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Wednesday, July 13, 2011

Why Consumers Will Pay A Premium To Get Less Product

With the super-sizing of meals, restaurants found easy profits from consumers willing to pay a little extra to get what seemed like a lot more. Now, to appeal to health-conscious consumers who’d happily pass along the responsibility of trimming calories to someone else, restaurants and food manufacturers are rolling out snacks, beverages, and meals in tiny portions. And miniaturizing could prove to be just as profitable as super-sizing.

Here’s a simple, surefire way to cut calories: eat less. Easier said than done, of course. Where self-control fails, restaurants and food manufacturers are now stepping up to the plate—with mini-snacks and mini-meals appealing to consumers who tend to finish everything on their plates, regardless of the portion size.

Dairy Queen and Starbucks are among the eateries to have recently launched tiny menu item treats, such as 7 oz. mini Blizzards and “Petite” bite-size desserts. These treats aren’t expensive—$1.50 to $3 or so—but you get what you pay for. Actually, considering how small these menu items are, customers arguably get less than what they’re paying for.

But that seems to be OK to many consumers who accept the tradeoff of paying a premium in order to avoid eating more than they’d hope.

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