The consumer perception of value has not shifted all that much, but smaller budgets and rising prices have made it a top priority for restaurant diners. Consumers still want to dine in their favourite restaurants, but they are looking for more for their money when they visit. In 2024’s Q1, 52 per cent of consumers said they look for restaurants with lower prices, and 68 per cent said they pay close attention to menu pricing.
Studies conducted in the spring showed that menu prices were up 5.1 per cent year over year, while grocery inflation rose 1.9 per cent over last year. In an effort to attract customers and encourage repeat visits, several QSRs including Burger King, McDonald’s, Taco Bell, and Starbucks introduced vale meals and combos this summer.
As diners zero in on perceived value, customer experience, and the cost of dining out, more restaurants are building off the success of summer value meals, creating LTOs and deals that focus on value to compete in this space through the fall.
Dunkin’ Donuts is one of the most recent companies adding a value meal to their offering, recently launching the $6 Fall Value Meal. The offer includes a medium hot or iced coffee, a bacon, egg and cheese sandwich, and hashbrowns, for a limited time.
KFC recently added to its American Taste of KFC menu with two new $5 options. Customers can now choose from a version with chicken nuggets, the Famous Bowl with chicken nuggets, or the original two-piece drum and thigh option.
McDonald’s $5 Meal Deal, introduced in June, has gained momentum through the summer and will be extended through December in many locations. The deal offers diners the choice of a McDouble or McChicken, a small fry, four-piece McNuggets, and a small drink.
“In this current economic cycle, consumers have become more deliberate in managing their overall ticket and are showing a preference for brands that are offering compelling value,” Papa John’s finance chief Ravi Thanawala said a recent company call.
As we head into 2025, operators focusing on value may gain the upper hand in attracting customers, increasing visits, and maximizing their margins.
