. It’s going to unlock socialization even further.”
GLP-1 users who are losing a lot of weight may want to get dressed up and go out, which doesn’t hurt full-service restaurants, McGowan said. Consumers may change their habits, like having a bite of dessert rather than a whole dessert, McGowan said. They will still go to QSRs, but maybe not as often, he added. They could also get small fries or a kale salad instead of the larger sides they previously ordered.
Fogo, which serves a protein dense menu, is also well set up for current diet trends, including the recent dietary guidelines released by the Trump administration that emphasize proteins and eating fewer processed foods.
“Fogo has always served whole food, nutrient-dense food,” McGowan said. “We’ve never served processed food. … We butcher it, dry age it, season and cook it and then serve it right in front of you.”
