How are QSRs driving traffic despite price hikes?
2 in 3 have reported an increase in traffic in 2024.
64% of QSR executives reported that traffic in their restaurants has risen across all dayparts so far in 2024, a report by TransUnion and Restaurant Dive revealed.
The survey was completed in June by 100 QSR executives from companies generating at least US$250m in annual revenue.
The report revealed in the current high-inflation environment that, 77% reported that food quality was the most important factor followed by speed of service (58%), price competitiveness (39%), loyalty programme incentives or rewards (38%) sustainable/ecofriendly practices (33%), a variety of ordering options (30%) and order accuracy (27%).
However, what really made the difference is the emphasis on value. The report noted that value messaging with price increases was an effective strategy.
When asked to choose a variable for the effect it had had on their business, 67% of QSRs that said they raised prices whilst also significantly increasing an emphasis on value-driven messaging saw an extremely positive effect on customer traffic, which was a full 14 percentage points higher than those who raised prices and only somewhat increased an emphasis on value-driven messaging.
Over the past year, QSRs have also adjusted their value strategies. 88% said they have introduced/ accelerated targeted promotions or limited-time offers. Another 88% said they have introduced/ accelerated value deals/combo meals. Meanwhile, 85% said they have introduced/ accelerated family bundles. Almost half have said they would continue to do so.
Moreover, nearly half of QSR executives reported these changes had an extremely positive effect on customer traffic, with 50% seeing gains from family bundles and 49% saying the same about introducing or accelerating targeted promotions/limited-time offers and value deals/combo meals.
