GLP-1 Weight Loss Drugs: How Will They Change Hospitality? | Katy Moses

Speaker A: Now I feel like it's just everywhere. And our customers love to tell us as well that, like, oh, I'm all the weight loss jabs. It's like, okay. It's like, can't eat as much. Oh, okay, great.

Speaker B: Wanted to understand what effect it was going to have on operators and on suppliers, um, and just generally on consumer behavior.

Speaker A: We need to make sure that the spend per head is more, don't we? That we're getting them to, even though they're eating less and drinking less.

Speaker B: Make that experience more inclusive for GLP1 users. You know, smaller, smaller portions. Yes, but where does the value come from?

Speaker A: Hello and welcome to this week's episode of Simply Hospitality. In this episode we are joined by CAM Insight consumer behavior specialists, the hospitality and leisure sector to unpack what the rise of GLP1 drugs like ozempic means for operators. Welcome, Katie.

Speaker B: Hi there. Thank you for having me.

Speaker A: Ladies, thank you so much for coming on. Uh, Katie is the founder and MD of Cam, a consultancy that she started in 2014. She is passionate about pubs, bars and restaurants and not just about being in them. Katie founded CAM as she saw a gap in the market for a hospitality and food service Insight consultancy that puts creativity at its heart. So it sounds, uh, like you're probably quite busy at the moment with all sorts of factors affecting the hospitality industry at the moment. M. It's a crazy place to be.

Speaker B: Yeah, absolutely. And it's an ever changing industry, isn't it? And I think, you know, from a Cannes perspective, we work across the entire, um, industry. So whether that's pubs, whether it's restaurants, bars, you know, cinemas, theatre, if it's leisure and it sells food and drink, then we work with them. We. Which means that there's always a sort of almost cacophony of challenges that are happening because the challenges are different depending on what part of the sector you're talking to. But then there's also always those underlying issues that we see, um, affects all of our clients. We work with, uh, operators and we work with suppliers as well. So we get that sort of 360 degree approach. It also means we've got a lot of different challenges coming from all different angles.

Speaker A: Yeah, absolutely. Um, so the topic that we wanted to talk about today was the Ozempic and weight loss medication that's so prevalent at the moment. And when we first scheduled this episode, it was sort of maybe six months ago, um, a few months ago, and it felt like it was just kind of coming in and it was cutting edge that we're going to be talking about this now. I feel like it's just everywhere, like I know multiple people in our, in our staff body that are using weight loss medication and our customers love to tell us as well that like, oh, I'm on the weight loss jabs. It's like okay. He's like, can't eat as much.

Speaker B: Oh, okay, great.

Speaker A: Not good for us. So can you tell us a bit about the current landscape in terms of weight loss medication in the UK right now?

Speaker B: Yeah, sure. So we were the first um, consultancy agency to come out with a, ah, GLP1 report which was about nine months ago now. I think the first report came out. I mean obviously other people had done research but nobody had done it specifically into the effects it was going to have on the UK hospitality industry. Um, so that's what we wanted to focus on. We wanted to understand what effect it was going to have on operators and on suppliers, um, and just generally on consumer behavior. So when we first looked at this, we, as I say around nine months ago, nine to 12 months ago, um, the research was conducted, there was around 4% of the UK population were using GLP ones. So that uh, is the equivalent of just a little bit more than those who state that they are vegan and mock the word there of state that they are vegan. Because actually the number of people who are purely vegan is way, way smaller um, than the number that is given out, um, because we all like to think that way. You know my ex boss once said, um, people talk, uh, skinny and eat fat and actually that's the same with vegans. You know, we talk about the fact that we don't eat meat and we don' do this, but actually sometimes we do. So anyway, that's by the by, um, the point to make now is around 10% of the UK population is on GLP1 drugs or has 10%. 10%. To put some context behind that, the number of vegans and vegetarians across the whole of the UK is just under 10%. So there are more people taking GLP1s than there are vegans and vegetarians in this country, right?

Speaker C: Yeah.

