BUSA-2005 NET
The Fast-Food Industry and Trans Fat: Fad or Legitimate Concern for Society?
Submitted by Group 4:
Submitted on: January 23rd 2011
OVERVIEW
This case study discusses the popularity of food fads and the growing concept of providing customers with healthier food choices by banning Trans Fat foods in restaurants. Trans Fats are processed altered oils that include hydrogenated products which businesses use to extend a product’s shelf life. Such fats can clog arteries and be very harmful to one’s health when consumed on a daily basis. This analysis will describe the causes of why this Trans Fat free notion has been on the rise and how such an implementation can create challenging obstacles for corporations from a managerial standpoint. √
SYMPTOMS AND EVALUATION OF KEY FACTORS
• Trans Fats (hydrogenated oils) reduce body’s ability to regulate cholesterol thus making it very harmful to health.√
• Corporations in food business use Trans Fats as they are cheaper than other healthier oils. They try to maximize profits by either using them or by transferring the higher costs to the consumers.√
• BanTransfat.com launched the national and international Trans Fats campaign by suing Kraft in 2003 to eliminate Trans Fats from Oreo cookies. As an outcome of this case Kraft eliminated Trans Fats from 650 of its products. Domino effect of this cases’ publicity led to public awareness and led FDA to introduce Trans Fats labelling on food items.√
• BanTransfat.com also led to a class action against McDonalds who mislead its customers into believing that it had switched to lower Trans Fats cooking oil.√
• NPD a global market research company which provides consumer behaviour and point of sale information across industry believes that tastes rules and fads pass.√
• Tiburon, California, “America’s First Trans Fat-Free City,” Many other cities followed them and now use Trans fat free oil for cooking.√
STATEMENT OF THE