Fast-food and casual-dining chains have been offering affordable meal plans this year to win back shoppers battered by inflation, and new data suggests it’s working.
Restaurants including McDonald’s, Starbucks, Chili’s and Buffalo Wild Wings saw increased foot traffic after introducing meal bundles and limited-time discounts, according to a new study.
McDonald’s launched its long-awaited $5 meal deal in June, which includes a McDouble or McChicken, four pieces of nuggets, small fries, and a small drink bar, putting it head-to-head with value meals from rivals Wendy’s and Burger King.
The world’s largest fast-food chain launched the limited-time sale on June 25, McDonald’s busiest Tuesday of the year, with restaurant traffic 8% higher than the average Tuesday so far this year. According to analytics firm Placer.ai.
Throughout the remainder of launch week, visitor numbers were up at least 5% from the year-to-date daily average, according to the data.
The fast-food giant also launched “Free Fries Fridays” for app users, offering a free medium serving of fries with any purchase of $1 or more, a promotion that will run through the end of the year.
Meanwhile, coffee giant Starbucks saw success with a limited-time sale in May, offering iced drinks at half price on one Friday.
According to Placer.ai, traffic at Starbucks on May 3, the Friday before the trading session began, was 1.1% lower than the average for previous Fridays this year.
When the half-price sale began on May 10, foot traffic surged 20% above the average so far this year, according to the data.
Chili’s Grill & Bar revamped its “3 for Me” value menu in April, adding new options to the menu, including the Big Smasher Burger.
Value sets include an appetizer, main course and your choice of beverage, with prices starting at $10.99.
As with other restaurants, value set menus have increased foot traffic at Chili’s.
In the week prior to the value menu update, Chili’s saw a 4.7% increase in customer traffic compared to 2023, according to Placer.ai. In the week of the update, customer traffic spiked 17.3% above the 2023 average, according to the data.
Buffalo Wild Wings began offering unlimited boneless wings on Mondays and Wednesdays for $19.99.
The Georgia-based sports bar franchise introduced the promotion on May 13. It was originally scheduled to run until July 10, but the promotion is still being promoted on the Buffalo Wild Wings website.
Immediately after the partnership launched, restaurant traffic increased by 8%, according to Placer.ai, with data showing that traffic on Mondays and Wednesdays in particular jumped 45.6% and 49.3%, respectively.
Data showed that foot traffic was above average on Mondays and Wednesdays during the seven weeks following the unlimited plan’s launch.
Buffalo Wild Wings is owned by Inspire Brands, the same company that owns Arby’s, Sonic Drive-In and Dunkin’ Donuts, and this year it’s keeping customers happy with a variety of deals, including $5 beers on National Beer Day.
The increase in traffic comes as the restaurant industry has struggled this year, with same-store sales at their lowest since 2016, excluding the pandemic-ravaged 2020, according to restaurant analyst Mark Kalinowski.
“These ‘meal deals’ seem to help a little bit, but generally speaking, they don’t have much of an effect,” he told The Post on Wednesday.
“Consumers are becoming more cautious when it comes to spending, including at restaurants. While some specific concepts may be exceptions in terms of certain sales trends, 2024 is not going to be a great year for most restaurant chains.”
Although inflation is currently moderating, hovering around 2.6%, prolonged inflation has hit customers hard by causing prices to rise and discouraging non-essential spending.
Groceries and fast food prices have skyrocketed in the US since the pandemic began.
Food prices increased by 25% from 2019 to 2023. According to the U.S. Department of Agriculture’s Economic Research Service:.
And the average price of a McDonald’s Big Mac in the US is $5.29, up 21% from 2019, McDonald’s U.S. president Joe Erlinger said in May.
To combat the effects of inflation, restaurants are introducing affordable meal plans to attract cash-strapped customers.