Speaker B: And bearing in mind that this is self declaring so you know, you've got all the different sort of nuances and gray areas, et cetera. Um, but there are a lot of people who are taking GLP1s who aren't admitting that they're taking GLP1s. So actually we think that that number is going to be a fair bit higher, possibly as high as around 12 to 13%. But 10% is the number that we're going with at the moment. So it just shows you, if you think about hospitality and you think about the changes that have occurred over even the last, say, 10 to 15 years in creating vegetarian and vegan options and menus and making changes to the hospitality offering because of those people, and yet that is still lower than the people that are on GLP1s. You'll understand why Cam and me particularly are out there banging the drum to say, this is a big thing, guys. In my mind, this will have the biggest effect on consumer behavior within hospitality since the smoking ban, in my view.

Speaker C: Really? Wow, that's interesting.

Speaker A: So it's not just a fad. This is, I mean, it's proved that it's gone from 4% to 10% in those 12 months,

Speaker B: five months time. We'll repeat that study and I can imagine it or it will have increased as well. I do think it has a ceiling because obviously there is only really one reason why people are taking GLP1s if they're not diabetic, and that is for weight loss. Um, so there will be a ceiling at some point. But of course now as well. Manjaro, I think, is the brand that has just released. Or is it. We go there. I think it's Mondaro have just released the, and had the, uh, FDA approval, uh, for a pill form. So then that takes away one. You know, one of the objections that, that people who are overweight and want to take GLP1s. One of the objections that we're seeing is, well, I don't like needles or, you know, it's how you have to store the drug. It has to be stored in cold temperatures for certain amounts of time after it's been partly used, etc. All of that is removed and everything is put into a pill form. And that's going to make things so much easier for people to take it.

Speaker A: Okay, so you've just said that it's like more than the, um, percentage of vegetarians and vegans. But when a vegetarian people comes into the restaurant, we present them with, if you, they ask for it, a menu that's like, oh, here's a vegetarian vegan menu. Is that something that we should be doing? Like how. What.

Speaker C: Here's a, here's your backjack menu.

Speaker B: Whoa.

Speaker C: Like, don't eat the mayonnaise, you're pregnant. I'm not pregnant.

Speaker B: Yeah,

Speaker A: not so blatantly. But should we be having some sort of area of the menu that's obviously, I mean, small Plates, I guess, is the obvious thing.

Speaker C: Yeah, lighter options. Yeah.

Speaker B: I mean, listen, when you're talking about people who are taking GLP1s, what they're actually looking for is not just small plates. There's actually quite a lot more than just that because we're looking for nutrient dense foods. So foods that are going to, despite their small portion, provide high levels of nutrients. We're also looking, um, at, um, you know, a lot of people who are taking the drugs, um, report that they, uh, really like, go back to basics a little bit. So going back to your shepherd's pies, your lasagnas, your etc. Because anything that's got too much flavor in it is just too much for them. Um, we're also looking at things like carbonation in drinks. So carbonation in drinks fills people up, um, a lot more than still drinks. Um, so the people that are taking GLP1s can sort of handle less volume of carbonation, um, than they were before. Um, so I think that it's more than just small plates. But having said that, um, and it's a change of type of cuisine. But having said that, there are so many people who are taking GLP1s who don't want to talk about the fact that they are. So the last thing we want is to make them feel.

Speaker A: Here's your batch of Brittany.

