Understanding the New Value Architecture

With a large share of consumers reporting they plan to reduce restaurant spend, brands need to craft a value proposition that feels “worth it” for their guests, according to a new Bain report that also revealed grocery has emerged as the industry's most dangerous competitor.

Forty-one percent of U.S. consumers planned to cut spending on restaurants and cafés, while 40 percent aimed to reduce delivery and takeout, which represents more belt-tightening than in any other spending category Bain tracked. Between January 2023 and March 2026, the cost of food bought away from home rose by 13.6 percent in the U.S., compared with just 5.5 percent for food eaten at home.

Understanding the new value architecture that is evolving in restaurants starts with really knowing your guests and what value means to them, said Lisa Koetter, Partner in Bain’s Retail and Consumer Products practices.

“Any value work is likely to fail if a brand doesn’t have a thorough and up-to-date understanding of its own core customers and why they come. At that point you can design innovative value solutions and start to iterate in a restaurant ‘lab.’ Then you just have to keep working at it until you find a formula that drives traffic toward your brand.”

Re-setting value architecture is critical to maintain and win back traffic because consumers are feeling increased pressure on their wallet, Koetter said.

“Getting value right across everyday structures, periodic promotions, and personalized offers can drive consumer behavior from attraction to conversion to retention.”

Getting value right across everyday structures, periodic promotions, and personalized offers can drive consumer behavior from attraction to conversion to retention.

The three elements of value architecture are critical and complementary, according to the data. Everyday value gives core guests what they already love about your brand in a creative, affordable, and repeatable way. Disruptive value uses temporary offers to act as an additional magnet for traffic and reach the most price-sensitive guests. Personalized value leverages tailored offers, timing and messages to drive incremental visits and improve marketing effectiveness. 

Operators can deploy each to deepen brand relevance and meet different value needs across guests and occasions, Koetter suggested.

“The near-term risk of inaction on value for some brands is traffic erosion when consumers choose other options, which could include other restaurants or the grocery store. The longer-term risk is losing brand relevance simultaneously as other restaurant brands succeed at building stronger value platforms and pull ahead. Waiting out the storm is not a winning strategy.”

Operators can learn from brands such as Taco Bell, Chipotle and Domino’s who are reaching customers with their campaigns, the report found. The examples help demonstrate what key elements of value architecture look like at their best: the power of how tiered everyday value can resonate with guests; how disruptive offers can punch through culture can spark huge traffic and engagement, said Koetter.

“These brands developed value constructs and deployed them in ways that feel relevant and brand-led, which is why they resonated so well with consumers.”

To optimize marketing spend and reach value-seeking guests, operators must take a 360-degree view of total marketing and sales costs, Koetter advised.This includes paid media, but also extends into owned and earned platforms, as well as investments in pricing and promotions. 

To further tailor marketing efforts to unique segments and guests, operators can use 1:1 personalized offers and messages, Koetter added. AI decision engines help curate offers to individual consumers based on multiple factors, including purchase history, to calibrate the right offer, message, timing and creative assets to more effectively engage with value-seeking guests.