Eating out has a significant impact on public health, yet consumers are largely unaware of the nutritional quality of their meals. With the number of diet-related diseases on the rise, transparency in this sector is essential.
Restaurant chains, cafes and takeaways have a huge impact on public health. But there is one glaring problem: we are largely left in the dark about the nutritional quality of the meals we eat outside of the home. With diet-related diseases such as obesity, diabetes and heart disease rapidly increasing worldwide, transparency in the out-of-home (OOH) sector is more urgent than ever.
Current research by Action on Salt and Action on Sugar, Queen Mary University of London, Obesity Health Alliance, Bite Back and Nesta (funded by ShareAction) looks at the OOH food industry in the UK, examining the top 10 best-selling menu items from 19 of the top 20 companies, including Domino’s, Pizza Hut and McDonald’s. There were two key findings:
Industry lacks transparency: Limited nutritional information for out-of-home consumption
First, the industry is extremely opaque: most companies do not disclose enough complete information about the ingredients or nutritional values of the meals they sell. In fact, 50% of the UK’s leading OOH companies do not disclose key data such as ‘nutrients per 100g’ or portion weights, and 50% do not even provide ingredient lists online. This is in stark contrast to the food we buy in supermarkets, where such labelling is mandatory.
Unhealthy offers: majority of bestsellers classified as “less healthy”
Second, the researchers conducted their own analysis and found that the majority of top-selling items in the UK’s largest OOH chains are classified as “less healthy.” Depending on the model used, only a meager 22 to 54 percent of these items were classified as a “healthier alternative.”
Recommendations: More transparency and healthier offers
This important research lays the foundation for progress and provides recommendations that forward-thinking companies, policymakers and investors can implement.
A key recommendation is that companies take a robust and standardised approach to informing consumers about the healthiness of their products, clearly stating how they perform in terms of calories, fat, sugar and salt. While some forward-thinking companies (such as Pret A Manger) are leading by example here, this will almost certainly require government regulation to ensure full transparency.
However, we cannot rely on busy consumers to do all the work – it is the responsibility of companies to lead by example by producing and promoting healthier products.
This study shows that companies currently rely far too heavily on selling unhealthy products. They are in danger of being left behind as consumers increasingly demand healthier alternatives and governments try to combat diet-related diseases through marketing restrictions or taxes. To encourage change, companies should be required to regularly disclose the extent to which they rely on selling unhealthy products.
While we hope for voluntary initiatives from companies (none yet!), this will require mandatory reporting, such as that provided by the Food Data Transparency Partnership in the UK. Once we have clarity on the healthiness of their sales, there will be a much stronger incentive for companies to set ambitious targets for selling healthier food to stay ahead in an increasingly health-conscious world.
Investors have a critical role to play in this. Shareholders will suffer if the companies they own do not adapt to changing consumer trends and regulations in a timely manner. On a broader, systemic level, diversified investors’ portfolios are already being affected by the impact of poor health and sluggish economic growth due to unhealthy food. ShareAction will build on this research to support long-term investors by encouraging improvements in the industry and better government regulation.
The conclusion? The OOH food sector needs to step up.
As the health crisis caused by poor nutrition deepens, the restaurant industry must take responsibility for the food it serves. The insights from this new study provide the tools to do just that. It’s time for restaurant chains, cafes and takeaways to open up, increase transparency and start serving meals that contribute to a healthier world. Investors, consumers and the industry itself can benefit from this change – if they have the courage to act.
