Value Meals: A 3M Strategy for Restaurant Success

May was a challenging month for restaurant companies. Shares of major quick-service restaurant (QSR) brands experienced double-digit drops, consumer confidence declined, and traffic at fast-food restaurants was down by 2.1 percent, according to the Revenue Management Solutions (RMS) Monthly Trends report. 

Will the summer sun heat up sales?

The Summer OutlookTriple-digit temps might light up lagging traffic, but QSRs aren’t going to wait for the post-beach visits. Chains from major burger chains to Taco Bell and Starbucks have announced value meals designed to lure inflation-weary customers or keep loyalists from the grocery or C-store aisles. 

But margins are at a historical low. Positive net sales in May (+1.9 percent YOY) and throughout 2024 were primarily due to price increases, which have surged nearly 50 percent in some segments since the pre-pandemic era and were still up 3.0 percent YOY in May. Extreme discounts, even in the short term, could impact…