McDonald's $5 value meals lure back inflation-battered customers as Starbuck's, Chili's also see boost: survey

Core Insights - Fast-food and casual dining chains are successfully attracting customers with affordable meal deals amid ongoing inflation pressures [1][4] - McDonald's, Starbucks, Chili's, and Buffalo Wild Wings have reported increased foot traffic following the introduction of value-oriented promotions [1][2][3] McDonald's - McDonald's launched a $5 Meal Deal on June 25, which includes a McDouble or McChicken, a four-piece nugget, a small fry, and a small beverage, resulting in an 8$1 minimum purchase for app users, valid through the end of the year [1] Starbucks - Starbucks experienced a significant increase in foot traffic with its half-off iced drinks promotion on Fridays, which began on May 10, leading to a 20% spike in visits compared to the year-to-date average [1][2] - Prior to the promotion, visits on May 3 were 1.1% below the year-to-date average [1] Chili's - Chili's revamped its "3 for Me" value menu in April, introducing new options like the Big Smasher burger, with meals starting at $10.99 [2] - The week before the update saw a 4.7$19.99 on Mondays and Wednesdays, which led to an 8% increase in foot traffic immediately after the launch [3] - Visits on Mondays and Wednesdays spiked by 45.6% and 49.3% respectively, and remained above average for seven weeks following the deal's introduction [3] Industry Context - The restaurant industry is responding to long-lasting inflation, which has seen food prices rise by 25% from 2019 to 2023, with grocery and fast-food prices sharply increasing since the pandemic [4] - The average price of a McDonald's Big Mac has risen to $5.29, reflecting a 21% increase since 2019 [4] - Despite inflation easing to around 2.6%, restaurants are focusing on affordable meal deals to attract cash-strapped customers [4]