Fast-food has had some bargain prices for many consumers until Biden’s inflation forced major price increases.
In an effort to get people back, McDonald’s recently announced a new promotion that will begin in June, offering lower prices on some of its combo meals.
Now Wendy’s is offering some new bargain prices to try and woo back inflation weary customers.
Wendy’s offers new $3 breakfast combo
Wendy’s will now offer a special $3 breakfast combo as it looks for new ways to increase sales as more customers are choosing to dine out less often.
The new breakfast deal will include a small portion of seasoned potatoes and a choice of a bacon, egg, and cheese English muffin or a sausage, egg, and cheese English muffin.
The Wendy’s breakfast combo deal comes as McDonald’s is also ramping up to release a limited-time value meal option in an attempt to boost traffic.
CNBC reported that the fast-food giant’s new $5 meal deal will be available starting June 25 and will last for only one month.
As inflation remains stubborn, US consumers are starting to become much more particular about how and where they spend their money.
Some restaurants are beginning to see more impactful customer pullback, while other fast-casual chains are enjoying strong sales despite having higher menu prices.
It’s mostly companies that typically serve low-income consumers who are facing challenges trying to bring in customers as inflation lingers.
Earlier this month, Wendy’s reported that its first-quarter revenue grew just 1.1 percent to $534.8 million.
The company’s same-restaurant sales worldwide grew a mere 0.9 percent in the same quarter.
As for McDonald’s, the company missed first-quarter earnings expectations last month.
While higher prices did help the fast-food chain’s revenue overall, it also scared a large portion of low-income customers away.
Chief Financial Officer Ian Borden said McDonald’s started to adopt a “street fighting mentality” to try and compete for diners who have value at the top of their list of priorities.
Other companies like KFC, Pizza Hut, and Taco Bell owner Yum Brands posted a disappointing earnings report that missed Wall Street estimates.
The company said same-store sales declines for Pizza Hut and KFC were largely to blame.
Outside dining costs keep rising
The cost of dining outside of the home has been increasing almost four times faster than dining at home.
This data comes from the Bureau of Labor Statistics, which calculated the information over the past year.
Fast-food restaurant traffic is down 3.5 percent in the first quarter compared with 2023, and the cost of outside dining has risen by a whopping 33 percent since 2019.
At one point, Wendy’s hinted that it might use a recent $20 million investment in digital menu boards to try and experiment with dynamic pricing in 2025.
However, the company faced so much backlash about the proposal that it quickly scrapped the idea.
Now, it looks like Wendy’s is jumping into the fast-food war to try and remain as competitive as possible instead.
Informed American will keep you up-to-date on any developments to this ongoing story.
