Fast-food chains battle for low-income diners with summer value meals

3 comments

1. “Runaway menu prices have scared off many fast-food customers, including those in the low-income bracket who make up a sizable chunk of the sector’s customer base.

   “It’s the war for the less affluent customers “

   Shares of McDonald’s, Burger King parent Restaurant Brands International and Wendy’s have all slid by double digits this year. Taco Bell owner Yum Brands is down more than 1% in 2024. Meanwhile, the S&P 500 is up 14%.

   But this summer is different. Fast-food chains need discounts to fuel traffic — and sales growth.

   “The fact is that restaurants are running out of space to take more price on their menus,” Byrne said.

   “The value menus rolled out toward the end of the quarter. There’s just a fear that it’s not going to get any better, and it’s going to be a race to the bottom.

   These responses may suggest that

   the $5 Meal Deal should be viewed as an initiative that may help prevent some customers from going elsewhere,
   as opposed to a big sales builder,” Kalinowski wrote Wednesday in a research note about the survey results.”

2. The fact that they can still offer lower-priced products but still choose to keep them so high is already telling me enough that I don’t need to go back to McDonald’s and friends anytime soon.

   I’m not spending $15 on a big mac that I know is nowhere near that quality when I can go to a local Mexican joint and get an entire platter for the same price.

3. >low-income diners

   Customers… They are battling for customers.