Speaker B: Yeah, different rather than special. Do you know what I mean? So with, ah, vegetarian vegans, we make them feel special, we give them a vegetarian or a vegan menu. We point out, you know, where their particular dietary requirements are going to be met. But with GLP1 users, quite often they don't want that to be the primary topic of conversation. Actually having individual menus is a. No, no. But making sure that our menus are inclusive anyway is where we're sort of steering our operator clients, um, sharing platters is another thing. So that you can, you know, you can still have a little bit of everything, you can still enjoy going out for, for lunch, for dinner, et cetera. We're seeing that a lot of GLP users are much more likely to go out for breakfast, ah, rather than lunch or dinner, um, because they can have healthier options, they can have smaller plates, um, and actually they feel like if they're going out and they are using GLP1s, then their appetite is so suppressed. Is it worth paying the money to go out for dinner when actually I could go for a possibly more value led proposition in a breakfast with a friend instead? We're also seeing a massive rise in bar Snacks and pub snacks and that idea that I don't necessarily want a full meal, but I also want something, so I'm going to have the starters rather than the mains, etc. So, yeah, we do need to start making, or lots of people have started already making allowances for GLP1 users. But I think it needs to be incorporated into the wider, uh, hospitality experience rather than giving those people who, quite often, if you imagine if they have spent their lives being overweight and not being able to lose weight, not be able to get to where they want to get to, they've already had a lifetime of being made to feel different and not catered for and not accounted for. So what we really need to do is make the hospitality menus and offering more inclusive of people who are taking those drugs.

Speaker A: Interesting.

Speaker C: Yeah. So where you've just said them and you're sharing plates, small plates, sharing plates,

Speaker B: small plates, making sure that things are actually nutrient dense. Um, they are more likely to check nutritional value before choosing a menu item. Um, they're also interestingly, happier to pay a premium for the right things. So I don't necessarily, if I was on a GLP1, which I'm not, but if I was, the kind of story goes, um, that I don't necessarily want a smaller portion and a smaller price. I just want to get value for money. If I was going to pay £25 for a meal for my main course and a starter, I'm still happy to pay that. But what I don't want is a plate being taken back to the kitchen with half of my money still, still sat on it. So how do we make that experience more inclusive for GLP1 users? You know, smaller, smaller portions. Yes, but where does the value come from? Because we don't just want to pay the same amount of money for less food. That's not make anybody happy. That's not a good experience for the customer and it's not good for the operator from a customer satisfaction point of view. So what can we do to show value for money, but also show that we are really taking into consideration the needs of these people?

Speaker C: It's really difficult to know. They don't wear a T shirt, they don't have a badge on. So it's like, well, I've changed my menu, but I don't know if I'm attracting in more people on the fat job or not. Yeah, I don't know. Yeah, because I will never know.

Speaker A: No, I mean, I suppose the things that you would measure are, uh, things like food Waste.

Speaker B: Yeah.

Speaker A: Food waste might be more, um, whether people are ordering more small plates than, than large plates.

Speaker C: You've sat down and thought about it. Use that information that we've, you've just said and gone our table or will get this. And I suppose if you sell a lot of them. Yes. It doesn't matter whether they're on the fat job or not, does it? You sell it a lot of them.

Speaker B: Yeah, exactly. And the thing is, is that our tastes as consumers have been changing throughout the years anyway. And we've moved a lot more towards quality over quantity. We moved a lot more towards, um, uh, the sort of health and wellness space because we know that that was, you know, uh, is a trend that sort of kicked off 10 to 12 years ago, I guess, um, of just making sure that we are offering healthy options. Now the options doesn't necessarily just mean a salad, but it could be high in protein. It could be something that takes in, you know, the colors of the rainbow when it comes to vegetables, etc. So that you've, you're getting your vitamins and your minerals, etc. You know, health and wellness is a trend that's here to stay anyway, so we've already made a lot of those changes. It's about going that extra mile for the people whose, you know, uh, appetites have halved from using GLP1s. Um, we did find actually, interestingly, when we came out of the pandemic, we came out of that final lockdown, the focus on health and wellness really had shot through the roof for consumers. And one of the reasons behind that, when you look into the data, is because we were all at home for so long. We were all cooking our own food, growing our own food, making our own bread. You know, whatever it was, we became incredibly conscious about what we're putting into our body bodies. And that hasn't really dissipated. That hasn't really left us that sort of hangover from the lockdowns of really being super hyper aware of what we're eating and drinking hasn't really, um, dropped back as far as we would have expected it to.

Speaker A: Yeah, we were talking to um, somebody recently from M Egg Soldiers and she was saying, um, she was saying about Matcha and how, you know, it's the kind of wellness trend, it's coffee, but it's not coffee. So you need to jump onto that. People don't want caffeine in the afternoon anymore because they're aware of what it's doing to them. But green tea has that sort of wellness aspect to It. So it's about identifying where people will spend their money.

