Fast-food value deals are back, but they’re not quite the same as before.
Over the past several weeks, brands such as McDonald’s have returned to value messaging for the first time in several years, noted a report by BTIG. McDonald’s is promoting 2 for $6 deal, Burger King is offering a $5 Meal, and Sonic is advertising a $0.99 Fritos Chili Cheese Wrap, just to name a few.
A recent report from foot traffic analytics firm Placer.ai, QSR Q4 Recap, noted that foot traffic to a number of major fast-food chains in the U.S. neared pre-pandemic levels as of December 2021, however, rising food and labor costs have caused them to adjust value deals, reported CNBC (Jan. 24).
WILL VALUE MEALS ATTRACT CUSTOMERS?
BTIG says value messaging is necessary to attract lapsed users and retain customers that are starting to feel the impact of heightened food inflation and lessened government stimulus.
That said, there is still concern that this could translate into a more aggressive value war between concepts, dampening margins further as commodity and labor costs rise.
CHANGES TO LOOK FOR
With this in mind, here are some of the biggest fast-food deals that will look different this year, according to Eat This, Not That!:
- Little Caesars announced that it is increasing the price of its $5 Hot-N-Ready pizza to $5.55.
- Domino’s $7.99 carryout will no longer include the option of ten chicken wings, but eight.
- The Big Box deal at Popeyes has gone from $5 to $6 since it was last on menus in 2018.
- Olive Garden’s Never-Ending Pasta Bowl could be getting phased out for good, according to president and COO Rick Cardenas.
- Burger King is no longer offering printed coupons and is planning to reduce the volume of promotions it runs overall.
