Customers seem to be returning to chain restaurants as companies such as McDonald's, Starbucks and Buffalo Wild Wings have rolled out promotions to win back inflation-weary consumers.
New data from Placer.ai shows that foot traffic has increased at some of these chains that have started offering limited-time value meals and promotions after a period of raising prices.
One notable example was that McDonald's saw a massive boost in foot traffic in the first week following the June 25 launch of its $5 meal deal. June 25 marked the busiest Tuesday of the year for McDonald's, Placer.ai reported. Placer.ai said foot traffic increased between 5.4% and 7.9% year over year for the four days following the launch of the value meal.
The $5 meal deal includes small fries, a four-piece Chicken McNuggets, a small soft drink, and the choice of a McDouble or McChicken sandwich. Top rivals Burger King and Wendy's have also offered similar promotions.
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Starbucks has seen a boost in customers on Fridays since rolling out a 50% discount on some beverages served between noon and 6 p.m. On the first day of the promotion on May 10, Starbucks had a 20% increase in customers over the same day in 2023.
On the Friday before launching the promotion, year-over-year traffic had declined 1.1%.
Buffalo Wild Wings has seen an increase in customers on Mondays and Wednesdays, according to Placer.ai. Buffalo Wild Wings launched an unlimited boneless wings promotion on May 13, which was slated to run through July 10. From May 12 through the end of June, foot traffic at locations was up 45.6% on Mondays and 49.3% on Wednesdays compared to the same days a year prior.
The promotions helped boost overall foot traffic for Buffalo Wild Wings by 8.1% compared to a year earlier.
The deals come as several restaurant leaders have said they may have priced out some consumers during a period of high inflation.
According to the consumer price index, between January 2021 and June 2024, prices for food away from home increased by 22.7%. Food at home increased by 20.9% during the same time period. With rising labor costs, restaurants said they had to raise prices.
But with food costs leveling off, restaurants are rethinking their pricing strategies.
"Providing our customers with affordable options has always been core to our brand, and it's even more important as consumers feel pressure on their spending, particularly the lower-income consumer," Ian Borden, McDonald's chief financial officer, said in an earnings call earlier this year.
