He said this has been going on for the last four to five months due to inflation and customers having less expendable income. In response, fast-food chains across the country are introducing short-term value options.
“Typically the value proposition is to get customers into the restaurant that haven’t been there in awhile or don’t frequent as often due to the fact that they might feel some prices are too high on some items,” Nassar said.
Here is a list of fast-food chains offering new value options:
- Burger King has launched a $5 Your Way Meal where customers can choose between a Whopper Jr., Chicken Jr. or Bacon Cheeseburger with Four Piece Chicken Nuggets, Value Fries and Value Soft Drink.
- The McDonald’s $5 Meal Deal launching next week will offer four items — a McChicken or McDouble, Four Piece Chicken Nuggets, Fries and a Drink, according to CNBC.
- Taco John’s has added a $2 Refried Bean Tostada and a $3 Beefy Tostada to it’s ValuEst menu. This menu now has nine items ranging from $2 to $4.
- Wendy’s has launched a $3 English Muffin deal. Customers will receive a small Seasoned Potatoes with choice of either a Bacon, Egg & Cheese English Muffin or a Sausage, Egg & Cheese English Muffin.
- White Castle has added two limited-time Chicken Ring flavors to its menu: Hidden Valley Ranch Chicken Rings and Smoky BBQ Chicken Rings. These versions of Chicken Rings are 12 for $3.99.
“The sweet spot” for value options is offering a deal where customers can get a couple products with a side of fries and a drink for $5 to $6. When they do promotions like that, they typically do well, Nassar said.
He believes value meals are a long term fix in getting customers back in the doors because they’ve been apart of the restaurant industry for many years. He said restaurants like Taco bell or McDonald’s are known for its value options.
“Some restaurants are over pricing their selves out of the game and a lot of other ones are actually really focused on the customers and making sure customers can still afford their product,” Nassar said. “A lot of owners are taking less profits every year just to make sure that they continue to grow their business with the clientele.”
American QSR owns and operates 70 Popeyes and Wendy’s restaurant locations in the Texas area. Nassar has nearly three decades of experience overseeing franchise acquisitions and optimizing performance at the individual employee, restaurant and business-wide level. Prior to American QSR, Nassar was a chief operating officer overseeing more than 200 restaurants including Taco Bell across the country.
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