Chicken-focused quick service restaurants (QSRs) may need to rethink strategies to engage with cost-conscious consumers this summer. According to a recent survey from Lending Tree, 8 in 10 Americans now view fast food as a luxury; 65% have been shocked at the high price of a fast-food bill in the last six months, and 62% plan to eat out less to save money.
Traditionally, QSRs do well in a slow economy. Regardless of financial concerns, people still need to eat. Consumers view eating out as a distraction from the concerns of their daily lives, with fast food being a price-friendly way to, as they say on the TV show Parks and Recreation, “treat yourself.”
This is why the survey results above are particularly noteworthy. Even more noteworthy, but perhaps unsurprisingly, the respondents most likely to view fast food as a luxury were lower-income Americans, parents of young children, Gen Z and women.
(As an added note, I would be remiss if I didn’t take this opportunity to remind you that if you want to know more about the chicken consumption habits of Gen Z, you should plan to attend the 2024 Chicken Marketing Summit, scheduled for July 29-31 in Birmingham, Alabama. For more information, go to www.chickenmarketingsummit.com.)
Bring the value
For whatever its worth, Joe Erlinger, the president of McDonald’s USA, debunked some of the claims about high prices on fast food menus.
“Recently, we have seen viral social posts and poorly sourced reports that McDonald’s has raised prices significantly beyond inflationary rates. This is inaccurate. And for a brand that proudly serves nearly 90% of the U.S. population every year, we feel a responsibility to make sure the real facts are available,” he wrote in an open letter on the brand’s website.
This summer, McDonald’s will offer a $5 value meal, including a McChicken or a McDouble, four-piece chicken nuggets, fries and a drink. Burger King will also debut a similar offering. I suspect we’ll see more value meals as the year progresses to help brands continue to bring in consumers.
