Surcharges plus Unhealthy Labels Reduce Demand for Unhealthy Menu Items

Abstract

Three laboratory experiments and a field experiment in a restaurant demonstrate that neither a price surcharge nor an unhealthy label is enough on its own to curtail the demand for unhealthy food. However, when the two are combined as an unhealthy label surcharge, they reduce demand for unhealthy food. The authors also show that the unhealthy label is as effective for women as the unhealthy label surcharge, whereas it backfires for men, who order more unhealthy food when there is an unhealthy label alone. The authors demonstrate that an unhealthy surcharge, which highlights both the financial disincentive and potential health costs, can significantly drive healthier consumption choices. From a policy and government perspective, if the goal is to reduce demand for unhealthy food, increasing the transparency of the health rationale for any financial disincentive is necessary to effectively lower unhealthy food consumption.

The impact of interventions to promote healthier ready‐to‐eat meals (to eat in, to take away or to be delivered) sold by specific food outlets open to the general public: a systematic review

“…Five studies were classified as cohort studies. Two studies were controlled before‐and‐after studies that reported outcomes in the same customers or at the food outlet level in the same food outlets at baseline and follow‐up , and four studies were controlled trials .…”

“…In terms of the types of food outlets targeted, 18 studies focused on chain food outlets and 12 studies were set in other types of food outlet, including three studies in non‐chain food outlets ; one study each in takeaway food outlets ; a delicatessen‐style food outlet ; privately owned fast‐food‐style Mexican food outlets ; community food outlets that included both counter and table service ; Latino family‐owned food outlets ; licensed retail food outlets ; licensed hotels, clubs and nightclubs ; restaurants and cafes ; and small independent catering outlets . Most of the chain food outlets were fast food counter service, but other food outlet types included table service or takeaway only.…”

“…One strong‐quality controlled trial investigated the effects of two interventions that included price increases of unhealthy menu items: (1) price increase alone and (2) price increase with signposting of the unhealthy options . The study found no intervention effect when only a price increase was applied, but when combined with signposting, there was a decrease in unhealthy main dishes ordered .…”

“…Eight studies investigated the effects of nine interventions that involved signposting. In three studies, signposting was implemented alone ; in two studies, signposting was incorporated with menu changes , and three studies were of health promotion or social marketing campaigns that included signposting .…”

Consumer Strategies to Improve the Efficacy of Posted Calorie Information: How Provincial Norms Nudge Consumers to Healthier Consumption

“…The purpose of this research is to increase the effectiveness of the calorie information mandate using provincial norms to nudge consumers toward healthier decisions (Allcott ; Blumenthal‐Barby and Burroughs ; Payne et al ). We outline several actionable responses for issues faced by managers, practitioners, and policymakers seeking to enhance healthier consumption using social marketing techniques (see Shah et al ).…”