Imagine that: Companies offering discounts are apparently getting more customers.
That, at least, is based on data from the foot traffic tracking firm Placer.ai, which said this week that select chains offering discounts have seen increases in traffic since they started offering them.
That includes McDonald’s, which saw traffic growth after it kicked off its $5 value offer late last month.
But the firm also looked at traffic at chains like Buffalo Wild Wings, Starbucks and Chili’s, finding that each of them have seen visits to their restaurants increase after they started pushing discounts.
That’s the plan, of course. Brands have been fretting about traffic declines for months, worried that high prices have been keeping more customers away.
Restaurants have continued raising prices at rates higher than grocers, intensifying the belief that they are no longer worth the money. Full-service restaurants raised prices 0.6% in June, according to new data from the U.S. Labor Department, while limited-service restaurants raised prices 0.2%.
Both were higher than the 0.1% increase at grocers. But the difference is particularly notable when considering prices over the past year, up 4.3% at limited-service restaurants and 3.9% at full-service concepts.
Numerous chains have been pushing value offers in a bid to lure customers and keep pace with the larger chains. That includes Del Taco, the Mexican fast-food chain, which on Thursday revealed a new $2-and-under value menu.
McDonald’s this summer kicked the value push into overdrive when it convinced its franchisees, with help from the beverage company Coca-Cola, to offer a bundle of items at $5.
The offer, which started June 24, led to traffic growth in the days after it was first offered. For instance, traffic was up 8% on Tuesday, June 25, when compared with a Tuesday a year earlier. It was up 7.1% on Wednesday, June 26, compared with a year earlier.
Starbucks, meanwhile, has been aggressively pushing value and discounts as the coffee shop giant has dealt with unusual declines in traffic starting late last year. The Seattle-based company responded with a new “pairings” menu, pairing small coffee drinks with various food items at between $5 and $7.
But it has also heavily courted app users with 50% discounts on Fridays starting on May 13, among other such promotions. It’s worked like a charm: On Friday May 3, before that promotion was launched, traffic was down 1.1% from a year ago.
The first Friday the promotion was offered led to a 20% jump in traffic, according to Placer.ai.
The traffic improvement isn’t limited to the fast-food sector. In late April, the bar-and-grill chain Chili’s upgraded its “3 and Me” menu, offering a three-course meal for as low as $10.99.
That led to a substantial boost in traffic in the weeks since then. The company’s Big Smasher Burger, a direct competitor to McDonald’s Big Mac, along with its chicken sandwich, helped drive more traffic.
Buffalo Wild Wings, meanwhile, has seen visits increase on Mondays and Wednesdays after that chain started offering unlimited boneless wings on those days starting on May 13. Foot traffic at the chain rose 8.1% after the launch, led by strong increases on those two days of the week.
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