With the number of Americans using glucagon-like peptide-1 (GLP-1) drugs such as the obesity treatments Mounjaro and Wegovy surging, the U.S. restaurant industry is taking a direct hit, the Wall Street Journal (WSJ) reported on the 13th. Analysts say that as people eat less after taking the drugs and dine out less often, the large-portion dining culture that once symbolized "big-eating Americans" is being shaken.
According to the WSJ, several recent studies found that GLP-1 users are cutting back on restaurant visits and, even when they eat out, significantly reducing how much they order. A Gallup poll showed that as of last fall, more than 12% of Americans said they were using GLP-1 drugs for weight loss. That is double the level in early 2024 (6%).
A Cornell University study also found that households with a GLP-1 user reduced their average expenditure at fast-food restaurants, coffee shops, and quick-service restaurants by 8% within six months of starting the drugs. JPMorgan projected that the number of GLP-1 users in the United States will rise from about 10 million this year to around 30 million by 2030.
Kay Coleman, a nurse in Wisconsin, said in a WSJ interview that after she and her husband began GLP-1 therapy early this year, their dining-out frequency was cut in half. She said that while she used to order a 20-ounce (about 570g) ribeye steak at Texas Roadhouse, now she eats only 8 ounces (about 270g). Her husband also used to order three soft tacos and a large soda at Taco Bell, but recently his overall order size has dropped significantly, she said.
The restaurant industry is moving to respond. Domino's Pizza Chief Executive Officer Russell Weiner said in a recent interview, "Diets themselves are changing," adding, "We need to face reality and adapt." McDonald's has recently begun aggressively promoting the protein content of its menu items. That is because among GLP-1 users, demand is growing to increase protein intake to prevent muscle loss. KFC is also putting "high-protein chicken" and "snack-size menus" front and center.
Olive Garden, known for its unlimited breadsticks, introduced a "light portion" menu at stores nationwide starting this year. The fast-casual chain Panera Bread has expanded sales of half sandwiches and smaller salads. Customer surveys showed that 17% of its customers are using GLP-1 drugs.
The WSJ said the industry is watching the GLP-1 boom as a potential factor that could reshape the broader U.S. consumer market beyond a simple diet fad. Analysts say that "the pleasure of eating a lot" is giving way to "eating less and eating healthy" as the new standard for consumption.