Less than a third of US consumers with a household income of more than $100,000 see fast food as a luxury, compared with 71% of consumers with an income of less than $30,000, according to April 2024 data from LendingTree.
47% of restaurant operators plan to add discounts, deals or value promotions this year: But McDonald’s disappointing results highlight the challenges of that strategy.
Twin Peaks went public as a standalone company: Investors’ response to the sports bar chain could determine whether companies like Panera and Inspire Brands—parent of Dunkin’—IPO this year.
Starbucks’ turnaround takes shape: While US comp sales fell for the fourth-straight quarter, CEO Brian Niccol is confident that investments in the store and worker experience will bear fruit.
Shake Shack looks to broaden its reach: The burger chain plans to more than quadruple its footprint in the coming years while preserving its status as a premium brand.
QSRs resume the value wars in 2025: McDonald’s, Taco Bell, and Wendy’s are among the many fast-food chains leaning on deals to drive traffic.
Serve Robotics stockpiles cash ahead of planned expansion: The company aims to have 2,000 delivery robots on the streets by 2025’s end.
The minimum wage will rise in 23 states next year: That will eat into retailer and restaurant margins, leading some to hike prices at a time when consumers are incredibly price sensitive.
Green shoots emerge in the restaurant industry: After a challenging 2024, executives have reason for optimism in the year ahead.
QSRs may need to evolve to better serve online orders: Pizza Hut and McDonald’s are both testing new store formats focused on digital and drive-thru customers.
Key stat: Price inclination for food away from home was up 3.8% YoY in October 2024, higher than the 1.1% increase in inflation for food at home, according to data from the US Department of Labor’s Bureau of Labor Statistics.
McDonald’s will focus on “McValue” in 2025: The fast-food chain plans to extend its $5 value menu and add deals as the QSR price war rages on.
McDonald’s value focus paid off in Q3: But challenges remain as the company needs to dig out from the recent E. coli outbreak.
Consumers still think fast food is too expensive, despite the value meal wars: While deals are boosting foot traffic in the short term, operators face long-term difficulties as customers either trade up to fast-casual chains or pull back entirely.
DoorDash is the latest delivery platform to turn to streaming to boost membership sign-ups: The company will offer DashPass subscribers free access to Max’s ad-supported tier in a bid to boost sign-ups and grow sales.
Uber and DoorDash report double-digit growth as customers prioritize convenience: Order frequency rose in Q2 thanks to both companies’ membership programs and growing selections of merchants.
McDonald’s sales fell for the first time since 2020: The company’s overreliance on price hikes led it to lose its “value leadership” positioning. Reestablishing that role is the key to its turnaround.
The nation’s largest fast- food chains race to the bottom: Taco Bell and Sonic joined Starbucks, McDonald’s, Burger King, and Wendy’s in rolling out low-cost value meals to attract cost-conscious consumers.
US consumers keep spending: Better-than-expected results from Abercrombie, Dick’s Sporting Goods, and Cava demonstrate that shoppers are willing to splurge on some nice-to-have items.