Fast-food restaurants around America are losing their grip on customer wallets.
Wendy’s stated on May 20 that they will be serving a $3 morning dish that included small-sized seasoned potatoes and a choice of English muffin sandwiches (bacon, egg, and cheese or sausage, egg and cheese).
This morning promotion is in addition to the chain’s long list of other daytime specials, which include its $5 and $6 Biggie Bags, as well as its 2 for $6 and 4 for $4 Meal Deals, which all offer a variety of menu items at deeply discounted pricing.
When “Breakfast Biggie Bundles” were introduced in August of last year, Wendy’s advertised that customers could choose from two special items for just $3. This was a comparable, inexpensive breakfast offer.
Value is the key phrase encapsulating fast food chains’ most recent conflict, as evidenced by Wendy’s newest combo, which the company describes as “a delicious and value-able reason to jump out of bed in the morning.”
It’s not the first cheap lunch to make news, even though Wendy’s may have the newest one. With the intention of luring back customers wary of expensive fast-food, McDonald’s USA announced earlier this month that it would be launching a $5 value meal. The cheap dinner will remain available for a month following its launch on June 25, a source informed CNBC.
Four items will be included in the $5 meal, according to Bloomberg: fries, a drink, a McChicken or McDouble, and four pieces of chicken nuggets.
Additionally profiting from this trend are quick-serve restaurants.
Dine-in chains pivot to value menus amidst fast food price increases
Denny’s revealed their strategy in April, which included bringing back its affordable All-Day Diner Deals, which were priced at $5.99, in an effort to draw in budget-conscious diners.
Furthermore, Applebee’s and Chili’s have promoted their own inexpensive menu items.
In a prior interview with TODAY.com, John Peyton, CEO of Dine Brands, the parent company of Applebee’s and IHOP, stated that his company has been observing diner purchasing trends in order to prepare for consumer shifts towards more value-focused purchases.
As prices start to level out, Peyton told CNN that he expects that patrons will pick his restaurants over fast-food chains.
He informed the outlet, “You can get our burger for $9.99.”
For months, customers have been venting their frustration on social media about the seemingly constant price increases for their favourite fast food. Angry videos, including expensive Filet O’ Fishes, double cheeseburgers, single hash browns, and even stories about the elimination of free refills, have amassed thousands of views.
Fast food chains introduce budget-friendly meal packages amidst revenue declines
While fast-food restaurants like KFC and Starbucks (both of which recently announced revenue reductions) are beginning to see a decrease in the amount of money that low-income consumers spend with them, other chains have long been taking the bait with alluring cheap meal packages.
The $7 Deal Lover’s Menu, which Pizza Hut released in October, costs $7 for two or more things (such as a medium one-topping pizza, eight boneless wings, Pizza Hut Melts, breadsticks, desserts, and more).
In an attempt to join in on the celebration, Burger King introduced their $5 Duo offers, which include a Whopper Jr. and/or a pick of any two things from a range of BK Royal Crispy Wrap flavours.
Then, Taco Bell debuted its new Cravings Value Menu in January, claiming to let customers “feast while on a budget.” There are ten things on the menu that are $3 or less, such as the 3-cheese chicken flatbread melt, Cheesy Fiesta potatoes, spicy potato soft taco, and Cheesy double beef burrito. Additionally, there is the $1 Cheesy Roll Up.
Taco Bell’s chief marketing officer, Taylor Montgomery, stated in the statement, “Expect more from us this year as we’re rolling out entirely new ways to save across our menu and doubling down with exclusive digital offerings.” “We’re just getting started, but we’re walking the talk when it comes to value.
As fast-food chains navigate economic challenges, they’re enticing budget-conscious customers with affordable meal deals. Wendy’s $3 breakfast combo and McDonald’s upcoming $5 value meal reflect this trend.
Other chains like Denny’s, Applebee’s, Chili’s, and Taco Bell are also offering discounted menu items. This shift towards value-focused promotions highlights the industry’s strategic response to changing consumer spending habits, ensuring their competitiveness in a tough market.
(Tashia Bernardus)