Chart from Meaningful Vision.
Special price offers surge as the most popular promotional tool for QSRs
It accounts for 79% of dine-in formats and 53% in the delivery sector.
Special price offers are the most popular promotional tools in quick-service restaurants, accounting for 79% of dine-in formats and 53% in the delivery sector, highlighting that promotions continue to play an increasingly important role in attracting customers, according to data released by Meaningful Vision.
In the first half of 2024, the number of promotions increased by 13% in casual dining establishments, and by 25% in Quick Service Restaurants (QSR). The delivery sector’s relatively modest growth of 3% is likely due to the high saturation of promotional activity already seen in this sector of the market.
Websites and Apps have emerged as the key channels for promotional activity. Fast-food chains are embracing digital platforms to offer targeted deals to a growing customer base. Many chains have rolled out loyalty programs and app-based promotions, rewarding customers with discounts, special offers or deals, encouraging repeat business.
For example, doughnuts, free sausage rolls, and other items from the Greggs menu are available to people downloading its app for the first time. Burger King enthusiasts can grab a free Whopper when using the chain's YourBurgerKing app. McDonald's My Rewards app rewards customers with points when purchasing items, redeemable for free food.
Free/Extra Product offers make up only 10% of overall promotions. Whilst absolute discounts are less common in QSR than price promotions, they're witnessing a rise in popularity within the delivery sector, reaching 53% compared to 8% in the dine-in format.
Many fast-food chains are focused on daypart-specific promotions. For instance, Greggs and McDonald's offer breakfast deals, while KFC targets the lunch crowd.
Maria Vanifatova, CEO of Meaningful Vision predicts that promotions will become more focused and targeted towards specific demographics and times of day. By leveraging digital platforms and understanding customer preferences, restaurants can create effective campaigns to drive sales, build brand loyalty, and stand out in a competitive marketplace.
