What brands can learn about the rise of value meal deals: building customer trust, confidence, and perception

Fast-food giants such as McDonald’s, KFC, and Burger King have recently doubled down on promotions that emphasize value, and address customers’ financial concerns and skepticism over shrinkflation. These deals also provide lessons for brands looking to boost customer sentiment, loyalty, and trust. Here are three takeaways from the growing popularity of value meals, and how they can inform better brand strategies.

1. Strategic pricing shows you’re listening to your consumers

Combos, now repositioned as value meals, are a direct response to consumers’ growing hesitancy to spend amid inflation anxieties, economic uncertainty, and the rising cost of living.

• Despite the increase in consumer confidence last month, it’s still below the threshold that signals an impending recession, according to July 2024 data by The Conference Board.
• This sentiment is pushing consumers to seek deals. Some 43% of dining consumers worldwide hunt for coupons, while 39% are choosing value meals, and 36% are taking advantage of happy hour specials, per a June 2024 report by Lightspeed Commerce Inc.

Brands that offer value meals are proving to customers that they’re tapped into their concerns and driven to meet their needs—a move that could uplift brand perception and loyalty.

Take action: Build trust and position the brand as a financial ally by paying attention to how your customers are feeling—especially if it’s the squeeze of a limited budget. Pricing should reflect customers’ economic challenges, so make it easy for them to access coupons and incentives.

2. Enact change—not just words—to combat backlash

In July 2023, a Connecticut-based McDonald’s sparked controversy for charging $18 for a Big Mac combo—nearly double what the chain claimed it cost ($9.29) on average. Less than a year later, McDonald’s released its $5 value meal. “Recently, we have seen viral social posts and poorly sourced reports that McDonald’s has raised prices significantly beyond inflationary rates. This is inaccurate,” Joe Erlinger, president of McDonald’s USA, said in a press release.

Industries where consumers see price hikes for everyday items, including quick-service restaurants, have declining trust, according to a May 2024 report by Axios and Harris Poll.

Take action: When faced with criticism, brands should be prepared to back up their statements with tangible change. Timely, transparent communication and a willingness to actively resolve feedback can help rebuild consumer confidence.

3. Consider the deal’s bigger picture and its bottom-line impact

Although it may be easy to view the success of limited-time offers in a vacuum, metrics such as immediate sales won’t tell the whole story about its long-term wins. Instead, KPIs should look toward the future. For example, data on Mcdonald’s $5 Meal Deals show how they are impacting consumer behavior and brand perception:

• 70% of Meal Deal buyers said the promotion was part of the reason why they ate from McDonald’s, according to July 2024 data by Numerator.
• 59% say they will eat at McDonald’s more often if the Meal Deals stay on the menu, the same report found.
• Meal Deals are boosting McDonald’s share of spend at limited-service restaurants.

Take action: Track metrics that speak to the longevity of the brand. Look at how deals are affecting repeat business, customer satisfaction, and overall brand equity, ensuring they align with the overall value proposition.

This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.