The Economic Effects of Nutritional Labeling on Restaurant Choices of Menu Items

Abstract

In his November 2004 article in the Wisconsin Law Review, Michael McCann studies the issue of obesity in the United States and suggests extending the food nutritional labeling requirements to certain fast-food items to inform unaware fast food consumers. In this short comment, we complement the consumer choice analysis of McCann (the demand side) with a view of the predicted behavior of restaurant chains (the supply side). We argue that the introduction of mandatory labeling of nutritional information on kids' meals, as suggested by McCann, will probably change the way consumer choose to purchase fast food items for their children, but it will also change the way fast food companies choose the items marketed for childhood consumption.