Despite inflation fears and a potential recession, American consumers continue to order french fries with their meals, a potentially positive sign for the U.S. economy.
According to a CNBC report, Lamb Weston Holdings
"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," said CEO Tom Werner during the company's earnings call.
Typically, financial pressures lead to consumers cutting back on spending, which could mean skipping fries or other side orders. However, this ongoing demand could indicate a resilient consumer economy despite rising inflation and recession fears.
Inflation, however, can impact businesses in other ways. Lamb Weston has seen a shift in consumer behavior towards more affordable quick-service food providers, balancing out declines in full-service and casual-dining restaurants.
Werner also warned that inflation could continue to drive up the company's costs, particularly potato contract prices. Despite these challenges, Werner remains confident in the long-term growth prospects for the global frozen potato category.
