KDSN RADIO News
Iowa eateries taking a hit due to popularity of weight loss drugs
National data indicates the popularity of weight loss drugs like Ozempic and Wegovy is creating losses — for the restaurant industry.
“When people first started talking to me about this, oh, up around the first of the year, I thought: ‘Hmm. That doesn’t make a lot of sense,'” Iowa Restaurant Association president and CEO Jessica Dunker said. “But as more and more of the population is taking these GLP-1s, there’s a couple of side effects that are maybe unforeseen and they do impact restaurants.”
For every 1000 people in Iowa, a dozen had a prescription for Ozempic and Wagovy that was being covered by insurance according to a recent Axios report. That doesn’t count others who are paying up to $1300 out of pocket for a month’s supply and Dunker said that means they’re using disposable income to lose weight and get healthy, leaving less money to go out for a meal.
“Secondly, their appetites are definitely impacted by this,” Dunker said. “We’re finding that people do go out less. They spent less when they arrive. They are definitely choosing smaller portion sizes or only maybe just a small appetizer and one drink, versus someone who maybe would have come for dinner.”
A survey by Bloomberg found 54% of GLP-1 users said they’ve dined out less frequently since starting the medication. It’s having an effect in Iowa restaurants that offer table service, acording to Dunker.
“We’re not going to encourage anyone to not get healthy, but there is real impact there,” Dunker said, “so if you have had a recent weight loss, come out and celebrate with something healthy and bring some friends along.”
As Radio Iowa recently reported, Dunker is predicting up to 600 Iowa restaurants will close this year because they’re losing money due to the rising costs of food and labor.
