Fast-Food Chains Ditch Discounts for Smarter Value Strategies

U.S. fast-food chains including McDonald's have found that discounts alone are no longer enough to attract price-conscious diners.

Value meals and promotions, which were once a reliable traffic driver for the industry, have been met with increasing skepticism by consumers seeking cheaper meals in the face of inflation.

The strongest performers, such as Yum Brands' Taco Bell, paired bargains with menu innovation, quality improvements, and a smoother customer experience to attract budget-conscious consumers without relying on blanket discounting across their menus.

Taco Bell's $5, $7, and $9 meal boxes were a hit with customers, while the chain continued to introduce new menu items that encouraged spending beyond the entry-level deal. As a result, Taco Bell reported a 7% rise in same-store sales during the quarter.