Value Wars 2.0: The Value Menu Strikes Back
Value menus are making a comeback, this time in the form of tiered value pricing. We analyzed QSR chains McDonald’s, Taco Bell, and Jack in the Box and how they focused on value in early 2018. Are value menus changing consumer behavior? Are they achieving operators’ goals? And what impact are they having on the overall foodservice market? Our new report, Value Wars 2.0: The Value Menu Strikes Back, assesses the effectiveness of the latest value menus in the first full month the offers were available. Here’s a look at what’s inside...
On average (all three chains), 72% of consumers purchasing from the value menu also purchased from the regular menu on the same visit.
purchased just a value menu item.
purchased multiple items from the value menu.
HERE'S A TIP!
Balance value menu offerings to entice customers to order from both the value menu and the regular menu.
Value menu buyers visited an average of 3.0 times in January.
On average, they spent 70% more than those who did not purchase from a value menu.
HERE'S A TIP!
Consider both existing customers and lapsed customers when constructing value menus, to drive increased frequency.
Non-value menu buyers visited an average of 1.6 times in January.
While value menu buyers had a slightly lower average check, their visit frequency resulted in higher overall spend in January.
The new report uses comprehensive longitudinal data from our Checkout service to analyze the new value menu options McDonald’s, Taco Bell, and Jack in the Box introduced or altered in late 2017 and early 2018. Now you can learn how effective these promotions were when it came to growing each chain’s business — and how value menus might work for you, too.
Source: The NPD Group / Checkout, January 2018 (first full month of the tiered value menus)