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                                                                      USA: CKE Restaurants: keen on lean (COMMENT)

                                                                      CKE Restaurants [CKR] is preparing to test market its new 'bunless' burger - aimed at patrons of the Atkins diet. The move reflects a growing trend as retailers seek to cater for increasingly health conscious consumers. What was once a niche market is quickly developing into a crucial target group.

                                                                      September 26, 2003
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                                                                      Rising health worries, particularly concerning obesity, are fueling interest in such alternatives. Obesity has reached epidemic proportions in the US - an estimated 61% of American adults are considered to be overweight. A recent New England Journal of Medicine study cites the Atkins diet as being twice as effective as other diets in reducing weight over the first six months. Such findings have only served to boost the demand for low-carb lifestyles.

                                                                      Retailers have been cashing in on the trend for a while. Trader Joe's has gone from selling ten low-carb products to more than fifty, including bread, tortillas, meal replacement shakes and candies.

                                                                      Restaurants too have finally seen the 'lite', estimating that 10-30% of customers follow the Atkins diet. Many are reformulating menus to jump on the low-carb bandwagon. In Atlanta for example, Balance offers a menu to cover every diet plan. Sliced three ways, into protein, vegetables and grains, patrons are offered meat, poultry or seafood and two sides, one vegetable and one carbohydrate. Customers on the Atkins diet get two vegetables instead of grains.

                                                                      While interest in low-carb diet plans may pass, dieting is here to stay. Estimates indicate that nearly half of the nation's citizens are on a diet at any given time. Staying ahead of the next big slimming trend will be essential for retailers looking to make that winning first move.

                                                                      (c) 2003 Datamonitor. All rights reserved. Republication or redistribution, including by framing or similar means, is expressly prohibited without prior written consent. Datamonitor shall not be liable for errors or delays in the content, or for any actions taken in reliance thereon.

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