June 14 – The fast food industry is seeing more and more customers purchasing cheaper, limited-time items, according to Kareem Nassar, CEO and co-owner of American QSR based in Houston, Texas.
He said this has been going on for the past four to five months due to inflation and customers having less disposable income.
In response, fast food chains across the country are introducing short-term value options.
“Usually the value proposition is to get customers into the restaurant who haven’t been there in a while or don’t come that often because they may feel like some of the prices for some items are too high,” Nassar said.
Here’s 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 Soda. — McDonald’s is launching a $5 meal on June 25 with 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 its ValuEst menu. This menu now has nine items ranging from $2 to $4. — Wendy’s has launched a $3 English Muffin deal. Customers receive a small seasoned potato with a choice of an English muffin with bacon, egg and cheese or an English muffin with sausage, egg and cheese. — 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 few items with a side of fries and a drink for $5 to $6. When they do promotions like that, they usually do it well, Nassar said.
He believes value meals are a long-term solution to getting customers back in the door because they have been part of the restaurant industry for years. He said restaurants like Taco Bell or McDonald’s are known for their value options.
“Some restaurants are pricing themselves out of the game too much and many others are actually really focused on the customers and making sure customers can still afford their product,” Nassar said. “Many owners take less profit each year to ensure they continue to grow their business with the customer base.”
American QSR owns and operates 70 Popeyes and Wendy’s restaurant locations in the Texas region. Nassar has nearly three decades of experience overseeing franchise acquisitions and optimizing performance at the individual employee, restaurant and company-wide levels. Before joining American QSR, Nassar served as Chief Operating Officer and oversaw more than 200 restaurants, including Taco Bell, across the country.
