Value beyond price

CONSUMER OPINION

Due to inflation, consumers are spending the same in 2020 but receiving less. Rising costs have forced restaurants to increase menu prices, but consumer perceptions of value haven’t necessarily followed. Actual prices outpace perceptions of value by 13-60% on average.

For example, for the average lunch/dinner combo, most consumers think $8.34 is a good value. However, the actual price is now closer to $13.37—a 37% gap in perception of value.²

Photo of burgers, fries, sodas, onion rings, and chicken tenders. A graphic bubble in the bottom right of the image highlights the statistic: Menu prices are up 26% since January 2020.

THE BASICS OF VALUE

Value is one of the primary influencers for where and what consumers eat—it’s the most impactful factor in deciding a restaurant. 73% say value is important even in deciding the food and beverage to order. However, over the last four years, perceptions of value have declined. As a whole, value takes into account how well expectations are being met, and expectations focus more on pricing in QSRs (quick service restaurants).

Bar graph showing Value Perceptions of Quick Service, Fast Casual, Full Service, and Convenience Retail. The chart illustrates the increase and decrease of good value perception for all categories from 2020 to 2024: Quick Service decreased by 7 points, Fast Casual decreased by 3 points, Full Service decreased by 5 points, and Convenience Retail increased by 1 point.

Chart displaying the Top Reasons Consumers Would be Willing to Pay More for Beverages: unique beverages not available anywhere else (37%), frozen specialty drinks/milkshakes (37%), seasonal or LTOs on sparkling soft drinks from fountain machine (29%), specialty coffees/teas (29%), and unique or toxic ingredients/add-ons for beverages (29%).

Many are looking for variety in food and drink options, and the personalization of their order to make it their perfect meal. Personalized ordering matters, with 58% of consumers saying they would recommend a QSR based on a good personalized ordering experience. Deliver more variety to frequent visitors with beverage pairings, healthy drink options, plant-based options, and bottled/glass beverages.

Another unique way to bring variety is by offering unique seasonal beverages and shakes. 37% of consumers are willing to pay more for unique beverages not available anywhere else.⁹ ¹⁰

Even with a wide range of options to offer value to guests, price will always play a major factor. This also includes food quantity—offering options like BOGO (buy one, get one) can create higher retention. 44% of consumers seek out deals and promos more often than they did two years ago. Increase value perceptions with frequent visitors through personalized rewards, loyalty programs, beverages at lowest price or great deal, and free delivery.³

Infographic illustrating the four ways to add value in price: personalized rewards, loyalty programs, lowest price or deal, and free delivery.