The trend: Taco Bell and Sonic Drive-In are the latest entrants in this summer’s fast-food value war.

• Taco Bell’s $7 Luxe Cravings Box is a collection of four of the chain’s most popular menu items—a Chalupa Supreme, a beefy five-layer burrito, a double-stacked taco, chips with nacho cheese, along with a medium drink—that costs 55% less than if the items were bought separately.
• Sonic’s new $1.99 menu features an array of snacks, desserts, and entrées, including a quarter-pound double cheeseburger, bacon ranch queso wrap, small tots, and 16-ounce Sonic shakes.

The two chains’ new offerings come on the heels of a flood of other restaurants, including Burger King, Jack in the Box, KFC, McDonald’s, Starbucks, and Wendy’s offering steep discounts this summer.

How we got here: Consumers turned to quick-service restaurants for a speedy, inexpensive meal in the wake of rising grocery prices in 2021 and 2022. But as grocery price growth has fallen back to nearly 1%, fast-food prices continued to rise.

• Fast-food prices rose nearly 28% from 2019 to 2023, per the US Commerce Department.
• Those higher prices pushed some consumers away and led others to cut back.
• As a result, several chains have reported disappointing results.
• Now, nearly every chain is in a race to the bottom with low-priced options to lure consumers back.

The big takeaway: The price wars are helping the fast-food industry get back on track.

• Rising prices drove consumers to think of fast food as a luxury. But value-focused offerings now give customers an excuse to splurge on a small indulgence such as Sonic shake.