The Value Shift Is Underway

2 Min Read By MRM Staff

QSRs face headwinds as consumers prioritize affordability, a trend that is deepening the two-tier economy and causing a shift toward lower-cost food options, according to a report from Placer.ai. During August, visits to fine dining restaurants were up 2.9 percent year-over-year, and were up 2.4 percent at coffee chains, 1.4 percent at casual dining chains, and 0.5 percent at fast casual chains, but they were down 3.4 percent at QSRs.  

The year-over-year decline in visits to QSR chains this August is likely due to two key factors, according to R.J. Hottovy, Head of Analytical Research at Placer.ai. 

“First, many chains are lapping last year's successful $5 bundled meal promotions, which drove a temporary lift in traffic and created difficult comparisons. Second, we've seen lower- and middle-income consumers increasingly opt for value-oriented food channels, like discount grocers and dollar stores, as they look to stretch their household budgets.”

Additionally, Placer.ai…