With the recession swelling the ranks of Americans receiving federal assistance to feed themselves and their families, a growing number of restaurant operators are throwing their support behind a program that would allow those most in need to use such benefits in restaurants.
Once known as the Food Stamp Program, the federal Supplemental Nutrition Assistance Program, or SNAP, offers financial assistance to help those on limited incomes buy food. Typically, the benefit comes in the form of an Electronic Benefit Transfer, or EBT, card, which can be used like a debit card to pay for groceries.
SNAP’s goal is to help those who qualify buy fresh food to prepare home-cooked meals. But within the program is an option for the homeless, elderly and disabled — who may not have a kitchen to cook in or are unable to cook — to use their EBT cards in participating restaurants.
Yum! Brands Inc. is among the industry members currently putting its muscle into broadening the reach of the restaurant program, which until now has been available in only Arizona, Michigan and select California counties. For operators, participating in the program could draw new customers, bring in incremental revenue and build goodwill in their communities.
“It makes perfect sense to expand a program that’s working well in California, Arizona and Michigan,” said Jonathan Blum, Yum’s chief public affairs officer, pointing out that in many instances the food offered by restaurants is less expensive than meals that must be prepared.
States’ rights
The SNAP restaurant-meal program has been available since the late 1970s, but states or local jurisdictions must choose to participate.
In California, where the decision to participate is made at the county level, five are involved: Los Angeles, San Francisco, Sacramento, Santa Clara and Tuolumne.
Officials in San Diego County this year began the process to allow homeless, elderly and disabled residents to use their SNAP benefits in restaurants. Participation is also under consideration in Alameda County, and the California Restaurant Association, or CRA, is working to see the program expanded throughout the state.
State officials in Kentucky are also considering a move to opt in. Louisville, Ky.-based Yum, parent to KFC, Taco Bell and Pizza Hut, is a chief supporter.
Anti-hunger advocates — who have long promoted the expansion of SNAP’s restaurant-meal program — say support from industry powerhouses like Yum could be the shot in the arm needed to get more states on board. Opting into the program requires only an administrative decision and, typically, no legislation is necessary.
“This is a public-private partnership that works,” said Jessica Bartholow, legislative advocate for the Western Center on Law and Poverty in Sacramento, Calif. “It addresses different needs. Not just hunger, but also food safety and the need for public interaction that these vulnerable people have,” she added. “For the elderly in particular, it can help prevent social isolation.”
More mouths to feed
Participation also can build incremental revenue, noted Jeremy Rosen, policy director for the National Law Center on Homelessness & Poverty in Washington, D.C.
“I’m sure [operators] see it as not only a way to help their business, but also a way to get involved in the communities where they run their restaurants,” he said.
The number of Americans receiving SNAP benefits has climbed dramatically. According to SNAP data, in April this year an estimated 44.6 million people, or about one in seven Americans, received benefits that averaged about $133.27 per month. That figure was about 60,586 more people than in March and 4.2 million more than in April 2010. By comparison, in pre-recession April 2008, 27.9 million received benefits averaging about $101.48 per person.
Officials say it’s difficult to pinpoint how many of the 44.6 million receiving benefits would be eligible to use those benefits in restaurants. Still, anti-hunger advocates see it as an important piece of the safety net for those who don’t know where they might find their next meal.
Joan McGlockton, vice president of industry affairs and food policy for the National Restaurant Association, said, “To the extent we can help this population or get them access to meals, we certainly would support” more jurisdictions opting in.
Daniel Conway, a spokesman for the CRA, noted that even in participating jurisdictions individual restaurants have the option to not participate.
In Los Angeles an estimated 1,200 restaurants accept EBT cards, including such brands as KFC, Subway, Domino’s Pizza, Pizza Hut, El Pollo Loco, Burger King, Wingstop and Jack in the Box.
Participating restaurants display a window sticker or logo indicating that they accept EBT cards. They also receive an EBT-card processing machine, which makes the transaction seamless.
More chains are evaluating the option.
Brian Luscomb, a spokesman for San Diego-based Jack in the Box, said all participating restaurants currently are franchised, but there is interest in expanding it to company locations.
Obesity concerns
The restaurant-meal program is not without critics. Opponents contend that allowing federal benefits to be used for fast-food meals could contribute to obesity. Some also contend that restaurant dining is a luxury that should not be supported with public funds.
“There’s still a lot of debate about whether this is a good idea, especially because places like KFC and Taco Bell don’t offer many healthy foods,” said Jennifer Tracy, director of food security outreach programs for the San Diego Hunger Coalition, a nonprofit organization dedicated to improving access to federal food programs.
Tracy said she is working with county officials and the CRA to educate benefit recipients about making healthful food selections, as well as making sure smaller mom-and-pop restaurants in San Diego participate, not just chains.
Rosen of the National Law Center noted, however, that for this population, “It’s not a choice between good and bad food; the choice is between food or no food.”
Contact Lisa Jennings at lisa.jennings@penton.com.
