The insight: Value menus are the rare bright spot in an otherwise sluggish year for the restaurant industry.

• Traffic related to value menus rose 1% YoY in Q2, per Circana. Overall restaurant traffic fell by 1% YoY in the same period, indicating that meal deals are getting diners to open their wallets.
• However, with more value menus on the market—and rising competition from grocers and convenience stores—restaurants must work harder to stand out.

More than price: It is becoming clear that price is only one ingredient of the value equation. In a Tillster study, 59% of quick-service restaurant (QSR) customers rated price as a main indicator of value. But nearly as many (56%) pointed to food quality or freshness, while 33% said order accuracy was important.

Consumers’ nuanced understanding of value explains why some chains—like Chipotle and KFC—are struggling to win over diners despite having lower prices.

• A BTIG analysis across 17 markets found that the average price of Chipotle’s core entrées was 30% to 40% lower than Sweetgreen and Cava. But the brand is having trouble communicating that value to potential customers: Comparable sales sank 4% YoY in Q2, forcing the chain to bring back popular dishes like Carne Asada and rely on promotions to spice up engagement.
• KFC is also having difficulties addressing “gaps in value perception,” Yum Brands CEO David Gibbs said on the company’s Q2 earnings call. The QSR is hoping to bridge the divide with marketing—with the help of new CMO Melissa Cash—as well as resurfacing nostalgic favorites like potato wedges to draw customers.

Convenience stores take note: A broader interpretation of value could also explain increasing food sales at convenience stores.

• Purchasing breakfast at a convenience store may cost more than cooking food at home, but customers still see it as “good bang for their buck,” Sarah Beckett, vice president of sales and marketing for Intouch Insight, told CNBC.
• The convenience of picking up a quick meal during the morning gas run, coupled with upgraded food options and a breadth of complementary items, are turning convenience stores into serious competitors to fast food.
• Breakfast traffic to fast-food chains increased just 1% in the three months that ended in July, while visits to “food-forward” convenience stores rose 9% YoY, per Circana.

Our take: As restaurants have discovered, meal deals alone aren’t enough to get customers through the door. Instead, operators need to excite would-be diners about what they’re offering—whether by emphasizing the scale of their discounts, product or service quality, or the temporary nature of offers.

Go further: Check out our latest Infopack: Restaurants 2025.