Demand For Sides Of French Fries Remains Steady, Boosting Optimism Amid Inflation Concerns

Despite inflation fears and a potential recession, American consumers continue to order french fries with their meals, a potentially positive sign for the U.S. economy.

According to a CNBC report, Lamb Weston Holdings (NYSE:LW), a frozen potato supplier, has observed the so-called “fry attachment rate” remain above pre-pandemic levels. This rate refers to the frequency of consumers ordering fries as a side with their fast-food meals.

“Fry attachment rate, which is the rate at which consumers order fries when visiting a restaurant or other food service outlets across our key markets, [has] remained largely steady and above pre-pandemic levels,” said CEO Tom Werner during the company’s earnings call.

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Typically, financial pressures lead to consumers cutting back on spending, which could mean skipping fries or other side orders. However, this ongoing demand could indicate a resilient consumer economy despite rising inflation and recession fears.

Inflation, however, can impact businesses in other ways. Lamb Weston has seen a shift in consumer behavior towards more affordable quick-service food providers, balancing out declines in full-service and casual-dining restaurants.

Werner also warned that inflation could continue to drive up the company’s costs, particularly potato contract prices. Despite these challenges, Werner remains confident in the long-term growth prospects for the global frozen potato category.

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