/story1/2727087/ebddde3d39687cca442e2d89c8a6ece69184_544x306.jpg "Fast food chains are stepping up the battle for affordable meals in the face of rising prices")
Fast food chains are stepping up the battle for affordable meals in the face of rising prices
Fast food and restaurant chains are expanding their affordable meal offerings, but experts say personalizing dishes could be the key to winning over increasingly price-conscious consumers.
Competition for cheap meals in the fast-food industry is heating up as more chains offer discounted menus to attract price-conscious consumers amid rising food costs. It was initially led by McDonald’s $5 meal deal and Wendy’s Breakfast packages, the trend is towards Taco Bell Luxe Cravings Box and Hardee’s $5.99 Original Bag Offer, USA Today reported. Even sit-down restaurants like Olive Garden and Chili’s have joined the fray, with Olive Garden reintroducing its Never Ending Pasta Bowl and Chili’s Expansion of the 3-for-me menu.
These cheap deals are mostly advertised as limited-time promotions, but McDonald’s is considering extending its $5 meal deal, which has had a positive impact on customer perceptions of the brand’s affordability. However, data suggests that these deals may not be enough to generate sustainable sales growth. According to Brigittea financial app that analyzed millions of transactions, large fast food chains like McDonald’s, Burger King, StarbucksWendy’s and Taco Bell saw sales declines of over 30% from July 2023 to July 2024, suggesting that while customers are attracted to the offerings, their overall spending on fast food has declined.
Industry experts believe that simply offering special offers is not enough to reverse this trend. Personalization using artificial intelligence (AI) could be the key to success. Retail Analytics Company Buxton used AI to create several different McDonald’s “key customer personas.” The brand found a variety of responses to the appeal of the $5 meal deal, CEO Jim Swift said USA Today.
“As the values war continues, it’s clear that success depends not only on making offers, but also on understanding who those offers are really for,” Swift said. “In the battle for customer loyalty, a one-size-fits-all strategy is not enough. Rather, the key to victory lies in personalization – designing offers and experiences that speak directly to the diverse lives and values of … customers.”
With competition becoming increasingly tough, fast food brands need to focus on adapting their offerings to the different expectations of their customers rather than relying solely on generous discounts.
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