Key stat: Price inclination for food away from home was up 3.8% YoY in October 2024, higher than the 1.1% increase in inflation for food at home, according to data from the US Department of Labor’s Bureau of Labor Statistics.
McDonald’s will focus on “McValue” in 2025: The fast-food chain plans to extend its $5 value menu and add deals as the QSR price war rages on.
McDonald’s earmarks $100 million to undo damage from the E. coli outbreak: The fast-food chain will spend big on marketing and offer franchisees more support to win back customer trust and sales.
Wonder buys Grubhub for $650 million: The Marc Lore-owned company snapped up the delivery service at a steep discount, seeking to develop a meal-time super app.
Cava’s brand positioning resonates with consumers: It stands in stark contrast with Sweetgreen, which is adding new proteins and testing fries to broaden its appeal.
Consumers steer clear of fast food despite QSR price war: Burger King, KFC, Pizza Hut, and Popeye’s all saw comparable sales fall in Q3—although Taco Bell’s value proposition kept it ahead of the pack.
Yum China bucks difficult retail environment thanks to more promotions, rapid store expansion, and durian pizza: The KFC and Pizza Hut operator’s efforts to offer more value and reach consumers in lower-tier cities drove sales and transaction growth in Q3.
Chinese consumers aren’t buying as much beer as they used to: Anheuser-Busch InBev and Carlsberg both reported bigger-than-expected volume declines in Q3.
New Starbucks CEO Brian Niccol has his work cut out for him: One can look to his former employer, Chipotle, to see how he can sharpen the coffee chain’s focus.
McDonald’s value focus paid off in Q3: But challenges remain as the company needs to dig out from the recent E. coli outbreak.
It’s a tough time to be a mid-market restaurant chain: Consumers’ pullback on dining out has led Denny’s, TGI Friday’s, and Shari’s to close locations.
McDonald’s doesn’t want to be political: But franchisees in the US and Israel have put the brand in political hot water.
Not every restaurant chain is joining the value war: Chains such as Potbelly, Chipotle, and Red Robin that cater to slightly more affluent consumers are using a lighter touch to attract customers.
McDonald’s targets Gen Zers with limited-time Chicken Big Mac offering: The QSR is supporting the launch with a campaign that highlights dupe culture, livestreaming, and other generational touchstones.
Olive Garden inks delivery partnership with Uber following parent Darden Restaurants’ poor quarter: The company missed sales and earnings expectations as consumers cut back on restaurant visits.
McDonald’s, Starbucks refocus on core strengths: McDonald’s added kiosks for faster service, and Starbucks enhanced its stores’ ambiance to encourage longer customer visits.
Biden administration puts airlines’ loyalty programs under the microscope: The probe, which examines how carriers devalue points that consumers have earned, could send ripple effects across other industries.
Consumers still think fast food is too expensive, despite the value meal wars: While deals are boosting foot traffic in the short term, operators face long-term difficulties as customers either trade up to fast-casual chains or pull back entirely.
Starbucks tasks Chipotle CEO Brian Niccol with turning its business around: The company hopes the leadership change will reverse several quarters of declining sales—and reduce scrutiny from Howard Schultz and activist investors.