We’ve all probably heard of shrinkflation, but there’s a new downsizing dining trend on the rise that might be easier on wallets: smaller portions, with smaller prices.
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Izzy Kharasch – president of Hospitality Works, also known as The Restaurant Coach – joined Rob Hart on the WBBM’s Noon Business Hour this week to talk about the new trend.
“If you go back, let’s say 20 years, restaurants went the total opposite direction – they competed by having gigantic portions, right? You go to Maggiano’s and you’ve got a bowl of pasta that was, you know, big enough to eat for three days,” Kharasch said.
Olive Garden, a restaurant chain known for deals like “Endless Pasta” recently tried out something else. Fox News Business reported in September that it was testing a “smaller portion menu at reduced prices nationwide,” and that the results were “encouraging.”
This new approach comes after Olive Garden reported declining sales as customers cut back on expenses amid continued inflation and other economic concerns, per CBS News. Earlier this year, Hart also covered the pitfalls of growing restaurant prices that have made a meal out with friends seem like an expense few can afford.
“The price of dining has become so expensive and you know, we’ve actually been on this trend for a while,” said Kharasch. “Restaurants got away from trying to sell every single person an appetizer at the table. They recognize people want to eat less… they’re not all up for that big meal.”
Another factor possibly pushing restaurants to cut portion sizes is the increasing popularity of GLP-1 weight loss medications like Ozempic. These medications work in part by slowing gastric emptying, and they typically reduce the appetites of people who take them.
“That is certainly a consideration, because a lot of people are on those different weight loss drugs, their appetites are much smaller and their concern – again versus 20 or 30 years ago – they’re not as concerned as bringing something home,” Kharasch said. “So, the answer is, give me a smaller portion, lower the price.”
Even beloved fast food chain McDonald’s has noticed that consumers are less willing to spend money on restaurant food, and it recently announced a new slate of deals. These deals are a more demure size compared to the “Supersize” portions that were discontinued in 2004.
“I think… the restaurant industry and customers are, are getting right size,” said Kharasch. “They’re… they’re going back to what is a sane portion.”