Consumption of food away from home (FAFH) is widely believed to be a contributing factor to the current obesity crisis and other diet related problems in North America. At present, in Canada, a number of issues related to FAFH consumption such as the relationship between obesity and fast foods, trans-fats, sugar and sodium content of restaurant foods, and restaurant advertising for children are being widely discussed. In these discussions, it is apparent that the interrelationships between FAFH, nutrition and diet related diseases are complex. Therefore, there are significant gaps in our knowledge. In this study, a number of important research questions related to FAFH consumption were studied in order to provide a detailed understanding of FAFH purchase trends, nutrient demand trends, factors affecting these trends and to provide some idea of the possible effectiveness of proposed policy interventions in the area. In paper one of this study, a sample of Canadian FAFH purchases were analysed using a two stage demand model to examine the impact of industry advertising, households habit forming preferences and socio-demographic and economic variables. Given the unique method of restaurant categorization, results provide new and additional information of the impact of above variables in Canadian context. The second study examined the demand for selected nutrients in FAFH to understand factors affecting nutrient intake in FAFH foods focusing on chain restaurants. An innovative measure of nutrient content (nutrient density) was used in the analysis and study results provides interesting new information about nutrient consumption from chain restaurants in the FAFH market. The third study examined how some specific food industry changes in product formulations aimed at reducing trans-fatty acids (TFAs) could and have affected consumers overall diet quality and their demand for food away from home. This study provides some indications of effectiveness of the current trans-fat recommendations in Canada. In summary, this study is an empirical investigation of a number of questions related to Canadian FAFH consumption: What is the structure of the FAFH market in Canada? What are the households FAFH purchasing patterns? What is the impact of advertising and habit forming preferences and socio-economic and demographic factors on FAFH purchases? What are the nutrition profiles of the most popular menu items of chain restaurants? What are the factors affecting nutrient demand in FAFH foods? Would a specific food industry change in product formulation such as reducing TFAs have affect consumers overall diet quality and their demand for FAFH? In general, results from the three independent studies provide useful information to fill some of the gaps in our knowledge of FAFH consumption, especially on health and nutrition with implications for public policy. / Agricultural and Resource Economics

Consumer expenditure on food away from home in the United States has grown substantially in recent decades. Changes in the food service system, increased complexity of family structure, and the food policies made by government agencies have continued to influence the marketing, distribution, retailing, and demand for food products and the food industry. This study explores consumption behavior on food away from home (FAFH) and determines the differentiated impacts of economic and demographic variables on FAFH by type of meal and by type of facility among different household types. Each of the two systems of expenditures is estimated with two alternative econometric procedures to accommodate censoring in the dependent variables: the trivariate Tobit estimator and the multivariate sample selection estimator. Data for this study come from the 2008 and 2009 Consumer Expenditure Surveys, the most recent U.S. national household expenditure surveys conducted by the Bureau of Labor Statistics. Joint statistical significance of error correlations among equations justifies estimation of the sample selection systems. The opposite marginal effects on probabilities and expenditure levels of some variables highlight the advantage of the sample selection system over the Tobit system. Segmentation of the sample by household types is also justified with formal statistical tests. The empirical results indicate that the effects of demographic and socioeconomic factors on FAFH consumption vary by type of meal and by type of facility. Income, work hours, race, education, geographical region, and household composition are important factors. Food stamps have no impact on FAFH for married couples without children and single parenthood has conflicting effects on probabilities and conditional levels of expenditures.

Obesity is a rapidly growing public health threat as well as an economic problem in the United States. The recent changes in eating habits, especially the relative increase of food away from home (FAFH) consumption over the last three decades raised the possibility of causal linkage between obesity and FAFH. This study confirms the positive, significant association between the body mass index and FAFH consumption in adults, consistent with previous findings in the economic and nutrition literature. This work goes a step further, however. We demonstrate FAFH consumption at quick-service restaurants has a significantly larger effect on body mass index than FAFH consumption at full-service restaurants. Further disaggregation of FAFH by meal occasion reveals that lunch consumed away from home has the largest positive effect on body mass index compared to other meal occasions (breakfast, dinner and snacks). Survey data with missing observations or latent variables are not rare phenomena. The missing value imputation methods are combined into two groups, contingent upon the existence or absence of an underlying explicit statistical model. Explicit modeling methods include unconditional mean value imputation, conditional mean and regression imputation, stochastic regression imputation, and multiple imputation. The methods based on implicit modeling include hot deck and cold deck imputation. In the second essay, we review imputation methods commonly used in the agricultural economics literature. Our analysis revealed strong preference of researchers for the regression imputation method. We consider several alternative (regression, mean and median) single imputation methods to impute and to append prices of foods consumed at home (foods commercially purchased and prepared from ingredients) from the National Health and Nutrition Examination Survey (NHANES) dietary intake data. We also demonstrate the superiority of regression imputation method compared to the mean and median imputation methods for commercially prepared foods. For ingredient foods, the results are ambiguous with no imputation method clearly outperforming the others.

