Christmas came early this year! 4 years, 8 months and 2 days (but who’s counting) after the Affordable Healthcare Act was signed into law, the final regulations for menu labeling arrived on November 25th. As of December 1, 2015 all restaurants and similar establishments with more than 20 locations will need to comply with the FDA guidelines for menu labeling. While the basic premise behind the regulations has remained consistent since the guidelines were drafted, the FDA threw in a few surprises in the final copy.
When the FDA first declared that the menu labeling law would be for restaurants and “similar establishments,” it was unclear which other industries would be impacted. This was clearly spelled out in the final regulations, and quite a few groups are not happy with the final decision. Convenience stores and grocery stores must label food that’s intended for immediate consumption (a deli sandwich will be labeled, but not a pound of deli meat meant to make 4 or 5 sandwiches at home). These groups had put up quite the fight in the past few months as they did not believe they fit the same mold as restaurants, but the FDA has decided to hold its ground and include them in the “similar establishments” definition. Other industries that will be required to provide nutritional labeling include amusement parks, sports stadiums, coffee houses, and movie theaters.
After it was made clear who the law would impact, the next surprise came in a provision that mandates alcohol be included in the list of items that must be analyzed. The Bureau of Alcohol, Tobacco and Firearms is the government agency that controls the labeling of alcohol, and up to now there have only been voluntary labeling guidelines in place. It’s not required by law that a bottle of vodka or keg of beer come with an approved nutrition label in plain sight. The fact that alcohol was being sold to restaurants and other foodservice entities without a label attached seemed to be a good indication that nutritional labeling of cocktails, wines and beers would not be required by the FDA. However, any drinks that are on a drink menu (not a mixed drink you request at the bar) must have the calories posted and additional nutritional information must be available upon request. This could be one of the most alarming sources of calories, fat and sugar for diners. Typically, a shot of alcohol is around 100 calories, and the amount of sugary mix-ins or creamy liquors that accompany it can make for quite the calorie-dense beverage.
With all the talk focusing on the unexpectedly stringent parts of the rules, it’s also important to note that the FDA is allowing some leniency when it comes to serving sizes at pizza restaurants. While the regulations focus on posting calories and other nutrients for the full menu items regardless of servings (an entire appetizer platter or a full dessert serving), the final regulations specifically mention that pizza can be listed by the slice. Posting nutritional information for an entire pizza was thought to be potentially off-putting for some consumers, so having the flexibility to post calories by the slice was considered a big win for pizzerias.
Now that the wait for menu labeling is over, the industry will need to prepare for these mandated changes. While the expected cost throughout the restaurant industry is somewhere around $315 million to implement in the first year, nutrition analysis can be an affordable and efficient process if done correctly (for further reading on this, check out the difference between database analysis vs laboratory analysis).
Menu labeling should be seen as a great opportunity to provide transparency for diners, and to potentially pinpoint areas of improvement in a restaurant’s menu.This is a new chapter for the foodservice industry, and making the most out of it means potential for new business opportunities. For a full copy of the guidelines, check out the Federal Register page here.
