Fries Still Sizzling: What Potato Orders at Fast-Food Joints Reveal About the Economy
In a surprising twist that might leave economists craving a side of fries, it seems that the love for these golden spuds is holding strong, even in the face of inflation and economic uncertainty.
Lamb Weston Holdings, the go-to supplier for frozen potatoes, shared some tasty insights on Thursday during their earnings call. According to CEO Tom Werner, the “fry attachment rate,” a fancy term for the percentage of people ordering fries with their fast-food meals, is not only holding its own but dancing above the pre-pandemic levels.
Werner’s takeaway from this crispy news is that consumers, despite feeling the pinch of inflation and the looming threat of a recession, are still treating themselves to a side of indulgence. In simpler terms, people aren’t skimping on the good stuff, even when tightening their financial belts.
“The global frozen potato category continues to be solid with overall demand and supply balanced,” Werner shared. “Fry attachment rate, which is the rate at which consumers order fries when visiting a restaurant or other food service outlets across our key markets, [has] remained largely steady and above pre-pandemic levels.”
In the usual script of economic downturns, consumers tend to tighten their purse strings, maybe skip the fries, or opt for more budget-friendly choices. But in this tale of potatoes and prosperity, it seems like folks are holding on to the joy of that crispy, salty side.
Of course, the impact of inflation isn’t just limited to the allure of fries. Lamb Weston did notice a shift in customer behavior, with growth in more affordable quick-service food providers balancing out declines in full-service and casual-dining restaurants.
Werner acknowledged the ongoing challenges related to inflation, especially concerning potato contract prices. He pointed to a blip in June affecting restaurant traffic, but since then, things have been looking up. Despite economic hiccups, he remains confident in the resilience of the company’s potato offerings to weather any slowdown.
So, while the economy might be dealing with ups and downs, it appears that the love for fries remains unwavering—a crispy beacon of hope in uncertain times.