Obesity is a rapidly growing public health threat as well as an economic problem in the United States. The recent changes in eating habits, especially the relative increase of food away from home (FAFH) consumption over the last three decades raised the possibility of causal linkage between obesity and FAFH. This study confirms the positive, significant association between the body mass index and FAFH consumption in adults, consistent with previous findings in the economic and nutrition literature. This work goes a step further, however. We demonstrate FAFH consumption at quick-service restaurants has a significantly larger effect on body mass index than FAFH consumption at full-service restaurants. Further disaggregation of FAFH by meal occasion reveals that lunch consumed away from home has the largest positive effect on body mass index compared to other meal occasions (breakfast, dinner and snacks). Survey data with missing observations or latent variables are not rare phenomena. The missing value imputation methods are combined into two groups, contingent upon the existence or absence of an underlying explicit statistical model. Explicit modeling methods include unconditional mean value imputation, conditional mean and regression imputation, stochastic regression imputation, and multiple imputation. The methods based on implicit modeling include hot deck and cold deck imputation. In the second essay, we review imputation methods commonly used in the agricultural economics literature. Our analysis revealed strong preference of researchers for the regression imputation method. We consider several alternative (regression, mean and median) single imputation methods to impute and to append prices of foods consumed at home (foods commercially purchased and prepared from ingredients) from the National Health and Nutrition Examination Survey (NHANES) dietary intake data. We also demonstrate the superiority of regression imputation method compared to the mean and median imputation methods for commercially prepared foods. For ingredient foods, the results are ambiguous with no imputation method clearly outperforming the others.

Healthy eating and food away from home expenditures are gaining increasing notoriety within the U.S. These issues are not only a concern for businesses, but governmental policy makers have also shown interest in both increasing nutrition for children and better understanding the behaviors of those consuming food away from home. For this reason, a large amount of research has been devoted to better evaluating the effects of various governmental programs on nutrition, with an equal amount of work detailing which groups are eating away from home. The methodologies employed by past research have varied, as have the results and inferences that have been drawn. For this reason, we incorporated new methodologies, consistent with theory, in order to explain the effects of an important governmental program, National School Lunch Program, on childhood nutrition. We further established consumer profiles and the effects of transactional variables, previous away from home behavior, and decision structure on food away from home expenditures. In regards to the National School Lunch Program we found that meal nutritional quality is not higher for program participants, however, overall intake for most vitamins, minerals, and other dietary components is higher compared to non-participants that attend a school which participates in the program. The reason for increased intake is due to the increased consumption of food for participants, not due to food quality. Furthermore, comparing children that participate in the program to those attending schools that do not participate indicates that both quality and quantity are insignificantly different. Examination of blood levels and healthy eating measures indicates few differences among the treatment groups. Evaluating the effect of transactional variables and previous purchase behavior on food away from home expenditures by meal occasion indicates both play a significant role. Transactional variables consist of factors that are directly related to a meal, e.g. facility type, means of ordering, and age structure of meal participants. The effect of transactional variables is highly dependent on the variable being considered. Previous purchase behavior displays expected results with regards to past participation effects, however, past expenditure effects tended to increase spending on future meals with results being somewhat consistent across large meals. Transactional variables were also evaluated to determine their effect on food away from home expenditures by facility type. A new decision structure chronology was also implemented. Past research has focused on modeling the decision process as either a two or three-step process. The two-step structure is usually defined as the "participation at facility type" and "expenditure level" decisions, whereas the three-step structure is defined by the "participation," "facility type," and "expenditure level" decisions. We, however, propose a change to the three-step decision structure which we believe more adequately defines the decision chronology. We, therefore, model the three-step decision structure in the following order: "participation," "expenditure level," and "facility type." Results showed that both the new decision structure and transactional variables are important to the expenditure amounts and who is eating away from home at each facility type.

