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US restaurant chains relying on value meals, new menu items to drive traffic in 2018

January 30, 2018

With restaurant traffic stuck between a 1 percent increase and flat for several years now, U.S. restaurant chains are turning to value deals, new menu items, or optimizing menus to focus on high-performing items in order to drive more customer traffic, according to The NPD Group.  

Total U.S. restaurant traffic ended 2017 flat and had it not been for a 1 percent increase in quick service restaurant visits primarily driven by chains, traffic would have declined, reports NPD, which continually tracks the foodservice industry, according to a company press release. 

Evidence that consumers are looking for deals includes the fact that visits based on deal offers — which represent 25 percent of all restaurant traffic — grew for the third consecutive year in 2017, up 2 percent from 2016. Non-deal visits, which represent 75 percent of all traffic, were down 1 percent in 2016 and 2017, finds NPD's foodservice market research.  
 
Historically, quick service restaurants have grown by offering lower-priced eats in the form of combo meals and value menus. Over the past few years, however, lower-priced offerings have not been promoted as frequently, but many restaurant chains are thinking that it's time again to focus on value deals. 

McDonald's, for example, launched a value menu in January, which offers items for $1, $2, and $3, and other chains will most likely follow suit in offering value deals this year.  
 
New menu items are another way to get the attention of consumers, says NPD, and major chains welcomed 2018 with a variety of menu introductions. 

"New items will drive traffic because there is a large group of consumers who are curious and want to try something new," says Bonnie Riggs, NPD restaurant industry analyst, in the release. "They'll try it once and if it's really good, they'll be back for more."
 
In addition to new menu items, chains are optimizing their menus by eliminating less popular items and focusing on the higher performing menu items. This is not only an operational efficiency for the chain, said Riggs, it also makes it easier for them to better market the popular items on their menu.      
  
"It's clear that major restaurant chain operators are pulling out all of the stops to get consumers to visit this year," she said. "They're doing all of the things that historically have caught the attention of consumers and driven traffic and they're hoping that it works again this year."