Fat, Sales: An Unpredictable Relationship

Earlier this month, Irvine-based Taco Bell Corp. put its Border Lights product line on a diet by shrinking the number of low-fat menu items to three from eight. Only the most popular Border Lights items will be served by the Mexican-style fast-food chain beginning in April.

Industry analysts tied Taco Bell’s decision to the simple fact that when it comes to fast food, most Americans are all talk and no dieting. (For the truly dedicated, Taco Bell is making no-fat cheddar cheese and sour cream available as substitutes for traditional menu items that are heavy on fat and calories.)

But low-fat is helping another PepsiCo subsidiary gain weight when it comes to revenue.

Frito-Lay, PepsiCo’s snack food operation, says that low-fat products are helping to boost total sales. Ron Paul, president of Technomic Inc., a Chicago-based consulting firm, suspects that Frito-Lay is benefiting from the fact that most consumers view dieting as something to do at home--not when they’re out to have a good time.

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Greg Johnson covers retail businesses and restaurants for The Times. He can be reached at (714) 966-5950 and at [email protected].