November 14, 2022
Restaurant customers are more focused on food quality, friendly service, taste and affordability rather than deals a restaurant may be offering.
That's a prime finding of research released by The NPD Group.
While restaurants may be offering deals consumers are taking less advantage as there was no deal or non-deal commercial foodservice visit increase in the quarter ending Sept. 2022, according to a press release on the research.
In the 12 months ending June 2022, there was a one-dollar difference between an average restaurant customer check on a deal and a check not on a deal. Additionally, many operators, especially independents and smaller quick service and full service chains offer few or no deals, according to NPD's daily tracking of the foodservice industry.
Yet some big name QSR brands have increased deal offerings but those with the highest deal rates did not outperform other QSR brands in the quarter. Although deals aren't driving traffic overall, there were some successfully executed promotions — programs tied to loyalty programs, like digital coupons, or were creative, attention-grabbing, and relevant to customers, according to the release.
"Today, the foodservice industry has not yet broadly turned to deals to drive traffic. Operators who want to generate short-term lift via discount promotions should consider creative promotions that don't damage the perception of the brand's long-term value," David Portalatin, NPD food industry advisor and author of Eating Patterns in America, said in the release. "However, it's essential to remember that the critical traffic drivers remain quality food, tasty food, friendly service, and affordability. These are the attributes of the most successful restaurant brands."