The entire foodservice industry is being reshaped due to a global shift in consumer behavior prioritizing value, quality, and flexibility,  according to the latest Circana™ research that found value-based deals are driving 54 billion global foodservice visits annually.
“Value is a broader tent than price, but price is an important value platform when consumers are faced with high inflation or a personal economic situation such as a job loss,” Tim Fires, president of global foodservice at Circana, told Modern Restaurant Management (MRM) magazine. “We are seeing many restaurants, chains and independents use price value messages to win new customers and grow visits and loyalty with existing customers. While price may be one of the drivers of the visit, the restaurant staff must deliver on the experience expected, from taste to food variety and quality, and good service. Consumers, regardless of country or income level, expect to have the experience they paid for when choosing the restaurant.”
Across different regions, Circana is seeing distinct strategies and consumer responses to value in the foodservice sector:
Asia Pacific: While inflation has impacted the region, consumers are increasingly seeking value through promotions like snacking deals and combo offers. In China, where 53 percent of traffic is driven by deals, operators such as KFC, McDonald’s, and local chains like Dicos are engaging in price wars. However, it’s not just about slashing prices—combo deals and loyalty promotions are gaining traction as operators focus on adding value, with 9.9-yuan meal deals proving particularly popular.
Europe:Â Despite challenging economic conditions, including high inflation and rising value-added tax (VAT), consumers are increasingly focused on finding value. Managing pricing strategies, adding value, and implementing smart promotions have become critical for operators to retain customers and prevent them from trading out of the foodservice market altogether.
United States:Â Operators are focusing on deal strategies that help consumers manage tight budgets without pushing them to trade down from premium occasions. The key differentiator in the foodservice sector is not offering the lowest price, but rather providing value through creative offerings and strong customer engagement.
Restaurants that make their guests feel valued and deliver the experience the guests expected when they walked in the door or placed their order for delivery have the best chance of turning a one-time value seeker into a loyal customer, Fires said.
“‘Treating myself’ is among the top three consumer needs states for dining out, regardless of income group. Several restaurant brands, chains and independents are doing a good job of giving their guests options within a price point while at the same time introducing new innovations to their menu. Consumers want to try something new, even if their primary reason for the visit is driven by price.”
Fires noted that value will always be important, no matter the economic environment.
“For 2025, we believe restaurants will continue to use the price lever as part of their value proposition, but it can’t be the only lever. Consumers want new experiences and variety. Restaurants will need to maintain a strong innovation pipeline and focus their communications on value, taste, experience, and convenience. A strong loyalty program is another way to deliver value, as 59 percent of loyalty members plan to revisit that restaurant again.”
Â
