A study by the NPD Group has found that introducing a value menu has increased customer traffic at major quick service restaurant (QSR) chains.
NPD Group conducted the study, ‘Value Wars 2.0: The Value Menu Strikes Back’, with a focus on value menu items in three major QSRs—Jack in the Box, McDonald’s, and Taco Bell.
QSRs have increased value menu by 10% and customer spending on these menu items has increased by 13% in the first quarter of 2018.
The study also reported that QSRs are launching value menu items to drive traffic as well as win back and retain customers.
According to the report, McDonald’s launched a value menu from January this year in a move to bring back customers who moved away over the past few years.
Taco Bell and Jack in the Box also launched value menu items to compete with McDonald’s and retain customer base.
Around 72% of customers of the three major QSRs ordered items from the regular menu while purchasing items from the value menu, reported NPD.
NPD restaurant industry analyst Bonnie Riggs said: “A value proposition is definitely warranted to increase customer visits and drive frequency in today’s marketplace as the recent crop of value menus bear out.
“But it’s important to fully understand the impact and effectiveness of these promotions, whether it’s understanding value-seeking customer behaviour or loyalty erosion.”