Speaker B: Yeah.

Speaker A: As opposed to just expecting people's behavior to just.

Speaker B: Yeah, well she's, she's totally right. And actually the other point to make is that the absolute boom in wearables, um, so whether it's your Apple watch or whether it's your wings or whatever they're called, etc. That is calling out to us and telling us what we're doing that's right and wrong. You know we actually cam, uh, just released the 2026 low and no report and yesterday we had a sort of conference where we launched that and talked about um, what's. I think it was called drinking differently. Um, right. And we were talking about how the UK adult is drinking differently and how they're zebra striping with low and no versus alcohol. So you have a alcoholic drink and then a non alcoholic drink etc. Or bookending. So uh, soft drink on either end and then a few alcoholic drinks in the middle. But part of what we were looking at there was that this boom in wearables has meant that yet again there's another stage, you know, we're another layer closer to what's going on in our bodies. Um, and GLP1 users are also more likely to be using wearables. So there's so many crossover bits when it comes to health and wellness and how well I'm looking after my body, um, with the sort of low and no with the GLP1s, with uh, that ah, you know, health and wellness trend and yes something like Matcha would sit straight in there and when you think

Speaker A: about the combination of those things, wearable tech, low and no, um, people aren't drinking as much as they used to. I understand, um, even though more than I would on that. But as an operator there's definitely a demand for, for lower note, um, and then the GLP1 and also just a general awareness of our well being. I mean are people still going out? Does the data show that people do still want to go out and indulge in a meal?

Speaker C: I don't know the data. Uh, this is what I think. If they go out, they want to go out and enjoy it and they don't mind spending the money. I mean we won't even start the debate about what you've just described. So those people that can access that health and then there's a whole group of people who have, do not um, don't have the finances to, to access that, any of those options. Oh yeah, there's, I know I've been told of somebody on the fat fat jam. They're not, oh, I can still eat at McDonald's. Do you see what I mean? I mean that's not conversation for now, but I did. That's something I do find fascinating.

Speaker B: Yeah. On a day to day basis, if we're not talking about GLP1 users, um, people are going out less but they are probably still spending a similar amount when they do go out. Um, and in fact there's been a big case of premiumization I. E. I was going out three times a month, I'm now going out twice a month. So I want to drink better and eat better. Once I'm there, quality become way more important because quality is of course the sign of value for money and value for years and a cup rice it's about did I get what I think I paid for out of this particular visit? But from a GLP1 point of view, and I've actually got some stats here which I do have to check because I don't know them off by heart but I do have some, some stats that say that what people are, you know, are people going out less, eating out less, etc. So 32% of GLP1 users told us that they were going out to eat and drink less often. 57% of users said they are more likely to only go out for special occasions so they're not doing that day to day hospitality um Visit. Um, and 23% of these have said that they drink less alcohol when they're out. So if we are to keep those people within hospitality, we need to make sure that every minute of their hospitality visit they are still feeling they are getting value for money even though they are consuming and imbibing less from a volume point of view. So what can we do to still make that visit to a pub, to a bar, to a restaurant, to uh, a competitive socialising outlet, whatever it might be. What can we do to make sure they still feel that was worth them spending their money and worth them getting off their sofa for.

Speaker A: And that's from their point of view, they want to know that they're getting value for money. From an operator's point of view, if they're easing out a third. Yes. Or whatever the stat was there. Um, we need to make sure that the spend per head is more, don't we? That we're, we're getting them to. Even though they're eating less and drinking less. If they're eating out a third, two thirds less than they were then, then we need to make sure that when they are with us, they're spending. And that is a challenge.

