Opportunity cost of time, income, education and food away from home consumption expenditures by type of facility in Albania

Abstract

Purpose The purpose of this paper is to provide a detailed analysis of the socioeconomic and demographic determinants driving food away from home (FAFH) consumption expenditures at full service and fast food restaurants in transition Albania. Design/methodology/approach Using a nationally representative data set, this study estimates a system of full service and fast food restaurant consumption expenditures under sample selection framework. The system estimator exploits full information about the error correlations for gain in efficiency. Findings The results indicate that future growth of the foodservice industry in Albania will be driven by increased spending at full service restaurants due to rising opportunity cost of the food manager’s time at home, household income and years of formal schooling of Albanians. Research limitations/implications The findings of this study can inform policy deliberations in designing nutrition and education programs for the Albanian Government to combat rising obesity rates. Moreover, the findings can inform marketing strategies by foodservice firms in Albania. On FAFH–obesity debate, future research can focus on the analysis of FAFH consumption expenditures on obesity rates in Albania. Originality/value Consumption of FAFH is fast evolving in developing and transition economies. Albania, a typical transition country, is no exception. Concurrently, Albania is under epidemiological transition facing increased incidence of non-communicable diseases and obesity. Any intervention program by the Albanian Government aimed at reversing the rising obesity trend by targeting FAFH consumption should be based on sound empirical findings. Analysis of FAFH consumption expenditures across different foodservice facilities is an under-researched topic for Albania in the literature.