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This study examines the determinants of a household’s threshold price for a restaurant meal cost increase; the level of cost increase that would cause households to either eat in restaurants less frequently or change what they would typically purchase. The design of the study is formulated using a Tobit model to examine the threshold price by differing social, economic and demographic characteristics of households in Kentucky as well as their preferences for restaurant-specific characteristics. The empirical estimates suggest that households that frequently have dinner at restaurants, households with higher incomes and households that strongly prefer full-service restaurants have a positive threshold price-range; which suggests that such households are more willing to pay an additional cost increase in restaurant meals. Conversely, households that always notice taxes before paying their checks, households close to retirement-age, and households that do not strongly prefer local-food restaurants have negative threshold price-range and are consequently less willing to pay an additional cost increase in restaurant meals.

The food-away-from-home (FAFH) sector in South Africa has continued to increase in popularity. This is illustrated by the increased presence of FAFH in the diets of the country’s citizens. However, the sector in South Africa remains un-researched with regard to understanding household preferences and the composition of consumer expenditure. This study analyses the effects of income and socio-demographic variables on FAFH expenditure for South Africa. These results will be useful to the foodservice sector and policy makers in order to identify potential customers, respond to current customers’ changing demands and develop marketing and operational strategies, and address important nutrition and health consequences, respectively. Data from Income and Expenditure Surveys (IESs) of 2005/2006 and 2010/2011 of StatsSA (Statistics South Africa) were used to estimate the responsiveness of household FAFH expenditure in South Africa to income and a number of socio-demographic variables. The IESs contain a large number of households with zero FAFH expenditure observations which means that the use of ordinary least squares (OLS) would result in biased and inconsistent results. Furthermore, omitting households with zero FAFH expenditure, and applying OLS reduces the sample size and consequently the efficiency of estimation. Previous studies made use of the univariate and multivariate an adjustment factor and a two-stage process where the second stage is a Generalised Method of Moments (GMM) Within-Group estimator. The majority of studies suggest that double-hurdle models are appropriate for applications where zero expenditure observations are due to abstention or economic factors. The double-hurdle model is more flexible than the tobit model because it allows for the possibility that zero and positive values are generated by different mechanisms. The model used assumes independence between the two hurdles. The first hurdle determines the probability of purchasing FAFH, while the second hurdle determines the amount spent on FAFH. The double-hurdle models estimated for the IESs of 2005/2006 and 2010/2011 illustrate that households headed by younger White females with a small household size and living in an urban settlement are most likely to purchase FAFH. However, households headed by younger White males with a small household size and living in an urban formal settlement are likely to have the highest expenditure on FAFH. An increase in income positively affects the decision to buy FAFH and the amount spent by participating households. The APE (average partial effect) was calculated for the income variable. The APE determines the probability of purchasing FAFH and the income elasticities (conditional and unconditional) of expenditure on FAFH by households. The estimated conditional income elasticity of expenditure is 0,27 and the unconditional income elasticity of expenditure is 0,611 for the IES of 2005/2006. While the estimated conditional income elasticity is 0,171 and the unconditional income elasticity is 0,472 for the IES of 2010/2011. The probability of purchasing FAFH is 0,0905 and 0,0568 for the IESs of 2005/2006 and 2010/2011 respectively. The income elasticity of expenditure on FAFH is inelastic and FAFH is a normal good for the average South African household. The small size of the participation elasticities mean that growth in the FAFH sector will be driven by households with existing expenditure. Future studies should focus on per capita FAFH expenditure, the effect of the lifestage of the individual, rather than age, on FAFH expenditure, FAFH expenditure for different meals (breakfast, lunch and dinner) and facility types (quick- and full-service restaurants) and the effect of income and socio-demographic factors on FAFH expenditure on different food types (for example beef, chicken, lamb, potatoes and salads). / Dissertation (MScAgric)--University of Pretoria, 2014. / tm2015 / Agricultural Economics, Extension and Rural Development / MScAgric / Unrestricted

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