Speaker B: Yeah, it really is. And that's where we have to make sure that every single hospitality experience is absolutely spot on. And I think, you know, the. The fact that there are 10% of the UK population that are using GLP1s or have used them in the recent past, you need to look at it in the same way as you look at tea Total people, so all vegetarians and vegans, so there may well not be many of them, but they are definitely the influencer within their group. Because if you've got one person that's using GLP1s and you've got three people that aren't, they are going to defer to that person and say, where do you want to eat? Or they will know that they want small plates or, Sarah's not going to eat that much today, or, you know, et cetera, et cetera. It's the same with vegans and vegetarians. They are more influential within their group than, you know, greater than the sum of their parts, basically, they are more influential. And same with teetotalers. They want to go somewhere, your friends want to take you somewhere where there's a good low and no offering. So that's. The other point is understanding that not only do we need to keep the GLP1 you users happy, because that's 10% of the people that are coming into our pop spas and restaurants, but also they're going to be choosing venues on behalf of a group. So how do you keep them happy, but also keep the people who are not GLP1 users happy, who have almost certainly chosen a venue or been taken to a venue because of that GLP1 user? So they're far more influential than the average person within a group.

Speaker A: Yes, because the minority is the steerer, aren't they? Yeah. Have you worked with, um, operators that have made changes and adaptions to their menu based on the data that you've provided?

Speaker B: Yeah, we have. I mean, most of it's under an NDA, so I can't give you some names. So we recently worked with a big casual dining brand, um, looking at how they could. Because operationally it's not as simple as just saying, well, can I just get a smaller portion? You know, margins don't work like that. So operationally you can't necessarily just go, we'll cut it in half and charge off. No, it's not yet. Yeah. So we worked with them to look at their sort of three Best selling areas, if they've got to be careful about this, um, three best selling areas of their menus and then the best selling dish from each one of those and the second best selling dish from each one of those. Um, and looking at how can we still get them the margin they need but by taking the portion down. And sometimes it's just about replacement, sometimes it's about, you know, putting in a different vegetable that isn't as quite as expensive as the other vegetable, for example. Yeah. So there are ways that you could do it. We've also worked with another brand where they have done what they call skinny desserts. Um, so it's basically just, it's half a slice of something rather than a full slice, but you still have to buy the full slice. Does that make sense? Doesn't when you say it out loud like I just did. But essentially you have to buy the full. So the two of you are going out for dinner, you have to buy the full slice, but you share it. It is just a way of saying you're sharing a pudding, but it's served, uh, differently and it's garnish and you know, it's not, not, it's not one bowl, two spoons type thing. Um, we've worked with a few. Well, actually worked with one particular very meat based supplier who generally, you know, a steak is a steak and it's normally 300 grams and that's that. And they're now sourcing smaller portions of those steaks which, you know, you don't get in a lot of places. It's. This is the size of our steak, whether you like it or not. Um, and then also looking at, just generally trying to make. And this is actually an American brand that I'll tell you of called um, Clinton hall in New York, uh, that I saw last year. And they are doing very small meals. So they are doing very small burgers, sort of yay big. Um, and then their ketchup is served in what looks like, um, uh, hypodermic needle. So I like this. That's the word. Um, and come with that comes, you know, seven chips rather than loads of chips. But because they are making such a theater of it. Yeah, ah, people are willing to pay for it because it's so Instagrammable. And all of a sudden. So although they've taken down the actual amount of food by about 50%, they're still only taken down the cost by about 25 because they're giving something else back. It's something that's theater. It's something that's an experience for the customer, for the guest.

Speaker A: Yeah, people will pay content, won't they?

Speaker C: A syringe full of tomato ketchup.

Speaker A: I wouldn't. Drunk pork.

Speaker B: I was just going to think about

Speaker A: my seven year old. No, a set of transfer fish.

Speaker B: Here, I'll send you a picture of it because it's really interesting to see as well.

