Demand for french fries reflects resilient consumer as so-called fry attachment rate holds steady

Despite rising inflation and economic concerns, consumers are still indulging in their favorite fast-food side dish: fries.

According to Lamb Weston, a leading potato supplier, more customers are choosing to add fries to their meals than before the pandemic.

This resilience in consumer spending is evident in the higher-than-usual “fry attachment rate,” which indicates the likelihood of customers opting for fries with their meal.

The continued popularity of fries highlights the willingness of Americans to spend on everyday luxuries, even as their savings dwindle and inflation pinches their budgets.

Retail and food services spending remains strong in the United States, with spending in February being significantly higher than pre-pandemic levels.

This consumer behavior has puzzled economists, as one would expect stricter budgeting during times of economic uncertainty.

However, experts believe that the pandemic’s early stimulation measures and rising wages gave Americans a financial cushion.

This, coupled with a sense of “YOLO” or “revenge” spending, is driving consumers to make purchases that bring them joy and comfort, such as adding fries to their meals.

Despite the popularity of fries, Lamb Weston faced challenges in its recent quarter.

While consumer demand for fries remained high, overall restaurant traffic decreased, leading to a decline in the supplier’s sales volume.

This suggests that consumers are going out to eat less frequently due to rising menu prices and other factors.

The lesson from this trend is that consumers are still willing to spend on indulgences, even when faced with financial constraints.

This bodes well for the economy in the short term, but also raises questions about the sustainability of such spending patterns in the face of ongoing inflationary pressures.