Why People Ordering More French Fries Is Good for the Economy

Economists often watch the price of commodities like beef, turkey, and eggs (never forget the $7 per dozen era that was January 2023) to keep an eye on consumer spending, which helps them understand the pulse of the overall economy. Their food-focused financial forecasts don’t stop there, though. A new report from frozen potato supplier Lamb Weston has budget experts feeling bullish about the future, and it’s all thanks to sides of fries. 

According to Lamb Weston data, which the company shared on an earnings call last week, the “fry attachment rate” (aka the number of individuals ordering French fries at fast food restaurants) continues to track higher than pre-pandemic levels. Economists view this as a subtle bright spot and a sign that consumers are willing to drop some extra dough on an upgrade, even though the potential for a recession looms.

When individuals feel crunched for cash due to rising interest rates, low savings, or otherwise, the usual course of action is to trim unnecessary spending. In the past, fast-food companies have noticed this has sometimes manifested as skipping the fries.

That being said, this is just one tiny indicator of consumer spending and doesn’t take into account the countless swirling factors that might be a better clue, such as unemployment rates, home and car purchases, and holiday spending. Still, the fact that we’re splurging on spuds might bode well for the future, as it could be a quiet cue of consumer resilience.

According to CNBC, Lamb Weston’s CEO Tom Werner revealed in that earnings call, “the global frozen potato category continues to be solid with overall demand and supply balanced.” He added, “Frozen potato demand has proven resilient during the most challenging economic times, and we continue to be confident in the long-term growth prospect for the global category.”

The impact of inflation lingers and is resulting in higher costs for the potato supplier, Werner admitted. So, while restaurant traffic and add-ons have offered an optimistic view, the carbs aren’t quite a crystal ball. 

“We suspect that restaurant traffic trends will be volatile in the near term as high interest rates, high inflation, and uncertainty continue to affect consumers,” Werner said.

As we continue to know more, we’re happy to have another excuse to make it a meal. It’s just part of our civic duty, right?