Sunday, October 3, 2010

WHY DO THEY MAKE EVERYTHING SO BIG?

You may accuse me of another anti-American rant – but the quote is from a TV commercial, made by Americans for Americans. (Canadians get to see it only because most American advertisers can’t or won’t bother to make a TV commercial specially for us.)

The opening line is spoken by an Englishman presumably at a cricket match” Why do Americans make everything so big?” He shows his buddy a huge stuffed burrito. In the next frame someone in another country makes the same comment, then another holds the burrito to his chest like a baby being burped. The commercial is fun. No slurs are intended, although you and I both know Americans who will be offended by a Canadian making the observation.

There are really two issues: the first is probably the celebrated “bigness” of America. The second is more practical: the direction the highly competitive fast food market its taking.

It has been a few years since the publication of “Fest Food Nation,” which examined just about every element of the American food delivery systems from portion size to potato monopolies.

In “Fast Food Nation” the author documented the growth in portion sizes, using the typical order of fries from McDonald’s. I won’t bother to quote the figures, but the essence of it is that from 1950 to 1990 the price remained the same but the portion sizes grew, and grew, and grew. Competition in fast foods has two dimensions: low price points, but more – increased portion sizes. So Taco Bell, the originator of the “so big” TV commercial, features a stuffed burrito with twice the amount of meat.

The war continues. Everyone steps up to the plate – literally – and fills it with more product. The obvious comment has to be made, although it is superfluous, that Americans (Canadians not far behind) are leading the world in obesity and one cause is the mammoth food portions.

On my recent three month stay in Paris I was a little startled to see that the Parisians (unless it's all for tourists) are losing their reputation for small portions and are filling the plates. So far. I have not seen any results, judging from the continuing slimness of Parisians. But they can't be far behind.

Is the size of the portion a synonym for the American Dream vision of “plenty?” Or is the consumer being swept along by companies operating in down market times and mounting competition. Something has to give. Will it be the purveyors of fast food who simply can’t absorb the added food costs? Will it be the manufacturers who will be caught in the competitive crossfire? Or will it be the prime producers who always seem to get the dirty (I mean another word) end of the stick>

In a free market economy, it is all about competition. Because a free market economy is also a “demand” (as opposed to command) economy, he who advertises best will get the customers. Add to the mix that sale of Burger King for billions of dollars, and you have a fast food company operating with a lot of debt, the debt incurred by the takeover.

Does it all make sense? Will the competition kill the competition? Will the customer come out on top? That scenario seldom works, because ultimately the consumer will have to pay. Remember, the only source of revenue is the guy who buys the burrito.