Cinnabon's parent company says it's ready for the 'appetite economics' era
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Cinnabon's parent company says it's ready for the 'appetite economics' era
"We recognize that trend really well. GLP-1 use is expected to expand dramatically over the next several years. Gajial sees opportunity for innovation across even GoTo Foods' most indulgent brands as the use of weight-loss drugs expands and consumers increasingly prioritize protein, fiber, and digestive health."
"Recent research from the consumer insights firm Curion suggests that overt GLP-1 branding could backfire due to the GLP-1 Menu Paradox: more than half of consumers say they would likely order smaller, protein-forward versions of popular menu items if offered, yet over a third actively reject anything labeled GLP-1-friendly."
"Nearly a quarter of current GLP-1 users surveyed by Curion said they regularly order from the kids' menu as a workaround for smaller portions, which is a big blow toward already razor-thin margins in an environment where costs are up, and consumer spending is down."
GoTo Foods, parent company of Cinnabon, Jamba, and McAlister's Deli, is restructuring its portfolio to address the growing GLP-1 medication trend. CEO Omer Gajial recognizes the opportunity to innovate across brands by emphasizing protein, fiber, and digestive health as appetite-suppressing drug use expands. However, research reveals a paradox: while over half of consumers want smaller, protein-forward menu items, more than a third reject anything explicitly labeled GLP-1-friendly. Brands face financial pressure as nearly a quarter of GLP-1 users order from kids' menus for smaller portions, threatening margins. Rather than overt GLP-1 branding, successful strategies focus on flexible portion sizes, protein-first framing, and smaller indulgent options appealing to both medication users and the general public.
Read at Business Insider
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