26 Sep 2013 Burger King debuts lower-fat french fries

Burger King, known for its “Whopper” hamburgers, has introduced lower-fat french fries as consumer groups and nutrition experts in the US increase pressure on the food industry to offer healthier alternatives. [Click pic to enlarge]

Burger King’s Satisfries made their debut Tuesday with a coating designed to be less porous and absorb less oil. A value portion of Satisfries contains 190 calories and 8 grams of fat — 30% fewer calories and 40% less fat than a similar serving of McDonald’s fries.

The new crinkle-cut product took two years of development with McCain Foods, in a proprietary agreement. Satisfries will cost between 20 cents and 30 cents more than regular fries.

This move is Burger King’s first big gamble under recently appointed CEO Daniel Schwartz, a 32-year-old partner at 3G Capital, the Brazilian private equity firm with a majority stake in the burger chain.

It comes after months of research and development, plus a level of secrecy that meant reporters had to sign non-disclosure agreements before tasting a Satisfry at a glitzy New York launch.

Executives refuse to say how ingredients in the oil-repellant recipe have changed and insist the secret recipe is so effective it cuts calories even though the new shape means there is a larger surface area for each fry.

Burger King’s innovation comes as fast food chains compete to appeal to an increasingly health-conscious populace. In 2012, for instance, the organic and natural juice market grew 13% to $2.4 billion, according to the Nutrition Business Journal. Much of this growth has been due to the explosion of boutique juice and smoothie outlets.

Burger King execs are betting that a customer with a hankering for French fries won’t make the switch to a smoothie, but will instead be inclined to spend a little more on a healthier fry option.

Wall Street will continue watching the fast food battle for low-calorie supremacy with interest.

“If you think about restaurant innovation this year, it has largely focused on buns: pretzel buns for hot dogs and burgers, which pump up the price to the consumer for this new taste-bud experience,” said Brian Sozzi, CEO of Belus Capital Advisors.

“But the bottom line is this: the Satisfry — which still uses the word “fry”, so the consumer should know it’s not healthy — is still a fried product. The catch now is that Burger King has just created a higher margin item that could, believe it or not, be marketed to those focused on watching their weight. They’re telling the workout enthusiast, ‘if you’re going to cheat on a Sunday, cheat with us, not the local pizza place.’”

Burger King’s not the first to try a low-fat fry. Back in 1997, Ruby’s Diner served up Skinny Fries made by J.R. Simplot, which discontinued the product because the fruit pectin coating used to reduce grease absorption became too expensive, according to Knight Ridder/Tribune Business News.

Ruby’s tried again in 2004 with another Simplot product, although nine years later the so-called FitFries also appear to have fallen off the chain’s menus.

Burger King’s new fries aren’t a replacement for the old recipe, and spokeswoman Adrianna Lauricella emphasised that the healthier option will only be served “based on guests’ response.” The menu is already crowded with a diversity of deep-fried sides, including sweet potato fries, onion rings, and in some locations mozzarella sticks.

Source: Reuters, Bloomberg, Business Insider