Speaker A: Wow. Okay. So people are adapting, but it sounds like um, with the use of a consultant like you, then they're able to kind of like harness all those different insights and make some really clamp decisions,

Speaker B: whether you even need a consultant. You know, just, just have your eyes wide open to the data. If you go on the CAM Knowledge hub, I believe that our JLP one, uh, report is there free of charge. You know, go and have a look. I mean it's, it's a, it's a sort of um, slimmed down version, if you're. Pardon the pun. That wasn't meant. It is a slim down version of that report, but it is definitely worth looking at and just understanding that. You know, thing is, we, we do evolve. We as consumers and as an industry, we're evolving constantly. I think this one has taken people a little bit by surprise because they thought of it as our. It's a Hollywood thing, it's an American thing. It's. You've got to be really rich to buy that. But you haven't. You know, it can be prescribed in the NHS and it's only going to become um, easier to be prescribed in the nhs. So I think this took people by surprise because they were skeptical about it, um, the same way as they were lower. No, I remember the first lower. No report that Cameron released, 2019. And I stood up on stage and said, guys, this is going to be important. We need to look at what people who aren't drinking or what people who are moderating their drinking are going to be doing in 10 years time. And I got laughed off the stage then and now look at it, you know, it's now accounting for 7 to 10% of sales. So you know, and that again is only going to grow. So. And I think JLP one's the same. There was a skepticism and now people are going, ah, okay, we better do

Speaker A: something about this and see it as an opportunity.

Speaker C: Yeah.

Speaker A: To be ahead of the, ahead of the curve and be appealing to them

Speaker B: and uh, you know, you know yourself as an operator, if you are offering something that's GLP1 friendly where other people aren't, you will be the one that the group decides to go and spend their money with. So, yeah, it is, it is an opportunity and those who say, oh, we're not going to cater for it at all, that's fine, but you will miss out on revenue. There's absolutely no doubt that you'll miss out on revenue.

Speaker C: So the allergens, isn't it? If you've got good, good allergen control, you've got the GLP1, um, in there. Vegans, vegetarians, bit of the everyday.

Speaker B: No alcohol, no low, keep ready, you're

Speaker C: going to be the busiest.

Speaker B: Yeah, yeah, and it's fine because, you know, there are so many brands out there who are, who do want to be one thing to one type of person and that's cool, you know, you don't have to, you know, if you are a sort of one dish operator and that dish doesn't lend itself to, you know, you doing a smaller portion or you're doing a more protein rich portion or a more nutrient dense portion, then that's fine because you know your target market and those people aren't your target market. But generally, yeah, we need to be providing options for people if we want to get them off their sofa and through our doors.

Speaker A: So in a nutshell, then, if our listeners, uh, operate in an independent restaurant and they're looking for a quick action, what would you say if you could do this one thing then that would improve your chances of appealing to those GLP1 customers? What would it be?

Speaker B: I would say make sure that you are creating an offer that allows GLP1 users to fly under the radar but still enjoy the experience and that you give some kind of additional value for money if you are taking away some of the quantity of the food. So what are you doing that makes it just that little bit more special? And there's so many ways we can do that. You know, I said earlier about whether you're, you know, you're using different vegetables or maybe you're just presenting it differently. Maybe, um, it comes with a little free taster of something. You know, I've seen actually quite a lot of, um, people doing sort of free tasters of non carbonated, non sugary, non filling, low and no cocktails or something like that. You know, that is such a low cost, um, treat for one, for a consumer, for a guest, you know, to come along and say, look, you've got half the food, you're paying 75% of the price. But he goes, you want to just try this low, no cocktail whilst you're out there, you know, and a small version of. Because they don't want a pint of a beer or a large cocktail. So there's so many ways that you can give additional value and, you know, really elevate the customer experience at the same time as, uh, taking down the quantity of what you're putting in front of your guests.

Speaker A: Yeah, brilliant.

Speaker C: I think that would also. That would be good for other people as well that are looking for the healthier option on the menu.

Speaker A: Yeah, yeah, yeah, absolutely.

Speaker C: Yeah, yeah, brilliant.

Speaker A: Thank you so much, Katie. We will.

Speaker B: Thank you.

Speaker A: Say goodbye here and let you, uh, go back to your very important. Yeah, cool down somewhere and hopefully we can chat again in the future.

Speaker B: Yeah, lovely.

Speaker C: Thank you.

Speaker A: Thank you so much. Take care.

Speaker B: Bye.

Speaker A: Bye.