"Is This Really One Serving?" Restaurants Cut Portions and Prices as Menus Change... Why?

U.S. restaurant sales fall for 5 straight months
Impact of rising dining-out costs and spread of obesity treatments
Restaurants move to adjust menus, prices, and portions

In the U.S. restaurant industry, a trend is emerging in which portion sizes are being reduced or new small-size menu options are being introduced. This is seen as a response both to the increased burden of dining out due to inflation and to the spread of obesity treatments that suppress appetite.

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On February 18 (local time), Yonhap News reported, citing the Financial Times (FT), that U.S. restaurants are adjusting their menus in this way.

According to the report, P.F. Chang’s, an Asian fusion chain with about 200 locations across the United States, added a “medium” option last year for main courses, offering a smaller portion than before. This allows customers to choose their portion size. Fast-food brand KFC is also partially adjusting product composition and portion sizes at roughly 4,000 stores in the United States. Chris Turner, Chief Executive Officer (CEO) of Yum Brands, which operates KFC, recently explained these changes to analysts.

Seafood chain Angry Crab Shack has introduced lunch menus that lower prices by reducing the portions of some dishes, while Italian restaurant Tucci in New York has launched a so?called “Ozempic menu” targeting customers using obesity treatments. For example, unlike the regular menu that serves three meatballs, this menu serves only one meatball and adjusts the price accordingly.

Behind these changes lies a broader slump in the restaurant sector. According to market research firm Black Box Intelligence, both customer traffic and sales in the restaurant industry have declined for five consecutive months. This is attributed to consumers cutting back on spending as the cost of living rises.

Restaurants themselves are also under significant cost pressure. Prices of beef have climbed to record highs, and the costs of ingredients, energy, and labor have all risen together. On top of that, the spread of GLP?1 class appetite?suppressing drugs is also having an impact. Among consumers using drugs such as Wegovy, Mounjaro, Ozempic, and Zepbound, there is a noticeable trend of reduced food intake.

Think tank Rand estimates that about 12% of Americans are currently using such medications. A survey by Morning Consult also found that users of these drugs tend to reduce the amount they order when dining out or to increase the share of meals they eat at home.

The perception that Americans consume larger meals than people in other countries is widespread, and statistics back this up. A study published in the journal “Foods” in 2024 found that the typical meal portion in the United States is 13% larger than in France.

It is known that U.S. portion sizes have steadily expanded since World War II, as industrialization pushed down the prices of grains, sugar, meat, and oils. Public health experts have long argued that excessive portion sizes in the United States have been one of the factors exacerbating both food waste and obesity.

Recently, however, rising costs and changing consumption patterns have combined to make portion adjustment a spreading response strategy. Some analysts say that strategies which reduce portion sizes and menu prices in line with demand for smaller meals can be effective both for attracting customers and for managing costs.