7 Ways to Demonstrate Value And Boost Traffic

As inflation and rising costs continue to challenge the industry, understanding how to demonstrate value will be a game-changer for restaurants looking to thrive in 2024 and beyond.

Strong perceived value, affordability and execution are essential for restaurants to outperform competitors. Although restaurants trail eating at home in terms of affordability, consumers value the convenience and experience dining out provides compared with eating at home by a two-to-one ratio, according to Datassential.

With menu price fatigue and economic pressure, restaurants are pushed to experiment with new tactics for driving trial, traffic, and repeat purchases. The following tactics can help demonstrate value and drive business growth.

1. Minimum Discount

When it comes to developing attractive pricing strategies, the majority of consumers say discounts between 11-30% are the minimum threshold for a good deal, according to Datassential. Millennials, in particular, say that low price is what they value most. Growing New York City-based chain Just Salad recently relaunched their bring your own bowl campaign, providing customers with a 25-33% discount plus a free topping, bringing in many new customers while saving the planet.

2. Quantity-Driven Deals

Who doesn’t love a BOGO? Quantity-driven deals like a buy-one-get-one-free whole pizza or a $20 family pizza meal are the most appealing. Taco Bell is capitalizing on this with its 2024 Cravings Value Menu, which includes a customizable new Build-Your-Own-Cravings-Box.

3. Pop-Up Specials

More than 7 in 10 adults would take advantage of pop-up specials if offered by a restaurant in their area. Among millennials and Gen Z adults, the number rises to 8 in 10. Wendy's offered Jr. Bacon Cheeseburgers for just one penny to celebrate National Bacon Day while boosting app downloads. Though today’s specials tend to be promoted online, it’s essential to also consider other channels, given that 42% of Gen X and 48% of Boomers look for local restaurant coupons that come in the mail.

4. Smaller Portions

According to the National Restaurant Association, 80% of Gen Z and millennials would take advantage of smaller portions offered at a lower price. By adjusting portion sizes, operators can tap into today’s snack-happy consumers and encourage them to try more offerings. Given that time and convenience are highly valued, on-the-go snacks and beverages are worth exploring too. Subway teamed up with Cinnabon and Auntie Anne’s to expand their footlong snack menu by adding $2 churros, $3 pretzels and $5 cookies.

5. Multicourse Meal Bundles

Multicourse meals that include, for example, an appetizer, entree and dessert, appeal to 68% of consumers. These bundles, especially ideal for off-premise dining, can bring in a higher ticket average and expose consumers to more menu items. Chili’s Grill & Bar recently announced their “3 for Me” value meal, including a bottomless drink, chips and salsa, and a cheeseburger and fries for $10.99.

6. Digital and App-Exclusive Deals

With 40% of Gen Z and 35% of millennials looking for deals on restaurant or delivery apps, digital and app-exclusive deals should be a key part of your value strategy. Recognizing the importance of online engagement, major players like McDonald’s and KFC are updating their apps to encourage order-ahead business and offer digital-exclusive deals. McDonald’s is incentivizing loyalty members to order “like a VIP” through the opportunity to earn free food automatically through its rewards program on orders placed ahead.

7. Loyalty Programs

8 in 10 adults said they’d likely join a loyalty and rewards program if offered by a favorite local restaurant. These programs enable brands to understand unique customer behaviors and drive continual awareness, repeat purchases and customer referrals. With 57% of restaurants offering rewards and loyalty programs, as revealed by Insider Intelligence, we suggest doubling down as well. Even Chipotle, with over 30 million loyalty reward members, noticed loyalty orders generating higher checks, more frequency and consumer data.

Focusing on value is just one way to engage with customers in 2024. There are many ways to design your menu and marketing strategy to boost buzz and traffic. Subscribe to our newsletter for more business-building insights and actionable strategies for your operation.