Supported by Snapchat

As inflation puts a strain on household budgets, more Americans are eating out less. A 2024 LendingTree survey shows that 62 percent of Americans are eating less fast food due to rising prices, and 58 percent of Generation Z consider quick-service restaurants a “luxury item.” As the cost of living rises and consumer budgets tighten, restaurants are facing declining sales and in-store traffic.

“Rising prices on all levels, from inflation to higher wages, are squeezing franchise margins,” says Joseph Tuckman, senior manager of restaurant operations at Snapchat. “As food prices rise and consumer spending falls, they are eating out less often because prices have reached unaffordable levels.”

Offering value meals is not only smart, but necessary to win back customers. Value meals have long been a staple of quick service restaurants, offering popular menu items at a reduced price to attract price-conscious customers.

To build lasting customer loyalty, inexpensive meals alone aren’t enough. Operators need to capture customers’ attention where it matters most – and Snapchat offers a powerful platform to do just that. With over 850 million monthly active users, Snapchat offers access to a highly engaged audience that isn’t easily reached on other platforms.

Snapchat’s strength lies in its ability to appeal to younger audiences, particularly Gen Z and Millennials, who are known for their frequent fast-food consumption. According to Snapchat, the platform’s users open the app an average of 40 times a day, allowing quick-service restaurant brands to influence food decisions from breakfast to late night. “Snapchatters come in and out of the app throughout the day,” says Tuckman. “Unlike other platforms where engagement is more focused on specific times, our community is always active, whether it’s during the morning rush or late-night cravings.”

Through constant engagement, quick service restaurant brands can increase awareness, promote value-added menu items, and encourage repeat visits. Brands have successfully launched value-added menu items using Snapchat’s core advertising products, such as Snap Ads and Story Ads. Snapchat’s powerful takeover products and immersive augmented reality experiences allow brands to communicate value messages in creative and engaging ways, reaching customers as they actively choose what and where to eat. “Quick service restaurants that invest in augmented reality lenses alongside traditional advertising products see greater reach, higher engagement, and more organic sharing,” says Tuckman. “It adds additional value and naturally promotes campaigns.”

Additionally, the Snapchat survey found that Snapchatters are more likely to respond to value-based promotions. Nearly 26 percent of Snapchatters say they are most likely to shop at a restaurant with a BOGO offer, while 24 percent are motivated by rewards programs and 18 percent by discounts. Once engaged, these customers are also more likely to become brand advocates: 33 percent of Snapchatters promote brands online that offer rewards and discounts.

Quick service restaurants need more than just discounts to stand out. There’s a need for platforms that create a deeper connection with their audience. By leveraging Snapchat’s wide reach, immersive AR features and strategic ad placement, restaurants can build stronger relationships. “Valuable offers might bring this generation in, but Snapchat can turn them into customers who keep coming back.”

Visit Snapchat.com to find out how you can use Snapchat to reach more customers and increase customer loyalty.

By Olivia Schuster