Value menu traffic for quick-service restaurants (QSR) increased 10% in the first quarter of 2018, while consumer spend jumped 13%, according to a study by The NPD Group, Value Wars 2.0: The Value Menu Strikes Back.
When McDonald’s announced its launch of a new value menu in January, the aim was to bring back customers it lost over the past few years when the company moved away from its original value menu. Other QSR chains, like Taco Bell and Jack in the Box introduced their own value offerings to retain their customer bases amidst the direct competition from McDonald’s.
In addition to driving traffic and winning back or retaining customers, the idea of value menus is that once the customer orders from the value menu, they will also purchase from the regular-priced menu. On average for the three QSR chains, 72% of consumers purchasing from the value menu purchased from the regular menu, as well.
For the full story, go to this week’s Food Institute Report.
Chris is a business writer and market analyst that focuses on the Markets, Legal and Washington sections of the Food Institute Report. In addition, he assists in compiling data for various Food Institute publications throughout the year. He invites you to contact him via email at firstname.lastname@example.org to talk about anything food-related.
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