Ozempic & Restaurants: Dining Habits Shift – Report
The restaurant industry is facing a significant shift as the popularity of GLP-1 drugs like Ozempic impacts dining habits. A new report reveals that over half of Ozempic and Wegovy users are dining out less, a trend that compounds economic pressures on restaurants. This shift, detailed in a Bloomberg Intelligence report, shows a direct correlation between the rise of weight-loss medications and a decline in restaurant spending across various income levels. The report highlights a significant increase in home cooking, with many consumers buying more groceries. News Directory 3’s analysis of this trend suggests that restaurants, notably those with fewer healthy options, may need to adapt. Discover what’s next for the restaurant industry and how they plan to navigate this evolving landscape.
Ozempic, Wegovy Impact: Restaurant Spending Declines Among GLP-1 Users
The rise in popularity of GLP-1 drugs, such as Ozempic and Wegovy, is impacting the restaurant industry as users cut back on dining out, according to a Bloomberg Intelligence report.This shift in consumer behavior adds to existing economic challenges facing restaurants, including slow pandemic recovery and tariff-related economic uncertainty.
The report surveyed 1,000 GLP-1 users in the U.S., finding that 54% reported a meaningful decrease in dining out and takeout orders since starting the medication. Conversely, 70% of respondents said they are cooking at home more frequently enough, and about half are buying more groceries.
Thes drugs, initially developed for type 2 diabetes, have gained traction for thier weight-loss benefits.FAIR Health data indicates that approximately 4% of Americans now use some form of GLP-1 drug, a 600% increase in usage over the past six years. The medications work by increasing insulin levels, decreasing glucose levels, slowing digestion, and suppressing appetite, which can lead to reduced portion sizes and a focus on nutrient-dense foods.
Other surveys support these findings. A Morgan stanley survey from April 2024 revealed that nearly two-thirds of GLP-1 users reported spending less at restaurants, while 31% cut back on grocery purchases.
Some food companies are adapting to these changing consumer habits. smoothie King introduced a line of high-protein and fiber products tailored for GLP-1 users in October 2024. Similarly, Nestlé announced plans the year before to develop “companion products” for those on the medication, designed to help them manage calorie intake.
Novo Nordisk CEO Lars Fruergaard Jørgensen acknowledged the concerns within the food industry, stating in February 2024 that he had received calls from worried food company executives regarding the potential impact of GLP-1 drugs.
The Bloomberg intelligence report highlights that the decline in restaurant spending among GLP-1 users is occurring across various income levels, suggesting a broader trend.Restaurants with fewer healthy options, such as fast-food establishments, may be particularly affected.
The restaurant sector also faces other headwinds, including a persistent labor shortage and economic uncertainty related to tariffs, which has negatively impacted consumer confidence. campbell’s CEO Mick Beekhuizen noted a surge in canned soup sales, attributing it to tighter food budgets and a preference for home-cooked meals.
“We started to see consumer sentiment softening in January,” he said. “This continued throughout [the quarter] with consumers making more deliberate choices with their spending on food. A key outcome is a growing preference for home-cooked meals, leading to the highest levels of meals prepared at home since early 2020.”
Hospitality experts have also observed that Gen Z is reducing order sizes by splitting appetizers, ordering kids’ meals, and avoiding alcohol to save money.
Though, not all restaurateurs are concerned. Michael Osanloo, president and CEO of Portillo’s Restaurant Group, suggested last year that the impact of GLP-1 drugs on the restaurant business might be limited to coastal areas.
“It’s totally overblown,” Osanloo said. “I think it’s a fun narrative to propose, but I don’t see any impact on our business.”
What’s next
As the use of GLP-1 drugs continues to rise, the restaurant industry will likely need to adapt further by offering healthier options and value-driven menus to attract and retain customers amid changing consumer preferences and economic pressures.